Question 21N.3.HL.TZ0.2d
| Date | November 2021 | Marks available | [Maximum mark: 2] | Reference code | 21N.3.HL.TZ0.2d |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Outline | Question number | d | Adapted from | N/A |
The data in Table 2 refer to Kanyaland, a small, open, developing economy in 2019. All data are in billions of Kanyaland dollars (K$).
Table 2
Assume that the level of GDP in Kanyaland in 2009 was K$455 billion and government expenditures were K$205 billion. For each additional Kanyaland dollar earned as income, it had been estimated that K$0.60 was spent on domestic goods and services, K$0.10 was saved, K$0.21 was paid in taxes and K$0.09 was spent on imported goods and services.
In many developing countries GNI figures are lower than GDP figures. Outline how this may be due to the high levels of foreign direct investment (FDI) in developing countries.
[2]
The question was generally well-answered. Lower-achieving responses did not refer to the repatriation of profits or explained that some output “did not belong to the host country” — resulting in a Level 1 mark awarded.
