Economics 2281 · O Level · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
Mozambique is a developing economy with a fairly high rate of economic growth. Over recent years, the metical has depreciated against the US dollar. This has influenced the country’s unemployment rate. Some economists in Mozambique have argued for higher tariffs on imports as a way of lowering 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 the way employment patterns within a country usually shift as the economy develops.
(d)[8]
Discuss whether higher tariffs on imports would reduce unemployment.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A decline in value” …