Skip to content

Course home

Sign up

Development

EasyMediumHard
123456789
Question 7

According to the Harrod–Domar model of economic growth, the rate of growth is determined by the savings ratio and the capital-output ratio. Consider four developing economies with the following characteristics:

  • Economy A: Savings ratio of 10%, Capital-output ratio of 4.0
  • Economy B: Savings ratio of 15%, Capital-output ratio of 3.0
  • Economy C: Savings ratio of 12%, Capital-output ratio of 2.5
  • Economy D: Savings ratio of 18%, Capital-output ratio of 4.5

Which economy is predicted to achieve the highest rate of economic growth?

A

Economy A

B

Economy B

C

Economy C

D

Economy D

Markscheme

Development Questions

  1. A Level
  2. /Economics
  3. /Development

29 exam-style questions on OCR A Level Economics Development. Each one has a worked solution and a mark scheme showing where the marks go.

Question bank