11
Annotations for each question are included as the final page of each script.
Annotations for each question
are included as the final page
of each script.
L 90985
_j
lllllllllllllllllll -~ NZ~
NEW ZEALAND QUALIFICATIONS AUTHORITY MANA TOHU MATAURANGA 0 AOTEAROA
Level1 Economics, 2013
90985 Demonstrate understanding of producer choices using supply
9.30 am Tuesday 26 November 2013 Credits: Three
SUPERVISOR'S USE ONLY
Achievement Achievement with Merit Achievement with Excellence
Demonstrate understanding of producer Demonstrate in-depth understanding of Demonstrate comprehensive choices using supply. producer choices using supply. understanding of producer choices
using supply.
Check that the National Student Number (NSN) on your admission slip is the same as the number at the top of this page.
You should attempt ALL the questions in this booklet.
If you need more space for any answer, use the page(s) provided at the back of this booklet and clearly number the question.
Check that this booklet has pages 2-8 in the correct order and that none of these pages is blank.
YOU MUST HAND THIS BOOKLET TO THE SUPERVISOR AT THE END OF THE EXAMINATION.
TOTAL
© New Zealand Qualifications Authority, 2013. All rights reserved.
Low Merit
14 ASSESSOR' S USE ONLY
No part of this publication may be reproduced by any means without the prior permission of the New Zealand Qual ifications Authority.
,J v . -
2
You are advised to spend one hour answering the questions in this booklet.
QUESTION ONE: LAW OF SUPPLY
Stanley is the owner of a small shoe manufacturing factory called Stanley's Shoes. Stanley produces both street shoes and school shoes.
Stanley's monthly supply of street shoes is detailed as follows: • when the price of street shoes is $80 per pair, Stanley will produce 1 000 pairs • if the price was $180 per pair, he would increase his production to 3 000 pairs • when the price is $100 per pair, he will produce 1 500 pairs, and he produces 2 000
pairs when the price is $130.
Complete (a)- (c) to fully explain the law of supply and the effect on the supply of other goods in
the context of Stanley's business.
(a) Using the axes provided below, draw Stanley's monthly supply of street shoes.
Fully label your graph.
..
s I'Jo
/
(b)
..
/
/ .
\ / --- - - - -?/
/ :7 . y ~
I'
I; I~ IQ\ !~ ~
" '-../ \0 b" -<') 0 1l 0,] 'ls-<.!lD ?otl t: ~s-v o
Q(,"~~l'J s"'ff\:,_.\~ Cr<rs) .
on your graph above, show the effect of a price increase from $80 to $130 per pa1r for Stanley's street shoes. Fully label the changes.
Economics 90985, 2013
3
(c) Discuss the effect on Stanley's supply of street shoes and school shoes, when the price of street shoes increases from $80 to $130.
In your answer:
describe the Jaw of supply, by referring to the information provided, or your graph on page 2
fully explain the reason for the law of supply in the context of Stanley's street shoes
• describe the relationship between street shoes and school shoes in the context of Stanley's Shoes
fully explain the effect of the price increase of street shoes on Stanley's supply of school shoes.
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Economics 90985, 2013
4
QUESTION TWO: NON-PRICE FACTOR AFFECTING SUPPLY
Stanley's factory suffered a power failure in part of the factory due to old, faulty wiring, which affected his operations.
Complete (a) and (b) to fully explain the effect of the power failure, in the context of Stanley's business.
(a) On the graph below, show how the power failure affected Stanley's supply of shoes. Fully label the changes you make on the graph.
Stanley's supply of shoes
Price ($)
£:--
'?------~--I f
~I I I I I
Economics 90985, 2013
s
Quantity (pa/
/
5
(b) Discuss how the power failure affected Stanley's supply of shoes.
In your answer, you should: use an example to explain ONE way in which the power failure will have affected Starilr;iy's shoe .production fully explain the link between the power failure, costs of production, and the change in supply of shoes referto the changes you made to the graph on page 4
explain ONE flow-on effect of this change.
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Economics 90985, 2013
AS~ESS.OR'S US.EONLY
6
QUESTION THREE: CHANGE IN SUPPLY
Youth workers can be employed at a wage rate below the adult minimum wage.
Stanley decides he could decrease his wage costs by employing youth workers at this lower wage rate to replace his experienced older staff.
Complete (a) and (b) to fully explain the effect of employing youth workers at a lower wage rate, in the context of Stanley's business.
(a) On the graph below, show how a decrease in wage costs would affect Stanley's supply of shoes. Fully label the changes you make on the graph.
Price ($)
Stanley's supply of shoes
s
-)
~------
Quantity (pairs)
Economics 90985, 2013
ASSESSOR'S USE-ONLY
7
(b) Fully explain the relationship between wages and Stanley's supply of shoes.
In your answer:
fully explain the effect of lower wages on Stanley's supply of shoes
refer to the changes you made on the graph on page 6
fully explain ONE flow-on effect of employing youth workers on Stanley's labour productivity and supply.
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r~~eV'! .L~~;L~----······---···-- ·····---··.
Economics 90985, 2013
Annotated exemplars for 90985
2012
Low Merit
Question Grade Comment Qnl A4 The candidate has described the Law of supply, but
has not explicitly used quantity numbers which is a requirement for a 5. They have correctly defined a related good, but have not understood the idea of switching resources. They also incorrectly refer to resources as money.
Qn2 M5 The candidate uses an example of having to fix the power failure which would then incur more cost. This alone does not earn a 5 as the idea of lower profitability is missing. However, the flow on effect is valid and whilst not well explained, does suggest the candidate understand that workers are laid off when supply falls.
Qn3 M5 The candidate has loosely linked the falling wages with increased supply, but needed to explain the idea of greater profitability. The flow on effect referring to quality is subjective, but the link to experience and productivity in terms of young workers not being as "fast" is valid and earns a 5.
14
L 90985
_j
lllllllllllllllllll -~ NZ~
NEW ZEALAND QUALIFICATIONS AUTHORITY MANA TOHU MATAURANGA 0 AOTEAROA
Level1 Economics, 2013
90985 Demonstrate understanding of producer choices using supply
9.30 am Tuesday 26 November 2013 Credits: Three
SUPERVISOR'S USE ONLY
Achievement Achievement with Merit Achievement with Excellence
Demonstrate understanding of producer Demonstrate in-depth understanding of Demonstrate comprehensive choices using supply. producer choices using supply. understanding of producer choices
using supply.
Check that the National Student Number (NSN) on your admission slip is the same as the number at the top of this page.
You should attempt ALL the questions in this booklet.
If you need more space for any answer, use the page(s) provided at the back of this booklet and clearly number the question.
Check that this booklet has pages 2-8 in the correct order and that none of these pages is blank.
YOU MUST HAND THIS BOOKLET TO THE SUPERVISOR AT THE END OF THE EXAMINATION.
TOTAL
© New Zealand Qualifications Authority, 2013. All rights reserved.
High Merit
17 ASSESSOR' S USE ONLY
No part of this publication may be reproduced by any means without the prior permission of the New Zealand Qual ifications Authority.
2
You are advised to spend one hour answering the questions inthisbookiE)t.
QUESTION ONE: LAW OF SUPPLY
Stanley is the owner of a small shoe manufacturing factory called Stanley's Shoes. Stanley produces both street shoes and school shoes.
Stanley's monthly supply of street shoes is detail~d as follows: • when the price of street shoes is $80 per pair, Stanley will produce 1 000 pairs • if the price was $180 per pair, he would increase his production to 3 000 pairs • when the price is $100 per pair, he will produce 1500 pairs, and he produces 2 000
pairs when the price is $130.
Complete (a)- (c) to fully explain the law of supply and the effect on the supply of other goods in the context of Stanley's business.
(a) Using the axes provided below, draw Stanley's monthly supply_qf_,street shoes. Fully label your graph.
0
P' /\llO
toO
"
- - - _,- --- ~-~
/
7 \ ....,
/' ./
/ v --/
/ ..
. :loo \COO l')OQ 'L()oo '1.)00 oQ00
Q $ Q\A\.\_(\·\'1"11) 5~\ \ e.d ----->0'
'
--------~ (b) On your graph above, show the effect of a price increase from $80 to $130 per pair for Stanley's street shoes. Fully label the changes.
Economics 90985, 2013
3
(c) Discuss the effect on Stanley's supply of street shoes and school shoes, when the price of street shoes increases from $80 to $130.
In your answer:
describe the law of supply, by referring to the information provided, or your graph on page2
• fully explain the reason for the law of supply in the context of Stanley's street shoes
describe the relationship between street shoes and school shoes in the context of Stanley's Shoes
• fully explain the effect of the price increase of street shoes on Stanley's supply of school shoes.
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___ -~c'2!<11)..cR.; _tl:\a(_.!(L__§boQ.S ___ ~£-cGQ'0_;>&,___ _h_£, ________ ... 6kL t\'}S _.jo
_____ e._o~s.t, _______ ,~\&__ --~-tJ~\A:~_f5:t -~['!',<JV\f\1 ___ ~-~- ___ of\_~ _ _
__ ---~g_Ss~'\,\Q._, ____ j:\Q;____\ci;~\ __ \cfd-----~ll\LC\~~J-···· ~(JJ_.0_ ___________ --:')-------
---·- __ ~-.£.c..... _\J\D~-\ _____ Q£ _______ '5_\,_,,L~ _____ I.()~_(g'-§«!, _________ ci _________ ·j-\:..;."-------~c_[c£_ _____ .
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___ ~(Qcas-.t.S" ~~----· ~>s~.Xri,os<L_Ceov-t,c~c), ______ ::]-__ <?_ \>r:l2~v:~:.e. ~~-
.51~1'1.\e._)_j ~~_.'\'1?~- cl .· ::s.c\"ooL 5~es Jci\\~ ----·-·----· _ ___ d~c~o,__S.~ Lcco,0s~ L1 . __ 1::> __ C\ow- (:f\oce ~c:Gf~o\a.\,\1<.
__ jc::, ~-co_6,""c:~ -~ CSoL<:<-:t-£~ ----··----- _ e;o~1 S::\c..£:~:;t ~~oes ...
s~:-~~,~-:~. :. _ :~';~-.~~~~~=~~()\\_(;~~ ,;G~;~~~;-'J S'-"\J?I,.(l_c\ {o( sc.."'-aeo\ ':>\-.Q'G')!L
Economics 9098~joi:;
ASSESSOR'S "LJSE ONL.Y-,
4
QUESTION TWO: NON-PRICE FACTOR AFFECTING SUPPLY
Stanley's factory suffered a power failure in part of the factory due to old, faulty wiring, which affected his operations.
Complete (a) and (b) to fully explain the effect of the power failure, in the context of Stanley's business.
(a) On the graph below, show how the power failure affected Stanley's supply of shoes. Fully label the changes you make on the graph.
Price ($)
Stanley's supply of shoes
5' s
Quantity (pairs)
Economics 90985, 2013
ASSE$_SO!l'S ,USE _O~~y .'
5
(b) Discuss how the power failure affected Stanley's supply of shoes.
In your answer, you should:
use an example to explain ONE way in which the power failure will have affected Stanley's shoe production
• fully explain the link between the power failure, costs of production, and the change in supply of shoes
refer to the changes you made to the graph on page 4
explain ONE flow-on effect of this change.
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~l Economics 90985, 2013
AS;S!=SSOR'S US!;: ONLY·
6
QUESTION THREE: CHANGE IN SUPPLY
Youth workers can be employed at a wage rate below the adult minimum wage.
Stanley decides he could decrease his wage costs by employing youth workers at this lower wage rate to replace his experienced older staff.
Complete (a) and (b) to fully explain the effect of employing youth workers at a lower wage rate, in the context of Stanley's business.
(a) On the graph below, show how a decrease in wage costs would affect Stanley's supply of shoes. Fully label the changes you make on the graph.
Price ($)
Stanley's supply of shoes
s
Quantity (pairs)
Economics 90985, 2013
AS~ESSOR'S U$~0NLY
. I
7
(b) Fully explain the relationship between wages and Stanley's supply of shoes.
In your answer: fully explain the effect of lower wages on Stanley's supply of shoes
refer to the changes you made on the graph on page 6
fully explain ONE flow-on effect of employing youth workers on Stanley's labour productivity and supply.
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Economics 90985, 2013
ASSESSOR'S VSE ONLY,
