11.3 Economic development

Explain what economists mean by an increase in real GDP per capita and discuss the extent to which an increase in real GDP per capita will have a positive impact on economic development. [25] [Sample essay]

Consider, with the help of a circular flow diagram, why an export-led growth policy is likely to be successful when a developed economy is in a recession. [12]

With the help of a circular flow diagram discuss how a policy of export-led growth might affect the standard of living in a developing economy. [25]

Discuss the extent to which gross domestic product (GDP) is a useful measure of living standards and economic development. [25]

Discuss the extent to which the Human Development Index (HDI) and the Measure of Economic Welfare (MEW) provide better measures of living standards than Gross National Income (GNI). [25]