DP Economics
Question 18N.3.HL.TZ0.b.ii
| Date | November 2018 | Marks available | [Maximum mark: 2] | Reference code | 18N.3.HL.TZ0.b.ii |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | b.ii | Adapted from | N/A |
b.ii.
[Maximum mark: 2]
18N.3.HL.TZ0.b.ii
Figure 3 illustrates the market for cotton in the country of San Marcus, a small closed economy. Cotton is used as an input in the San Marcus textile industry. Quantity is in thousands of kilograms (kg).
The Government of San Marcus decides to provide a subsidy equal to $8 per kilogram to its producers of cotton.
Calculate the cost to the government of San Marcus of providing this subsidy to domestic cotton producers.
[2]
Markscheme
8 × 75 (× 1000)
Any valid working is sufficient for [1].
= $600 000
An answer of 600 000 or $600 000 (without working) is sufficient for [1].
OFR may apply.
