GRADE 12 ECONOMICS (HL AND SL)

FORMATIVE ASSESSMENT
TOTAL MARKS: 25 DURATION 30 MINUTES
NAME: ______________________________________________________DATE: 30. 08. 2022

Objectives:
a. Practice drawing diagrams and explaining them
b. Revisiting real world examples relevant in the chapters

BELOW ARE A FEW SCENARIOS GIVEN. MOST OF THEM ARE RELEVANT, REAL
WORLD AND CONTEMPORARY NEWS ITEMS.

YOU ARE EXPECTED TO ILLUSTRATE EACH SCENARIO WITH THE HELP OF AN

APPROPRIATE DIAGRAM AND EXPLAIN.
EACH QUESTION CARRIES 5 MARKS.
THE DIVISION OF MARKS IS AS FOLLOWS:
 2 marks appropriate illustration
 1 mark labelling
 2 marks for explanation

1. Sugar tax on all sugary drinks was introduced in the UK in April 2018 to reduce the negative
externality of consumption.
2. Overuse of pesticides in the production of grapes has led to loss of soil fertility and pollution
of rivers in Mizoram, India.
3. The government of a country plans to reduce the tax on carbon emissions by a cement
company in an attempt to increase investments in cement manufacturing.
4. Passive smoking 10th biggest risk factor for cancer in the US, reveals study.
5. Pakistan government imposes 36 billion PKR tax on cigarettes.