Common Errors on the IB1 Exit Exam

1. Common Errors on the IB1 Exit Exam Spring 2013

2. Definitions • Definitions are omitted • Words are defined, but then not explained: Countries engage in trade protectionism for a number of reasons. One reason is to protect against dumping. Dumping is when one country sells goods or services in another country at a price below the cost of production. Another reason countries may wish to engage in trade protectionism is to protect a sunrise or sunset industry.

3. Definitions • Economics vocabulary should be explained: Countries engage in trade protectionism for a number of reasons. One reason is to protect against dumping. Dumping is when one country sells goods or services in another country at a price below the cost of production. This will drive down the market price for the good and effectively prohibt domestic industries from competing in the market, as the imported good is cheaper. A country may be able to sell a good for less than the cost of production because they have received subsidies from their government, causing them to have a lower cost of production, as is the case with Chinese solar panels. Both the US and EU have accused China of dumping their solar panels, and thus having a negative effect on the domestic solar panel industry.

4. Economics Language/Vocabulary • Imprecise language: “Cigarettes are price inelastic” rather than simply “inelastic”; “Government should know about PED when imposing an indirect tax”, rather than simply “tax”. • Far too many of you use the words “cost” and “price” interchangeably. Cost does not equal price!

5. Diagrams • Diagrams are still not being explained • Diagrams are too small: diagrams should be at least 1/3 page • Diagrams are unrealistic: perfectly elastic or inelastic demand

6. Explanations/Examples • Failure to explain your points with examples • Failure to explain examples

7. Evaluation • Far too many of you are still failing to evaluate your responses!

8. Miscellaneous • “Hanging responses”: your parts a and b should both have a conclusion. Too many of you are stopping in the middle of a point and not concluding your response. • Your part a conclusion should help tie in your response into your part b response • Your part b conclusion should be your evaluation

9. Miscellaneous • Part a responses are longer than part b responses: part a is worth 10 marks, part b is worth 15 marks; part b is your evaluate question, which means it should be more in depth. Part b responses should always be longer than part a responses!

10. Miscellaneous • Answering questions out of order: question from the next section answer before the part b of the previous question. No, just no. Do not do this. Ever.

11. Miscellaneous • Writing everything you know about a topic, rather than answering the question being asked. Big hint: Question 4b did not need an in-depth discussion about inflation. • I know this can be tempting when you don’t feel you know enough about the topic to fully answer a question (which should never be the case), but talking around a question only highlights the fact that you don’t know how to respond to it. If what you wish to write does not work toward answering the question, do not include it.