Mock Exam Set 1 - Paper 2

$\underline{\textrm{Sample answer}}$:
Inward foreign investment is spending on physical capital by foreign investors. It can also include foreign investors buying domestic firms.

$\underline{\textrm{Explanation}}$:

For explaining that:

• it comes into a country from foreign sources—that is, it is an injection ($\checkmark$)
• it refers to investment in capital, plant or equipment, or purchasing a firm ($\checkmark$)

$\footnotesize{\textrm{Note: inward foreign investment does not refer to the foreign purchase of domestic stocks.}}$

$\underline{\textrm{Sample answer}}$:
Economic inequality occurs when households in an economy earn different levels of income and control different amounts of wealth.

$\underline{\textrm{Explanation}}$:

For explaining that:

• economic inequality refers to the unequal distribution ($\checkmark$)
• of both income and wealth in an economy ($\checkmark$)

$\underline{\textrm{Sample answer}}$:

$\dfrac{211.58 - 142}{142} \times 100 = 49\%$

$\underline{\textrm{Explanation}}$:

For correctly:

• Selecting the data from the relevant years ($\checkmark$)

  • 2018 CPI: 142.00
  • 2019 CPI: 211.58

• Applying the percent change formula and showing the calculation ($\checkmark$)

  • $\dfrac{(2019\ CPI - 2018\ CPI)}{2018\ CPI} \times 100$

• Calculating the inflation rate ($\checkmark$)

  • 49$\%$

$\underline{\textrm{Sample answer}}$:

$\underline{\textrm{Explanation}}$:

For sketching a correctly labelled business cycle diagram

• that shows an upward-sloping (expansion) and downward-sloping (contraction) actual output curve ($\checkmark$)
• for identifying that Argentina's economy expanded from 2016 to 2017 and contracted from 2018 to 2019 ($\checkmark$)

$\underline{\textrm{Sample answer}}$:

When the Argentine government sets a price ceiling$\text{\textemdash}$a type of price control$\text{\textemdash}$to keep the price of rental housing low, it causes a disequilibrium in the market. This occurs because the maximum price ($\mathrm{P_C}$) is set below the market price (P$^*$) causing quantity demanded to exceed quantity supplied. This results in a shortage ($\mathrm{Q_D} - \mathrm{Q_S}$) and incentivises landlords to charge higher rents ($\mathrm{P_{IM}}$) in informal markets. Therefore, inflation in Argentina does not decrease.

$\underline{\textrm{Explanation}}$:

For drawing a correctly labelled demand and supply diagram showing:

• a price ceiling (price control) set below the market (equilibrium) price ($\checkmark$)
• either of the following ($\checkmark$)
  • a shortage at the market price
  • a price above market price/price control representing the price in informal markets

AND

Explaining that the price control prevents the rental housing market from reaching equilibrium:

• lowering price below equilibrium causes a shortage ($\checkmark$)
• either of the following ($\checkmark$)
  • shortages drive up prices
  • suppliers can charge higher prices in informal markets

$\underline{\textrm{Sample answer}}$:

To slow the depreciation of the ARS, monetary policy can be used to increase interest rates. Foreign investors—seeking to earn greater interest—will buy more pesos to buy more Argentinian investments. This shifts demand for ARS rightward ($\mathrm{D_1}$ to $\mathrm{D_2}$), putting upward pressure on the peso ($\mathrm{xr_1}$ to $\mathrm{xr_2}$).

$\underline{\textrm{Explanation}}$:

For drawing a correctly labelled exchange rate diagram showing:

• the demand curve for Argentinian pesos (ARS) shifting right or the supply curve for Argentinian pesos (ARS) shifting left ($\checkmark$)
• the exchange rate increasing ($\checkmark$)

AND

Explaining that contractionary monetary policy—raising interest rates—can increase the value of the ARS ($\checkmark$), because demand (supply) for ARS in the foreign exchange market increases (decreases) as foreign (domestic) investors are incentivised to buy more interest-bearing investments in Argentina ($\checkmark$).

$\underline{\textrm{Sample answer}}$:

Argentina must repay its debt to foreign creditors such as the IMF. Consequently, debt servicing reduces the funds available for infrastructure. If Argentina's spending on debt servicing increases ($\mathrm{Y_A}$ to $\mathrm{Y_B}$), then it must decrease infrastructure spending ($\mathrm{X_A}$ to $\mathrm{X_B}$), so Argentina is less able to build or maintain infrastructure.

$\underline{\textrm{Explanation}}$:

For drawing a correctly labelled PPC showing:

• a trade-off between debt servicing and infrastructure/social services ($\checkmark$)
• increasing debt services decreases infrastructure/social services ($\checkmark$)

OR

For drawing a correctly labelled PPC showing:

• using resources for debt servicing shifts the PPC inward ($\checkmark$)
• the provision of infrastructure/social services decreases ($\checkmark$)

AND

Explaining that:

• Resources used for debt servicing cannot be used to provide infrastructure or social services ($\checkmark$)
• Therefore Argentina faces a trade-off: increasing payments to debt servicing reduces the funds available to provide infrastructure or social services ($\checkmark$)

$\underline{\textrm{Sample answer}}$:

Developing the Vaca Muerta shale formation will increase aggregate demand. This occurs due to increased spending on physical capital and labour, increasing investment and consumption, which are components of AD. As a result, AD shifts rightward ($\mathrm{AD_1}$ to $\mathrm{AD_2}$), increasing economic output ($\mathrm{Y_1}$ to $\mathrm{Y_2}$).

$\underline{\textrm{Explanation}}$:

For drawing a correctly labelled AD/AS diagram showing:

• a rightward shift of AD or LRAS ($\checkmark$)
• increased output ($\checkmark$)

AND

Explaining that expanding the Vaca Muerta shale field will create economic growth ($\checkmark$) because:

• Investment and consumption will increase, increasing AD ($\checkmark$)
  OR
• Economic potential will increase, increasing LRAS ($\checkmark$)

$\footnotesize{\textrm{Note: the impact on price level is not relevant to the question}}$

$\underline{\textrm{Sample answer}}$:
Economic growth refers to an increase in gross domestic product GDP over time $\textcolor{#00CED1}{[\textbf{T}]}$, whereas economic development refers to changes that enhance the quality of life, such as improved healthcare or increased access to clean drinking water $\textcolor{#00CED1}{[\textbf{T}]}$.

CPI increased from 142.0 to 211.58 between 2018 and 2019, representing a 49% rate of inflation, which can be detrimental to the economy. It can erode Argentina’s export competitiveness as rising production costs put upward pressure on export prices $\textcolor{#1974D2}{[\textbf{EX}]}$. This is especially significant given that agriculture contributes around 60% of Argentina's total export revenues. Even though the nation was able to achieve a trade surplus of $\text{\textdollar}$14.41 billion in 2019 $\textcolor{#C34A2C}{[\textbf{T/D}]}$, however, given the abundance of global suppliers of agricultural products, rising inflation in Argentina may reduce demand for the agriculture output. This may have a significant effect on not only Argentina’s trade balance but also the employment in agriculture-related industries. Additionally, the rising inflation may undermine investor confidence in the economy, not only further discouraging FDI, but potentially leading to capital flight $\textcolor{#1974D2}{[\textbf{EX}]}$. This requires Argentina to diversify its national output, which can be achieved by focusing further on strengthening its energy sector, especially utilising abundant resources such as lithium, a key raw material used in electric vehicle batteries. This would not only open up domestic opportunities for firms but may have the potential to attract foreign firms who seek to benefit from low-cost materials, possibly generating employment opportunities in related industries $\textcolor{#20B2AA}{[\textbf{S/E}]}$.

Furthermore, the government can use a portion of the US$\text{\textdollar}$44 billion IMF loan to fund the further exploration and extraction of lithium $\textcolor{#C34A2C}{[\textbf{T/D}]}$. This loan can also be partly used to subsidise technology to support agriculture production, which may improve productivity over time, putting downward pressure on prices, and subsequently the rate of inflation $\textcolor{#1974D2}{[\textbf{EX}]}$. However, these loans include conditions such as fiscal consolidation, aimed at reducing the fiscal deficit to 2.5% of GDP by 2022 $\textcolor{#C34A2C}{[\textbf{T/D}]}$, which may make it difficult for the government to provide such subsidies. This may adversely affect Argentina's social welfare programs and subsidies targeting lower-income segments of society who are already feeling the effects of an inflation rate of around 50%.

Furthermore, the US$\text{\textdollar}$44 billion IMF loan will raise Argentina's external debt, which is already a concern given that a significant portion of the budget has to be set aside for debt servicing. This may continue to hamper Argentina's ability to fund its social welfare programmes which may compromise development $\textcolor{#20B2AA}{[\textbf{S/E}]}$. Additionally, Argentina’s commitment with the IMF’s condition to use tight monetary policy to reduce the rate of inflation may come at the expense of hampered growth and subsequent development. Theoretically, this may encourage foreigners to invest in Argentinian financial assets, strengthening the peso, but given the economic conditions, this is a less likely outcome.

The Vaca Muerta shale formation also offers the nation an opportunity for economic growth, but this requires consistency in economic policies $\textcolor{#C34A2C}{[\textbf{T/D}]}$, an area where the Argentinian government has been lacking. If the government is successful in strategizing the extraction of such resources, it will not only trigger export-led economic growth, but also help to diversify the composition of national output, thereby, reducing reliance on agriculture output $\textcolor{#20B2AA}{[\textbf{S/E}]}$.

The impacts of this can be seen in the diagram below. An increase in export oil and gas can increase net exports causing an increase in aggregate demand, shifting the AD curve shifts rightwards $\textcolor{#056608}{[\textbf{D}]}$, causing real GDP to increase from $\mathrm{Y_1}$ to $\mathrm{Y_2}$ i.e. economic growth $\textcolor{#056608}{[\textbf{D}]}$. However, this may put upwards pressure on price levels in the short run, but may present opportunities of improved living standards, raising tax revenues for the government, which can be used to fund public spending on development programmes which can help lower the rate of relative poverty below the current 35.5%.

Conclusively, Argentina faces significant challenges due to its high inflation rate. The decline in export competitiveness in key sectors like agriculture threatens the trade balance and employment opportunities. To address these issues, diversification of the national output, particularly by tapping into the energy sector's potential, such as the exploitation of resources like lithium, presents a viable solution. Utilising the IMF loan to fund initiatives in both energy and agriculture sectors may enhance productivity and mitigate inflationary pressures. However, fiscal consolidation and public debt concerns may limit the government's ability to allocate resources to essential social welfare programs. Strategic utilisation of resources like the Vaca Muerta shale formation could offer avenues for export-led growth and economic development, provided consistent policies are implemented $\textcolor{#20B2AA}{[\textbf{S/E}]}$.

$\underline{\textrm{Explanation}}$:

$\textcolor{#00CED1}{\textrm{Terminology}\ [\textbf{T}]}$

For correctly using the term economic growth, indicating that it refers to an increase in real GDP over time. ($\checkmark$)

For correctly using the term economic development, indicating that it refers to an improvement in the quality of life. ($\checkmark$)
[2 maximum]

---

$\textcolor{#056608}{\textrm{Diagrams}\ [\textbf{D}]}$

For including a correctly labelled AD/AS diagram:

• showing a rightward shift of the AD curve ($\checkmark$)
• indicating an increase in real GDP ($\checkmark$)

Linking the idea of economic growth to the diagram. ($\checkmark$)
[3 maximum]

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$\textcolor{#1974D2}{\textrm{Explanation}\ [\textbf{EX}]}$

Identifying two of the following impacts on the Argentine economy (a-c): ($\checkmark$)

Explaining two of the following impacts of high inflation on the Argentine economy: ($\checkmark\checkmark$)

1. High inflation can reduce export competitiveness by elevating the relative prices of exports, making them less appealing to foreign buyers.

2. High inflation can reduce business confidence because it erodes profits and increases costs, leading to reduced foreign direct investment or capital flight.

3. High inflation discourages savings because it lowers real interest rates, leading to lower levels of investment.
   [3 maximum]
   

---

$\textcolor{#20B2AA}{\textrm{Synthesis and Evaluation}\ [\textbf{S/E}]}$

For adding context to the explanation by discussing ($\checkmark$)

• If Argentina diversifies its national output, this would open up opportunities for firms and generate employment.

  or

• How an increase in GDP can contribute to economic development over time.

For making a reasoned argument for one point of view ($\checkmark$)

• e.g., arguing that consistency in economic policies can allow Argentina to achieve economic growth as it may reduce capital flight.

For making a reasoned argument for another point of view ($\checkmark$)

• e.g., arguing that the IMF loan will raise Argentina's external debt, which may hamper its ability to fund its social welfare programmes.

For providing an evaluative judgement that resolves the specific demands of the question ($\checkmark$)

• e.g., arguing that consistent policies and strategic utilisation of resources like the Vaca Muerta shale formation could result in export-led growth and economic development.
  [4 maximum]
  

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$\textcolor{#C34A2C}{\textrm{Use of information from text/data}\ [\textbf{T/D}]}$

For using appropriate information from the text/data to support an argument ($\checkmark$)

• e.g., Argentina can use the IMF loan to fund the further exploration of raw materials or improve infrastructure

For using appropriate information from the text/data to support another argument ($\checkmark$)

• e.g.,the IMF conditions can put pressure on the government, which may conflict with their macroeconomic objectives.

For incorporating the information from the extract into the synthesis/evaluation. ($\checkmark$)

• e.g., successful development of resources like the Vaca Muerta shale formation depend on policies that improve stability
  [3 maximum]
  

[=15 maximum]

$\underline{\textrm{Sample answer}}$:
A bilateral agreement is a trade agreement between two countries to reduce or eliminate tariffs and other barriers to trade.

$\underline{\textrm{Explanation}}$:

For explaining that a bilateral agreement

• is a trade agreement between two countries ($\checkmark$)
• aims to reduce or eliminate tariffs or other barriers to trade ($\checkmark$)

$\underline{\textrm{Sample answer}}$:
Sustainable development is economic development that meets the needs of the present generations without compromising the ability of future generations to meet their own needs.

$\underline{\textrm{Explanation}}$:

For explaining that sustainable development meets the needs of both current ($\checkmark$) and future ($\checkmark$) generations.

$\underline{\textrm{Sample answer}}$:
Balance of trade = balance of trade in goods - balance of trade in services
Balance of trade = [313 mil - 2.2 bil] + [3.1bil - 1.2bil]
Balance of trade = -1.887 billion +1.9 billion
= US$ 0.013billion
OR
Balance of trade =[313 000 000-2 200 000 000] +[3 100 000 000-1 200 000 000]
= 1 900 000 000-1 887 000 000
=US$13 000 000

$\underline{\textrm{Explanation}}$:

For correctly:

• calculating the correct balance of trade by adding the balances on visible (goods) and invisible (services) trade ($\checkmark$)
• writing correct final answer with the correct unit ($\checkmark$)
  US$0.013 billion OR US$13 000 000

$\underline{\textrm{Sample answer}}$:

Current account balance =

0.013 billion + (72 million - 444 million) +(-1.1 billion)

= US$ -1.459 billion (deficit)

OR

= 13 000 000 + (72 000 000-444 000 000) + (-1 100 000 000)
= US$ -1 459 000 000

$\underline{\textrm{Explanation}}$:

Current account = trade balance + net income payments + net transfers

For correctly:

• selecting the relevant data ($\checkmark$)
• calculating the current account balance by adding balances on net transfers and net income to the answer from (b)(i)($\checkmark$)

For the correct answer with the correct units ($\checkmark$)
-US$1.46 billion

$\footnotesize{\textrm{Note: remittances are included in net transfers; FDI and foreign reserves are not included in the current account}}$

$\underline{\textrm{Sample answer}}$:

As shown in the diagram, subsidies provided for fuel will help producers to increase their supply ($\mathrm{S_1}$ to $\mathrm{S_2}$) and reduce consumer prices ($\mathrm{P_1}$ to $\mathrm{P_2}$). Fuel is an essential input for the fishing and aquaculture industries, so subsidies on fuel reduce their operating costs. By providing economic support to producers, the government aims to increase production in these industries, thereby increasing economic output.

$\underline{\textrm{Explanation}}$:

For drawing a correctly labelled demand and supply diagram showing:

• a downward/rightward shift of the supply curve ($\checkmark$)
• either of the following ($\checkmark$)
  • an increase in quantity
  • a fall in price

AND

Explaining that subsidies on fuels create economic growth by:

• decreasing operating costs ($\checkmark$)
• incentivising producers to increase supply ($\checkmark$)

Maldives is building infrastructure like an international airport and Agronat Corporation to support agriculture. Thus, limited resources of the economy are diverted towards increasing economic infrastructure from $\mathrm{Y_A}$ to $\mathrm{Y_B}$. However, as the economy reallocates its limited resources, it would need to cut down its social spending from $\mathrm{X_A}$ to $\mathrm{X_B}$.

$\underline{\textrm{Explanation}}$:

For drawing a correctly labelled PPC showing:

• a trade-off between economic infrastructure and social spending ($\checkmark$)
• increasing expenditure on economic infrastructure decreases social spending ($\checkmark$)

AND

Explaining that providing more economic infrastructure reduces funds available for social services ($\checkmark$). Therefore, Maldives faces a trade-off: increasing economic infrastructure reduces the provision of social services ($\checkmark$).

$\underline{\textrm{Sample answer}}$:

If India imposes a tariff on goods imported from Maldives (tuna fish and scrap iron), then the volume of imports will reduce. In a free market, the world supply curve is perfectly elastic att he world price, $\mathrm{P_1}$. At $\mathrm{S_{WORLD}}$ price without any barrier, the Indian producers supply only $\mathrm{Q_1}$ as $\mathrm{P_1}$ is lower than the domestic equilibrium price, and the quantity demanded is $\mathrm{Q_4}$. The shortage ($\mathrm{Q_4}$ - $\mathrm{Q_1}$) is imported, including from Maldives. But if India decides to impose a barrier in the form of a tariff, then the new price ($\mathrm{P_2}$) will shift upward by a fixed amount. At this new price, Indian producers are willing to supply an increased quantity ($\mathrm{Q_2}$) but the quantity demanded contracts to $\mathrm{Q_3}$ units. The shortage ($\mathrm{Q_3}$- $\mathrm{Q_2}$) can be imported. However, the tariff causes a reduction in the volume of imports. This reduces the revenue of foreign exporters but will increase the Indian government revenue for the collection of tariff revenue equal to area e.

$\underline{\textrm{Explanation}}$:

For drawing a correctly labelled international trade diagram showing:

• the domestic quantity supplied and demanded with shortage imported without any trade barrier ($\checkmark$)
• the domestic quantity supplied and demanded with reduced imports after a tariff barrier is imposed ($\checkmark$)

AND

Explaining that: in a free market and at world price which is below the domestic equilibrium price a country can import larger volume of goods ($\checkmark$) after a tariff barrier is imposed the world price also increases causing a reduction in the volume of imports ($\checkmark$)

$\underline{\textrm{Sample answer}}$:

Many industrial and production processes release greenhouse gases leading to climate change. Thus, as illustrated in the diagram, marginal social costs (MSC) exceed marginal private costs (MPC) due to the harmful effects of climate change. The socially optimal output is at $\mathrm{Q_{opt}}$ where MSC=MSB. From society’s point of view there is overproduction and a corresponding welfare loss is shown by the triangle. Maldives is particularly vulnerable to the effects of climate change, due to an increased risk of flooding, and dwindling stocks of fish thus causing a market failure. Additionally climate change necessitates fishermen to travel further to find fish, resulting in an increased fuel cost and additional expenses for the fishing industry. Maldives heavily depends on fish product exports thus making the country vulnerable to market failures.

$\underline{\textrm{Explanation}}$:

For drawing a correctly labelled market failure diagram showing:

• that the marginal social cost is greater than the marginal private cost due to negative externalities of an increase in economic activities ($\checkmark$)
• that there is overproduction of goods in a free market, creating a welfare/deadweight loss ($\checkmark$)

AND

Explaining that:

• an increase in economic activities affects the climate, and in turn impacts availability of natural resources ($\checkmark$)
• the above mentioned changes further adds to an increased cost of production to firms and society at large ($\checkmark$)

$\underline{\textrm{Sample answer}}$:
Economic development refers to the process by which the overall health, well-being, and academic level of the general population of a nation improves $\textcolor{#00CED1}{[\textbf{T}]}$. The three core and interrelated pillars of sustainable development$-$social sustainability, economic sustainability and environmental sustainability$-$are vital to development $\textcolor{#1974D2}{[\textbf{EX}]}$. Maldives experienced high economic growth prior to the pandemic, but the loss of tourism income due to the Indian boycott placed a significant challenge on the economy $\textcolor{#C34A2C}{[\textbf{T/D}]}$.

To mitigate the economic challenges arising from the decline in tourism $\textcolor{#1974D2}{[\textbf{EX}]}$, the Maldives government has taken steps to increase fishing and aquaculture as industries, including subsidies for fuel $\textcolor{#C34A2C}{[\textbf{T/D}]}$. This would help in overcoming the loss of revenue, promoting a more equitable distribution of income. However, the impact of government intervention has time lags, and any spending and intervention has an opportunity cost as the government cannot allocate this expenditure to other sectors $\textcolor{#20B2AA}{[\textbf{S/E}]}$. Government spending, although fluctuating over the past five years, has continued to rise, but so has the debt-to-GDP ratio, sitting at around $60\%$ in 2022. This debt comes with a cost as there is a liability of interest and principal amount, creating a budgetary strain.

Additionally, to increase financial opportunities for poorer residents living on the outer atolls, Maldives’ government is seeking FDI from Singapore. To improve sustainability, the Maldives government is also looking into renewable energy and waste management $\textcolor{#C34A2C}{[\textbf{T/D}]}$.This would help in ensuring that resources are available for future generations $\textcolor{#1974D2}{[\textbf{EX}]}$. By considering the long run impact of its policies, Maldives government aims to achieve sustainable economic growth $\textcolor{#20B2AA}{[\textbf{S/E}]}$.

In the diagram, one can see that currently, Maldives is operating at any point on $\mathrm{PPC_1}$ $\textcolor{#056608}{[\textbf{D}]}$. However, over a long period of time, foreign aid and the building of economic infrastructure will help the Maldives government to achieve growth indicated by a rightward shift ($\mathrm{PPC_1}$ to $\mathrm{PPC_2}$) $\textcolor{#056608}{[\textbf{D}]}$.

However, Maldives’ geography limits the gains of infrastructure improvements. Improving infrastructure on one island may not have much impact on residents of other islands $\textcolor{#20B2AA}{[\textbf{S/E}]}$. The government is also looking at the social aspect of development by ensuring that residents in outer islands receive potable water in case of a shortage of freshwater $\textcolor{#C34A2C}{[\textbf{T/D}]}$. This ensures the well-being of people as their basic needs are met.

In conclusion, achieving sustainable development in Maldives requires a multifaceted strategy encompassing economic diversification, environmental conservation, foreign partnerships, and social welfare, especially in the face of rising challenges $\textcolor{#20B2AA}{[\textbf{S/E}]}$.

$\underline{\textrm{Explanation}}$:

$\textcolor{#00CED1}{\textrm{Terminology}\ [\textbf{T}]}$

For correctly defining the term economic development by indicating that:

• development refers to the process by which the overall health, well-being, and academic level of the general population of a nation improve ($\checkmark$)

For correct use of other relevant terms ($\checkmark$)

• e.g., social sustainability, economic sustainability and environmental sustainability, opportunity cost
  [2 maximum]
  

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$\textcolor{#056608}{\textrm{Diagrams}\ [\textbf{D}]}$

A PPC diagram showing:

• An outward shift of the PPC showing economic growth ($\checkmark$)

OR

An AD/AS diagram showing:

• A rightward shift of the LRAS curve leading to an increase in real GDP ($\checkmark$)

AND

Linking the idea of economic growth to potential outcomes of the economy ($\checkmark$)
[2 maximum]

---

$\textcolor{#1974D2}{\textrm{Explanation}\ [\textbf{EX}]}$

For identifying distinct ways government intervention can contribute to economic development ($\checkmark$)

• e.g., governments are well-suited to provide infrastructure, target specific segments of the population/economy, or improve institutions or the business environment

For explaining any two of the following: ($\checkmark\checkmark$)

• Government intervention helps to overcome economic challenges and provide stability
• Governments can encourage sustainable practices to ensure resources are available for future generations
• Ensuring social aspects of development for well being
  [3 maximum]
  

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$\textcolor{#20B2AA}{\textrm{Synthesis and Evaluation}\ [\textbf{S/E}]}$

For adding context to the response by discussing the unique challenges faced by Maldives ($\checkmark$)

• e.g., Maldives’ geography limits the impacts of some government intervention

For making arguments supporting government intervention ($\checkmark$)

• e.g., Maldives government can enact policies promoting sustainable economic development

For making arguments about the limitations of government intervention ($\checkmark$)

• e.g., arguing that time lags limit the effectiveness of government intervention

Providing an evaluative judgement that resolves the specific demands of the essay question. ($\checkmark$)

• e.g., Economic development in Maldives requires a multi-faceted approach in light of increasing climate challenges
  [4 maximum]
  

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$\textcolor{#C34A2C}{\textrm{Use of information from text/data}\ [\textbf{T/D}]}$

For using text/data to:

• demonstrate the need for government intervention to promote development in Maldives ($\checkmark$)
• support an argument for a method of government intervention ($\checkmark$)
• support an argument for another method of government intervention ($\checkmark$)
• For incorporating text/data into synthesis/evaluation ($\checkmark$)

[4 maximum]

[=15 maximum]