2016 May IB economics HL paper 3

[sajtkukac12]

How did you guys find the paper? Which of the questions did you select?

[sajtkukac12]

In question 3, I found it difficult to calculate a GDP deflator using the CPI data. The other parts of the paper were OK for me. 

[simon9867]

I did question 2 and 3. I had some trouble with the Terms of trade section. Is it ok if defined terms of trade as the ratio between the value of a country's exports and the value of its imports?. 

 

 

 

 

[inriya]

Question 2 and 3 are easy tbh, compared to May 2015. 

1 hour ago, simon9867 said:

I did question 2 and 3. I had some trouble with the Terms of trade section. Is it ok if defined terms of trade as the ratio between the value of a country's exports and the value of its imports?. 

Yes! That's a nice definition. 

[#teamnosleep]

What about defining the terms of trade as the ratio of a country's index of export prices to index of import prices?

How screwed am I if I wrote the formula for terms of trade as index of export prices over the index of import prices times 100% without the word average?

Am I the only one who did question 1 and 2? Did all of you answer all questions?

 

[Elc]

@#teamnosleep

Did question 1 and 2 here, feel horrified now since I didn't include the word "average" either. 

[sajtkukac12]

But does not the word index imply that you mean an average of something? 

Anyway, the mark scheme reward a vague definition with 1 mark, so you may expect 1 out of 2 in the worst case. 

[shraddhaj]

I did 1 and 3 and found them both to be quite easy. Easiest eco paper of the 3.

[Sandy]

I did 1 and 2.

In the first question, what was the answer to

why do members cheat?/what incentive do they have to cheat?

and

why do carters not last for long?

I don't remember the exact questions...I hope you understand what I'm talking about though xp

[#teamnosleep]

21 hours ago, sajtkukac12 said:

But does not the word index imply that you mean an average of something? 

Anyway, the mark scheme reward a vague definition with 1 mark, so you may expect 1 out of 2 in the worst case. 

Idk, in the Welkers textbook the definition mention both index and average in the same sentence. I hope the IB does not penalize us :(.

@Elc: Just keep your fingers crossed and hope for at least 1 out of 2 in the worst case.

@shraddhaj: What was your answer to Bostwana's current account balance question?

 

[sajtkukac12]

7 hours ago, #teamnosleep said:

Idk, in the Welkers textbook the definition mention both index and average in the same sentence. I hope the IB does not penalize us :(.

@Elc: Just keep your fingers crossed and hope for at least 1 out of 2 in the worst case.

@shraddhaj: What was your answer to Bostwana's current account balance question?

 

I think for Botswana's current account balance, you could talk about the J-curve effect. After a depreciation of the BWP, when the Marshall-Lerner condition is not satisfied, the current account balance deteriorates. However, in the long run, when demand for exports from Botswana and demand for imorts in Botwswana becomes more elastic, a depreciation will improve the current account balance. 

[#teamnosleep]

11 hours ago, sajtkukac12 said:

I think for Botswana's current account balance, you could talk about the J-curve effect. After a depreciation of the BWP, when the Marshall-Lerner condition is not satisfied, the current account balance deteriorates. However, in the long run, when demand for exports from Botswana and demand for imorts in Botwswana becomes more elastic, a depreciation will improve the current account balance. 

Ah man, totally forgot to mention the J-curve effect . I only talked about how the depreciation of BWP leads to Bostwana's current account balance going through a deficit 

:(.

[sajtkukac12]

9 hours ago, #teamnosleep said:

Ah man, totally forgot to mention the J-curve effect . I only talked about how the depreciation of BWP leads to Bostwana's current account balance going through a deficit 

:(.

They may not even ask for it. I think there wasn't enough space to explain the entire J-curve effect, so it is probably enough to justify why the current account would improve, without making any reference to PED of exports and imports. 

[Mad Hatter]

P3 wasn't that bad. I remember a couple of small questions I wasn't that sure.

P2 there was one big development question that I had no idea... I have never read nor heard anything of it in the textbook. So I tried to think, suggest and basically bs 1.5 pages...