MINISTRY OF EDUCATION

FIJI SCHOOL LEAVING CERTIFICATE

EXAMINATION

2012

ECONOMICS
COPYRIGHT: MINISTRY OF EDUCATION, REPUBLIC OF FIJI, 2012.
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MINISTRY OF EDUCATION

FIJI SCHOOL LEAVING CERTIFICATE EXAMINATION – 2012

EXAMINER’S REPORT

ECONOMICS

INTRODUCTION

This report contains detailed views, observations and recommendations by the 2012 panel of
markers. After marking the papers we have identified, specific areas of the prescription which
were inadequately covered, ways in which some questions were misinterpreted and how teachers
can improve on their teaching method to enhance learning.

The misinterpretation of questions could be due to poor understanding of the meanings of the
verbs like define, explain, discuss, differentiate, compare and contrast, outline, state, describe
etc. Teachers are urged to explain the meanings of these verbs so that students can answer the
questions correctly.

The format used was the same as that of previous years. The paper had three sections; Section A,
B and C.

SECTION A
The questions assessed the candidates’ knowledge of the syllabus content and its application. It
was interesting to note that most scored well in the knowledge questions but needed more work
on application of knowledge through computation and statistical analysis.

Candidates need to understand that in order to pass or pass well they must score above 25 marks
in this section.

SECTION B
The short- answer questions were poorly answered. A lot more time is needed on revising all the
topics covered in the syllabus thoroughly and not rushing through it in order to complete the
syllabus. It was surprising to see that candidates still could not differentiate between terms
properly using the joining words. They still failed to include correct units on calculation parts as
well as misinterpreting questions. We must teach our candidates to understand that in order to
correctly answer a question they must underline the keywords(s) in the question while reading
through. Overall, this section was poorly done resulting in more candidates scoring below 20 out
of the 50 marks allocated.

SECTION C
This section allowed candidates to express themselves through essay writing on the given topics.
Majority of the candidates selected topics 1, 2, 4, and 5 (in order of preference). Candidates were
not following the format that was given to teachers. Overall, this was very poorly done.
Candidates’ marks ranged from 0 to 9.
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SECTION A: MULTIPLE –CHOICE

QUESTION ANSWER SPECIFIC COMMENTS/ OBSERVATIONS AND

NO. CRITIQUE
1 C Well done. It is important to understand types of economic
problem.
2 B Satisfactory done. Still candidates do not know the purpose of
economic system.
3 C Fairly done.
4 B Well done.
5 D Fairly attempted.
6 A Not done well, candidates chose option D (MR=MC) which is
profit maximization and not optional purchase rule as question
required.
7 A Well done
8 A An above average response from the candidates.
9 C Most candidates opt for option B which meant candidates were
still confused with movement and shift of curves.
10 C This question was fairly done. Candidates seemed confused
between substitutes and complementary goods.
11 B Poorly done, candidates still need to know the difference between
public and private company
12 B Poorly done, candidates seem lost with the proprietorship section
of sole trader. There is a need to focus on accounting aspects of
prescription.
13 A Satisfactory response.
14 B Poorly done, candidates need to understand the principles of
insurance, candidates seem guessing answers.
15 D Very poorly done, candidates were lost in understanding costs in
short run. This type of question mostly appears in table form,
candidates seemed not to understand the question in statement
form.
16 C Not done well .still confusion shown, candidates were not well
versed with different cost curves.
17 C Not done well, candidates need better understanding of public
corporation with local examples.
18 D Average response.
19 C Very poorly attempted. This type of question is covered at surface
level in form 6.
20 B Majority chose B some also chose A as an option.
21 C Fairly well done
22 B Poorly done, candidates still don't understand components of
money supply.
23 B Average responses from candidates, many candidates seem
confused.
24 A Poorly attempted, candidates did not understand actions policies
implemented by government.
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25 C Poorly attempted. Candidates are still behind in calculative

questions. Exchange rate topic need to be covered thoroughly in
class.
26 D Poor response, candidates seem confused between fixed and
flexible exchange rates.
27 D Satisfactory attempted. Some were distracted by option C
28 C Fairly attempted
29 B Poorly done. Candidates got confused by the tactics of the
question.
30 A Satisfactory attempted. Some were distracted by option C because
CPI is used as tool for economic indication.

SECTION B

QUESTION 1

1) (i) This question was very poorly done. Candidates were not able to identify the two very
common assumptions of two- sector circular flow.

(2) Fairly done, but still candidates were not able to inter- relate the two very basic
concepts.

2) (i) Very poorly done. Candidates were not able to list the skills of entrepreneur which
were learnt in form 3.

(2) Once again very poorly done, candidates were not able to apply the positive
effects of entrepreneur on employment and standard of living.

QUESTION 2

1) (i) Fairly done, but candidates lacked technical economics words to answer the .
question.

(2) Since it was subjective question candidates were able gain marks but others who
were not able to justify the answer lost ½ mark.

(3) Very poorly done. Candidates did not know the meaning of Diseconomies of
Scale and its application.

(2) Well done. Many candidates scored full mark.

3) (i) Fairly done, once again candidates were not using proper economic jargon to
answer the question.
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(2) Well done.

(3) Well done.

QUESTION 3

Overall, candidates were able to answer this question really well. Even though it was an
application question, most candidates scored full marks compared to other sections of the paper.

(1) Well answered. It is pleasing to note the candidates were able to pick out the two parts of the
question and answered both correctly. Also answers were properly explained in a sentence which
is worth noting and teachers are commended for this.

(2) This is the only difficult part of the question where more than 70% of the candidates either
put Sales of Good Acts or the right to information as their answers.

(3) Majority of the candidates responded well in this area. From the answers given, it is worth
noting that candidates fully understood their rights and the institution where consumer
grievances can be addressed.

QUESTION 4

(1) (i) Fairly done, but candidates lost 1/2 mark for not using proper economics jargon.

(2) Well done.

(2) This question was very badly done. It can be concluded that candidates did not understand the
graph analysis of subsidy effect on the supply curve. It is advisable for teachers to provide
many different types of worksheets while covering this topic

(3) (i) Well done.

(2) Fairly done, but candidates lost mark for not putting units of dollar sign

(3) Very easy question but still candidates were not able get a mark. It seemed that the candidates
were confused with market structure.
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QUESTION 5

This question had a circular flow diagram showing expenditure sectors in the economy.
Candidates were supposed to identify the different sectors in the economy that contribute to the
calculation of GDP using expenditure approach. Marks were awarded if the candidate has
written a correct formula, working and the final answer units.

(1) 19% of the candidates were able to score full 2 marks.

17% of the candidates had their formula incorrect. Teachers are reminded to give more
emphasis on writing formulae for any calculation question. Note the formula for GDP
using Expenditure Approach. Either use C+I+G+(X-M) + change in stock +
statistical discrepancy.

21% of the candidates were unable to do the calculations correctly despite knowing the
correct formula. Candidates were unable to correctly indentify exports and imports; they
used the values vice verse.

13% of the candidates did not write the units.

30% of the candidates did not score any mark at all either by not answering the question
or attempting it but had lots of errors.

(2) This question was well done by many candidates and those who did not lost marks simply
because they did not know the formula.

QUESTION 6

(1) (i) Very poorly done question. Candidates began explaining the meaning of Budget.
More emphasis needs to given in this topic.

(2) A very simple question but candidates were unable to identify direct and indirect tax hence many
lost marks.

(3) Well done.

(4) Well done, many candidates were able to get full mark.

(5) Well done, candidates were able to interpret the pie chart correctly.

(6) Poorly done, many candidates were confused with balance budget. Candidates were not able to
identify that borrowing is not a revenue for government.
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(2) It was a matching question; overall this question was well done. Only a few candidates did not
follow the instruction hence lost marks. Instead of writing the letter of the correct choice, some
started writing taxation features. Candidates must be taught to read instructions carefully and
answer accordingly.

QUESTION 7

This question was based on the topic on Money and Banking. There are three parts to it. Overall,
the question was poorly done especially part C of the question which is based on Credit Creation.

(1) (i) There was a mixed response from candidates regarding the gain in interest, profit and revenue
from the bank. About 13% of the candidates got it correct, 50% partly correct and 37% got it
wrong.

(2) Surprising, this part was not well done. Candidates were still struggling to define interest in terms
of savings and borrowing.

(2) Fairly done. More than 50% got it correct which showed fair understanding of the quantity
theory of Money Supply.

(3) Poorly answered. About 62% of the candidates have partly correct answers.

QUESTION 8

This question was based on the topic on Fiji and International Trade. This section was poorly
done by most of the candidates.

(1) (i) Candidates gave the answer without stating the formula and they forgot to include the
units and dollar sign thus lost marks.

(2) Majority of the candidates were still using the basic formula taught in Form 4 on
international trade.

(iii)- (v) Very poorly done, candidates were not able to write correct formula thus got
wrong answers.

(2) (i) Very poorly done question. Most candidates gave their answer as decrease in value or devalue
which shows that the meanings of the terms like devaluation, decrease and depreciated were not
well understood and differentiated for them. It must be noted that they have different meanings.

(35) Most candidates could not figure out which currency was stronger.
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(3) Most answers given as effect of the trend on the exporters were incorrect. Candidates
were more focused on the effect of the currency i.e. what happened to the currency when it
should be on the exporters.

SECTION C ESSAY

There is a general improvement in essay writing compared to previous years. There is evidence
that teachers have followed the Examiner's Report of last year’s regarding the general structure
of an essay.

QUESTION 1

Majority of the candidates opted to answer this question. However, their misinterpretations of
the question led to the loss of valuable marks.

1· Problems caused by heavy reliance on Agriculture

Candidates answered the question in general from the farmers’ point of view.
They failed to answer as how depending on agriculture will become an economical issue.
and any effect will have a trickling down effect.
Failure to express and elaborate on the highlighted problem.

2· Factors Determining Employment

Misinterpreted as how agriculture created employment

Most candidates discussed it as livelihood and lost marks.

3· Technological Improvements

Only technology identified by the candidates was the use of machines.

Note: Candidates mentioned that "Government should" do this/that. Teachers need to correct this
as government has done a lot for the agriculture sector in general. This assistance should be
highlighted under correct categories of agriculture.

QUESTION 2

It is another popular choice for the candidates. However, candidates failed to elaborate on the
stated advantage or importance and lost marks.

1· Disadvantages

Leakage effect was not well explained.

Exploitation of cheap labour; candidates could not explain because they did not
understand the concept.
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QUESTION 3

Very few candidates attempted this question.

1· Very poorly answered.

Teachers have failed to teach the structural programmes or policies put in place by the
government, thus candidates had no idea on the concept.

2· Again poorly answered as candidates in general discussed the 5 major roles of the
government such as distributive role, allocative role, etc.

Failure to explain how these roles are changing or incorporating the changes in the given
roles.

3· Failure to define capital, enterprise and productivity and link them to economic growth.
Candidates answered only by describing the key words.

QUESTION 4

About 60% attempted this question. However, again they lost marks as they could not further
explain the points stated.

1· Candidates still cannot differentiate between monopoly and monopolistic firms. Few
explained the perfect competition.
2· Very poorly answered, candidates could not explain the government intervention to achieve
allocative efficiency.
3· Hardly any candidate could draw a correct graph or demonstrate graphically the profit
maximization point.

Note: "Emphasis should be placed on labelling when drawing graphs.

Area of improvement.

QUESTION 5

This question was another popular choice of the candidates.

1· Well answered but marks were lost on explanation.

2· Poorly answered as failure to differentiate between "reason" and "importance". Candidates
normally have answered as why it is important to engage in trade but failed to realize that there
are genuine reasons for involving in the trade as it is a give and take form for e.g. Specialization
as a reason will encourage high potion due to cost advantage therefore producing to export will
bring in income.
3· Fairly done -candidates normally answered expressing views to protect infant industry and
avoid dumping. However, the key word as "Ways" of restricting, thus marks were lost. In some
case artificial barriers were stated but how it leads to restriction, candidates could not explain.
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QUESTION 6

Very few candidates attempted this question.

1· Failed to differentiate clearly. Some candidates lost marks as they plainly explained the two
concepts without ironing out the differences.
2· Those who attempted this question did not understand the question as they repeated the
answers for (b) and (c).
3· This topic needs to be thoroughly taught.

Overall, the performance was good but the essays written did not follow the key points that need
to be considered when writing an essay.

THE END