Characteristics of countries at different levels of development · A Level Economics

ACorrect answer

ACorrect answer

ACorrect answer

CCorrect answer

Consider whether the use of gross national income (GNI) alone is sufficient to measure the standard of living in a high-income country. Use TableA: AO1 Knowledge and understanding and AO2 Analysis and Table B: AO3 Evaluation to mark candidate responses to thisquestion.

AO1 and AO2 out of 14marks. AO3 out of 6 marks.

AO1 Knowledge and understanding and AO2 Analysis

• Definitions of GNI, standard of living material and non-material, and HIC

• Conversion of GNI to real GNI per capita as a measure of material standard of living

• Identification of link between material and non-material standard of living

• Given the level of real GNI pc in HIC are the differences significant in a real sense?

AO3 Evaluation

• Problems of measuring real GNI pc Data collection, informal economy non-marketed activities

• Changing range of goods and services

• The impact of negative and positive externalities on the accuracy of the measure of the non-material standard of living

• Impact on workers of striving for a high real GNI pc – long hours, commuting

• Effects on sustainability of high GNI

• Justified consideration of alternative measure of standard of living HDI/MPI etc.

• Consideration of the Gini coefficient

Accept all valid responses.

AO1 Knowledge and understanding and AO2 Analysis

AO3 Evaluation

Explain, with theaid of a diagram, how the migration of workers from a low-income country is likelyto affect wages in the low-income country. Labels and axes Wages/labour (1) Initial S and D for labour (1) and equilibrium point (1) Reduction in the supply of labour (supply curve shift) (1) New equilibrium wage and quantity (1)

Maximum 3 marks if no diagram

Identify what is included in the HDI. Health/Life Expectancy 1 Education/Years of Schooling 1 Income/Gross National Income pc/GNI 1

With reference to the article, assess whether there is enough evidence to conclude that living standards in Bangladesh have improved since 1971. Distinction between standard of living: monetary e.g. income and non- monetary e.g. health, education, water quality 1. Improvements Rise in GNI from 2342 US$ to 5823 US$ = 2481 1 US$/ 143% increase 1 HDI rose 0.49 to 0.66 1 Agricultural production/productivity. increased 1, Balance of Trade improved 1 Net exports increased 1, wider range of goods and services imported 1

Maximum 3 marks Disadvantages Development of negative externalities 1 air/water pollution 1 use of child labour 1 bad working conditions 1 Loss of agricultural jobs 1 Poorly constructed factories 1

Maximum 3 marks Conclusion Not enough evidence in the article 1 No information on housing/education or health 1

Explain what is meant by an optimum population. The optimum size of population is an economy which, with existing natural resources/factors of production/ given state of technology, (1) yields the highest income per capita in a country/where the standard of life is at a maximum (1)

Explain how China’s population structure changed between 1970 and 2020 and considerwhetherthe statement ‘its population is decreasing’ is supported by Fig. 1.1. References should be made to: the declining birth rate, (1) an ageing population (1) an increasing dependency ratio (1) Fig.1. shows population still growing/ not declining/ growing at a slower rate up to 2020 (1). Fig 1.1 does not support the statement that ‘its population is decreasing (1)

China’s government has a different view from what it says are the alarming statements made by economists. Consider the effects on the economyof the population policies suggested by China’s government. The one-child policy was based on the assumption that China’s population had increased beyond its optimum point and needed to transition to an economy based on skills, froman economy based on the size of its workforce.

(1) The one child policy did produce asignificant fall in the rate of increase of the population. However, this created challenges: an increasingly dependent population (1); a potential decline in savings and investment (1); leading to a fall in long term AS and AD (1) The two-child policy was introduced in 2016 to achieve economic growth and move back towards an optimum population (1) This policy was based on the assumption that China needed a young, skilled workforce, assisted by technology (1) This would make China internationally more competitive (1) leading to a rise in AD and AS in the long run. (1) A conclusion, for example, estimates based on fig 1.1 suggest that the intended effects of the two-child policy are unlikely to be achieved. (1)

Up to 3 marks maximum for discussing the effects of each policy. 1 mark for a conclusion

• reverse declining birth rate : encourage couples to have 2 or more children rather than 1 child to increase fertility rate; changes AD and in long run AS

• increase size of the working population to achieve an immediate impact by raising the retirement age for both men and women; may change both AD and AS

• recognise that China cannot rely on cheap labour alone to remain internationally competitive. Labour is now more organised and demands higher pay and benefits (pensions) increasing variable costs. Needs skilled workers.

• improve the quality of a smaller workforce though applied technology; increase productivity; needs to invest in new technology, implies educational and training reforms are essential. changes AS

• increase domestic consumption to support growth that comes from exports. Gives more stability and balance to the economy. Multiplier effects on income and growth.