‘Both developed and developing economies can experience high levels of unemployment, high rates of inflation and large current account deficits. Therefore there is now no real difference between these two types of economy’. How far would you agree with the view that this statement is misleading?

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. The statement refers to developed and developing economies and some performance indicators. Candidates should clearly explain the difference between these terms. Answers should also recognise the links between developed and developing economies and the indicators. It should be recognised that although key performance indicators might be similar, it is often for different reasons and these reasons should be explained. Key elements of developing economies should also be identified to support the conclusion that significant differences between the two types of economy remain, regardless of the similarity of the performance indicators.
2. L4 (18-25): for an answer that attempts to discuss key differences between developed and developing economies which do not necessarily relate to performance indicators. A conclusion should be produced which emerges out of the discussion
3. L3 (14-17): for an answer that analyses the relation between different indicators and different types of economy. For example, causes of balance of payments deficits in developing economies are likely to be significantly different from those in a developed economy. This should be examined in relation to at least two indicators mentioned
4. L2 (10-13): for an answer that provides a basic description of the terms developed and developing and the possible differences in inflation unemployment and balance of payments deficits
5. L1 (1-4): for an answer that shows some knowledge but does not indicate that the question has been fully grasped or where the answer is mostly irrelevant