Economics · Oct / Nov 2023 · Paper 22 · Question 4

0455

As printed in the paper

The question as text

In the US, the supply of meat from emus, a large bird, is price-elastic. Recently, US farmers have switched to keeping other livestock and growing crops that changed their demand for labour. US farmers are influenced by the subsidies the government provides for the production of selected food items. Some people are reluctant to become farm workers as they think living standards are low in rural areas.

Read automatically from the paper; the printed page above is exact.

Show the answer and mark scheme

4(a)[2]
Define elastic supply. The percentage change in quantity supplied is greater than the percentage change in price (2). Change in supply is greater than the change in price / PES > 1 (1).
4(b)[4]
Explain two reasons why a government may subsidise food production. Logical explanation which might include: Increase output (1)
overcome a shortage (1). Reduce price / cost (1)
help consumers / reduce poverty / give access to a basic necessity / make food more affordable (1). Increase quality (1)
improve nutrition / increase health of population / raise life expectancy (1). Increase incomes of farmers / farm workers (1)
raise their living standards of farmers / stop farmers going out of business (1). Reduce imports of food / increase exports of food (1)
improve the current account of the balance of payments / agriculture is a strategic industry / reduce dependency on other countries for an essential good (1). Increase employment / reduce unemployment (1)
help in rural areas (1). 4 One mark each for each of two reasons identified and one mark each for each of two explanations.
4(c)[6]
Analyse what influences a farmer’s demand for labour. Coherent analysis which might include: Demand for the food they produce (1)
derived demand / a higher demand for food will encourage farmers to expand their output / employ more workers (1)
more profits earned (1). Wage rates (1)
the lower the wage rate, the less it will cost to employ workers (1). Skills of workers (1)
the more skilled workers are, the more productive they will be (1). Price of other factors of production / costs of production (1)
if the price of e.g. agricultural drones falls, demand for labour may fall (1). Productivity of other factors of production (1)
advances in technology may result in farm workers being replaced by machinery (1). Type of farming (1)
some farming is more labour-intensive / capital-intensive (1). Size of farm (1)
large farms likely to employ more (1). Subsidies (1)
subsides may encourage a farmer to expand output and employ more workers (1). Seasons (1)
demand for labour is likely to be higher during harvesting (1).
4(d)[8]
Discuss whether or not people living in cities have a higher living standard than those living in rural areas. In assessing each answer, use the table opposite. Why they might:
may be more job opportunities
may be higher incomes
may be more forms of entertainment
may be shorter distance to schools and shops
may be more access to healthcare facilities
may be better quality education/ healthcare. Why they might not:
may be more traffic congestion
may be overcrowding
air and noise pollution levels may be higher
stress may be high
higher cost of living in cities. 8 The answer may be from the view of why people living in rural areas may have a higher living standard. Level Description A reasoned discussion which accurately examines both sides of the economic argument, making use of economic information and clear and logical analysis to evaluate economic issues and situations. One side of the argument may have more depth than the other, but overall, both sides of the argument are considered and developed. There is thoughtful evaluation of economic concepts, terminology, information and/or data appropriate to the question. The discussion may also point out the possible uncertainties of alternative decisions and outcomes. 6–8 A reasoned discussion which makes use of economic information and clear analysis to evaluate economic issues and situations. The answer may lack some depth and development may be one-sided. There is relevant use of economic concepts, terminology, information and data appropriate to the question. 3–5 Guidance Level Description There is a simple attempt at using economic definitions and terminology. Some reference may be made to economic theory, with occasional understanding. 1–2 A mark of zero should be awarded for no creditable content.

Practise this paper →

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.