Edexcel IGCSEEconomicsGeneral Applications15 Marks

In 2023, Country X, a developing economy, experienced a decline in its Gross Domestic Product (GDP) per capita.

(a)Define the term *Gross Domestic Product (GDP)*.[2]
(b)State two characteristics of a developing economy.[2]
(c)Explain one possible reason for a decline in a country's GDP per capita.[3]
(d)Assess two benefits for Country X of investing in education and healthcare.[8]

Mark scheme

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

*(a)* The total value of all goods and services (1) produced within a country's borders in a specific period, usually one year (1). (2)
B1 for total value of goods and services.
B1 for produced within a country's borders in a specific period.
*(b)* Award 1 mark for each valid characteristic up to a maximum of 2 marks.
Low GDP per capita/low income (1)
High birth rates/high population growth (1)
High levels of poverty (1)
Reliance on primary sector (1)
Low levels of education/literacy (1)
Poor infrastructure (1)
Lack of access to healthcare (1)
Low life expectancy (1)
*(c)* Explanation must include identification of a reason (1) and linked development (2).
Decrease in investment (1) leading to lower productive capacity and reduced output (1) resulting in lower GDP (1).
Natural disaster (1) destroying infrastructure and disrupting production (1) leading to reduced output and GDP (1).
Increase in population (1) without a corresponding increase in GDP (1) means GDP is spread over more people (1). (3)
*(d)* (AO1 – 2 marks, AO2 – 2 marks, AO3 – 4 marks)
For each benefit, award up to 4 marks.
**Benefit 1 (e.g., Education):**
Identification of benefit (e.g., increased human capital/productivity) (1)
Explanation of how education leads to this benefit (e.g., more skilled workforce, innovation) (1)
Application to Country X/developing economy context (e.g., helps diversify economy away from primary sector) (1)
Assessment/evaluation of significance (e.g., long-term benefit, but costly in short term, may face brain drain) (1)
**Benefit 2 (e.g., Healthcare):**
Identification of benefit (e.g., healthier workforce, reduced absenteeism) (1)
Explanation of how healthcare leads to this benefit (e.g., less time off work, higher energy levels) (1)
Application to Country X/developing economy context (e.g., reduces spread of preventable diseases common in developing nations) (1)
Assessment/evaluation of significance (e.g., improves quality of life, but may require external aid, depends on quality of provision) (1)
Max 8 marks. (8)