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O-LevelCommerceProduction7100/21 · Oct/Nov 2021 · Q119 Marks

Fig. 1.1 shows the percentage (%) of output produced by various primary industries in a country. The country specialises in primary production. [Figure 1.1: Percentage (%) of output produced by primary industries pie chart. Segments show: Fishing 14%, Forestry 17%, Oil and gas 22%, Mining 34%, Other industries in the primary sector 13%] Fig. 1.1 Percentage (%) of output produced by primary industries Use Fig. 1.1 to help you answer the following questions.

  1. (a)(i)Give one example of mining.[1]
  2. (a)(ii)State one industry that might be included in 'Other industries in the primary sector'.[1]
  3. (b)Is it a good idea for this country to specialise in primary production? Give reasons for your answer.[3]
  4. (c)Many primary goods are carried by goods trains. Explain two advantages of using goods trains to transport primary goods. 1 2[4]
  5. (d)Circle the correct answer to complete each of the following sentences. Exploitation of the natural resources of forests causes deforestation OR reforestation. A new discovery of oil could benefit a country's visible trade OR invisible trade.[2]
  6. (e)Consider the following two channels of distribution that fishermen could use to sell their fish in their country. 1. fish market → cash buyers 2. wholesalers → retailers → consumers Discuss both options. The fishermen want to sell all of their fish using only one channel of distribution. Which one would you recommend? Give reasons for your answer.[8]

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Mark scheme

Marking points from the official mark scheme (Oct/Nov 2021). The mark or mark type is shown in brackets.

  1. [1] (a)(i) Coal;
  2. [1] (a)(i) Gold;
  3. [1] (a)(i) Diamonds/gemstones;
  4. [1] (a)(i) Metals or e.g. copper/tin/iron/lead/steel;
  5. [1] (a)(i) Potash;
  6. [1] (a)(i) Rocks/stone/gravel/sand
  7. [1] (a)(ii) Farming/agriculture
  8. [1] (a)(ii) Quarrying
  9. [3] (b) Yes - it has many primary industries (1) comparative/absolute advantage (1) benefit from economies of scale (1) increases efficiency (1) able to reduce costs of production (1) lower prices (1) increased output/mass production (1) increased quality of goods (1) workers become more skilled (1) may produce excess output (1) less need for imports (1) allowing more exports to take place (1) increases balance of trade/payments (1) increasing economic growth/national income/gross national product (1) earning foreign currency (1) leading to more employment (1) higher standard of living (1)
  10. [3] (b) No - it may be too dependent on primary/finite resources/non-sustainable resources (1) when these resources are exhausted/depleted run out (1) primary producers will go out of business (1) the economy will lose its main export revenue (1) people will become unemployed (1)
  11. [4] (c) Cheap (1) than air/sea/road transport (1)
  12. [4] (c) Can carry heavy/bulky goods (1) e.g. coal (1)
  13. [4] (c) Often provides direct access (1) to ports/factories (1)
  14. [4] (c) Fast/quick (1) over long distances (1)
  15. [4] (c) Reduces congestion (1) on roads (1)
  16. [4] (c) Train wagons can be specially designed to carry particular products (1) e.g. coal/gravel trains (1)
  17. [4] (c) Reduces noise/pollution (1) created by heavy goods vehicles (1)
  18. [4] (c) Larger capacity (1) for bulky loads/can add wagons on to train (1)
  19. [4] (c) Use of containers (1) to prevent damage (1)
  20. [4] (c) Fewer delays (1) not affected by traffic jams/weather (1) likely to arrive on time (1)
  21. [4] (c) Environmental benefit (1) reduces CO2 emissions (1)
  22. [2] (d) Exploitation of forest natural resources causes deforestation
  23. [2] (d) A new discovery of oil could benefit a country's visible trade
  24. [8] (e) Fish market: The fish is sold immediately without the need for warehousing costs/space; The fishermen receive their money without delay, helping their cash flow; Eliminates the middleman, saving any commission costs; No transport costs saves money; May not sell all fish caught leading to losses; Fish sellers cannot negotiate prices as they are selling a highly perishable product that needs to be sold quickly
  25. [8] (e) Wholesalers to retailers to consumers: Wholesalers can buy fish in bulk, therefore they might buy all of the fish from a seller; Wholesalers can carry out all the logistical functions of cleaning, sorting, boxing and transportation; Wholesalers may provide deliveries to shops and consumers; Wholesalers can advise fish sellers about retailer/consumer needs; Wholesalers will charge commission, taking away some of fish sellers' profits
  26. [8] (e) Evaluation: Fish is a perishable product needing proper preservation and transportation so must be sold quickly. Fish sellers are bound to sell their produce to wholesalers at a lower price but may be able to achieve a higher price at the market although there is the risk that they may not sell all their fish stock.

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About this question

Topic
Production, O-Level Commerce (syllabus 7100). Structured question, 19 marks.
Source
O-Level Commerce, Oct/Nov 2021 Paper 2 Variant 1, question 1.

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