(a)[2]
Use production possibility curves to contrast Brazil’s economy in 2013 with its economy in 2003.
(b)
- Using Fig. 1, explain how the value of the Brazilian Real in 2013 compares with its value in 2004. [2]
- Explain one possible reason why the Mexican Peso was stable from 2004 to 2008, as shown in Fig. 1. [2]
- Using diagrams, explain how the different economic experiences of Brazil and Mexico after 2011 described in the text could account for the changes in currency values shown in Fig. 1. [4]
(c)[4]
Explain why the Mexican Government ‘during the past decade’ is more likely to produce an expansion of the economy than the Brazilian Government’s approach during this period.
(d)[6]
Identify and evaluate how useful any further information would be in assessing the future prospects of the Brazilian and Mexican economies.