We’ve compiled a list of all the Edexcel A-Level Economics past paper questions on economic development that we could find. We went through all of the Edexcel A-Level Economics past papers so you don’t have to. Our goal is to make it easier to test your economic development knowledge without having to go through all those past papers yourself for relevant questions.
What is Edexcel A-Level Economics?
Edexcel A-Level Economics is a test taken at the end of a secondary school student’s career to test their economics knowledge and determine their readiness for a university course on economics or a related subject. The material covered in the A-Level Economics course is similar to the syllabus of an introductory economics course at a university, including both macroeconomics and microeconomics.
Edexcel is the UK’s largest exam board provider and their A-Level Economics course is the most common version of the course.
How did we find these economic development questions?
We went through every Edexcel Economics past paper to find these economic development questions. Our goal was to create one resource where you could find every economic development question to test yourself more efficiently. The questions are available as a pdf at the end of the page, as is an answer key.
What is economic development?
Economic development is a process of increasing economic output and the standard of living in a country where both are below average. Common benchmarks for economic development include GDP per capita, the Human Development Index (HDI), life expectancy, literacy rates, and various quality-of-life metrics.
These benchmarks represent different approaches to economic development. Some economists argue that developmental economics should focus first on increasing production and output with the assumption that education and healthcare will follow an increase in incomes. Others prioritise education and healthcare campaigns on the basis that a more productive population will attract investment and stimulate economic growth.
Campaigns to improve economic development often involve considerable government investment, improvements to education systems, improvements to healthcare, and improvements to physical infrastructure. Some economic development strategies are controversial, with significant debates on the relative merits of economic liberalisation and trade protectionism.
Question 1: Edexcel A-Level Economics 9EC0 November 2021 Paper 2
Extract A
Rwandan tariffs on imports of used clothing
In a market in Kigali, Rwanda’s capital, an auction is under way. Sellers offer crumpled T-shirts and faded jeans; traders argue over the best picks. Everything is second-hand. A Tommy Hilfiger shirt sells for 5 000 Rwandan francs ($5.82); a plain one for a tenth of that. Afterwards, a trader sorts through the purchases he will resell in his home village. The logos hint at their previous lives: Kent State University, a rotary club in Pennsylvania, Number One Dad.
These auctions were once twice as busy, but in 2016 Rwanda’s government increased import tariffs on a kilo of used clothes from $0.20 to $2.50. Now many traders struggle to make a profit. The traders are not the only ones who are unhappy. Exporters in the US claim the tariffs are costing jobs there. In March, the US President warned that he would suspend Rwanda’s tariff-free access to US markets for its clothing exports after 60 days if it did not remove the tariff.
Globally, about $4 billion of used clothes crossed borders in 2016. The share from China and South Korea is growing, but 70% still come from Europe and North America. Many go to Asia and eastern Europe, but Africa remains the largest market. The trade enables poor people to afford clothes and creates retail jobs. However, governments worry that the trade undercuts their own clothing manufacturers.
Second-hand imports of clothing now dominate African markets. Researchers at the Overseas Development Institute, a British think-tank, estimate that Tanzania imports 540 million used items of clothing and 180 million new ones each year, while producing fewer than 20 million itself. African manufacturing is weak for many reasons, from ineffective privatisations to collapsing infrastructure. But second-hand clothing imports are a major factor: it is estimated that they accounted for half of the fall in employment in the African clothing industry between 1981 and 2000.
For example, a clothing factory in Kigali is operating at only 40% of capacity and employs 600 workers, down from 1 100 in the 1990s. It is hard to compete, says Ritesh Patel, its manager, when a used imported T-shirt sells for the price of a bottle of water. Instead, the company specialises in uniforms for police, soldiers and security guards, which cannot be bought second-hand.
The threatened suspension of tariff-free access to the US market would hurt Rwanda, but not very much. Last year Rwanda sold just $1.5 million of clothing to the US. Nor, with about 12 million people, is Rwanda a big market for US exports
Extract B
Development in Rwanda
Rwanda’s strong economic growth has been accompanied by substantial improvements in living standards, with a two-thirds drop in child mortality and near-universal primary school enrolment. A strong focus on policies to encourage industrialisation and poverty reduction initiatives have contributed to significant improvements in access to services and human development indicators. Absolute poverty declined from 59% to 39% of the population between 2001 and 2014 but was almost stagnant between 2014 and 2017. The official inequality measure, the Gini index, declined from 0.52 in 2006 to 0.43 in 2017.
(a) Using the data in Figures 1 and 2, calculate the change in the level of total aid funding to Rwanda between 2011 and 2012. (5 points)
(b) With reference to the information provided, examine two likely benefits for the Rwandan economy of the growth in the country’s population. (8 points)
(c) With reference to the information provided, assess the likely impact on the Rwandan economy of the change in aid received between 2017 and 2018. (10 points)
(d) 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. (12 points)
(e) Discuss policies, other than import tariffs, that the Rwandan government could use to develop its manufacturing industries. (15 points)
Question 2: Edexcel A-Level Economics 9EC0 November 2020 Paper 2
Extract A
Cheap cocoa is costing farmers dear
The median annual income of cocoa farmers in the west African country, Ivory Coast, is just US$2 600. Research suggests that an annual income of US$6 133 is needed for this country’s farmers to have a decent, living income. This situation is even worse for farmers who are not part of a Fairtrade scheme.
World cocoa prices fell by more than a third in 2017. Cocoa farmers have to accept all the risk from price volatility, putting a significant strain on their fragile incomes. On the other hand, cocoa processors and chocolate manufacturers are able to adapt or even make high profit and consumers continue to enjoy their chocolate.
This is still happening despite considerable investment in agriculture to build a sustainable cocoa sector. The focus has been on raising productivity and diversifying crops. The average cocoa farm in the Ivory Coast produces only around half of the output that could be achieved with training and resources such as fertilisers, equipment and replanting. If farmers diversify into other crops, livestock or non‑farm activities, they lower the risk they face of fluctuating world cocoa prices.
Even tripling farm output would not provide the average cocoa farmer with a living income. Diversification alone will not always make farms more profitable. If we want farmers to earn a living income, we must also be willing to pay farmers more.
Extract B
Sub‑Saharan Africa is becoming more integrated
After two years of negotiations, representatives of a large number of African countries signed the African Continental Free Trade Agreement (AfCFTA) in Kigali on March 21, 2018. This created a trading bloc of 1.2 billion people with a combined gross domestic product of more than US$2 trillion. The agreement committed countries to removing tariffs on 90% of goods and to liberalise services.
This can be seen as a sign of rapid and steady regional integration. Sub‑Saharan Africa in particular is much more integrated today than in the past. The level of integration in sub‑Saharan Africa is now similar to that in the world’s other developing and emerging market economies.
However, the two largest African economies, Nigeria and South Africa, refused to sign the agreement. Nigeria’s manufacturers and trade unions are concerned about the potential negative impacts of becoming more open to imports from other African countries with lower labour costs.
Greater interdependence can expose small economies to their partners’ recessions. After nearly 20 years of strong economic activity, sub‑Saharan Africa experienced the downside of integration in 2015. The collapse in commodity prices and the slowdown in economic activity in Nigeria and South Africa contributed to sub‑Saharan African growth slowing sharply. Since 2017 growth has begun to recover. The recovery is mixed, though, and it is unclear to what extent the slow recovery of the larger economies is still affecting the rest of sub‑Saharan Africa.
(a) With reference to Figure 1 and Extract A, explain the likely impact of a Fairtrade scheme on agricultural communities. (5 points)
(b) Examine two ways, apart from Fairtrade schemes, in which cocoa farmers could boost their incomes despite the falling price of cocoa. (8 points)
(c) Discuss the problems for the Ivory Coast of dependency on cocoa for a large proportion of their exports. Refer to Figure 2 in your answer. (12 points)
(d) Nigeria is considering joining the African Continental Free Trade Agreement. Assess policies the Nigerian government could use in response to the concerns of the country’s ‘manufacturers and trade unions’ (Extract B paragraph 3) if they join this trading bloc. (10 points)
(e) Discuss the likely benefits of increased economic integration for sub‑Saharan African countries. (15 points)
Question 3: Edexcel A-Level Economics 9EC0 June 2017 Paper 2
The table shows the selected economic data in 2014 for Vietnam and India.
(a) Which one of the following statements can be deduced from the data in the table? (1 point)
A Average incomes are higher in India than in Vietnam.
B Levels of absolute poverty are higher in Vietnam.
C Life expectancy is higher in India than in Vietnam.
D Provision of healthcare and education is less effective in Vietnam than in India.
(b) With reference to the data provided, explain two limitations of using the HDI to compare levels of development between countries and over time. (4 points)
Question 4: Edexcel A-Level Economics 9EC0 June 2019 Paper 3
Extract D
Rising debt levels in Africa
Increases in national debt have brought several African governments towards a debt-servicing crisis when the repayment of debt and interest become unsustainable. Between 2010 and 2015, many sub-Saharan countries raised debt totalling more than £20 billion. Back then, with commodity prices soaring and foreign loans available at very low interest rates, everyone agreed that borrowing was the way to grow an economy with expansionary fiscal policy. Since 2015, some African governments – beneficiaries of big debt write-offs at the start of the century – have taken to private debt markets too eagerly, leaving them with heavy repayment schedules at a time of lower commodity prices.
Until recently, the International Monetary Fund (IMF) has played down African debt concerns, pointing to better management of public resources and greater transparency. But it was shaken by Mozambique’s default on more than £2 billion of secret loans used to purchase a non-existent tuna-fishing fleet, raising fears of hidden debt in other African countries with similar levels of corruption. The median level of debt in sub-Saharan Africa had risen sharply from 34% of gross domestic product in 2013 to 48% in 2017. Although that is low by international standards, analysts said debt burdens were heavier than they appeared because of most African countries’ low tax base. “The real thing to look for is debt to revenue, or debt-service as a percentage of government spending,” said John Ashbourne, Africa Economist at Capital Economics. In several countries, he said, debt payments were above 20% of government revenue, with an opportunity cost in terms of
government spending.
Extract E
Mozambique’s economic stability is being put to the test
The economy of Mozambique, which gained independence from Portugal in 1975, has continued to under-perform. Large-scale emigration, especially of skilled workers, economic dependence on South Africa, a severe drought, a prolonged civil war and political tensions have hindered the country’s development. More than half of Mozambique’s 26 million people continue to live below the poverty line.
GDP growth declined to 3.6% in 2016 due to fiscal tightening and a slowdown in foreign direct investment. A weak manufacturing sector employs just 3.2% of the population, and is made up of small enterprises (90%), many of which were set up with the aid of microfinance. Traditional export earnings dropped due to depressed global demand.
In addition a wide-scale drought seriously affected agricultural production. Foreign currency inflows have weakened – as large-scale gas projects were put on hold, and 14 external lenders suspended direct budget support, as a lesson to be learned from the tuna-fleet scandal. The state budget deficit was 10.7% of GDP in 2017. High interest rates have reduced aggregate demand, and import costs added to inflation following further depreciation of Mozambique’s currency, the metical, to a new low of 100 meticals to £1. Mozambique needs urgently to improve its investment environment and confidence in its institutions. The World Economic Forum’s global competitiveness ranking placed Mozambique 136 out of 137 countries.
Longer term, Mozambique’s economic prospects are promising. There has been progress in talks on restoring international confidence in the government’s running of the economy, leading to a lasting and sustainable agreement between rival political groups. The development of gas fields off Mozambique’s coast discovered in 2011 is set to transform the economy, coming into production in the 2020s. A rise in coal and electricity exports should help growth to increase. But in the short term, it remains uncertain whether Mozambique can deliver badly needed economic stability.
Extract F
Microfinance in Mozambique
Microfinance in Mozambique started in the late 1980s through projects initiated by international relief organisations. The sector has expanded to include many private banks and non-government organisations (NGOs), see Figure 3. This has resulted in wider use (over 100 000 borrowers) and many new business start-ups which could not have gained finance from any other source. Evidence suggests that there is unfulfilled demand for microfinance and a large potential for expansion.
(a) With reference to Extract D line 21, explain why ‘opportunity cost’ is a problem for governments of developing countries when servicing debt. (5 points)
(b) Examine two reasons, apart from access to finance, why 90% of the manufacturing sector in Mozambique ‘is made up of small enterprises’ (Extract E, line 9). (8 points)
(c) Discuss whether borrowers benefit from microfinance. Make reference to Mozambique in your answer. (12 points)
EITHER
(d) Evaluate the microeconomic and macroeconomic factors, apart from access to credit and banking, influencing growth and development in Mozambique. (25 points)
OR
(e) Evaluate the likely microeconomic and macroeconomic effects of relatively high inflation rates in many African countries. (25 points)
Mark is an A-Level Economics tutor who has been teaching for 6 years. He holds a masters degree with distinction from the London School of Economics and an undergraduate degree from the University of Edinburgh.