Photo AI
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
To calculate the change in total aid funding to Rwanda:
-
Identify the aid funding amounts from Figure 1 for the years 2011 and 2012.
- In 2011, the aid funding is approximately 123 USD.
- In 2012, the aid funding is approximately 116 USD.
-
Calculate the change using the formula:
Therefore, the change in aid funding is a decrease of 7 USD.
Step 2
With reference to the information provided, examine two likely benefits to the Rwandan economy of the growth in the country's population.
Answer
-
Increased Labor Force: A growing population can lead to a larger labor force, providing more workers for various sectors of the economy. A larger workforce can enhance productivity and drive economic growth.
-
Consumer Market Expansion: An increase in population tends to boost domestic demand for goods and services. More consumers can stimulate businesses, encourage investment, and lead to job creation.
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
Assessing the impact of the change in aid:
- Decrease in Aid Funding: If aid received decreases, it may limit the government's ability to fund essential services such as health and education, potentially slowing down developmental progress.
- Economic Growth Inhibition: Lower aid could negatively impact infrastructure development projects, hindering economic growth and reducing foreign investment.
Step 4
Discuss the likely impact on Rwandan consumers and clothing manufacturers of the increase in the tariff on imports of second-hand clothes. Use an appropriate diagram to support your answer.
Answer
-
Impact on Consumers: An increase in tariffs can lead to higher prices for second-hand clothes. Consumers may face reduced options and would need to pay more, impacting their purchasing power.
-
Impact on Manufacturers: Local clothing manufacturers might benefit from reduced competition from imported second-hand clothes, potentially increasing their market share. However, they may still face challenges in scaling production to meet new demand.
Diagram: The diagram showing supply and demand curves can illustrate how an increase in tariffs shifts the supply curve leftward, leading to higher prices.
Step 5
Discuss policies, other than import tariffs, that the Rwandan government could use to develop its manufacturing industries.
Answer
-
Subsidies for Local Producers: The government could provide financial support to local manufacturers to lower production costs and encourage local production.
-
Investment in Infrastructure: Improving transportation and communication infrastructure can facilitate manufacturing and distribution, benefiting economic growth.
-
Training Programs: Implementing vocational training programs can improve workforce skills, making it easier for industries to find skilled labor, boosting productivity.