IB Economics www.tutor2u.com African Slowdown Worksheet Using either the recent blog entry ‘African Slowdown’ (http://www.tutor2u.net/blog/index.php/ib-diploma/comments/african-slowd/#extended or the original BBC article (http://news.bbc.co.uk/1/hi/business/7931372.stm) answer the following questions. You will find some answers in the text for other questions your own economic knowledge will be required: 1. Using a numerical example explain the relationship between economic growth rates, population growth rates and change in output per person. 2. State two reasons why Africa has not been directly hit by the global credit crisis 3. Using an AD/AS diagram explain how falling demand for exported commodities could affect the Africa’s economy. 4. Why are remittances to Africa likely to fall this year? What are the likely economic impacts for Africa of this fall? 5. Why is FDI into Africa set to fall this year? 6. What is the potential impact of a fall in FDI on the African economy? Use an AD/AS diagram You may also like to try this short answer question from 2005: Explain how overdependence on primary products may act as a barrier to economic development. IB Economics www.tutor2u.com