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265 views4 pages

rwanda-nigeria-mark-scheme

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alyasin.ics
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Paper two suggested responses

(a) Explain the following terms:

i. GDP (PPP) per capita [2 marks]

GDP is a measure of the total goods and services produced in a country. When this figure is
divided by the number of people in the country we get GDP per capita. PPP stands for
purchasing power parity and adjusts GDP for the differences in price levels within a country.
country. In this way, the GDP (PPP) measures the real value of income produced within a
country.

ii. HDI [2 marks]

HDI or human development index is measured by calculating the GNI per capita plus
education and health levels. Education levels are measured by the expected number of years
of schooling and health levels are measured by the average life expectancy of the population.

(b) (i) Using information from the table, calculate the % change in US$ GDP PPP for
both nations between 2018 and 2019. [3 marks]

Rwanda: 236 / 1807 = 13.06%

Nigeria: -253 / 6108 = -4.1%

(ii) Using information from the table 1, calculate the real central bank interest rate for
2019. [2 marks]

Rwanda: 4.5 - 2.4 = 2.1%

Nigeria: 11.9 - 11.4 = 0.5%

(c) Explain why Nigeria has a much higher GDP per capita than Rwanda but similar
levels of development. [4 marks]

2 marks for a recognition that HDI and GDP measure different things. GDP or GNI is a
component of HDI but only part of it. The other two elements measure standards of
education and health.

2 marks for a recognition from the passage that despite Nigeria’s relative wealth, derived
primarily from oil receipts ‘few Nigerians, including those in oil-producing areas, have
benefited.’ For the majority of Nigerians, therefore, the oil wealth has not improved their
welfare. By contrast the residents of Rwanda have enjoyed genuine improvements in living
standards from improved access to health and education services - this may provide real
economic benefits moving forward.

© Mark Johnson,
InThinking www.thinkib.net/Economics 1
(d) Using a PPC diagram, explain how an
improvement in Nigeria's security situation
might increase its potential output. (line 20).
[4 marks]

2 marks for a correctly drawn PPF diagram


showing two PPF curves. One showing the
current situation in the economy and one
representing a PPF curve to the right of the
original. The second PPF curve represents the
level of potential in the economy, if Nigeria
attracted greater levels of investment into the
economy. Alternatively candidates may
express the above with two LRAS curves, one
further to the right than the other.

2 marks for an explanation of the diagram(s) above with an explanation that Nigeria’s
insecurity has actively prevented investment into the country. The much highlighted security
concerns will also have discouraged domestic investment as well as tourism. It is highly
likely that given its vast oil reserves, Nigeria would normally be able to attract investors, if
the security situation were resolved.

(e) Using an AD/AS diagram and information from the text, explain the likely cause of
the higher inflation rate in Nigeria compared to Rwanda. [4 marks]

Two marks for drawing a correctly labelled AD/AS diagram, showing a shift of the SRAS
curve to the left (or a shift of the AD curve to the right) and an increase in the average price
level and two marks for an explanation that increases in the costs of production may have led
to increased costs for firms, causing cost-push inflation in the economy (or increased AD in
the economy, caused by an increase in [X–M], may have caused demand-pull
inflation). Incorrect labelling on diagrams is penalised by one mark deduction. Multiple
errors are not penalised more than once.

(f) Using a Lorenz curve diagram, compare the level of income inequality in Nigeria and
Rwanda in 2019. [4 marks]

Two marks for drawing a correctly labelled Lorenz curve diagram, showing the line of
equality and two Lorenz curves, labelled by nation AND for two for an explanation that the
higher value of the Gini coefficient means that income inequality in Rwanda is worse than in
Nigeria, illustrated by a Lorenz curve drawn further to the right.

© Mark Johnson,
InThinking www.thinkib.net/Economics 2
(g) Using information from the text/data and your knowledge of economics, discuss
methods that the Nigerian government might employ to achieve greater economic
growth and/or economic development. [15 marks]

Command term

“Discuss” requires candidates to offer a considered and balanced review that includes a range
of arguments, factors or hypotheses. Opinions or conclusions should be presented clearly and
supported by appropriate evidence.

Responses may include:

 definition of economic development and economic growth


 explanation and examples of potential supply-side policies
 explanation and examples of potential demand-side policies
 explanation/definition of interventionist policies
 explanation/definition of market-oriented policies
 examples of supply side policies: reducing red tape, tax incentives, reducing fuel
subsidies, investments, infrastructure projects, investment in education and training,
increased trade protection, access to micro-credit
 examples of demand side policies: tax cuts, interest rates, money supply through
quantitative easing, increases in government spending.

© Mark Johnson,
InThinking www.thinkib.net/Economics 3
Mark according to the following grade bands:

There is no clear answer to the question but some limited: 1-3


 Use of economic terms
 Application of economic theory
 Evaluation
 Use of information from the case example to support the answer
There is a vague answer to the question with limited: 4-6
 Use of economic terms
 Application of economic theory
 Evaluation
 Use of information from the case example to support the answer
There is an answer to the question with satisfactory: 7-9
 Use of economic terms
 Application of economic theory
 Evaluation
 Use of information from the case example to support the answer
There is a clear answer to the question with good: 10-12
 Use of economic terms
 Application of economic theory
 Evaluation
 Use of information from the case example to support the answer
There is a clear answer to the question with excellent: 13-15
 Use of economic terms
 Application of economic theory
 Evaluation
 Use of information from the case example to support the answer

© Mark Johnson,
InThinking www.thinkib.net/Economics 4

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