Some people in Indonesia play tennis. However, badminton is Indonesia’s favourite sport. The equipment needed to play it, including badminton racquets, is relatively cheap. Players from the country win a high proportion of international tournaments. Top Indonesian players earn ten times the average wage and more than thirty times the wage of a cleaner.

Mark scheme

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

1. [1] Households / consumers.
2. [1] Workers / trade unions.
3. [1] Firms / producers / entrepreneurs / suppliers.
4. [1] The government.
5. [1] Banks.
6. [2] Demand for tennis racquets and demand for badminton racquets have an inverse / indirect / negative relationship as they are substitutes or competitive goods. A rise in the price of one would cause the demand for the other to increase as people switch between the two.
7. [2] Demand for tennis racquets and demand for tennis balls have a direct / positive relationship as they are complements, bought to be used together. A rise in the price of one would cause the demand for the other to decrease.
8. [2] Most cleaners earn a low wage due to a high supply of labour, as it is a job most people can do / easily replaced, leading to elastic supply. Therefore, firms do not have to pay high wages to attract sufficient cleaners.
9. [2] Cleaners often have low qualifications / education, requiring low skills / training. This may lead to low productivity / adding little value to the business / low risk for workers.
10. [2] Many cleaners may not belong to a trade union, resulting in low bargaining power, making it hard to move to another job, so they are willing to accept low pay rather than not have a job.
11. [2] Cleaners may be from groups that are discriminated against (e.g., women / older persons / immigrants).
12. [2] Some cleaners work part-time, so their take-home pay may be low.
13. [2] Cleaners might be replaced by cleaning machines / robots if wages rise too high.
14. [1] A government should tax sports equipment to generate an additional source of tax revenue.
15. [1] Other goods and services / forms of leisure equipment are also taxed.
16. [1] Sports equipment is not considered a necessity.
17. [1] The rich may spend more on sports equipment.
18. [1] Elite / professional sports persons are well paid / receive sponsorship, so they can afford increased prices.
19. [1] A government should not tax sports equipment as increased prices may discourage people from playing sport, especially those on low incomes.
20. [1] Sport may be considered a merit good.
21. [1] Taxing sports equipment may reduce the health and fitness of people.
22. [1] It may reduce the output of sports equipment and increase unemployment.
23. [1] Many people are employed in the sport and leisure industries, and a tax could negatively impact their livelihoods.