A medicines manufacturer in Nigeria is planning to expand, and this should raise the industry’s contribution to the country’s Gross Domestic Product (GDP). If this firm grows, Nigeria may become less reliant on imported medicines and medicines may also become more affordable. However, to achieve success, the firm will need to increase what it spends on research and development.
(a)[2]
Define Gross Domestic Product (GDP) as the total market value of final goods and services produced within a country over a given period.
(b)[4]
Explain two ways in which cheaper medicines can raise standards of living.
(c)[6]
Analyse how spending on research and development (R&D) can allow a firm to expand in size.
(d)[8]
Discuss whether or not a reduction in imports benefits an economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Shows an economy’s total output, income or expenditure” …