New Zealand is a high-income country with a low unemployment rate and imports that exceed exports. More recently, its government has taken some significant economic decisions. In 2022, it prohibited anyone born after 2008 from buying cigarettes. The year before that, it allowed firms to explore for oil in the country.
(a)[2]
Define the unemployment rate.
(b)[4]
Explain two reasons why a government may discourage cigarette smoking.
(c)[6]
Analyse the reasons why a country’s exports may decrease.
(d)[8]
Discuss whether the discovery of oil in a country will bring benefits to its economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Number unemployed divided by labour force \times100” …