Economics F585 potential questions

Extract 1 potential questions

1a) (4 marks)
 Distinguish between absolute and comparative advantage
 Distinguish between specialisation and the division of labour
 Explain the factors promoting globalisation

1b) (6 marks)
 Figure 1.1 shows trade as a percentage of GDP for four selected economies. Explain two reasons why
the trade-to-GDP ratio might vary so much between countries
 With reference to figure 1.1, analyse the effects of international trade
 Analyse how globalisation leads to increased economic efficiency

Extract 2 potential questions

1c) (10 marks)

 Comment on the extent to which a change in the effective exchange rate index of the US$ as shown
in figure 2.2 would have contributed to the change in the USA’s current account deficit
 Comment on two policies that might be used to correct a deficit on the current account of the
balance of payments

Extract 3 potential questions

2a) (4 marks)
 Distinguish between growth and development
 Explain the relationship between growth and development
 With reference to figure 3.1, explain the limitations of HDI as a measure of development
 Describe what is meant by resource nationalisation

2b) (6 marks)
 Analyse the significance of the changes in Zambia’s terms of trade for its economic development

Extract 4 potential questions

2c) (10 marks)

 Analyse the significance of the changes in Zambia’s terms of trade for its economic development
(highly unlikely for a 10 marker)
 Comment on the importance of remittances relative to other international financial flows in reducing
poverty and increasing Zambia’s economic growth and development
 Comment on the importance of the loss of skilled migrant workers to countries such as Granada and
Ghana
 Comment on the likely economic benefits for developed counties of high levels of inward labour
migration
 Discuss the view that remittances can be an important source of growth and development for poorer
countries

Extract 5 potential questions

3) (20 marks)
 Discuss the challenges to Zambia’s long run economic growth potential
 Discuss how effective the Zambian government has been in order to promote long run economic
growth
 Discuss the view that an increase in savings and investment in Zambia is likely to be the most effective
policy in sustaining economic growth