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Business Studies

Location and distribution

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Sample question

Question

Explain the purpose of economic development areas.

Answer 1

Phil wrote: Where there is an area of high unemployment, the government sometimes creates an economic development area. They do this to attract new industry to the area.

Examiner's note

Phil's answer shows that he knows what an economic development area is, but not much more. He also hasn't really given any reasons. This answer would probably get an 'E' grade.

Answer 2

Mandy wrote: Where there is an area of high unemployment, or local industry is depressed, the government sometimes creates an economic development area. They do this by offering financial incentives, to attract new industry to the area, and create new jobs.

Examiner's note

Mandy has answered the question quite well and given good explanations. She has shown that she understands the topic, but could have given more detail. This answer would probably get a 'C' grade.

Answer 3

Farzan wrote: Where there is an area of high unemployment or local industry is depressed, the government sometimes creates an economic development area or enterprise zone. They do this by offering financial incentives such as low cost or free site rental and tax discounts. The reason for this is to attract new industry to the area and to stimulate the local economy, which should create new jobs and generate more wealth.

Examiner's note

Farzan has given an excellent answer. He has shown that he understand the topic well, and has given good detailed explanations. He has also shown that he can use business terms like enterprise zone and financial incentives and apply them correctly. This answer would probably get an 'A' grade.

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