IBDP Economics HL – The global economy – Economic growth and/or economic development strategies -Paper 1 Exam Style Practice Questions
Economic growth and/or economic development strategies Paper 1?
Exam Style Questions..
Subject Guide IBDP Economic IBO
IBDP Economic SL- All Topics
Exam Style Question for IBDP Economics HL- Economic growth and/or economic development strategies -Paper 1
Question
Explain how education programmes and health programmes can promote economic development.
▶️Answer/Explanation
Answers may include:
- Terminology: economic development.
- Explanation: of the benefits of education and health as merit goods with external benefits for society at large which may impact positively on development, eg greater labour productivity and output, lower unemployment, increased participation of women in the labour force, attractiveness for FDI, control of contagious diseases, links between health care and education
- Diagram: any relevant diagram, eg LRAS shifting to the right, a PPC diagram, a positive externalities of consumption diagram, a Lorenz curve diagram or a poverty cycle diagram.
Question
Using real-world examples, evaluate the view that market-based policies may be ineffective in promoting the economic development of the world’s poorest countries.
▶️Answer/Explanation
Answers may include:
- Terminology: market-based policy, economic development.
- Explanation: of the view in terms of what market-based policies are, eg trade liberalization, privatization and deregulation and why such policies might be ineffective; eg limited benefits for export growth and diversification, the creation of a variety of market failures, limited effects on economic growth, the creation of winners and losers, increasing income inequalities and poverty, problems of foreign ownership of privatized utilities, the benefits of interventionist policies.
- Diagram: use of a PPC diagram and/or an AD/AS diagram.
- Synthesis (evaluate): a challenge to the view in terms of such benefits of market-based policies as greater competition and consumer choice, greater efficiency and productivity, an increase in the productive potential of economies, greater economic growth and thus development and an improvement in the allocation of resources. Examples: real-world examples of countries which have adopted market- based policies and the effects of these policies on economic development.