Economics 2281 · O Level
Differences in economic development between countries
44 practice questions on Differences in economic development between countries, with worked solutions and instant marking.
The table gives the share of GDP generated by each production sector in three imaginary countries. What conclusion can be drawn from the table?
May/June 2015
The table presents several economic indicators for four countries. What conclusion can be drawn from the table?
May/June 2015
In 2013, subsistence farming, which engaged a high proportion of the population, was an important activity in the Philippines and Indonesia. What can be concluded about the Philippines and Indonesia from this information?
May/June 2015
Which feature is not usually a characteristic of a developed country?
May/June 2015
The table provides data on three economic indicators for four countries. What conclusion can be drawn from this data?
May/June 2016
China is regarded as a developing country. In recent data, the shares in its Gross Domestic Product (GDP) were agriculture 10%, construction 13%, manufacturing 32% and services 45%. Which contribution to GDP normally falls first as countries progress to a higher level of development?
May/June 2016
Some people believe that the debts and interest payments owed by the world’s poorest countries ought to be cancelled. What could be a disadvantage for these poorest countries if this happened?
May/June 2016
Which characteristic is shared by developed and developing economies?
May/June 2017
The table presents data about four countries. Which country appears to have the lowest level of development?
May/June 2017
Which characteristic is present in a developed country instead of a developing country?
May/June 2018
The table presents rice yield figures for four countries. Country and rice yield (kilos per hectare): Japan: 64, China: 53, Bangladesh: 20, Thailand: 20. What can be inferred from this information?
May/June 2018
Swaziland is a small African nation in which six in ten people live in poverty, and most businesses are small and use very little capital equipment. In October 2015, it opened a new airport. Some economists argue that constructing the airport carried a large opportunity cost and created several external costs. The airport project forms part of the government’s strategy to change the country from developing to developed.
May/June 2018
What normally happens when a developing country develops further?
May/June 2019
Which other components, besides Gross Domestic Product (GDP) per head, are used in the Human Development Index (HDI)?
May/June 2022
Which change would be least likely to occur in a country as it develops?
May/June 2023
The table gives information about four countries. Which country is most likely to be the most developed?
May/June 2024
What changes are likely to occur in the pattern of employment as a country becomes more developed?
May/June 2024
Economic development in country X has advanced more quickly than in country Y. What is the most likely reason for this difference in economic development between country X and country Y?
May/June 2024
Background information: Gabon’s industries and labour force Gabon fact file Gabon is a small West African nation. Its rainforests cut air pollution, supply wood for timber production, shield against floods and limit soil erosion. The Gabonese Government aims to protect the country’s rainforests. It has set up some national parks, and this has boosted tourism, which affects the current account of the balance of payments. The Gabonese Government also wants to lessen the country’s dependence on timber production, oil production and agriculture. The country is Africa’s fifth-largest oil producer, but its oil resources are being depleted. The oil industry leads to water pollution. The country has other natural resources, including gold. In 2022, new gold deposits were discovered in Gabon. Gabon’s agricultural industry accounts for a high share of the country’s labour force. Fig. 1.1 shows the literacy rate and the percentage of the labour force employed in agriculture in six selected countries in 2022. In recent years, Gabon has had a high unemployment rate among 15-24 year olds. High youth unemployment can mean that young people do not acquire the skills and experience required to reach high productivity. It can also damage their confidence. Some governments pay private sector firms to offer work experience to unemployed young people. The quality of this experience can differ.
May/June 2025
Turkey’s agricultural sector provides jobs for 48% of the country’s workforce, whereas this figure is 17% in the United States (US) and 3.9% in France. What inference could be drawn from this?
Oct/Nov 2015
Turkey’s agricultural sector accounts for 48% of the nation’s workforce, whereas the figures are 17% in the United States (US) and 3.9% in France. What conclusion could be drawn from this?
Oct/Nov 2015
Myanmar (Burma) wants to progress from a developing country into a developed one. Relative to most other Asian economies, its savings ratio is lower because people spend much of what they earn. The Government is promoting overseas investment to help raise economic growth. It is also using fiscal policy in an effort to cut poverty, which still affects one third of the population.
Oct/Nov 2015
The diagrams illustrate percentage employment across different sectors in two countries. Which statement is correct when country X is compared with country Y?
Oct/Nov 2017
The diagrams illustrate the percentage of employment across different sectors in two countries. Which statement is accurate when country X is compared with country Y?
Oct/Nov 2017
What change is most likely to happen as an economy develops?
Oct/Nov 2018
Developing countries are occasionally supported with aid from charities and foreign governments. Which aid programme would be least likely to result in long-term economic growth?
Oct/Nov 2018
Charities and overseas governments sometimes provide aid to developing countries. Which aid programme would be least likely to result in long-term economic growth?
Oct/Nov 2018
Which change, expressed as a percentage of GDP, would be unlikely to occur in a country as it develops?
Oct/Nov 2019
Mali is a developing country. Its Human Development Index (HDI) increased from $0.297$ in $2000$ to $0.442$ in $2016$. Most of Mali’s workers are employed in agriculture, and cotton is the country’s chief agricultural crop. However, gold is the country’s main export. Mali is the third largest exporter of gold in Africa.
Oct/Nov 2019
Which factor in the world’s low-income countries restricts their economic development?
Oct/Nov 2020
The table gives the proportion of employment in the primary, secondary and service sectors for four countries. Which country is most likely to be the most developed?
Oct/Nov 2020
Which factor in the world’s low-income countries restricts their economic development?
Oct/Nov 2020
The table presents the percentage of employment in the primary, secondary and service sectors for four countries. Which country is most likely to be the most developed?
Oct/Nov 2020
Many low-income countries depend on multinational companies (MNCs) for economic development. What is one disadvantage of this for the low-income country?
Oct/Nov 2020
Oil accounts for a third of Ecuador’s exports. Ecuador has, however, chosen to produce less oil and a wider range of other goods and services. This choice has changed the way output is made in Ecuador. For instance, luxury textile output, such as luxury scarves and jumpers, uses fewer capital goods than oil production. Tourism depends on natural resources, including sunshine and beaches. One reason the Ecuadorian government has pushed for less dependence on oil is the large swings that often occur in the oil market. From 2014 to 2016, demand for Ecuador’s exports dropped, which caused a major fall in export revenue. This fall, together with a reduction in government spending, led to a decline in the country’s output. From 2016 to 2019, Ecuador’s economy improved a little. Incomes and household spending rose and more cars were bought. Table 1.1 shows GDP per head ($) and car ownership (per 1000 people) in selected countries in 2019. Ecuador’s government borrowed from China in order to pay for the construction of more roads. Building these roads increased employment and was expected to affect transport costs in the long run. From 2016 to 2019, Ecuador’s textile industry gained from the better road network. Even with tough competition from foreign textile firms, Ecuador’s textile firms increased the scale of production. Wages in the textile industry did not rise much. A very small wage increase can influence trade union activity and immigration. Some Ecuadorian workers leave the country to look for jobs elsewhere, especially in Italy, Spain and the US. These workers have a variety of skills and are employed in many different jobs overseas, some of which offer training. Many, though not all, workers send money back to their families.
Oct/Nov 2022
The Human Development Index (HDI) is used to assess human development in countries. Which measure would not be included when it is calculated?
Oct/Nov 2023
In some developing countries, a high proportion of the population works in subsistence farming. What conclusion can be drawn from this?
Oct/Nov 2023
Honduras is a lower middle-income country and depends heavily on trade with the US. Over half of Honduran exports are sold to the US, while 40% of its imports are bought from the US. A large number of Hondurans are employed in the US and remit money to relatives at home. In the past, Honduras focused on banana and coffee production, which helped it build expertise and a strong reputation in those markets. Today, Honduras makes a wider variety of goods, such as clothes, chemicals and paper. This diversification has lessened the uncertainty caused by sudden shifts in demand and supply. For instance, tariffs might be placed on Honduran coffee, or a report might claim that bananas are beneficial to health. Employment in agriculture is falling, whereas jobs in the clothes industry in Honduras are rising. Workers in the clothes industry are expected to receive more training and experience better working conditions. Firms are also making greater use of capital goods. However, it is not clear what will happen to the prices of cotton, wool and the other raw materials needed to make clothes. A thriving clothes industry could help reduce poverty in Honduras. The Honduran government seeks to cut poverty by, for example, paying unemployment benefit. One important reason for the government wanting to reduce poverty is to raise life expectancy. If the Honduran economy became stronger, incomes would rise. Because the country uses a progressive income tax system, tax revenue could rise significantly. A stronger economy would also probably encourage more investment. Unemployment would be expected to decrease, which in turn might affect consumer spending.
Oct/Nov 2023
In 2019, Mozambique was struck by a severe storm that ruined bridges, factories, roads and electricity lines. Nearly 60% of Mozambique’s population live in absolute poverty. The country’s citizens are eager to raise Mozambique’s economic development. Government intervention in Mozambique’s economy is high. Although Mozambique does not set import quotas, it does apply a variety of import tariffs.
Oct/Nov 2023
On average, employees in Switzerland receive higher pay than employees in Mexico. What is a likely reason for this?
Oct/Nov 2024
Which combination most accurately describes the features of a high-income economy?
Oct/Nov 2024
According to the table, which country would be regarded as the most developed?
Oct/Nov 2024
Davos is a ski resort in Switzerland that is well known for hosting a world economic conference for leaders from both private and public sectors. The subjects covered normally concern global economic development. Hospitality firms in Davos rely on seasonal migrant labour, especially when they need to raise the supply of goods and services quickly.
Oct/Nov 2024
Which combination of characteristics would be present in a less developed economy?
Oct/Nov 2025