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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. With reference to the information provide... 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
Calculate the change in the level of total aid funding to Rwanda between 2011 and 2012.
Answer
To calculate the change in aid funding to Rwanda between 2011 and 2012 using Figure 1, we note that in 2011, aid funding per capita was approximately 110.
The change in aid funding can be calculated as follows:
Change = Aid in 2012 - Aid in 2011 = 110 - 123 = -13
Thus, the total aid funding decreased by $13 per capita.
Step 2
Examine two likely benefits to the Rwandan economy of the growth in the country’s population.
Answer
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Increased Labor Supply: A growing population leads to a larger workforce, which can drive economic growth. More workers can contribute to various industries, enhancing productivity and potentially attracting foreign investment.
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Greater Consumer Base: An increasing population means more consumers, which creates higher demand for goods and services. This can stimulate local businesses, encouraging expansion and generating job opportunities.
Step 3
Assess the likely impact on the Rwandan economy of the change in aid received between 2017 and 2018.
Answer
The decrease in aid received between 2017 and 2018 may lead to several impacts:
- Reduced Public Spending: Lower aid may force the government to cut back on public service spending, affecting education and healthcare.
- Slower Economic Growth: With reduced financial support, economic development projects may stall, impacting infrastructure development and economic growth rates.
Step 4
Discuss the likely impact on Rwandan consumers and clothing manufacturers of the increase in the import tariff on used second-hand clothes.
Answer
The increase in import tariffs on used second-hand clothing will likely have several impacts:
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Higher Prices for Consumers: The tariff may result in higher prices for second-hand clothes, reducing access for lower-income consumers.
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Support for Local Manufacturers: Local clothing manufacturers may benefit as they face less competition from cheaper imported clothes. This could lead to increased production and job creation in the local industry.
An appropriate diagram could illustrate the shift in demand and price level in the used clothing market due to the tariff imposed.
Step 5
Discuss policies, other than import tariffs, that the Rwandan government could use to develop its manufacturing industries.
Answer
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Investment in Infrastructure: The government could improve infrastructure, such as transportation and energy, to lower production costs and attract manufacturers.
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Providing Tax Incentives: Offering tax breaks or incentives for manufacturers can encourage domestic production and attract foreign investment.
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Skill Development Programs: Implementing training programs to enhance the skills of the workforce will help to ensure manufacturers have access to qualified employees, boosting production capabilities.