Economics SL
Economic development — Unit 4
- 1.
Distinguish between economic growth and economic development.
[3 marks] · no calculator - 2.
Marking analysis: A learner attempts the following task: “Distinguish between economic growth and economic development.” Their response addresses only this point: “Defines economic growth as an increase in a country's real output (real GDP), typically measured in quantitative terms.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 3.
State two single indicators (other than real GDP) that are sometimes used to measure economic development, and state one limitation of using any single indicator alone.
[2 marks] · no calculator - 4.
Marking analysis: A learner attempts the following task: “State two single indicators (other than real GDP) that are sometimes used to measure economic development, and state one limitation of using any single indicator alone.” Their response addresses only this point: “States two valid single indicators, such as life expectancy, the adult literacy rate, infant mortality rate, or access to clean water/sanitation.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator - 5.
Explain the three dimensions combined in the Human Development Index (HDI), and state one criticism of this composite measure.
[4 marks] · no calculator - 6.
Marking analysis: A learner attempts the following task: “Explain the three dimensions combined in the Human Development Index (HDI), and state one criticism of this composite measure.” Their response addresses only this point: “States that the HDI combines a health dimension (measured by life expectancy at birth).” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator - 7.
Distinguish between absolute poverty and relative poverty, giving an example measure for each.
[4 marks] · no calculator - 8.
Marking analysis: A learner attempts the following task: “Distinguish between absolute poverty and relative poverty, giving an example measure for each.” Their response addresses only this point: “Defines absolute poverty as living below a fixed minimum standard needed to meet basic needs (such as food, shelter, and clothing), regardless of how others in society are living.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator - 9.
Explain how a low domestic savings rate can act as a barrier to economic development in a low-income country, and state one way this barrier might be overcome.
[3 marks] · no calculator - 10.
Marking analysis: A learner attempts the following task: “Explain how a low domestic savings rate can act as a barrier to economic development in a low-income country, and state one way this barrier might be overcome.” Their response addresses only this point: “Explains that low incomes in a poor country mean most income is spent on immediate consumption needs, leaving little left over to save.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 11.
Explain how over-reliance on the export of a single primary commodity can act as a barrier to economic development.
[3 marks] · no calculator - 12.
Marking analysis: A learner attempts the following task: “Explain how over-reliance on the export of a single primary commodity can act as a barrier to economic development.” Their response addresses only this point: “Explains that primary commodity prices are typically volatile, causing large swings in the country's export revenue, government tax revenue, and exchange rate from year to year.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 13.
Explain how investment in education and healthcare (human capital) can promote long-run economic development.
[3 marks] · no calculator - 14.
Marking analysis: A learner attempts the following task: “Explain how investment in education and healthcare (human capital) can promote long-run economic development.” Their response addresses only this point: “Explains that better education raises worker productivity, enabling workers to perform more complex, higher-value tasks and adopt new technologies more effectively.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 15.
Explain the difference between an 'import substitution' strategy and an 'export promotion' strategy for economic development, and state one risk associated with the import substitution approach.
[3 marks] · no calculator - 16.
Marking analysis: A learner attempts the following task: “Explain the difference between an 'import substitution' strategy and an 'export promotion' strategy for economic development, and state one risk associated with the import substitution approach.” Their response addresses only this point: “Explains import substitution as a strategy of protecting and developing domestic industries to produce goods that were previously imported, typically using tariffs or quotas on foreign competitors.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 17.
Explain how corruption can act as a barrier to economic development, even in a country with abundant natural resources.
[3 marks] · no calculator - 18.
Marking analysis: A learner attempts the following task: “Explain how corruption can act as a barrier to economic development, even in a country with abundant natural resources.” Their response addresses only this point: “Explains that corruption diverts public funds (including resource revenues) away from productive uses such as infrastructure, education, and healthcare, into the private gain of a small elite.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 19.
Explain how microfinance (small loans to individuals who typically lack access to traditional banking) can contribute to economic development, and state one limitation of microfinance as a development tool.
[3 marks] · no calculator - 20.
Marking analysis: A learner attempts the following task: “Explain how microfinance (small loans to individuals who typically lack access to traditional banking) can contribute to economic development, and state one limitation of microfinance as a development tool.” Their response addresses only this point: “Explains that microfinance provides small-scale entrepreneurs (often in the informal sector) with capital to start or expand a small business, which they could not otherwise access through traditional banks due to a lack of collateral or credit history.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 21.
The Gini coefficient is a measure of income inequality ranging from 0 (perfect equality) to 1 (perfect inequality). Country X has a Gini coefficient of 0.25, while Country Y has a Gini coefficient of 0.55. Explain what this difference suggests about income distribution in the two countries, and state one policy a government might use to reduce income inequality.
[3 marks] · no calculator - 22.
Marking analysis: A learner attempts the following task: “The Gini coefficient is a measure of income inequality ranging from 0 (perfect equality) to 1 (perfect inequality). Country X has a Gini coefficient of 0.25, while Country Y has a Gini coefficient of 0.55. Explain what this difference suggests about income distribution in the two countries, and state one policy a government might use to reduce income inequality.” Their response addresses only this point: “States that a Gini coefficient closer to 0 indicates a more equal distribution of income, while a coefficient closer to 1 indicates a more unequal distribution.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 23.
Explain one benefit and one limitation of foreign aid as a strategy for promoting economic development.
[3 marks] · no calculator - 24.
Marking analysis: A learner attempts the following task: “Explain one benefit and one limitation of foreign aid as a strategy for promoting economic development.” Their response addresses only this point: “Explains a valid benefit, such as aid financing infrastructure, schools or health services that a low-income government cannot afford from its own tax revenue.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 25.
Explain two reasons why GDP per capita may be an inadequate measure of a country's level of economic development.
[3 marks] · no calculator - 26.
Marking analysis: A learner attempts the following task: “Explain two reasons why GDP per capita may be an inadequate measure of a country's level of economic development.” Their response addresses only this point: “Explains that GDP per capita is an average that hides income inequality, so a high figure can coexist with widespread poverty.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 27.
Explain how improving access to education for girls can promote economic development.
[3 marks] · no calculator - 28.
Marking analysis: A learner attempts the following task: “Explain how improving access to education for girls can promote economic development.” Their response addresses only this point: “Explains that educated women have higher labour-force participation and productivity, raising output and household income.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator - 29.
A country's real GDP rises from $600 billion to $630 billion while its population rises from 100 million to 102 million. (a) Calculate GDP per capita in each year. (b) Calculate the percentage change in GDP per capita, to 1 decimal place. (c) Explain why this is lower than the 5% growth in total GDP.
[4 marks] - 30.
Marking analysis: A learner attempts the following task: “A country's real GDP rises from $600 billion to $630 billion while its population rises from 100 million to 102 million. (a) Calculate GDP per capita in each year. (b) Calculate the percentage change in GDP per capita, to 1 decimal place. (c) Explain why this is lower than the 5% growth in total GDP.” Their response addresses only this point: “Calculates GDP per capita in the first year as $600bn / 100m = $6,000.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks]