IB Economics HL 2.8.1 Socially optimum output Question Bank

Practise IB Economics HL 2.8.1 by analysing social surplus, optimum output and distributional evidence.

Exam points

Analyse social or community surplus to identify the socially optimum level of output.
Interpret distributional data such as Lorenz curves alongside welfare outcomes.

[Maximum number: 1]

Indonesia is a middle-income country in southeast Asia. Its main agricultural exports are palm oil and coffee, which Malaysia also produces. The maximum amount of each good that Indonesia and Malaysia can produce in one hour is shown in Table 3.

Table 3

Using Table 4, identify the level of output when social/community surplus is maximized.

Table 5 shows Indonesia's income distribution according to the share of total income earned by households, ranked by income level.

Table 5

Using the information in Table 5, construct a labelled Lorenz curve for the year 2000 on Figure 2.

Figure for Answer to Question 2.8.1—Socially optimum output question 1 — IB Economics HL

Award [1] for a curve (smooth or straight lines), plotted accurately at the $20{ }^{\text {th }}$ and $60^{\text {th }}$ percentile, (with the other points approximately correct) but without a label.
Award [2] for a curve (smooth or straight lines), labelled 2000, plotted accurately at the $20^{\text {th }}$ and $60^{\text {th }}$ percentile, (with the other points approximately correct).

All question bank results loaded

2.8.1—Socially optimum output question 1