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Using the data in Figures 1 and 2, calculate the change in the level of total aid funding to Rwanda between 2011 and 2012 - Edexcel - A-Level Economics A - Question 6 - 2021 - Paper 2
Question 6
Using the data in Figures 1 and 2, calculate the change in the level of total aid funding to Rwanda between 2011 and 2012. (b) With reference to the information pro... show full transcript
Worked Solution & Example Answer:Using the data in Figures 1 and 2, calculate the change in the level of total aid funding to Rwanda between 2011 and 2012 - Edexcel - A-Level Economics A - Question 6 - 2021 - Paper 2
Step 1
Using the data in Figures 1 and 2, calculate the change in the level of total aid funding to Rwanda between 2011 and 2012.
Answer
From Figure 1, the aid funding received by Rwanda in 2011 was approximately 104 per capita.
To calculate the change in aid funding:
Change = Aid in 2012 - Aid in 2011 Change = 99 = $5 per capita.
The total change in aid funding is thus an increase of $5 per capita.
Step 2
With reference to the information provided, examine two likely benefits for the Rwandan economy of the growth in the country’s population.
Answer
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Increased Labor Force: A growing population can lead to a larger labor force, which can help stimulate economic growth. More workers can enhance productivity and contribute to various sectors of the economy.
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Market Expansion: An increasing population can lead to higher domestic demand for goods and services. This boost in consumption can encourage local businesses to invest and expand, leading to further job creation and economic activity.
Step 3
With reference to the information provided, assess the likely impact on the Rwandan economy of the change in aid received between 2017 and 2018.
Answer
The aid funding received by Rwanda saw notable fluctuations between 2017 and 2018. A decrease in aid could hinder economic development projects, particularly in education and healthcare.
Reduced aid might also strain government resources, making it challenging to sustain infrastructure projects. Overall, a decline in aid could slow down Rwanda's developmental progress and adversely affect economic growth.
Step 4
Discuss the likely impact on Rwandan consumers and clothing manufacturers of the increase in the import tariffs on second-hand clothes. Use an appropriate diagram to support your answer.
Answer
The increase in import tariffs on second-hand clothes could lead to higher prices for consumers, making second-hand clothes less affordable. This might push consumers to seek alternatives, impacting their purchasing power.
For clothing manufacturers, the tariffs can protect local industries by reducing competition from imported goods. However, this may stifle innovation and quality improvements among local producers.
A diagram illustrating the shifts in supply and demand curves in the clothing market could further clarify these impacts.
Step 5
Discuss policies, other than import tariffs, that the Rwandan government could use to develop its manufacturing industries.
Answer
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Subsidies for Local Manufacturers: The government can provide financial assistance to local manufacturers, lowering production costs, and encouraging growth.
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Training and Development Programs: Initiatives to enhance the skill sets of the workforce can improve productivity and innovation within manufacturing sectors.
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Infrastructure Investment: Improving transport and energy infrastructure can support manufacturers by reducing operational costs and increasing efficiency.
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Tax Incentives: Offering tax breaks or incentives can encourage both domestic and foreign investment in Rwandan manufacturing industries.