Mali is a developing country. Its Human Development Index (HDI) rose from 0.297 in 2000 to 0.442 in 2016. Most of Mali's workers are employed in agriculture and cotton is the country's main agricultural crop. The country's main export, however, is gold. The country is the third largest exporter of gold in Africa.
- (a)Identify two components of the HDI.[2]
- (b)Explain how the proportion of a country's resources devoted to the primary, secondary and tertiary sectors change as its economy develops.[4]
- (c)Analyse, using a demand and supply diagram, how a fall in the price of cotton would affect the market for cotton shirts.[6]
- (d)Discuss whether or not an increase in the size of a country's gold mining industry will benefit an economy.[8]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.
- [1] (a) GDP (GNI) per head / income per head / average income
- [1] (a) education
- [1] (a) life expectancy
- [1] (b) A smaller proportion of resources are likely to be devoted to the primary sector
- [1] (b) increases in technology / productivity / education requires fewer resources / resources move to more financially rewarding uses / use of more machinery
- [1] (b) A greater proportion of resources are devoted to manufacturing at first
- [1] (b) and then a smaller proportion
- [1] (b) the manufacturing sector becomes more efficient
- [1] (b) The service sector continues to grow
- [1] (b) in developed economies, most labour is employed in the service sector
- [1] (b) Some developing countries' tertiary sector has grown faster than secondary sector – jumped a stage
- [1] (c) Axes correctly labelled – price and quantity or P and Q
- [1] (c) Demand and supply curves correctly labelled
- [1] (c) Supply curve shifted to the right
- [1] (c) Equilibriums – shown by lines or e.g. E1 and E2
- [1] (c) A fall in the price of cotton will reduce the cost of producing cotton shirts
- [1] (c) price will fall / quantity will rise
- [1] (d) It may provide more jobs
- [1] (d) reduce unemployment
- [1] (d) It may increase output / cause economic growth
- [1] (d) increase wages
- [1] (d) increase living standards
- [1] (d) Some of the gold may be exported
- [1] (d) improve the current account position
- [1] (d) The industry may experience (external) economies of scale
- [1] (d) lower average cost
- [1] (d) example of an external economy
- [1] (d) It will be more beneficial if world demand is increasing
- [1] (d) May attract multinational companies to set up in the country
- [1] (d) Tax revenue may increase
- [1] (d) enabling government to spend more on e.g. infrastructure
- [1] (d) A rise in the supply of gold may reduce its price
- [1] (d) reduce revenue
- [1] (d) reduce exports
- [1] (d) External costs may be created
- [1] (d) damage to the natural environment / pollution
- [1] (d) The industry may experience (external) diseconomies of scale
- [1] (d) higher average cost
- [1] (d) example of an external economy
- [1] (d) Mining is a dangerous occupation
- [1] (d) wages may be low as primary sector
- [1] (d) jobs may be unskilled
- [1] (d) Resource of gold may be depleted
- [1] (d) stopping future generations being able to take advantage of them
- [1] (d) It will be less beneficial if other gold producing countries are increasing their output
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