Read the source material carefully before answering Question 1. Concerns about health, obesity and animal welfare have risen in high income countries. This led to an increase in vegetarianism (not eating meat) and veganism (not eating meat, eggs or dairy) in high income countries. In 2017, veganism increased in the UK by $$\(20 \%\)$$. As incomes rise in the UK, people are more likely to eat vegan food. Advertising vegan food has encouraged its consumption. It is claimed that eating vegan food can improve people's health. Healthier workers can produce more, and better quality, products. Eating less meat and dairy products can also improve the environment. Farm animals emit greenhouse gases and their waste products add to water pollution. While meat consumption per person is falling in high income countries, it is rising in low income countries. Fig. $$\(1.1\)$$ shows average daily calorie intake consumed in Senegal, a west African country, and in the US, by food groups in 2015. The recommended daily calorie intake is 2800 . To respond to changes in the type of food that people are eating, it is useful if workers are mobile. Generally, the greater labour mobility, the more efficient the labour market becomes in adjusting to changes in demand, and the supply of workers. This helps a country's international performance in trade of goods. As some people in Africa are malnourished, eating more food of any type, including meat, may make them healthier. A rise in meat consumption will increase demand for vets (for animal welfare) and transport firms. It can also increase the number of meat processing firms. Senegal has a high unemployment rate and a low income per head. It has recently experienced a fall in consumer expenditure. New industries and new jobs would help to stop Senegal experiencing a recession. A rise in government spending may also be needed. The high birth rate and rising population also puts pressure on the government to spend more. Emigration is, however, reducing tax revenue while providing some Senegalese with useful employment experience. Answer all parts of Question 1. Refer to the source material in your answers. Discuss whether or not an increase in Senegalese government spending will stop the country experiencing a recession.

Economics
IGCSE&ALevel
CAIE
Exam No:0455_w21_qp_23 Year:2021 Question No:(g)

Answer:

Knowledge points:

4.6.3 causes and consequences of recession:Meaning of recession and how a recession moves the economy within its PPC. How changes in total demand may increase the utilisation of resources and GDP – resulting in a movement from inside toward the PPC.
4.6.6 policies to promote economic growth(The range of policies available to promote economic growth and how effective they might be.)

Solution:

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