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One of the problems currently being experienced by less developed countries (LDCs) is a high rate of population growth - Leaving Cert Economics - Question 6 - 2006
Question 6
One of the problems currently being experienced by less developed countries (LDCs) is a high rate of population growth. (i) State and explain THREE economic problem... show full transcript
Worked Solution & Example Answer:One of the problems currently being experienced by less developed countries (LDCs) is a high rate of population growth - Leaving Cert Economics - Question 6 - 2006
Step 1
State and explain THREE economic problems (other than population growth) which these countries are experiencing.
Answer
Economic Problems in Less Developed Countries (LDCs)
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Famine: Due to insufficient agricultural productivity, many LDCs face chronic hunger. This often leads to malnutrition, disease, and high mortality rates, especially among children. The impact of famine extends beyond health, affecting economic productivity and social stability.
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Foreign Debts: LDCs often rely on foreign loans to fund development. High debt levels can lead to severe repayment pressures, diverting critical resources from necessary public services and infrastructure development. This cycle can perpetuate poverty and hinder economic growth.
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Uneven Distribution of Wealth: In many LDCs, wealth is concentrated within a small elite. This inequality prevents widespread access to resources and opportunities, leading to civil unrest and social issues. It stifles economic development as a large portion of the population remains in poverty.
Step 2
Suggest TWO measures, which people in the developed world could take to help reduce the problems being experienced by these countries.
Answer
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Buy More Local Goods: Developed nations can support LDCs by purchasing products made in these countries. By increasing demand for such goods, LDCs can enhance their economic situation, leading to better living standards and reduced reliance on foreign aid.
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Campaign for Debt Relief: Advocacy for reduced debt payments or cancellation in LDCs can significantly relieve economic burdens. Encouraging citizens in developed countries to support policies that prioritize the needs of LDCs can create a ripple effect in improving economic situations.
Step 3
Explain the underlined term.
Answer
Full Employment
Full employment occurs when all individuals willing to work at existing wage rates can find employment. It's an ideal economic situation where unemployment is minimal, typically attributed to frictional unemployment as workers transition between jobs.
Step 4
State and explain the effects which full employment may have on each of the following: the level of spending in the economy;
Answer
Effect on the Level of Spending in the Economy
With full employment, individuals have a steady income, leading to increased disposable income and thus higher consumer spending. Businesses respond to this demand by expanding, potentially increasing wages further and contributing to economic growth.
Step 5
levels of immigration into Ireland.
Answer
Effect on Levels of Immigration into Ireland
Full employment can attract immigrants seeking job opportunities. As the local economy thrives and job vacancies increase, Ireland may become a favorable destination for skilled workers from other countries, contributing to cultural diversity and fill gaps in the labor market.
Step 6
State and explain TWO economic measures which the Government could take to encourage a decrease in alcohol consumption.
Answer
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Increase Taxes on Alcohol: By raising taxes, the government can deter consumption since higher prices often lead to reduced demand. This measure would directly impact consumer behavior, promoting healthier choices.
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Awareness/Education Campaign: The government can implement campaigns highlighting the dangers of excessive alcohol consumption. Increased awareness may encourage individuals to reflect on their drinking habits and choose moderation.
Step 7
If alcohol consumption decreased, state and explain the economic effects which this development may have on each of the following: firms in the Irish drinks sector;
Answer
Economic Effects on Firms in the Irish Drinks Sector
A decrease in alcohol consumption may lead to reduced sales for firms in this sector. With lower demand, these businesses might have to scale down operations, which could result in layoffs or even business closures.
Step 8
Step 9
hospital accident and emergency admissions.
Answer
Economic Effects on Hospital Accident and Emergency Admissions
A decline in alcohol-related incidents would likely reduce accident and emergency admissions. This can lead to decreased healthcare costs and allow hospitals to allocate resources more effectively, improving overall health services.