Read the STANDARD

TKI Economics Assessment Resources

Download all these exemplars and commentary (PDF, 255KB)

For Excellence, the student needs to demonstrate comprehensive understanding of decisions a producer makes about production.

This would typically involve:

• linking detailed explanations of production decisions with detailed explanations of the consequences for the producer and/or society
• integrating supporting data or information into explanations of producer decisions.

The student has demonstrated comprehensive understanding, by integrating data into a detailed explanation of producer decisions around productivity for McDonald’s Restaurants (NZ) Ltd. The explanation linked production decisions to the consequences for the producer.

The student explained product variation and product differentiation, and incorporated examples, explaining how consumer demand increases, and why non-price competition increases a producer’s costs of production (1).

The student has also recognised the short term nature of price competition due to profit maximisation (i.e. in order to avoid a ‘price war’) (2). The student has integrated McDonald’s’ pricing information into the explanation of how and why price marketing decisions affect the producer, and how such decisions can increase market share (3).

The student has also integrated McDonald’s’ marketing information into the explanation of how non-price marketing decisions affect consumer demand. This was linked to the explanation of why these marketing decisions can advantage the producer in the longer term (4).

For a more secure Excellence, the student would include more explanation of non-price marketing, e.g. how and why McDonald’s’ decisions around location, branding, sponsorship and quality of service would also have consequences for the producer and/or advantages and disadvantages for society.

For Merit, the student needs to demonstrate in-depth understanding of decisions a producer makes about production.

This would typically involve:

• providing a detailed explanation of production decisions
• providing a detailed explanation of the consequences of those decisions for the producer and/or society
• using data or information to support explanations of producer decisions.

The student has demonstrated in-depth understanding by using supporting data in a detailed explanation of producer decisions around productivity for McDonald’s Restaurants (NZ) Ltd. The explanation linked production decisions to consequences for the producer.

The student mentioned market share, explained how and why consumer demand increases using non-price competition (5), and described price competition using two pricing examples (6).

In the student's explanations for both price competition (7) and for non-price competition (8), they explain the links between the marketing decisions made by McDonald’s and the consequent advantages and disadvantages for society, integrating pricing and marketing information.

To reach Excellence, the student would include more explanation of production decisions, e.g. how or why non-price competition could increase market share, and how or why non-price competition increases a producer’s costs of production (5).

Additionally, how price competition affects producers would be explained, e.g. undercutting competitors on price can result in ‘price wars’; and why price discounts ‘cannot be held forever’ would be explained (7). The student would also explain why marketing strategies based around price could have negative consequences for the producer (9).   

For Merit, the student needs to demonstrate in-depth understanding of decisions a producer makes about production.

This would typically involve:

• providing a detailed explanation of production decisions
• providing a detailed explanation of the consequences of those decisions for the producer and/or society
• using data or information to support explanations of producer decisions.

The student has demonstrated an in-depth understanding by using marketing information from McDonald’s Restaurants (NZ) Ltd. to support a detailed explanation of producer decisions around price and non-price marketing. The consequences for society were explained in detail.

The student presented production and productivity data in a table (10), and some of this data was used to support an explanation of how and why production and labour figures changed between 2007 and 2009 (11).

The producer decisions that played a part in these changes were also explained, and the consequences for the producer were explained in terms of how and why these production decisions would provide future advantages (12).  

For a more secure Merit, the productivity data would be used in an explanation of how producer decisions affect productivity, and why there were changes in productivity (13). 

For Achieved, the student needs to demonstrate understanding of decisions a producer makes about production.

This would typically involve:

• defining, identifying, describing or providing an explanation of production decisions
• identifying, describing or providing an explanation of consequences of those decisions for the producer and/or society
• presenting data or information related to producer decisions.

The student has demonstrated understanding by using marketing information from McDonald’s Restaurants (NZ) Ltd. to support an explanation of producer decisions around price and non-price marketing. The consequences for society were explained in detail.

The student presented production and productivity data in a table (14), and provided reasons for the changes in the production figures between 2007 and 2009 (15).

The producer decisions that played a part in changes to productivity were also explained (16). The consequences for the producer were explained in terms of how and why these production decisions would help to maximise profit (17).  

To reach Merit, the student would use the production and productivity data in an explanation of how these decisions affect productivity, and why there were changes in productivity and production (18).

For Achieved, the student needs to demonstrate understanding of decisions a producer makes about production.

This would typically involve:

• defining, identifying, describing or providing an explanation of production decisions
• identifying, describing or providing an explanation of consequences of those decisions for the producer and/or society
• presenting data or information related to producer decisions.

The student has demonstrated understanding by using marketing information from McDonald’s Restaurants (NZ) Ltd. to support an explanation of producer decisions around price and non-price marketing. The consequences for society were explained.

The student presented production and productivity data in a table (19), providing reasons for changes in the production and productivity figures between 2007 and 2009 (20).

The consequences for society were also explained in terms of how or why these production decisions could have positive consequences (22).

For a more secure Achieved, other relevant consequences would be included (23). Additionally, the student would include specialisation, division of labour and technology, rather than non-price marketing strategies, when explaining productivity (21).  

For Achieved, the student needs to demonstrate understanding of decisions a producer makes about production.

This would typically involve:

• defining, identifying, describing or providing an explanation of production decisions
• identifying, describing or providing an explanation of consequences of those decisions for the producer and/or society
• presenting data or information related to producer decisions.

The student has demonstrated partial understanding by presenting production and productivity data about McDonald’s Restaurants (NZ) Ltd. in a table, explaining decisions made by the producer to improve productivity. The consequences for the producer were described.

The student identified non-price marketing strategies (24), and explained how and why non-price marketing strategies increase consumer demand, using information from McDonald’s (25). The consequences were also explained in terms of why these strategies can disadvantage society (26).

To reach Achieved, the student would also need to define price and non-price marketing using economic terminology, e.g. price and non-price competition. Additionally, the student would describe some price marketing strategies used by McDonald’s, and the consequences of price marketing for the producer or society would also be explained.