Barriers to economic growth Paper 1- IBDP Economics SL

IBDP Economics SL – The global economy- Barriers to economic growth Paper 1- Exam Style Practice Questions

Exam Style Questions..

IBDP Economic SL- All Topics

Question

Explain how political and social factors can act as barriers to economic growth and economic development.

▶️Answer/Explanation

Answers may include:

Terminology: political and social barriers, economic growth, economic development
Explanation: of any possible political/social barriers, which may inhibit growth and development, such as gender inequality, lack of governance, corruption, unequal political power and status, weak institutional framework involving the legal system, ineffective taxation structures, the banking system and property rights
Diagram: use of an AD/AS diagram to illustrate economic growth, or a PPC or poverty cycle diagram.

Question

Explain how being trapped in a poverty cycle may be a barrier to economic growth for a country.

▶️Answer/Explanation

Answers may include:

Terminology: poverty, poverty cycle, economic growth.
Explanation: of the perpetuation of poverty through low incomes, low savings, low investment in physical, human and natural capital, low productivity and low economic growth.
Diagram: a poverty cycle diagram or a PPC diagram.

Question

Using real-world examples, discuss the significance of economic barriers for a country’s economic growth and economic development.

▶️Answer/Explanation

Answers may include:

Terminology: economic barriers, economic growth, economic development
Explanation: of how economic barriers such as increasing economic inequality, lack of access to infrastructure and appropriate technology, low levels of human capital, overdependence on primary sector, lack of access to international markets, informal economy, capital flight, indebtedness, geography, e.g. being landlocked and climate/disease may constrain growth and development
Diagram: use of any relevant diagram such as PPC, poverty cycle, AD/AS
Synthesis (discuss): the degree to which the various economic barriers act as a barrier to growth and development; the relative importance of economic barriers as compared to political/social barriers; overall assessment
Examples: real-world examples of countries that have experienced economic barriers to growth and development.

Question

Explain two reasons why a high level of government indebtedness can act as a barrier to economic growth.

▶️Answer/Explanation

Answers may include:

Terminology: indebtedness, economic growth.
Explanation: of any two reasons that government indebtedness could act as barrier to economic growth, such as the opportunity cost to governments of debt repayments and interest costs; the problem of a debt trap and the ability to repay debt; the need to increase taxes and reduce government spending.
Diagram: any relevant diagram such as an AD/AS diagram to illustrate economic growth/lack of economic growth or a PPC diagram to illustrate opportunity cost.