Study Fig. 7, which gives information for the Gross Domestic Product (GDP) of Pakistan in 1992 and 2012. [Figure 7] What is meant by the term Gross Domestic Product (GDP)?

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2015). The mark or mark type is shown in brackets.

1. Annual sum/total value of all output/goods and services produced within a country
2. Income generated by a country's own workers and resources
3. Α. 53-54%1 mark
4. B. Mining/construction/power/fishing/forestry 1 mark Not list rule
5. C. Agriculture decreased: manufacturing increased Both to be correct for 1 mark
6. Garments/bed linen/cotton cloth/cotton yarn/carpets/rugs/suits/towels/fabrics Use list rule
7. 8290 US$
8. Animal products/leather exported but not imported
9. Edible fats and oils/vehicles and transport imported but not exported
10. Vegetable products/textiles and textile products (much) more exported than imported
11. Metals more imported than exported
12. Mineral products/ chemicals /machinery and instruments much more imported than exported
13. Value of imported goods more balanced/evenly spread than exported goods
14. Mainly exports primary goods but mainly imports manufactured goods
15. High value/low value goods = 0
16. Only accept complete comparisons of exports with imports (and like with like)
17. Narrow export base/overdependence on a few export items (so if low production e.g. poor harvests, no surplus/profit)
18. Main export/import items subject to world price fluctuations/vagaries of commodity market (e.g. oil, cotton, rice) (so some years there may not be a profit/economy goes into debt/has not surplus)
19. Exports are largely low value-added products which do not earn a great deal/great deal of foreign exchange [from small and cottage industries] (so other countries benefit more when add value)
20. Exports are items subject to high competition in the world market (so may not find a market)
21. Lack of quality control of export items (so may lose orders)
22. Production of main agricultural export items is subject to variations in weather and effects of pests (e.g. poor cotton crop due to unfavourable weather/virus/lack of rainfall/frost etc.)
23. Imports are mainly high value-added products and therefore expensive (such as manufactured goods/capital goods/luxury goods)
24. Food (e.g. wheat) has to be imported that could be grown in Pakistan
25. Importing consumer good which harms Pakistan industry (named consumer goods/industry)
26. Value of imports are greater than the value of exports (causing negative balance of payments).
27. Award second mark per line for explanation (parentheses show examples)
28. Two problems explained @ 2 marks each
29. Exports: USA/UAE/Afghanistan/China/UK/Germany/EU
30. Imports: China/Saudi Arabia/UAE/Kuwait/USA/Japan/EU
31. 2 x 1 mark
32. Ship/by sea (1), shorter link to European markets, freight costs low/cheap, modern port facilities especially for containers/bulk cargo/oil, Middle East readily accessible, ports are warm water and open all year
33. Aeroplane/by air (1), effective for low volume/lightweight goods, very quick, useful for perishable/high value goods, e.g. fruits and vegetables Fragile/delicate goods = 0
34. Truck/lorry/by road (1), link to China/Iran/Afghanistan/India, useful for smaller consignments, e.g. electronics/medicinal herbs/Chinese fabrics/decorative items/toys/cotton textiles/dried fruits/hosiery, useful for perishable/high value goods
35. Train/by rail (1), link to Iran, cheaper for long distance, useful for bulky/heavy goods, e.g. food grains/cotton/oil/fertiliser/heavy machinery, effective for low value goods
36. 1 mark for method of transport
37. 3 marks for any three benefits listed
38. Marks are for transporting/handling goods
39. Easy/easier, references to safety = 0
40. Lack of security/internal civil and tribal unrest/terrorism
41. Political instability/inconsistent government policies
42. Debt/imbalance of trade (leads to need for loans/foreign economic assistance and possible trade embargo if default)
43. International tension (e.g. with India, historically since partition 1947 and periodically over Kashmir so no significant trade has developed).
44. Mountainous terrain to NW. (Passes to Afghanistan e.g. Khyber, Kurram, and Khojak subject to border tensions, landslides, and avalanches.)
45. Trade barriers/embargoes from industrialised countries (which express concerns about child labour/health and safety/hygiene/environmental standards such as excessive use of pesticides on cotton).
46. Membership of regional organisations (e.g. ECO/SAARC/WTO in 2004) (involves removing import tariffs causing inflow of cheap imports)
47. Devaluing Pakistan rupee (makes imports, which are more than exports, more expensive)
48. Improvements to transport infrastructure, (e.g. Karakoram Highway/new road Quetta to Chaman, Afghanistan/upgrade to RCD Highway to open a route to Iran and Turkey)
49. Development of ports (particularly Karachi/Bin Qasim port for containers and bulk cargo/ Gwadar port/Makran Coast)
50. Membership of regional organisations (e.g. ECO/SAARC/WTO in 2004) (in which member countries benefit from access to major world markets)
51. Tax incentives for exporters
52. Export Promotion Bureau/Trade Development Authority of Pakistan/Export Processing Zones
53. Devaluing Pakistan rupee (makes exports cheaper)