Beruflich Dokumente
Kultur Dokumente
Model Answers
1a. From the news story on the previous page, which of the four types of
economic system discussed in the lectures is in place in the nation of Granisima?
1 mark
Answer
Granisma is a type of planned or (alternatively) command economy. The
very first sentence of the case describes Granisima as having centrally
controlled economic policies. The case then describes how the political leader,
General Sanchez will allow people to run small restaurants but continues to
impose limits on their size.
We recognise two kinds of planned economy:
Communist: Where all (100%) of the factor of production are owned and
controlled by the government
Socialist: Where most of the factor of production are owned and controlled by
the government
Of the two, Granisima appears to be socialist. This is because some small
businesses are permitted to exist.
1b. Justify and explain your answer by describing the main characteristic(s) of
this kind of economic system and provide evidence from the case
4 marks
Answer:
Economic decision making is highly centralised, in this case in the hands
of a powerful autocrat.
The government appears to have all of the economic decision-making
authority through a Central Board of Economic Advisers.
Major industries are owned by the government (bus transportation,
hotels)
The government sets prices (buses cant set their own fares)
Some small businesses are owned by private individuals (taxis and small
restaurants) but these are heavily regulated by the government.
Question 2
5 marks
2a Based on the above information, what is the degree of competition in
the broom manufacturing industry in Calexico?
1 mark
4 marks
Page 2 of 5
Question 3
parts - 7 marks
The chart below shows Greek GDP growth over the period from 2008 to 2013.
The table at the bottom of the chart shows the population of Greece during
those years. .
Greece
GDP Growth and Population
2008 2013
2008
-0.2
2009
2010
2011
2012
2013
-3.1
-3.9
-4.9
-7.1
Pop.
11.2
million
11.2
million
11.2
million
11.1
million
-7.0
11.1
million
11.0
million
3a. What do these figures tell us about the GDP per capita in Greece between
2008 and 2013? Explain and fully justify your answer.
4 marks
Page 3 of 5
Page 4 of 5
3 marks
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