Question 22N.3.HL.TZ0.a.iv
| Date | November 2022 | Marks available | [Maximum mark: 3] | Reference code | 22N.3.HL.TZ0.a.iv |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | a.iv | Adapted from | N/A |
Figure 2 illustrates the daily world price of wheat in US dollars (US$) per kilogram from August 2020 to February 2021.
Figure 2
On 17 December 2020, Turkey eliminated a 20 % tariff it had imposed on wheat imports from Russia. Russia had recently decided to introduce a tax on its wheat exports. Turkey is the largest flour exporter in the world and Turkish flour exporters buy 85 % of the wheat they need in their production process from Russia.
[Source: Hürriyet Daily News, 2020. Turkey extends zero-tariffs on wheat imports to April [online] Available at:
https://www.hurriyetdailynews.com/turkey-extends-zero-tariffs-on-wheat-imports-to-april-160933 [Accessed
29 September 2021] Source adapted.]
Figure 3 illustrates the Turkish wheat market. Before the 20 % tariff was eliminated, the price for wheat in Turkey was US$7.20 per kilogram. S is domestic supply, D is domestic demand, Sw is world supply and St is world supply with the tariff.
Figure 3
The currency of Turkey is the Turkish lira (TL). If TL1.00 = US$0.134, using Figure 3, calculate in TL, the change in the monthly total revenues of Turkish wheat producers as a result of the elimination of the 20 % tariff.
[3]
TR1 = 7.20 36 = $259.20
TR2 = 6 30 = $180 [1]
Change = 180 – 259.20 = 79.20 [1]
Any valid working is sufficient for [1].
OFR may be applied if either the initial or the final revenues collected is correct and the subtraction is performed correctly.
79.2 * 1/0.134
591 044 776 OR 591.04 million [1]
Rounding to two decimal places is not required for the first option above i.e, –591 044 776 is sufficient and 591 044 776.12 is not required.
OFR applies if an incorrect US$ figure is converted correctly into TL, and [1] may be awarded; the mark is awarded for accurately converting a US$ figure to a TL figure.
A candidate may be awarded [1] for converting accurately before applying to (an incorrect) figure for revenue (i.e. 1/0.134 = 7.46)
A valid alternative approach is
TR1 = 7.20 36 = $259.20
TR2 = 6 30 = $180 [1]
Change = 180 259.20 = 79.20 [1]
Any valid working is sufficient for [1].
1/0.134 = 7.46
79.2 * 7.46
= – 590 832 000 OR 590.83 million [1]
OFR may be applied if either the initial or the final revenues collected is correct and the subtraction is performed correctly.
For full marks to be awarded the response must provide valid working and specify the decrease.
NB TL units are not required, since “in TL” is referred to in the question.
Although many candidates were able to perform the calculation correctly, this type of question continues to present problems for a significant number. Revenues of Turkish producers were often confused with total revenues or tax revenue. Conversion from US$ to TL was generally successful, with weaker responses earning 1 mark for this process.
