DP Economics

Test builder »

Question 22N.1.HL.TZ0.b

Select a Test
Date November 2022 Marks available [Maximum mark: 15] Reference code 22N.1.HL.TZ0.b
Level HL Paper 1 Time zone TZ0
Command term Evaluate Question number b Adapted from N/A
b.
[Maximum mark: 15]
22N.1.HL.TZ0.b

Using real-world examples, evaluate the decision of a country to remain a member of a trading bloc.

[15]

Markscheme

Marks should be allocated according to the paper 1 markbands for May 2022 forward, part B.

Answers may include:

  • Terminology: Trading bloc.
  • Diagrams: AD/AS diagram to illustrate growth. Economies of scale to indicate falling costs with increased market size. Trade diagram illustrating the removal of restrictions to trade.
  • Theory: Explanation of the impacts of a trading bloc on the economy in terms of employment, economic growth, trade creation, trade diversion and economies of scale.
  • Synthesis (evaluate): Advantages including trade creation, greater access to markets, economies of scale. Freedom of movement of labour and greater employment opportunities, stability and cooperation, increased economic growth, greater consumer choice, increased competition, lower prices, improved efficiency. Disadvantages including trade diversion, impact on sovereignty, the effect on multilateral trade negotiations such as those of the WTO. Unemployment in less competitive member states. Candidates who cite the EU as an example may also consider arguments pertaining to membership in the Eurozone.
  • Example(s): A relevant real-world example(s) of a country who is a member of a given trading bloc.
Examiners report

It was clear that candidates in general knew what a trade bloc was. It was also an area where candidates were able to demonstrate a pleasing familiarity with real-world developments in this area of the syllabus. The question emphasised a decision to remain a member of a bloc: many candidates did not apply this angle to their answer and instead focused on a more generalist response that only partially addressed the demands of the question. Much use, understandably, was made of the UK decision to leave the EU but the question focused on the merits of a decision to remain in one.

Syllabus sections