Country Z has experienced a sustained period of economic growth, but also increasing income inequality.

Mark scheme

Marking points from the official mark scheme. The mark or mark type is shown in brackets.

1. (a) B1 for increase in real GDP / output / productive capacity
2. (a) B1 for over a period of time
3. (b) B1 for first benefit (e.g., higher incomes/living standards)
4. (b) B1 for explanation (e.g., people can afford more goods/services)
5. (b) B1 for second benefit (e.g., lower unemployment/more jobs)
6. (b) B1 for explanation (e.g., firms expand, require more labour)
7. (c) B2 for identifying and explaining a cause (e.g., technological change favouring skilled labour leading to wage disparity, globalisation leading to competition for low-skilled workers)
8. (c) B2 for identifying and explaining a second cause (e.g., regressive taxation, weakened trade unions, increased returns to capital/wealth vs. labour)
9. (c) B2 for development/analysis of these causes (e.g., how the mechanism widens the income gap, impact on different groups)