NCEA Level 2 Economics (90796) — page 1 of 5
Assessment Schedule – 2011
Economics: Describe economic growth and its causes and effects using economic
models (90796)
Evidence Statement
Question
ONE
(a)
(b)
(c)
Evidence
The export receipts (or
consumption) flow
Greater export receipts (or
consumption) would increase
aggregate demand / sales /
revenue, and producers
would be producing more to
meet the extra demand /
encouraged to produce
more. So growth increases.
Producers in the Waikato
region would benefit with
increased revenue (and
profits) because of the extra
demand / sales in the region.
There would be more jobs
and income for households in
the region, as producers
would need more workers to
provide extra goods and
services. Also more goods
and services would be
provided in the region for
households.
Producers in other regions
may benefit, with increased
revenue (and profits) if
overseas visitors travel to
other parts of New Zealand,
and purchase goods and
services.
Hence jobs may also be
created for households in
other regions.
However, the Waikato region
will benefit more than other
regions, as most of the
increased spending and
production will occur in the
Waikato, as that is where the
rowing champs is being held.
Achievement
TWO of:
•
•
•
export receipts
(or consumption)
flow identified
Merit
Excellence
General valid
explanation of TWO
of:
In-depth explanation
of BOTH of:
•
states that
growth would
increase due to
greater export
receipts (or
consumption)
must include one
other detail
identifies a
positive benefit
for producers or
households in
Waikato region
or the rest of
New Zealand.
why greater
export receipts
(or consumption)
will increase
growth. Must
refer to
increased
output, and give
a reason for why
more will be
produced
•
why producers
or households
will benefit in the
Waikato region
•
why producers
or households in
other regions
may benefit.
•
why producers
OR households
will benefit in the
Waikato region
•
why producers
OR households
in other regions
may benefit
AND
•
explains why the
Waikato region
will benefit more
than other
regions.
NCEA Level 2 Economics (90796) — page 2 of 5
Question
TWO
(a)
(b)
Evidence
The PPF shifts outwards.
(See Appendix One)
Increased migration levels
to New Zealand means
more human resources are
available, so the productive
capacity of the nation will
increase / PPF shifts
outwards.
Achievement
TWO of:
•
•
•
(c)
Net social welfare equals
economic factors plus noneconomic factors.
Increased net migration
levels could increase output
if the extra human
resources can be
employed. This is a positive
economic factor, and NSW
would increase.
However increased net
migration levels could have
a negative effect on noneconomic factors, eg
pollution due to more cars
being on the roads, fewer
doctors per capita.
Growth will increase if the
positive impact for
economic / non-economic
factors outweighs the
negative impact from the
non- economic / economic
factors.
(Or the opposite, if negative
impact outweighs the
positive impact).
PPF shifted
outwards
states that
productive
capacity
increases
because of
increased net
migration levels
states that net
social welfare
includes
economic and
non-economic
factors.
Merit
Excellence
General valid
explanation of TWO
of:
In-depth explanation
of BOTH of:
•
how increased
net migration
levels will shift
the PPF
outwards. Must
give a valid
reason for
productive
capacity
increasing
•
why increased
net migration
could have a
positive impact
on NSW
•
why increased
net migration
could have a
negative impact
on NSW.
•
•
why increased
net migration
could have a
positive impact
on NSW
why increased
net migration
could have a
negative impact
on NSW
AND
explains why
growth will
increase or
decrease,
depending on the
relative size of
the impacts of
positive and
negative factors.
NCEA Level 2 Economics (90796) — page 3 of 5
Question
THREE
(a)
(b)
(c)
Evidence
Move to a point closer to
the PPF line. (See
Appendix Two)
Higher incomes resulting
from growth will lead to
greater consumption and
hence an increase in AD.
This could lead to demand
pull inflation
OR
Increased output will
increase the demand for
resources, which may
increase their cost,
resulting in cost push
inflation.
OR
Economic growth caused
by increases in productivity
may lead to an increase in
AS and inflation
decreasing.
Investment in physical
capital such as public
transport and new
motorways would mean
fewer cars would be using
the current existing roads,
so congestion would
decrease.
Reduced traffic congestion
and improved public
transport / roading would
save time and reduce costs
for transporting finished
goods and raw materials to
their final destination.
Hence the efficiency of
Auckland’s transport
system would improve and
productivity would increase,
so greater output and
increased growth.
Also, reduced traffic
congestion would have a
positive effect on the
environment and the quality
of life, eg reduce carbon
emissions, so net social
welfare would increase.
Achievement
TWO of:
•
•
•
shows increase
in real GDP on
PPF
Merit
General valid
explanation of TWO
of:
•
states that
growth will
increase inflation.
Must include one
other detail
OR
states that
growth will
decrease
inflation. Must
include one other
detail
identifies
examples of
investment in
physical capital
that will reduce
traffic congestion.
how growth will
increase inflation.
Includes a
reason for
demand pull
(increase in AD)
or cost push
(decrease in AS)
inflation occurring
OR
how growth will
decrease
inflation. Includes
a reason for AS
increasing.
•
why an example
of investment in
physical capital
could reduce
traffic congestion
in Auckland
•
why investment
in physical capital
and reduced
traffic congestion
would increase
growth. Must give
a valid reason for
productivity or
output increasing
OR
•
give a valid
reason for net
social welfare
increasing.
Excellence
In-depth explanation
of BOTH:
•
why investment
in physical capital
could reduce
traffic congestion
in Auckland
•
why investment
in physical capital
and reduced
traffic congestion
would increase
growth. Must give
a valid reason for
productivity or
output increasing
OR
•
give a valid
reason for net
social welfare
increasing
AND
•
explains why
growth in
Auckland is
significant for
growth for the
rest for New
Zealand
NCEA Level 2 Economics (90796) — page 4 of 5
Given the size of the
Auckland economy, a
substantial increase in
output would have a
significant positive effect on
New Zealand’s rate of
economic growth.
OR
Firms in other areas of
New Zealand who rely on
Auckland for raw materials /
goods will benefit from
savings in time / costs so
will also receive productivity
/ production gains.
NCEA Level 2 Economics (90796) — page 5 of 5
Judgement Statement
Achievement
Merit
Excellence
2A
2M
2E
Appendix One – Question Two (a)
Appendix Two – Question Three (a)