IB · ECON SL

Economics SL

Economic development — Unit 4

Name: ____________________Date: October 2, 2026

1.
Distinguish between economic growth and economic development.
[3 marks] · no calculator
Marking points
- Defines economic growth as an increase in a country's real output (real GDP), typically measured in quantitative terms.
- Defines economic development as a broader, multidimensional improvement in people's wellbeing and quality of life, including factors such as health, education, income distribution, and freedoms.
- Explains that growth is necessary but not sufficient for development, since a country can experience rising GDP while development indicators (such as inequality, health, or education) stagnate or worsen.
Examiner tip: Growth is about the size of the economic pie (quantitative); development is about both the size of the pie and how it is shared and experienced (qualitative and quantitative) — always keep this distinction central in any development essay.
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
Marking points
- Recognises credit for the stated point: Defines economic growth as an increase in a country's real output (real GDP), typically measured in quantitative terms.
- Identifies the missing requirement: Defines economic development as a broader, multidimensional improvement in people's wellbeing and quality of life, including factors such as health, education, income distribution, and freedoms.
- Identifies the missing requirement: Explains that growth is necessary but not sufficient for development, since a country can experience rising GDP while development indicators (such as inequality, health, or education) stagnate or worsen.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- States two valid single indicators, such as life expectancy, the adult literacy rate, infant mortality rate, or access to clean water/sanitation.
- States a valid limitation, such as any single indicator only capturing one dimension of development and potentially missing important progress or problems in other areas.
Examiner tip: This limitation is exactly why composite indices like the Human Development Index were created — to combine multiple dimensions into a single, more complete measure.
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
Marking points
- Recognises credit for the stated point: States two valid single indicators, such as life expectancy, the adult literacy rate, infant mortality rate, or access to clean water/sanitation.
- Identifies the missing requirement: States a valid limitation, such as any single indicator only capturing one dimension of development and potentially missing important progress or problems in other areas.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
5.
Explain the three dimensions combined in the Human Development Index (HDI), and state one criticism of this composite measure.
[4 marks] · no calculator
Marking points
- States that the HDI combines a health dimension (measured by life expectancy at birth).
- States that the HDI combines an education dimension (measured by expected and mean years of schooling).
- States that the HDI combines a standard of living dimension (measured by gross national income per capita).
- States a valid criticism, such as the HDI not accounting for income inequality within a country, not measuring political freedom or environmental sustainability, or combining very different dimensions into one number that can mask trade-offs between them.
Examiner tip: Remembering the HDI's three dimensions is easy with the mnemonic 'Health, Education, Wealth' (life expectancy, schooling, income) — always be ready to pair this with at least one genuine limitation.
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
Marking points
- Recognises credit for the stated point: States that the HDI combines a health dimension (measured by life expectancy at birth).
- Identifies the missing requirement: States that the HDI combines an education dimension (measured by expected and mean years of schooling).
- Identifies the missing requirement: States that the HDI combines a standard of living dimension (measured by gross national income per capita).
- Identifies the missing requirement: States a valid criticism, such as the HDI not accounting for income inequality within a country, not measuring political freedom or environmental sustainability, or combining very different dimensions into one number that can mask trade-offs between them.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
7.
Distinguish between absolute poverty and relative poverty, giving an example measure for each.
[4 marks] · no calculator
Marking points
- 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.
- Gives a valid example measure of absolute poverty, such as the international poverty line (e.g., living on less than a specific dollar amount per day).
- Defines relative poverty as having a significantly lower income or standard of living compared to the typical standard in one's own society, even if basic needs are technically met.
- Gives a valid example measure of relative poverty, such as households earning below a set percentage (e.g., 50% or 60%) of the median national income.
Examiner tip: Absolute poverty can theoretically be eliminated as a country grows richer overall, but relative poverty persists by definition as long as income inequality exists within a society, however wealthy that society becomes.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: Gives a valid example measure of absolute poverty, such as the international poverty line (e.g., living on less than a specific dollar amount per day).
- Identifies the missing requirement: Defines relative poverty as having a significantly lower income or standard of living compared to the typical standard in one's own society, even if basic needs are technically met.
- Identifies the missing requirement: Gives a valid example measure of relative poverty, such as households earning below a set percentage (e.g., 50% or 60%) of the median national income.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Explains that low incomes in a poor country mean most income is spent on immediate consumption needs, leaving little left over to save.
- Explains that low domestic savings limit the funds available for banks to lend to domestic firms for investment in capital (machinery, infrastructure), restraining growth in productive capacity.
- States a valid way to overcome this, such as attracting foreign direct investment, securing foreign aid or concessional loans, or microfinance schemes designed to encourage small-scale domestic saving and investment.
Examiner tip: This is the classic 'vicious cycle of poverty' argument: low income leads to low savings, leads to low investment, leads to low growth, which perpetuates low income — breaking this cycle usually requires an external source of capital or a targeted domestic policy.
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
Marking points
- Recognises credit for the stated point: Explains that low incomes in a poor country mean most income is spent on immediate consumption needs, leaving little left over to save.
- Identifies the missing requirement: Explains that low domestic savings limit the funds available for banks to lend to domestic firms for investment in capital (machinery, infrastructure), restraining growth in productive capacity.
- Identifies the missing requirement: States a valid way to overcome this, such as attracting foreign direct investment, securing foreign aid or concessional loans, or microfinance schemes designed to encourage small-scale domestic saving and investment.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- 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.
- Explains that primary commodity prices have historically tended to decline relative to the price of manufactured goods over the long run (as described by the Prebisch-Singer hypothesis), worsening the country's terms of trade over time.
- Explains that this volatility and declining relative value make it difficult for the government to plan long-term development spending reliably, and can discourage diversification into other sectors.
Examiner tip: This barrier (commodity dependence) connects directly to the earlier international trade topic's point about export volatility — development questions often reward linking concepts across different units of the syllabus.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: Explains that primary commodity prices have historically tended to decline relative to the price of manufactured goods over the long run (as described by the Prebisch-Singer hypothesis), worsening the country's terms of trade over time.
- Identifies the missing requirement: Explains that this volatility and declining relative value make it difficult for the government to plan long-term development spending reliably, and can discourage diversification into other sectors.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
13.
Explain how investment in education and healthcare (human capital) can promote long-run economic development.
[3 marks] · no calculator
Marking points
- Explains that better education raises worker productivity, enabling workers to perform more complex, higher-value tasks and adopt new technologies more effectively.
- Explains that better healthcare reduces illness and absenteeism, extends working lives, and improves physical and cognitive capacity to work, all of which raise productivity.
- Concludes that a healthier, better-educated workforce directly raises an economy's long-run aggregate supply/production possibilities, supporting sustained growth and development beyond what capital investment alone could achieve.
Examiner tip: Human capital investment is often described as raising the quality of a factor of production (labor), which complements but is distinct from raising the quantity of physical capital — both appear as determinants of long-run growth.
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
Marking points
- Recognises credit for the stated point: Explains that better education raises worker productivity, enabling workers to perform more complex, higher-value tasks and adopt new technologies more effectively.
- Identifies the missing requirement: Explains that better healthcare reduces illness and absenteeism, extends working lives, and improves physical and cognitive capacity to work, all of which raise productivity.
- Identifies the missing requirement: Concludes that a healthier, better-educated workforce directly raises an economy's long-run aggregate supply/production possibilities, supporting sustained growth and development beyond what capital investment alone could achieve.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- 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.
- Explains export promotion as a strategy of developing industries specifically targeted at selling in foreign markets, often supported by subsidies, favourable exchange rate policy, or export processing zones.
- States a valid risk of import substitution, such as domestic industries remaining inefficient and uncompetitive without the discipline of foreign competition, or consumers facing higher prices and less choice than under free trade.
Examiner tip: The historical record offers evidence for both strategies: many East Asian economies grew rapidly through export promotion, while import substitution has a more mixed record — a strong answer references this real-world divergence.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: Explains export promotion as a strategy of developing industries specifically targeted at selling in foreign markets, often supported by subsidies, favourable exchange rate policy, or export processing zones.
- Identifies the missing requirement: States a valid risk of import substitution, such as domestic industries remaining inefficient and uncompetitive without the discipline of foreign competition, or consumers facing higher prices and less choice than under free trade.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
17.
Explain how corruption can act as a barrier to economic development, even in a country with abundant natural resources.
[3 marks] · no calculator
Marking points
- 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.
- Explains that corruption discourages both domestic and foreign investment, since investors face unpredictable costs (bribes) and weakened legal protection for their property and contracts.
- Links this to the 'resource curse', where countries rich in natural resources sometimes experience slower development than resource-poor countries, partly due to corruption and poor governance around resource revenue.
Examiner tip: The 'resource curse' is a genuinely counter-intuitive and well-documented pattern — resource abundance alone does not guarantee development, and can even undermine it when governance is weak.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: Explains that corruption discourages both domestic and foreign investment, since investors face unpredictable costs (bribes) and weakened legal protection for their property and contracts.
- Identifies the missing requirement: Links this to the 'resource curse', where countries rich in natural resources sometimes experience slower development than resource-poor countries, partly due to corruption and poor governance around resource revenue.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- 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.
- Explains that this can increase household income, create local employment, and particularly empower groups (such as women in some contexts) who were previously excluded from formal financial services.
- States a valid limitation, such as microfinance loans typically being too small to fund larger-scale, more transformative investments, or borrowers sometimes falling into unsustainable debt if the business does not succeed as hoped.
Examiner tip: Microfinance is a widely cited 'bottom-up' development tool, in contrast to large-scale top-down approaches like major infrastructure projects — a balanced answer should recognise it as one useful tool among several, not a complete solution on its own.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: Explains that this can increase household income, create local employment, and particularly empower groups (such as women in some contexts) who were previously excluded from formal financial services.
- Identifies the missing requirement: States a valid limitation, such as microfinance loans typically being too small to fund larger-scale, more transformative investments, or borrowers sometimes falling into unsustainable debt if the business does not succeed as hoped.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- 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.
- Explains that Country X (0.25) has substantially more equal income distribution than Country Y (0.55), meaning income in Country Y is far more concentrated among a smaller share of the population.
- States a valid policy to reduce inequality, such as progressive income taxation, targeted cash transfers or social welfare payments to low-income households, or increased public spending on education and healthcare to improve access for the poor.
Examiner tip: Remember the Gini coefficient's range runs from 0 (perfect equality) to 1 (perfect inequality) — a common error is reversing this direction when interpreting which country is more unequal.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: Explains that Country X (0.25) has substantially more equal income distribution than Country Y (0.55), meaning income in Country Y is far more concentrated among a smaller share of the population.
- Identifies the missing requirement: States a valid policy to reduce inequality, such as progressive income taxation, targeted cash transfers or social welfare payments to low-income households, or increased public spending on education and healthcare to improve access for the poor.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
23.
Explain one benefit and one limitation of foreign aid as a strategy for promoting economic development.
[3 marks] · no calculator
Marking points
- 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.
- Explains a valid limitation, such as aid being lost to corruption, tied to purchases from the donor, or creating dependency that weakens domestic institutions.
- Concludes that aid works best when targeted at specific, monitored projects rather than given as unconditional budget support.
Examiner tip: Name a specific mechanism (tied aid, corruption, dependency) rather than just saying aid 'does not always work'.
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
Marking points
- Recognises credit for the stated 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.
- Identifies the missing requirement: Explains a valid limitation, such as aid being lost to corruption, tied to purchases from the donor, or creating dependency that weakens domestic institutions.
- Identifies the missing requirement: Concludes that aid works best when targeted at specific, monitored projects rather than given as unconditional budget support.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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
Marking points
- Explains that GDP per capita is an average that hides income inequality, so a high figure can coexist with widespread poverty.
- Explains that GDP excludes non-market activity and the informal economy, and says nothing about health, education or environmental quality.
- Notes that composite indicators such as the HDI attempt to address these gaps.
Examiner tip: Link each limitation to what it fails to capture (distribution, informal activity, wellbeing) rather than listing the weaknesses generically.
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
Marking points
- Recognises credit for the stated point: Explains that GDP per capita is an average that hides income inequality, so a high figure can coexist with widespread poverty.
- Identifies the missing requirement: Explains that GDP excludes non-market activity and the informal economy, and says nothing about health, education or environmental quality.
- Identifies the missing requirement: Notes that composite indicators such as the HDI attempt to address these gaps.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
27.
Explain how improving access to education for girls can promote economic development.
[3 marks] · no calculator
Marking points
- Explains that educated women have higher labour-force participation and productivity, raising output and household income.
- Explains the links to lower child mortality and fertility rates and better child nutrition and schooling, improving the next generation's human capital.
- Concludes that the benefits compound across generations, breaking the cycle of poverty.
Examiner tip: Female education is often cited as one of the highest-return development investments because its benefits spill over to families and future generations.
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
Marking points
- Recognises credit for the stated point: Explains that educated women have higher labour-force participation and productivity, raising output and household income.
- Identifies the missing requirement: Explains the links to lower child mortality and fertility rates and better child nutrition and schooling, improving the next generation's human capital.
- Identifies the missing requirement: Concludes that the benefits compound across generations, breaking the cycle of poverty.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
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]
Marking points
- Calculates GDP per capita in the first year as $600bn / 100m = $6,000.
- Calculates GDP per capita in the second year as $630bn / 102m ≈ $6,176.
- Calculates the percentage change as (6,176 − 6,000)/6,000 × 100 ≈ 2.9%.
- Explains that population growth (2%) spreads the extra output over more people, so per capita growth is below total GDP growth.
Examiner tip: Per capita growth is approximately GDP growth minus population growth — check your answer against this rule of thumb.
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]
Marking points
- Recognises credit for the stated point: Calculates GDP per capita in the first year as $600bn / 100m = $6,000.
- Identifies the missing requirement: Calculates GDP per capita in the second year as $630bn / 102m ≈ $6,176.
- Identifies the missing requirement: Calculates the percentage change as (6,176 − 6,000)/6,000 × 100 ≈ 2.9%.
- Identifies the missing requirement: Explains that population growth (2%) spreads the extra output over more people, so per capita growth is below total GDP growth.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.