Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
Mozambique is a developing economy with a relatively fast economic growth rate. In recent years, the metical has depreciated against the US dollar. That has affected the country’s unemployment rate. Some economists in Mozambique have argued for higher tariffs on imports in order to cut unemployment.
(a)[2]
Define what is meant by ‘a depreciation’ in the value of a currency.
(b)[4]
Explain two causes of a high economic growth rate.
(c)[6]
Analyse how the pattern of employment within a country usually changes as the economy develops.
(d)[8]
Discuss whether higher tariffs on imports would lower unemployment.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A decrease in value” …