Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

(a)[2]

In Fiji’s balance of payments, how would revenue from tourist arrivals be entered, and in which section would it appear?

(b)[2]

Use a supply and demand diagram to show how the government investment mentioned in the article changed the price of sugar produced in Fiji.

(c)[3]

Explain what the changes in sugar’s contribution to visible export earnings and in the price of sugar might indicate about the price elasticity of demand for sugar.

(d)[3]

Using aggregate demand and aggregate supply analysis, explain why inflationary pressures stayed subdued in Fiji even though growth was higher.

(e)[4]

Explain how higher investment could deal with supply-side capacity constraints in the Fiji economy.

(f)[6]

Discuss any economic factors that could help explain the changes in visitor arrivals to Fiji from Australia and Japan.

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