IB Economics HL 2.7.1 Reasons for Government Intervention Topic Practice

Answers may include:
- definition of price floor
- diagram showing the imposition of a price floor leading to higher prices and higher producer revenues
- explanation that governments impose price floors in the market for agricultural products to support producers by increasing producers' revenues and/or improving producers' ability to plan and invest for the future
- examples of specific agricultural markets where price floors have been imposed.

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 clear 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