Question 21N.3.HL.TZ0.e
| Date | November 2021 | Marks available | [Maximum mark: 2] | Reference code | 21N.3.HL.TZ0.e |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Outline | Question number | e | 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.
Kanyaland specializes in and exports a narrow range of agricultural products. Outline one negative consequence of this strategy in achieving economic growth.
[2]
Although the question was generally well-answered, some responses did not refer to a consequence for growth but simply explained over-specialization.
