DP Economics

Test builder »

Question 18M.1.SL.TZ2.3a

Select a Test
Date May 2018 Marks available [Maximum mark: 10] Reference code 18M.1.SL.TZ2.3a
Level SL Paper 1 Time zone TZ2
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
18M.1.SL.TZ2.3a
(a)

Explain how an increase in investment might lead to economic growth.

[10]

Markscheme

Answers may include:

  • definitions of investment and economic growth
  • diagrams might include AD/AS/LRAS or PPC to show the impact of investment on economic growth
  • explanation of how investment in physical capital, human capital and natural capital can lead to increases in the quantity and quality of resources and subsequently an increase in productivity and/or how investment might increase aggregate demand (AD)
  • examples of types of investment that have caused this or countries that have grown as a result of increased investment.

Marks should be allocated according to the Paper 1 markbands for May 2013 forward, part A.

Syllabus sections