Economics 0455 · IGCSE · Economic growth

Economic growth — practice question

Argentina was once among the countries with the world’s highest GDP per head and had one of the fastest rates of economic growth. A large number of multinational companies were manufacturing there. Some people argue that, if Argentina is to return to the top ten richest nations, it must raise education spending and move towards free trade.
(a)[2]

Define ‘free trade’ in your own words.

(b)[4]

Explain two reasons why governments seek economic growth.

(c)[6]

Analyse why education’s social benefits are greater than its private benefits.

(d)[8]

Discuss whether multinational companies (MNCs) will always set up in countries with a high GDP per head.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Unrestricted trade

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