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Using the data in Figures 1 and 2, calculate the change in the level of total aid funding to Rwanda between 2011 and 2012 - Edexcel - A-Level Economics A - Question 6 - 2021 - Paper 2
Question 6
Using the data in Figures 1 and 2, calculate the change in the level of total aid funding to Rwanda between 2011 and 2012. (b) With reference to the information pro... show full transcript
Worked Solution & Example Answer:Using the data in Figures 1 and 2, calculate the change in the level of total aid funding to Rwanda between 2011 and 2012 - Edexcel - A-Level Economics A - Question 6 - 2021 - Paper 2
Step 1
Using the data in Figures 1 and 2, calculate the change in the level of total aid funding to Rwanda between 2011 and 2012.
Answer
To calculate the total aid funding received by Rwanda in 2011 and 2012, we reference Figure 1. In 2011, the aid received was approximately 111 USD, while in 2012 it was about 123 USD.
The change in aid funding can be calculated as follows:
Change = Aid in 2012 - Aid in 2011 = 123 - 111 = 12 USD
Thus, the total aid funding increased by 12 USD per capita.
Step 2
With reference to the information provided, examine two likely benefits for the Rwandan economy of the growth in the country’s population.
Answer
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Increased Labor Force: A growing population can lead to a larger workforce, which can enhance productivity and economic growth. With more people available for employment, Rwanda can potentially fill more jobs, boosting various sectors, such as agriculture and services.
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Market Expansion: A larger population also signifies an expanded local market. This can lead to increased demand for goods and services, encouraging businesses to invest and innovate to meet consumer needs, thereby contributing to overall economic development.
Step 3
With reference to the information provided, assess the likely impact on the Rwandan economy of the change in aid received between 2017 and 2018.
Answer
The aid received by Rwanda decreased between 2017 and 2018, which can have several implications:
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Reduced Investment in Infrastructure: A decline in aid may lead to lower investment in essential infrastructure projects, slowing economic growth and development.
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Budget Constraints: With reduced aid, the government may face budget constraints, leading to cuts in public services or development programs that are crucial for socio-economic growth.
Step 4
Discuss the likely impact on Rwandan consumers and clothing manufacturers of the increase in the import tariffs on second-hand clothes. Use an appropriate diagram to support your answer.
Answer
Increasing import tariffs on second-hand clothes can significantly impact consumers and manufacturers:
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For Consumers: Higher tariffs will result in increased prices for second-hand clothes, reducing accessibility for lower-income consumers who rely on affordable clothing options. This reliance might lead to a search for alternative sources or lower quality clothing.
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For Manufacturers: Local clothing manufacturers might benefit from reduced competition from imported second-hand clothing. This could encourage them to increase local production, potentially leading to job creation and economic growth.
Diagram: A supply and demand graph should be presented showing the upward shift in price due to increased tariffs on imports.
The intersection of supply and demand would indicate higher prices and a quantity shift in the market.
Step 5
Discuss policies, other than import tariffs, that the Rwandan government could use to develop its manufacturing industries.
Answer
The Rwandan government could implement several policies to enhance its manufacturing sector:
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Subsidies for Manufacturers: Providing financial support to local manufacturers can lower production costs and encourage domestic production.
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Investment in Infrastructure: Improving transportation and communication infrastructures would enable manufacturers to operate more efficiently and reach broader markets.
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Skills Development Programs: Establishing training and educational programs can equip the workforce with necessary skills, helping to improve efficiency and productivity in manufacturing industries.
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Access to Finance: Developing programs that facilitate access to credit for small and medium enterprises (SMEs) would help them invest in technology and expand operations.