| Date | November 2018 | Marks available | 10 | Reference code | 18N.1.HL.TZ0.4 |
| Level | Higher level | Paper | Paper 1 | Time zone | Time zone 0 |
| Command term | Explain | Question number | 4 | Adapted from | N/A |
Question
Explain the potential effects on the economic growth rate from a substantial increase in the number of skilled people of working age entering a country.
Discuss the view that, apart from indicating economic growth rates over time, national income statistics are of little use.
Markscheme
Answers may include:
- definitions of economic growth, growth rate
- diagram(s) to show how an outward shift of the AD curve and/or an outward shift of the LRAS/production possibility curve would lead to economic growth
- explanation of how an increase in the population leads to an increase in AD in the short term (resulting in short-term economic growth) and/or how an increase in the number and qualification of the workforce leads to an increase in the quality and quantity of labour (resulting in long-term economic growth)
- examples of immigration affecting economic growth rates of countries.
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.
Answers may include:
- definitions of economic growth, growth rate, (real) GNI/GNP (per capita), (real) GDP (per capita)
- a diagram is not required but candidates may use diagram(s) to show economic growth, inequality in the distribution of income
- explanation of the uses of national income statistics for making comparisons over time, for making comparisons between countries and for making conclusions about the standards of living
- examples of such uses in practice
- synthesis or evaluation (discuss).
Discussion may include: consideration of “little use”, the drawbacks of using national income statistics to make conclusions about the standards of living, practical difficulties of measurement and calculation, the narrowness of such statistics, economic growth versus economic development.
Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.
Opinions or conclusions should be presented clearly and should be supported by appropriate examples.
NB Definitions, theory, and examples that have already been given in part (a), and then referred to in part (b), should be rewarded.
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part B.
Examiners report
Syllabus sections
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17M.1.SL.TZ2.04a:
Explain the causes of economic growth in terms of an increase in actual output and an increase in potential output.
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17M.2.HL.TZ0.03c:
Using a production possibilities curve (PPC) diagram, explain how “the government’s record US$22 billion investment in infrastructure projects” will affect Indonesia’s production possibilities (paragraph 2).
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18M.3.HL.TZ0.2e.iv:
In Country Beta, investment by firms increases in the first quarter of 2019.
The following diagram illustrates the long-run aggregate supply curve (LRAS), short-run aggregate supply curve (SRAS) and aggregate demand curve (AD) for Country Beta before the increase in investment.
The increase in investment results in both short-run and long-run effects on the economy. On the diagram above, draw and label the two curves that illustrate these effects.
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19M.2.HL.TZ0.4a.ii:
Define the term productivity indicated in bold in the text (paragraph [5]).
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17M.2.SL.TZ0.04b:
Using a production possibilities curve (PPC) diagram, explain how “billions of US dollars worth of infrastructure investment from China” may affect potential economic output (paragraph 1).
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19M.2.SL.TZ0.3c:
Using a production possibilities curve (PPC) diagram, explain how rising numbers of university graduates will affect Bhutan’s potential output (paragraph [5]).
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20N.2.SL.TZ0.2c:
Using an AD/AS diagram, explain the desired impact of China’s “eased monetary policy” on its economic growth (paragraph [5]).
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21M.2.HL.TZ0.4a.ii:
Define the term investment indicated in bold in the text (paragraph [5]).
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18M.3.HL.TZ0.2e.iii:
The following diagram illustrates the long-run aggregate supply curve (LRAS), short-run aggregate supply curve (SRAS) and aggregate demand curve (AD) for Country Beta before the increase in investment.
The increase in investment results in both short-run and long-run effects on the economy. On the diagram above, draw and label the two curves that illustrate these effects.
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21M.3.HL.TZ0.1b:
State one reason why the production possibility curve (frontier) for Country H might shift outwards.
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18M.1.SL.TZ2.3a:
Explain how an increase in investment might lead to economic growth.
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18N.2.SL.TZ0.4b:
Using a production possibilities curve (PPC) diagram, explain the effect on economic growth of the “destruction of much of the country’s physical, social and human capital” (paragraph [1]).
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19M.1.SL.TZ1.4a:
Explain the role of improved productivity in achieving economic growth.
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19N.1.SL.TZ0.4a:
Explain, using a production possibilities curve (PPC) diagram, an increase in the actual output of an economy.
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19N.3.HL.TZ0.3b:
Gardia is aiming to increase its economic growth rate. Explain two sources of economic growth for economically less developed countries.
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21M.2.HL.TZ0.3c:
Using a production possibilities curve (PPC) diagram, explain how the production possibilities (potential output) of the DRC might be affected if there were greater access to electricity (paragraph [4]).
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20N.2.HL.TZ0.4c:
Using a production possibility curve (PPC) diagram, explain how damage to Fiji’s infrastructure has affected its production possibilities (paragraph [1]).
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21N.3.HL.TZ0.3i:
Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.
