Edexcel International A Level Economics
Edexcel International A Level Economics Growth and Development in Developing, Emerging and Developed Economies Exam Questions
Free Edexcel International A Level Economics exam questions for Growth and Development in Developing, Emerging and Developed Economies, with a mark scheme for every pack. Covers measures of development, the HDI, factors limiting growth and development, and market-orientated and interventionist strategies.
Growth and Development in Developing, Emerging and Developed Economies exam questions
1 question pack of real past exam questions, each with its mark scheme. Do not stop after a few: answer as many as you can without notes, then mark every answer with the mark scheme. The more questions you do, the more quickly you will spot how examiners ask about each idea.
About Edexcel International A Level Economics Growth and Development in Developing, Emerging and Developed Economies
This Unit 4 topic in Edexcel International A Level Economics explores why some economies have grown and developed faster than others. You learn the difference between growth and development, how development is measured, and the many factors that can hold economies back. You then evaluate strategies for promoting growth and development, from market-orientated approaches such as trade liberalisation and FDI to interventionist approaches such as infrastructure and human capital investment, as well as the role of aid and international institutions. Examiners expect you to apply ideas to particular countries and to recognise that the right strategy depends on each economy's circumstances.
What you need to know
- Growth versus development Growth is an increase in real GDP. Development is a broader improvement in living standards, including health, education, freedom and choice.
- Measures of development The Human Development Index combines life expectancy, education (mean and expected years of schooling) and GNI per capita at PPP. Other indicators include access to clean water, literacy and infant mortality.
- Factors limiting growth Primary product dependency and volatile commodity prices, savings gaps, foreign currency gaps, capital flight, demographic factors, debt, poor infrastructure, low education and health, lack of property rights and corruption.
- Market-orientated strategies Trade liberalisation, promotion of FDI, removal of government subsidies, floating exchange rates, microfinance and privatisation.
- Interventionist strategies Development of human capital, protectionism, managed exchange rates, infrastructure development, promoting joint ventures and buffer stock schemes.
- Other strategies Industrialisation and the Lewis model, tourism, primary product development, fair trade, aid and debt relief, and the role of the World Bank and IMF.
Common mistakes in Growth and Development in Developing, Emerging and Developed Economies
- Treating growth and development as the same. Growth can occur without broad improvements in welfare.
- Misdescribing the HDI. It combines health, education and income, not GDP alone.
- Recommending one strategy for every country. Strategies must suit the economy's resources, institutions and stage of development.
- Assuming aid always helps. Aid can be tied, misused through corruption or create dependency.
- Ignoring institutions. Property rights, rule of law and low corruption are often the key to success.
Try three Growth and Development in Developing, Emerging and Developed Economies exam-style questions
1. State the three dimensions of the Human Development Index. (3 marks)
Show the mark scheme answer
Health, measured by life expectancy at birth; education, measured by mean and expected years of schooling; standard of living, measured by GNI per capita at PPP.
2. Explain how primary product dependency can limit economic development. (4 marks)
Show the mark scheme answer
Commodity prices are volatile, so export earnings and government revenue are unstable; low income elasticity of demand for many primary products; declining terms of trade over time; limited value added and skills development; Dutch disease effects.
3. Evaluate the effectiveness of microfinance in promoting economic development. (12 marks)
Show the mark scheme answer
Microfinance provides small loans to people without access to banks, especially women; enables enterprise, raises incomes and reduces poverty; evaluation: small scale relative to need; high interest rates can lead to debt; many borrowers use loans for consumption; does not tackle infrastructure or institutional barriers; works best alongside other strategies; supported judgement.
Growth and Development in Developing, Emerging and Developed Economies FAQs
What does Edexcel IAL Economics Growth and development cover?
It covers the difference between growth and development, measures such as the HDI, factors limiting growth and development, and market-orientated and interventionist strategies.
Which unit is Growth and development examined in?
It is part of Unit 4, Developments in the global economy.
How do I choose examples for development questions?
Learn a few contrasting country cases, such as an economy that relies on primary exports and one that has grown through manufacturing. Use them to show why strategies work in some places but not others.
