Economics 0455 · IGCSE · Differences in economic development between countries
Differences in economic development between countries — practice question
Myanmar (Burma) is aiming to progress from a developing country to a developed one. Its savings ratio is lower than that of most other Asian economies, because its people spend most of their income. The Government is encouraging foreign investment to increase economic growth. It is also using fiscal policy in an effort to reduce poverty, which affects one third of its population.
(a)[2]
Identify two characteristics that a developed country has.
(b)[4]
Explain two reasons why people may spend most of their income.
(c)[6]
Analyse how a rise in investment may increase a country's economic growth rate.
(d)[8]
Discuss whether fiscal policy measures can reduce poverty.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A high GDP per head / a high average income” …