Aga K han University Examination Board

Notes from E-Marking Centre on SSC Part I Economics Examination May 2016

Introduction

This document has been produced for the teachers and candidates of the SSC Part I (Class
IX) Economics. It contains comments on candidates’ responses to the 2016 Secondary School
Certificate (SSC-I) Examination, indicating the quality of the responses and highlighting their
relative strengths and weaknesses.

E- Marking Notes

This includes overall comments on students’ performance on every question and some
specific examples of students’ responses which support the mentioned comments. Please note
that the descriptive comments represent an overall perception of the better and weaker
responses as gathered from the e-marking session. However, the candidates’ responses shared
in this document represent some specific example(s) of the mentioned comments.

Teachers and candidates should be aware that examiners may ask questions that address the
Student Learning Outcomes (SLOs) in a manner that require candidates to respond by
integrating knowledge, understanding and application skills they have developed during the
course of study. Candidates are advised to read and comprehend each question carefully
before writing the response to fulfil the demand of the question.

Candidates need to be aware that the marks allocated to the questions are related to the
answer space provided on the examination paper as a guide to the length of the required
response. A longer response will not in itself lead to higher marks. Candidates need to be
familiar with the command words in the Student Learning Outcomes which contain terms
commonly used in examination questions. However, candidates should also be aware that not
all questions will start with or contain one of the command words. Words such as ‘how’,
‘why’ or ‘what’ may also be used.

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Detailed Comments:

Constructed Responses Questions (CRQs)

Question 1

In economics, classification of goods can be done on the basis of income or price elasticity
of demand and by nature of the goods.

Explain the following types of the goods with reference to income elasticity of demand
and also give one example from everyday life.

Inferior goods
Example:

Normal goods
Example:

Luxury goods
Example:

The question was based on different types of goods and was divided into two parts. In the
first part of the question, candidates had to explain the type of goods. The second part of the
question required the candidates to write an example of each type of goods.

Better responses showed that most candidates have good understanding of the given topic.
Many candidates were able to explain the given types of goods with reference to income
level. Few responses explained the concept in general term with reference to consumption
and were also awarded marks.

In the second part of the question, candidates stated related list of examples such as i)
needles, off brand tissues, potato chips, bread and salt ii) food, water, power, gas, shelter and
clothes iii) branded car, branded clothes, branded watch etc.

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Example:

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In the weaker responses, as shown below, the candidates were not clear about the concept of
‘types of goods’ in the context of Economics; therefore, they were not able to give the correct
examples. Many responses connected the given types with imports and exports, whereas few
responses explained the concepts in general. In the second part, most of the weaker responses
mentioned the examples of few goods but were not able to explain the type of goods. Many
weaker responses mismatched the examples with the headings.

Example:

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 Question 2

It is often said that the central purpose of economic activity is the production of goods and
services to satisfy our changing needs and wants.

The basic economic problems of scarcity and choice lead to THREE basic problems in an
economy. Explain the THREE basic problems with reference to scarcity and choice.

It was an easy question and candidates were required to explain THREE basic problems of
economics.

Better responses showed that most candidates have a good understanding about basic
problems of economy. Candidates were able to explain the basic problems of economy, i.e.
what to produce, how to produce, how much to produce and for whom to produce. Some
better responses were able to link the above problems with the concept of scarcity and
choices.

Example:

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Weaker responses showed that the candidates were not clear about basic problems of
economy. Some weaker responses explained the current economic and social problems such
as unemployment, inflation, illiteracy, poverty and corruption, whereas, others only listed the
basic problems of economy which reflected incomplete and incorrect knowledge of this basic
economic concept.

Example:

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 Question 3
Demand and price have negative (inverse) relationship.
Explain any FOUR assumptions of the Law of Demand.

Better responses showed that the candidates have a firm understanding of the concept of
assumptions of law of demand. Candidates were able to properly explain assumptions like no
change in income, population, weather, consumer choice, future expectation and habit. Few
candidates also gave examples from real life to explain these assumptions.

Example:

Weaker responses highlighted that candidates were not clear about the assumptions of law of
demand. Few responses mixed the assumptions of law of demand with assumptions of law of
diminishing marginal utility such as continuous use and identical units. The answer
statements were vague, often confusing these concepts with others such as time period and
price. Some weaker responses failed to comprehend the command word and listed the
assumptions without explanation.

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Example:

Question 4
The given table shows the price and quantity supplied for a particular commodity.

Price (Rs) Quantity Supplied

05 10
10 20
15 30
20 40
Explain the relationship between price and quantity supplied using a graph.

In better responses, the candidates drew the supply curve correctly. Most of the candidates
labelled the price at y-axis and quantity supplied on x-axis, they marked the values correctly
on the graph and they drew supply curve correctly. They were also able to measure all the
values on the graph scale correctly. Better responses also explained the relationship between
price and quantity supplied.

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Example:

Weaker responses reflected conceptual errors as most of them wrongly labelled price at x-
axis and quantity supplied on y-axis on the graph. Some of the candidates drew demand curve
instead of drawing the supply curve which was opposite of what was asked. Some weaker
responses labelled the axis correctly but did not plot the values correctly.

Example:

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 Question 5

Classify the above market with reference to competition. Explain THREE merits OR
THREE demerits of the identified market.

It was an identification based question divided into two parts. In the first part of the question,
candidates had to identify the type of competition. The second part of the question required
the candidates to write three merits OR demerits of the market identified.

Better responses showed that the candidates correctly identified the types of competition as
perfect competition. In the second part of the question, candidates stated various merits of the
perfect market for example i) perfect information ii) uniformity in quality of product iii)
consumer satisfaction iv) economic welfare, etc. However very few candidates stated the
demerits such as i) limited scope for economies of scale ii) undifferentiated products iii) with
perfect knowledge there is no incentive, etc.

Example:

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Many weaker responses showed that the candidates were able to identify the given pictures
correctly but, they were not able to provide merits or demerits of the perfect market. Some
candidates identified the market wrongly as monopoly market. They also showed that
candidates were either not clear about the merits and demerits or they did not read the
question carefully and they gave few merits and few demerits instead of merits OR demerits
only.

Example:

Question 6a

What do you understand by the term ‘labour mobility’?

Better responses stated the correct concept of labour mobility. Majority of the candidates
mentioned the movement of labour from one place to another. Few candidates also mentioned
the movement from one occupation to another occupation.

Example:

Weaker responses did not state the mobility of labour completely and clearly. Many
responses just mentioned movement of labour from one place to other but they did not
mention the capacity or ability of individual.

Example:

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 Question 6b

State FOUR reasons for mobility of labour.

Better responses correctly stated the different reasons for labour mobility. Candidates were
able to state the following points i. education and training ii. peace and security iii. better
environment iv. difference in wages v. availability of resources vi. nature of job and industry
vii. other fringe benefits.

Example:

Weaker responses showed that the concept of mobility of labour was not clearly understood
by the candidates and they were unable to state the reasons for mobility of labour. These
responses were vague and not related to mobility of labour directly. Some weaker responses
highlighted the features of labour instead of reasons of mobility like labour is mobile; they
render physical or mental service, etc. Others highlighted the reasons of unemployment such
as high birth rate, change in technique of production, etc.

Example:

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 Question 7
Identify the types of unemployment in each of the given scenario.

S.
Scenario Type of Unemployment
No.
Aslam lost his job. He was working as a television
1. technician at a workshop. Due to technological change,
the workshop closed down.
Amina is currently jobless as she has resigned from the
post of senior HR officer. She is about to complete her
2.
MBA. She is looking for a managerial position in some
company which suits her qualification.
Saleem works in an agricultural farm. He remains
employed when sowing, harvesting and threshing is
3. done at the farm. However, he becomes jobless in
between the period of sowing and harvesting of the crop
as there is no demand for labour for few months.
Alina used to work in a weaving industry. She lost her
4. job as the factory decided to cut off production due to
fall in aggregate demand in the market.

This was a scenario based question in which candidates had to identify the type of
unemployment.

Better responses understood the given scenarios correctly and identified the types of
unemployment correctly as technological, frictional, seasonal and cyclical unemployment.

Example:

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Weaker responses mismatched the branches with the given description; thus, despite writing
all three correct branches in the table, these responses failed to score any marks. Some of the
weaker responses identified incorrect types of unemployment such as voluntary
unemployment, classical unemployment and natural unemployment.

Example:

Question 8

Poverty is a worldwide problem and each country tries to resolve it according to its own
situation. As a student of economics, suggest any FOUR ways to overcome poverty in
Pakistan.

Better responses briefly suggested the various methods to reduce or overcome poverty in
Pakistan. The various methods mentioned to overcome poverty were: control inflation,
increase investment, reduce unemployment, control birth rate, inject more capital, supply
necessities of life, improve agriculture and industrial sector, encourage saving, reduce tax
rate, etc. Better responses also linked these to Pakistan’s economy.

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Example:

Weaker responses were unable to write relevant measures to overcome poverty. Vague and
incomplete statements were written in most of the weak responses; such as, improve income,
education, government should take measure, etc. Some candidates failed to draw a link with
the stem of the question and completely misjudged the question and wrote reasons of poverty
rather than measures like overpopulation, corruption, unequal distribution of wealth, conflicts
between provincial and federal government.

Example:

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 Extended Responses Questions (ERQs)

This was an Extended Response Question (ERQ) and had part a and b The candidates had to
opt for any one part of Question 9.

Question 9a
The Law of Diminishing Utility is helpful for consumers as well as for the government.
Describe at least FOUR situations from your daily lives where this law is applicable.

Better responses stated the concept of law of diminishing marginal utility and also explained
the application of the law on their daily life. For example this law helps in preparing demand
curve; it helps in progressive taxation: indicates the redistribution of wealth and shows how
consumer get maximum utility.

Example:

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Weaker responses showed that the question was not clearly understood by the candidates and
they were unable to relate the law with their daily life. The responses were vague and not
related to real life situation. Most of the weaker responses focused on relationship between
total and marginal utility.

Example:

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 Question 9b

Professor Alfred Marshall says in his famous book ‘Principles of Economics’, “Economics is
the study of mankind in ordinary business of life. It enquires into the causes of material
welfare.”

Discuss FOUR major weaknesses of this statement.

Better responses stated the major weaknesses of Marshall’s statement i.e. it is not
measureable; welfare is a vague term; it is based on judgments and it is not holistic. Many
candidates scored well in this question.

Example:

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Weaker responses were unable to write relevant weaknesses. Vague and incomplete
statements were written in most of such responses with no clear explanation. Many responses
only explained the definition provided in the stimulus.

Example:

Question 10a

Illiteracy is the biggest hurdle in the economic development of a country. Evaluate in FOUR
points highlighting the impact of illiteracy on individuals and society.

Better responses were the ones where the candidates not only mentioned the effects of
literacy but also supported them with valid examples from their surroundings in relation with
economic development. These responses mentioned; following points which were, lower
income, lower-quality jobs, low self-esteem and limited ability to obtain and understand
essential information, etc.

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Example:

Weaker responses mentioned the problems faced by Pakistan but, did not link it either with
literacy or economic development. Weaker responses were vague and listed the general
impacts only, without proper linkage and explanation. Some weaker responses highlighted
only the general impact for instance lack to development, lack of money and low status.

Example:

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 Question 10b

As Pakistan is growing at the rate of more than 8 percent in GDP (Gross Domestic
Product), at one end it is creating a lot of economic opportunities but at the same time it is
also contributing towards stress on the environment.

Discuss how this growth has contributed to the stress on environment of Pakistan.

Better responses briefly explained the relationship between GDP and environment. Various
social and environmental issues were discussed and highlighted for example overpopulation,
pollution from factories, cutting of forests, running of old vehicles on road, spreading of different
disease and increase in crime rate, etc.

Example:

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Weaker responses showed that the candidates did not have clear understanding of ecological
issues. Weaker responses showed overlapping of interrelate concepts such as overpopulation
and unemployment.

Example:

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