Define the term gross domestic product (GDP) per capita indicated in bold in the text (paragraph [1]).

List two components of the Human Development Index (HDI) (paragraph [1]).

Using an externalities diagram, explain the benefits of hygiene and sanitation education programmes (paragraph [5]).

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]).

Using information from the text/data and your knowledge of economics, evaluate the effectiveness of interventionist policies as a means of achieving economic development in the DRC.

Candidates who incorrectly label diagrams can be awarded a maximum of [3].

The vertical axis can be price, costs or benefits. The horizontal axis is quantity. A title is not necessary.

Candidates who incorrectly label diagrams can be awarded a maximum of [3].

For a PPC diagram, there must be two goods or groups of goods competing for the same resources on the axes. Good X and Good Y are appropriate, but simply X and Y are not sufficient.

Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.

Do not award beyond Level 2 if the answer does not contain reference to the information provided.

“Evaluate” requires candidates to make an appraisal by weighing up the strengths and limitations.

Responses may include:

• a definition of economic development
• a definition of interventionist policies.

Economic analysis may include:

• poverty cycle
• interventionist supply-side policies
• trade protection
• PPC
• FDI.

Strengths of interventionist policies may include:

• government could provide a social safety net as GDP per capita is low (paragraph [1])
• government spending to encourage investment in agricultural sector (e.g. subsidies) (paragraph [2])
• increased spending in the agricultural sector will create jobs (paragraph [2])
• increased spending in the agricultural sector will reduce reliance on imports and improve food security
• government provision of infrastructure in roads and cities encourages future FDI which may create jobs (increase in LRAS or PPF) (paragraph [3])
• government building hydroelectric generation plants increases electricity access to citizens and business and encourages FDI which creates jobs (paragraph [4])
• tariffs can supply additional revenue for government spending (paragraph [2])
• tariffs can protect infant industries particularly in agriculture (paragraph [2])
• positive externalities / welfare loss reduced when government increases healthcare provision (paragraph [5]).

Limitations of interventionist policies may include:

• overdependence on income from mining sector (paragraph [1])
• increased government intervention may increase corruption (paragraph [2])
• weak private sector means reduces potential to collect tax revenue
• significant costs to budget to provide road and hydroelectricity infrastructure (paragraph [3] and [4])
• government investment in infrastructure may lead to high debt creating a burden to future generations (paragraph [3] and [4])
• increasing red tape discourages investment in the private sector (paragraph [2])
• tariffs on imported inputs increases input costs for firms and reduces output (paragraph [2]).

To reach level 3, students must show awareness of the ways in which interventionist policies will impact upon economic development (not simply discuss the advantages and disadvantages of interventionist policies in general). This means to link the evaluation to how they will reduce poverty, increase living standards, reduce income inequalities and increase employment opportunities, improve health and education indicators.

Any reasonable evaluation.

Generally poorly answered. A common answer was just GPD/population, therefore did not attract full marks. There were also two other basic weaknesses. One was that students referred to the output of goods and services and not the value. Two, students often ignored the "per capita" aspect of the definition.

Again relatively poorly answered. Most definitions were partial/incomplete, with statements such as "education" or "living standards". A few students are still using the old definition of HDI, which included indicators like literacy rates. It is expected that candidates will have up-to-date knowledge and understanding of key terms.

Some students interpreted "hygiene and sanitation education programmes" as three different programmes: hygiene, sanitation and education. This alternative interpretation was accepted. 

Some candidates produced sound responses with accurate externality diagrams coupled with a comprehensive explanation. Lower-achieving responses constructed diagrams with labelling errors or showing positive externalities on production that clearly highlighted a lack of understanding alongside an explanation that confirmed the limited approach undertaken. 

Occasionally students did not explain the benefit in the context of the article. 

There were some encouraging answers to this question. Most candidates understood the meaning of production possibilities and were able to construct an accurately labelled diagram alongside an ability to apply the concept in terms of greater "access to electricity". There were a range of errors by some candidates including:

• poor labelling, which indicated a lack of understanding of PPC such as "Price" and "Output"
• failure to identify appropriate products on the axes 
• an explanation that focused on generalities rather than how potential output was affected
• not referring to the diagram in the explanation. 

This was poorly answered with few candidates having little understanding of the demands of the question. Such as:

• too few focused on economic development. Many relied on the impact of the policies on economic growth with only passing reference to economic development
• many failed to identify appropriate interventionist policies related to economic development. Many relied on fiscal and monetary policies while others confused supply-side market-based policies with interventionist policies
• answers tended to be descriptive rather than analytical, with little in terms of evaluation/reasoned judgment
• too many simple paraphrased the extract or repeated the information provided in the text
• many candidates did not out the response in the context of the DRC's economic development, thus providing a generic response.