IBDP Economics HL – The global economy – Barriers to economic growth and/or economic development -Paper 1 Exam Style Practice Questions
Barriers to economic growth and/or economic development Paper 1?
Exam Style Questions..
Subject Guide IBDP Economic IBO
IBDP Economic SL- All Topics
Exam Style Question for IBDP Economics HL- Barriers to economic growth and/or economic development -Paper 1
Question
Using real-world examples, discuss the view that the weak institutional framework in many economically least developed countries (ELDCs) represents the most significant barrier to economic growth.
▶️Answer/Explanation
Answers may include:
- Terminology: economically least developed country, economic growth.
- Explanation: of the view in terms of how various aspects of the institutional framework such as poorly-functioning legal system, ineffective/inequitable taxation structure, underdeveloped banking system and lack of property rights may act as a barrier to economic growth.
- Diagram: a diagram is not required for this question, but candidates may use a LRAS/PPC diagram to illustrate economic growth in the long run and explain that the weak institutional framework is preventing economic growth from happening.
- Synthesis (discuss): a challenge to the view in terms of the relative significance of other economic and social/political barriers.
- Examples: real-world examples of countries facing a weak institutional framework and/or other barriers to economic growth.
Question
Explain how dependence on primary sector production may be a barrier to economic growth.
▶️Answer/Explanation
Answers may include:
- Terminology: primary sector production, economic growth.
- Explanation: of the problems of overspecialization/lack of diversification, the reasons for price volatility of primary products and the impact of this volatility on farmers’ incomes, agricultural investment, employment and wages of agricultural workers, export earnings and the balance of payments and government revenues; how these factors impact negatively on economic growth.
- Diagram: demand and supply diagram showing inelastic demand and supply curves, with large fluctuations in price when demand and/or supply shift or any other relevant diagram.