Economics 0455 · IGCSE · Differences in economic development between countries

Differences in economic development between countries — practice question

In 2019, Mozambique was struck by a severe storm that wrecked bridges, factories, roads and electricity lines. Nearly 60% of Mozambique’s population live in absolute poverty. The country’s people are eager to raise Mozambique’s economic development. Government intervention in Mozambique’s economy is high. Although Mozambique does not use import quotas, it does apply a range of import tariffs.
(a)[2]

Identify two reasons why a person might experience absolute poverty.

(b)[4]

Explain two causes of a rise in a country’s economic development.

(c)[6]

Analyse, using a production possibility curve (PPC) diagram, the impact of a serious storm on an economy.

(d)[8]

Discuss whether or not imposing tariffs on imports will lead to higher output in a country.

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