Eduqas A Level Economics
Eduqas A Level Economics Economic Development Exam Questions
Free Eduqas A Level Economics revision for Economic Development: what you need to know, common mistakes and exam-style questions with answers. Covers measuring development with GDP, GNP, PPP and the HDI, obstacles to development and solutions such as aid and FDI.
Practise Economic Development with past papers
Once you have learnt this topic, find the Economic Development questions in real Eduqas A Level Economics past papers and mark them with the mark scheme. Doing lots of real questions is the quickest way to learn how examiners ask about each idea.
About Eduqas A Level Economics Economic Development
Economic development completes the Trade and Development section of the Eduqas specification. You start with measurement: the meaning of development, GDP and GNP, purchasing power parity adjustments, the Human Development Index (you must understand it but not calculate it) and other indicators such as health, education and internet access, plus awareness of the UN Millennium Development Goals. You then evaluate obstacles that hold back less developed countries and the strategies used to overcome them. Eduqas expects you to use examples from economies other than the UK, so learn a few country case studies. Component 3 essays often ask you to judge the most effective route to development.
What you need to know
- Growth versus development Economic growth is an increase in real GDP. Economic development is a broader improvement in living standards, including health, education, freedom and reduced poverty. Growth can occur without development if gains are unequally shared.
- Measures of income GDP measures output within a country; GNP adds net income from abroad. Comparisons use GDP per capita adjusted for purchasing power parity (PPP) to reflect what incomes actually buy in each country.
- The Human Development Index The HDI combines life expectancy, education (mean and expected years of schooling) and income per capita (GNI at PPP) into a single index between 0 and 1. You need to know what it shows and its limits, not how to calculate it.
- Other indicators Economic structure (share of agriculture, industry and services), access to health care and education, internet access and mobile phone use. You should be aware of the UN Millennium Development Goals.
- Obstacles to development Primary product dependency and the resource curse, poor health and education, weak infrastructure, lack of capital and technology, corruption and weak institutions, high debt, rapid population growth and trade barriers in richer countries.
- Solutions Internal and external liberalisation, international aid, debt relief, import substitution and export promotion, encouraging FDI, investment in human capital and fair trade. Each has costs as well as benefits.
Common mistakes in Economic Development
- Treating growth and development as the same. Development is a wider measure of wellbeing; growth is only an increase in output.
- Comparing incomes at market exchange rates. Use PPP adjusted figures to allow for different price levels.
- Saying the HDI measures everything about development. It ignores inequality, environmental damage and political freedom.
- Recommending aid without evaluation. Consider corruption, dependency, tied aid and whether aid reaches the poorest.
Try three Economic Development exam-style questions
1. Explain why GDP per capita at PPP is a better measure for comparing living standards between countries than GDP. (3 marks)
Show the mark scheme answer
Dividing by population allows for differences in population size; PPP adjusts for differences in price levels, showing what incomes can actually buy; so comparisons of living standards are more accurate.
2. Explain how dependence on primary products can be an obstacle to development. (4 marks)
Show the mark scheme answer
Primary commodity prices are volatile, so export earnings and government revenue are unstable; demand is often income inelastic, so prices and terms of trade may worsen over time; resource wealth may lead to corruption and neglect of other sectors (resource curse); limits diversification and investment.
3. Evaluate whether foreign direct investment is the most effective way to promote economic development. (15 marks)
Show the mark scheme answer
A strong answer would analyse FDI bringing capital, jobs, technology, skills and tax revenue; evaluate profit repatriation, exploitation of labour and resources, little benefit to local firms, environmental harm and dependence on footloose firms; compare with aid, debt relief, education spending and trade liberalisation; and judge with reference to country examples.
Economic Development FAQs
What does Eduqas A Level Economics Economic Development cover?
It covers the meaning and measurement of development, including GDP, GNP, PPP and the HDI, other indicators and the Millennium Development Goals, the obstacles to development and the solutions used to promote it.
Do I need to calculate the HDI for Eduqas?
No. You need to understand what the HDI measures and what it shows about differences in development, but calculating it is not required.
What case studies should I learn for Economic Development?
Learn a few contrasting non-UK examples, such as an economy that grew through FDI and export promotion and a resource rich economy that has struggled with the resource curse, so you can support evaluation with evidence.
