IB Economics HL 2.11.1 Hl Market Structures Topic Practice

Answers may include:
- Terminology: monopolistic competition, perfect competition
- Explanation: that perfect competition is characterised by many firms, free entry and exit, homogeneous products and perfect knowledge, whereas monopolistic competition is characterised by many firms, free entry and exit and product differentiation;
and the impact of these features on the two markets with regard to pricing power, long-term economic profits and allocative efficiency
- Diagram: use of a perfect competition diagram and/or a monopolistic competition diagram.

NB A maximum of [6] should be awarded for responses that confuse monopoly with monopolistic competition.

Assessment Criteria

Marks ..... Level descriptor
0:
- The work does not reach a standard described by the descriptors below.
1-2:
- The response indicates little understanding of the specific demands of the question.
- Economic theory is stated but it is not relevant.
- Economic terms are stated but they are not relevant.
3-4:
- The response indicates some understanding of the specific demands of the question.
- Relevant economic theory is described.
- Some relevant economic terms are included.
5-6:
- The response indicates understanding of the specific demands of the question, but these demands are only partially addressed.
- Relevant economic theory is partly explained.
- Some relevant economic terms are used appropriately.
- Where appropriate, relevant diagram(s) are included.
7-8:
- The specific demands of the question are understood and addressed.
- Relevant economic theory is explained.
- Relevant economic terms are used mostly appropriately.
- Where appropriate, relevant diagram(s) are included and explained.
9-10:
- The specific demands of the question are understood and addressed.
- Relevant economic theory is fully explained.
- Relevant economic terms are used appropriately throughout the response.
- Where appropriate, relevant diagram(s) are included and fully explained.