Economics 0455 · IGCSE · Differences in economic development between countries
Differences in economic development between countries — practice question
As the range of smartphone functions has expanded, demand has become more price-inelastic. In low-income countries, smartphones are a key aid to economic development because they open access to education and banking services that were once unavailable in rural areas. They have also made it simpler for people to save and borrow their money.
(a)[2]
Define what economic development means.
(b)[4]
Explain two reasons why children in rural areas may receive less education than children in cities.
(c)[6]
Analyse the advantages of offering a product whose demand is price-inelastic.
(d)[8]
Discuss whether a higher level of savings is beneficial for an economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “An improvement in standards of living / quality of life” …