Skip to main content
O-LevelEconomicsThe allocation of resources2281/22 · Oct/Nov 2024 · Q420 Marks

In 2021, there were extensions and contractions in demand for a number of South African products. In that year, a South African court stopped a multinational company (MNC) exploring for oil along South Africa's coastline. South Africa experienced an increase in output, driven largely by the growth in its tertiary sector. However, its unemployment rate was 35%, a long way from full employment.

  1. (a)Define an extension in demand.[2]
  2. (b)Explain two external costs that may be caused by exploring for oil.[4]
  3. (c)Analyse how growth in a country's tertiary sector can increase its living standards.[6]
  4. (d)Discuss whether or not workers who lose their jobs are likely to stay unemployed for a long time.[8]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2024). The mark or mark type is shown in brackets.

  1. [1] A movement along a demand curve;
  2. [1] higher demand;
  3. [1] caused by a fall in price.
  4. [1] Air pollution / pollution; [1] those living nearby may experience a reduction in air quality / contribute to climate change/global warming / reduced health.
  5. [1] Noise pollution; [1] disturbing sleep.
  6. [1] Water pollution / oil spillage; [1] damage health.
  7. [1] Damage to the natural environment / land / deforestation; [1] destroy wildlife habitats / cause global warming / climate change.
  8. [1] Reduce tourism; [1] lower employment.
  9. [1] Congestion; [1] increasing transport costs.
  10. [1] May have high productivity; [1] increase output / reduce unemployment.
  11. [1] May pay higher wages; [1] allowing workers to consume more goods and services / afford education / afford healthcare / reduce poverty / buy more necessities / buy some luxuries/wants.
  12. [1] May provide good working conditions; [1] less tiring / less physically demanding; [1] resulting in good health of workers / few accidents.
  13. [1] May involve expansion of education; [1] increasing future employment / workers' skills / earning prospects; [1] increase quality of output / increase HDI value.
  14. [1] More transport services; [1] could reduce prices / lower congestion / reduce stress.
  15. [1] Growth of entertainment industry; [1] improve leisure time.
  16. [1] May involve expansion of healthcare; [1] increase life expectancy / better health.
  17. [1] May increase tax revenue; [1] enabling the government to spend more on e.g. education.
  18. [1] Less pollution; [1] less environmental damage / less climate change / less global warming.
  19. [1] May lose skills / unskilled workers may have greater difficulty than skilled workers in finding another job.
  20. [1] May become out of date with advances in technology / working practices.
  21. [1] May be expensive for firms to employ as may need extra training.
  22. [1] May lose confidence.
  23. [1] May become less attractive to employers.
  24. [1] More likely to stay unemployed if a result of cyclical/structural rather than frictional unemployment.
  25. [1] May be high unemployment benefits.
  26. [1] May receive government training.
  27. [1] May be geographically/occupationally mobile.
  28. [1] Gap between wages and state benefits may encourage the unemployed to seek work.
  29. [1] Economy may grow, expanding employment opportunities.
  30. [1] May leave the labour force, e.g. retire / emigrate.
  31. [1] May be seasonally unemployed.

Write your answer and get it marked

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.

Sign up free →

About this question

Topic
The allocation of resources, O-Level Economics (syllabus 2281). Structured question, 20 marks.
Source
O-Level Economics, Oct/Nov 2024 Paper 2 Variant 2, question 4.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Economics questions

© 2026 Oracle Prep