Russia’s birth rate declined by 11% in 2017, reaching its lowest point for ten years. Over the next 30 years, Russia’s population is predicted to fall from 144 million to 107 million. The government announced steps intended to reverse this drop in population. In 2017, it also announced privatisation plans and measures designed to reverse a decline in investment that could result in a fall in the quantity of capital goods. Privatisation can reduce monopoly power in a market.
(a)[2]
Define the term privatisation.
(b)[4]
Explain two causes that lead to a fall in the birth rate.
(c)[6]
Analyse, using a production possibility curve (PPC) diagram, how a fall in the quantity of capital goods affects an economy.
(d)[8]
Discuss whether a government should permit monopolies.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The transfer of state-owned industries/assets” …