Question:

2 In 2019, Mozambique was hit by a serious storm which destroyed bridges, factories, roads and
electricity lines. Almost 60% of Mozambique’s population live in absolute poverty. The country’s
people are keen to increase Mozambique’s economic development. There is a high level of
government intervention in Mozambique’s economy. Although Mozambique does not impose
import quotas, it does impose a range of import tariffs.
(a) Identify two reasons why a person may experience absolute poverty. [2]
(b) Explain two causes of an increase in a country’s economic development. [4]
(c) Analyse, using a production possibility curve (PPC) diagram, the effect of a serious storm on
an economy. [6]
(d) Discuss whether or not imposing tariffs on imports will increase a country’s output. [8]

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