Practise IB Economics HL 2.3.3 by analysing how price signals answer allocation questions and affect market efficiency.
With reference to demand and supply in competitive markets, explain how the economic question "what to produce" is answered.
Answers may include:
- definitions of demand, supply, competitive markets
- diagram(s) to show demand and supply and the price mechanism
- explanation of how scarcity and opportunity cost necessitates choices and how the price mechanism works to provide incentives
- examples of choices and price mechanism at work.
Assessment Criteria
Part (a) 10 marks
Level ..... Marks
0 The work does not meet a standard described by the descriptors below. ..... 0
1 There is little understanding of the specific demands of the question. Relevant economic terms are not defined. There is very little knowledge of relevant economic theory. There are significant errors. ..... 1-3
2 There is some understanding of the specific demands of the question. Some relevant economic terms are defined. There is some knowledge of relevant economic theory. There are some errors. ..... 4-6
3 There is understanding of the specific demands of the question. Relevant economic terms are defined. Relevant economic theory is explained and applied. Where appropriate, diagrams are included and applied. Where appropriate, examples are used. There are few errors. ..... 7-8
4 There is understanding of the specific demands of the question. Relevant economic terms are clearly defined. Relevant economic theory is clearly explained and applied. Where appropriate, diagrams are included and applied effectively. Where appropriate, examples are used effectively. There are no significant errors. ..... 9-10