In 2019, Mozambique was hit by a serious storm which destroyed bridges, factories, roads and electricity lines. Almost 60% of Mozambique's population live in absolute poverty. The country's people are keen to increase Mozambique's economic development. There is a high level of government intervention in Mozambique's economy. Although Mozambique does not impose import quotas, it does impose a range of import tariffs.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. [2] 2(a) Two from: unemployment; sickness / mental health / poor health; old age; refugees; war / famine / natural disasters; lack of government benefits; low level of education / social skills; income too low to afford basic necessities. If more than two reasons are given, consider the first three.
2. [4] 2(b) Logical explanation which might include: Improvements in education (1 improve production capacity can raise wages / reduce unemployment (1). Improvements in healthcare (1) can increase life expectancy (1). Improvements in technology (1) better quality goods and services (1) Increase in savings (1) provide finance for investment (1). Increase in investment (1) raise quality of output / economic growth (1). Increase in FDI (1) can increase job opportunities (1). Increase in proportion of workers in the tertiary sector (1) working conditions / pay may be better (1). Increase in incomes (1) able to buy more goods and services (1). Increase in government expenditure on infrastructure (1) improves labour mobility / access to resources (1). Increase in international trade / exports (1) creates more jobs / income (1). Discovery of new resources (1) e.g. oil improves production (1). One mark each for each of two causes identified and one mark each for each of two explanations. If more than two causes are given, consider the first three. Note: the development mark might apply to several causes and are therefore interchangeable.
3. [6] 2(c) Up to 4 marks for the diagram: Axes correctly labelled with different outputs (1). Initial curve drawn as a curve/line sloping downward to the axes (1). New curve drawn as a curve/line sloping downward to the axes (1). Shift indicated by arrow or letter (1). Up to 2 marks for coherent analysis which might include: A serious storm will reduce resources / reduce availability of factors of production / destroy infrastructure (1) reduce the ability to produce goods and services / reduce maximum capacity / reduce productive capacity (1). Note: both curves must touch both axes to get the marks. Note: Axes need labelling such as good X / good Y or capital goods and consumer goods. Labelling A and B is not sufficient.
4. [8] 2(d) Why it might: increase price of imports which may reduce demand for imports; people may switch to buying domestically produced products; net exports may increase, raising total demand; the higher demand may encourage the country's firms to produce more goods and services; government could use tax revenue to subsidise domestic goods. Why it might not: even with tariffs, imports may still be cheaper than domestically produced products; there may not be domestically produced substitutes; if tariffs are put on raw materials and capital goods, costs of production could rise and demand may fall; other countries may retaliate, raising price of exports and reducing demand for the country's exports. Note: level 1 would be knowledge and understanding of imports and tariffs or just identification of points.