Practise IB Economics HL 2.7.2 by identifying price ceilings, price floors, indirect taxes, subsidies, direct provision, regulation and legislation, using diagrams and marked exam evidence.
Using at least one diagram, explain how a buffer stock scheme might function.
Candidates may include:
- a definition of a buffer stock scheme
- an explanation of a buffer stock scheme as a means of stabilizing the price of a commodity
- use of a diagram showing a range of minimum and maximum prices allowed by the scheme
- an explanation of how the buffer stock would function. It would be enough to outline any two of the following points:
- if the equilibrium price changes within the predetermined range, the administrative body would take no action
- if the equilibrium price falls short of the minimum price, the government would increase the demand by buying
- if the price exceeds the maximum, the administrative body would release stocks to increase supply
- difficulties associated with buffer stock management, e.g. a build up of surpluses
- examples of buffer stock schemes.
Examiners should be aware that candidates may take a different approach which if appropriate, should be rewarded.
Assessment Criteria
Level
0
Completely inappropriate answer.
1
Little understanding of the specific demands of the question.
Very little recognition of relevant economic theory.
Relevant terms not defined.
Significant errors.
1-3
2
Some understanding of the specific demands of the question. Some recognition of relevant economic theory.
Some relevant terms defined.
Some errors.
4-6
3
Understanding of the specific demands of the question.
Relevant economic theory explained and developed.
Relevant economic terms defined.
Few errors.
Where appropriate, diagrams included.
7-8
4
Clear understanding of the specific demands of the question.
Relevant economic theory clearly explained and developed.
Relevant economic terms clearly defined.
No major errors.
Where appropriate, diagrams included and explained.
Where appropriate, examples used.
9-10