Question 23M.1.HL.TZ2.3
| Date | May 2023 | Marks available | [Maximum mark: 25] | Reference code | 23M.1.HL.TZ2.3 |
| Level | HL | Paper | 1 | Time zone | TZ2 |
| Command term | Evaluate, Explain | Question number | 3 | Adapted from | N/A |
Explain how dependence on primary sector production may be a barrier to economic growth.
[10]
Refer to Paper 1 markbands for May 2022 forward, available under the "My tests" tab > supplemental materials.
Answers may include:
- Terminology: primary sector production, economic growth.
- Explanation: of the problems of overspecialization/lack of diversification, the reasons for price volatility of primary products and the impact of this volatility on farmers’ incomes, agricultural investment, employment and wages of agricultural workers, export earnings and the balance of payments and government revenues; how these factors impact negatively on economic growth.
- Diagram: demand and supply diagram showing inelastic demand and supply curves, with large fluctuations in price when demand and/or supply shift or any other relevant diagram.
Assessment Criteria
Part (a) 10 marks
This question generally proved to be straight forward for candidates, with most responses able to identify reasons why a dependence on primary sector products could prove to be a barrier to economic growth. It was common for candidates to supply real-world examples to support their explanation, although this is not expected in part (a) responses, examples can often effectively support an explanation. Candidates generally provided a suitable supply and demand diagram and were usually able to meaningfully explain it in terms of the answer given.
Using real-world examples, evaluate the view that market-based policies may be ineffective in promoting the economic development of the world’s poorest countries.
[15]
Refer to Paper 1 markbands for May 2022 forward, available under the "My tests" tab > supplemental materials.
Answers may include:
- Terminology: market-based policy, economic development.
- Explanation: of the view in terms of what market-based policies are, eg trade liberalization, privatization and deregulation and why such policies might be ineffective; eg limited benefits for export growth and diversification, the creation of a variety of market failures, limited effects on economic growth, the creation of winners and losers, increasing income inequalities and poverty, problems of foreign ownership of privatized utilities, the benefits of interventionist policies.
- Diagram: use of a PPC diagram and/or an AD/AS diagram.
- Synthesis (evaluate): a challenge to the view in terms of such benefits of market-based policies as greater competition and consumer choice, greater efficiency and productivity, an increase in the productive potential of economies, greater economic growth and thus development and an improvement in the allocation of resources. Examples: real-world examples of countries which have adopted market- based policies and the effects of these policies on economic development.
N.B. It should be noted that definitions, theory, and examples that have already been given in part (a), and then referred to in part (b), should be rewarded.
Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.
Assessment Criteria
Part (b) 15 marks
It was acknowledged that it was difficult for candidates to provide examples of low-income countries in the context of the question, although some effectively did so, so examiners were also looking for evidence that candidates could appreciate how low-income communities would perhaps not always benefit from the introduction of market-based policies and apply examples to fit that context. Many candidates sought to frame the question in terms of the relative merits of applying market-based policies to low-income groups in terms of development versus alternative interventionist policies which might better target development.