WJEC A Level Economics
WJEC A Level Economics Economic Development Exam Questions
Free WJEC 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 such as the resource curse, and solutions.
Practise Economic Development with past papers
Once you have learnt this topic, find the Economic Development questions in real WJEC 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 WJEC A Level Economics Economic Development
Economic development is the final A2 Trade and Development topic in WJEC Economics. The specification divides it into measurement, obstacles and solutions. You need to understand what development means and whether changes in national income indicate it, the difference between GDP and GNP, purchasing power parity adjustments, the Human Development Index (understanding, not calculation), other indicators such as economic structure, health and education access and internet and mobile phone use, and awareness of the UN Millennium Development Goals. You then evaluate obstacles facing less economically developed countries and approaches to overcoming them. It is examined in A2 Units 3 and 4 and suits the Trade and Development essays.
What you need to know
- Meaning of development Development is a broad improvement in living standards and wellbeing, not just higher national income. Growth in GDP may not bring development if gains are unevenly shared or come with environmental harm.
- GDP, GNP and PPP GDP measures output produced within a country; GNP measures income earned by its residents, including net income from abroad. PPP adjusts income for differences in the cost of living to allow fairer comparisons.
- The HDI and other indicators The HDI combines health (life expectancy), education and income per head. Other indicators include the share of employment in agriculture, access to clean water, health care and schooling, and internet and mobile phone usage. You should be aware of the Millennium Development Goals.
- Obstacles The resource curse, poor health and education, low life expectancy, trade policies of more developed countries, weak infrastructure, lack of capital and technology, poor governance and corruption, high public debt and rapid population growth.
- Solutions: liberalisation Internal liberalisation (removing price controls, privatisation) and external liberalisation (lowering trade barriers, opening to capital flows) aim to raise efficiency and growth.
- Solutions: aid, debt and industrialisation International aid, debt relief, import substituting industrialisation, export promotion and attracting FDI. Each must be evaluated for effectiveness, dependency and who benefits.
Common mistakes in Economic Development
- Using GDP alone to judge development. Development needs wider indicators such as the HDI, health and education.
- Trying to calculate the HDI. WJEC requires understanding of what it shows, not calculation.
- Treating aid as always effective. Consider corruption, tied aid and dependency.
- Writing about LEDCs as all the same. Use specific examples and recognise that obstacles differ between countries.
Try three Economic Development exam-style questions
1. Explain the difference between GDP and GNP. (2 marks)
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GDP is the value of output produced within a country's borders; GNP is GDP plus net income from abroad (income earned by residents overseas minus income paid to foreigners).
2. Explain how the resource curse can be an obstacle to development. (4 marks)
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Countries rich in natural resources may become dependent on them; commodity price volatility makes revenue unstable; resource exports can raise the exchange rate and harm other industries; resource wealth can encourage corruption and conflict, weakening institutions.
3. Evaluate whether international aid is the most effective solution to the obstacles to development. (15 marks)
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A strong answer would analyse how aid can fund health, education and infrastructure, filling savings and foreign exchange gaps; evaluate corruption, dependency, tied aid and poor targeting; compare with debt relief, trade liberalisation, FDI and export promotion; use country examples; reach a judgement that depends on governance and the type of aid.
Economic Development FAQs
What does WJEC A Level Economics Economic Development cover?
It covers the measurement of development, including GDP, GNP, PPP, the HDI and other indicators, awareness of the Millennium Development Goals, obstacles to development and solutions such as liberalisation, aid, debt relief, industrialisation strategies and FDI.
Which unit is Economic Development examined in?
It is A2 content, so it is examined in A2 Unit 3 (Exploring Economic Behaviour) and A2 Unit 4 (Evaluating Economic Models and Policies).
What do I need to know about the HDI?
Know its three components (health, education and income), what a high or low score shows and its limitations, such as ignoring inequality and the environment. WJEC does not require you to calculate it.
