IB Economics SL 3.3.2 Consequences of economic growth Question Bank

Answers may include:

- definitions of economic growth and living standards

- explanation that economic growth may lead to a rise in living standards through: increasing incomes; a fall in unemployment; more tax revenue to improve public services and provide merit goods

- diagram to show economic growth increasing incomes and employment

- examples of economic growth increasing living standards

- synthesis or evaluation (discuss).

Discussion may include: economic growth increasing living standards in terms of the: income benefits of economic growth going to the richest people and widening the income disparity; economic growth leading to negative externalities; not being sustainable; impact growth has on inflation.

Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.

Opinions or conclusions should be presented clearly and should be supported by appropriate examples.

N.B. Diagrams are not essential in part (b) for this question to access level 3 and 4.

Assessment Criteria
Part (b) 15 marks

Level 0 (0 marks): The work does not reach a standard described by the descriptors below.

Level 1 (1-5 marks): There is little understanding of the specific demands of the question. Relevant economic terms are not defined. There is very little knowledge of relevant economic theory. There are significant errors.

Level 2 (6-9 marks): There is some understanding of the specific demands of the question. Some relevant economic terms are defined. There is some knowledge of relevant economic theory. There are some errors.

Level 3 (10-12 marks): There is understanding of the specific demands of the question. Relevant economic terms are defined. Relevant economic theory is explained and applied. Where appropriate, diagrams are included and applied. Where appropriate, examples are used. There is an attempt at synthesis or evaluation. There are few errors.

Level 4 (13-15 marks): There is clear understanding of the specific demands of the question. Relevant economic terms are clearly defined. Relevant economic theory is clearly explained and applied. Where appropriate, diagrams are included and applied effectively. Where appropriate, examples are used effectively. There is evidence of appropriate synthesis or evaluation. There are no significant errors.