Bullet point your answers to the paper 2 practice question. For the Graph questions, make sure you draw the graph
A) define the following terms indicated in bold in the text
sustainable development-
Sustainable development (SD) refers to a mode of human development in which resource use aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come.
Free trade-
International trade left to its natural course without tariffs, quotas, or other restrictions.
B) Using the concept of income elasticity of demand, explain th change in relative importance of the agricultural sector in comparison to the industrial and the sectors in Vietnam.
- YED for mancafactured goods and services is higher than for agricultural producrs
-as income increases there will be a relativley greater increase in demand for manafacutees and services as they become more important than agricultural products
C) Using an appropriate diagram ecplain the likely Long-erm impactof a rise in sea levels on the productive capacity of the vietnames economy
-Draw a PPC curve
- as sea lvels rease will reduce the amount of productive land and thus reduce the productive capicity of the vietnamese economy
D) Using information from the text/data and you knowledge of economics, evaluate diversification as a policy option for improving export performance in vietnam
In favour
- Avoids long erm declines in the terms of trade
-avoids extreme agricultural price fluctuations (4)
-avoides develeoped country barriers to trade
- reduces vulnderbality to shocks such as extreme weather(5)
- takes advantage of tourism (4)
- provides opp for increased employment, use of skills and development of skills
- can create a comparitive advantage
against-
-specialiaztion increases effecinecy and quanitity of output produced
- specialization and trade according to compartive advantage allow countries to consume at a point outside their PPC
- improves allocation of resources
- takes advantage of economies of scale
- farmers can take advatage of food price (4)
- diversification may lead to structural unemployment
A) define the following terms indicated in bold in the text
sustainable development-
Sustainable development (SD) refers to a mode of human development in which resource use aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come.
Free trade-
International trade left to its natural course without tariffs, quotas, or other restrictions.
B) Using the concept of income elasticity of demand, explain th change in relative importance of the agricultural sector in comparison to the industrial and the sectors in Vietnam.
- YED for mancafactured goods and services is higher than for agricultural producrs
-as income increases there will be a relativley greater increase in demand for manafacutees and services as they become more important than agricultural products
C) Using an appropriate diagram ecplain the likely Long-erm impactof a rise in sea levels on the productive capacity of the vietnames economy
-Draw a PPC curve
- as sea lvels rease will reduce the amount of productive land and thus reduce the productive capicity of the vietnamese economy
D) Using information from the text/data and you knowledge of economics, evaluate diversification as a policy option for improving export performance in vietnam
In favour
- Avoids long erm declines in the terms of trade
-avoids extreme agricultural price fluctuations (4)
-avoides develeoped country barriers to trade
- reduces vulnderbality to shocks such as extreme weather(5)
- takes advantage of tourism (4)
- provides opp for increased employment, use of skills and development of skills
- can create a comparitive advantage
against-
-specialiaztion increases effecinecy and quanitity of output produced
- specialization and trade according to compartive advantage allow countries to consume at a point outside their PPC
- improves allocation of resources
- takes advantage of economies of scale
- farmers can take advatage of food price (4)
- diversification may lead to structural unemployment
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