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O-LevelCommerceProduction7100/22 · May/June 2012 · Q120 Marks

The table in Fig. 1 shows the output of different types of industry for Country A and Country B. Country A % of output Country B % of output Primary industry 60 10 Secondary industry 20 30 Tertiary industry 20 60 100% 100% Total value of output $80bn $100bn [Figure 1] Use the information given in Fig. 1 to help you to answer the following questions.

  1. (a)Explain what is meant by secondary industry.[3]
  2. (b)(i)Classify the following occupations as primary or secondary or tertiary: (i) fisherman[1]
  3. (b)(ii)(ii) freight forwarder.[1]
  4. (c)(i)What is the percentage of output from tertiary industry for Country B?[1]
  5. (c)(ii)Calculate, showing your working, the total value of output from primary industry for Country A.[2]
  6. (d)Explain possible reasons for the differences in the figures in Fig. 1 for Country A and Country B.[6]
  7. (e)Is it likely that Country A and Country B are involved in international trade? Using the information in Fig. 1, give reasons for your opinion.[6]

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Mark scheme

Marking points from the official mark scheme (May/June 2012). The mark or mark type is shown in brackets.

  1. [3] (a) Any three points × 1 mark each:
  2. changing raw materials into finished goods;
  3. by manufacturing/processing;
  4. may also include construction e.g. building;
  5. accept valid example of a secondary industry.
  6. Any other relevant point.
  7. Preparing for sale = 0 marks.
  8. [1] (b) (i) primary
  9. [1] (b) (ii) tertiary
  10. [1] (c) (i) 60%
  11. [2] (c) (ii) 60/100 × 80 (1 mark) = $48bn (1 mark)
  12. OFR applies for both calculations. Award full marks if correct answers are given without working.
  13. [6] (d) Any two reasons × 3 marks or three reasons explained × 2 marks each or six points × 1 mark each:
  14. Country A more involved in primary industry and Country B more involved in tertiary industry
  15. Country A may be rich in raw materials and Country B has few raw materials
  16. Country A does not use all the raw materials it produces in its secondary industry and so will dispose of the surplus
  17. Country A may have a developed farming industry because of climate
  18. Country B has a greater service industry e.g. banking, insurance than Country A
  19. Country B may be more developed than Country A. It may be offering its services to countries such as Country A
  20. The population of Country B may be better educated with more employment being offered in the tertiary sector.
  21. Any other relevant point.
  22. [6] (e) Level 2 (4-6 marks)
  23. Has discussed whether or not Country A and Country B are involved in international trade and has used the figures in Fig. 1 to support a reasoned opinion. (If a candidate has discussed only one of the two countries award 4 marks max.)
  24. It is likely that both Country A and Country B are involved in international trade. Country A's output is mainly from primary industry – obtaining or extracting natural resources from the earth such as raw materials, fuel, minerals and food. These resources need manufacturing or processing into finished goods but Country A does not seem to use all its primary resources in its secondary industry as output from secondary industry is only 20% of the total. It is probably using the income from its primary industries to buy finished goods so it is exporting primary products and importing finished goods. It may also be using invisible imports from other countries such as transport services, banking and insurance as it is unable to provide these itself.
  25. On the other hand Country B does not seem to have large-scale primary industry. It may not have many natural resources or it be too expensive to develop them. It is probably importing from countries such as Country A that have a surplus, using them in its secondary industry and then exporting finished goods to worldwide markets or country A. Its tertiary sector is the most important contributor to output. Its population may require many services but it is likely that it has a surplus for invisibles on its Balance of Payments.
  26. For these reasons both Country A and Country B are involved in international trade.
  27. Level 1 (1-3 marks)
  28. Has commented on Country A and/or Country B and international trade with/without an opinion.
  29. Both Country A and Country B are involved in international trade. Country A must export raw materials. It is not using all of them in its secondary industry. Country B produces goods. It needs raw materials to use for these and does not have enough itself. It will import raw materials to use.

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About this question

Topic
Production, O-Level Commerce (syllabus 7100). Structured question, 20 marks.
Source
O-Level Commerce, May/June 2012 Paper 2 Variant 2, question 1.

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