248 questions from the AQA A-level Economics (7136) papers, 2017–2024. Every question links to the official mark scheme at the page its answer begins on.
The question search could not load. Every question is still listed by topic below, and all the mark scheme links work.
Inflation resulted in a basket of goods and services that cost £100 in 2015 costing £112 in 2021. Using this information and the data in Extract A (Table 1), calculate the percentage increase in average university rent, in real terms, between 2015 and 2021. Give your answer to one decimal place.
Explain how the data in Extract A (Figure 1 and Table 1) show that the supply of university and private rental accommodation has failed to match the increase in student numbers between 2015 and 2021.
1.3.3 Determinants of Supply
Extract B (lines 3–4) states that ‘Universities have expanded the number of places on offer to students, but the supply of student accommodation is highly inelastic’. With the help of a diagram, explain the impact of the increase in the number of students attending university on the market for student accommodation.
1.3.5 Equilibrium Market Prices · 1.3.4 Price Elasticity of Supply
Extract C (lines 14–16) states that ‘A maximum rent can help keep the cost of student accommodation lower than it would otherwise be, but risks some landlords withdrawing from the market’. Using the data in the extracts and your knowledge of economics, discuss the advantages and disadvantages of policies the government might introduce to improve the market for student accommodation.
Using the data in Extract D (Table 2), calculate the difference between the mean percentage trade union membership in the private sector and the mean percentage trade union membership in the public sector over the period 2001–2021. Give your answer to one decimal place.
Explain how the data in Extract D (Figure 2), show that, since 2015, living standards of people working in the private sector are likely to have increased compared to those working in the public sector.
1.6.3 Wages in Competitive Labour Markets
Extract E (lines 9–10) states that ‘In November 2022, 13.3% of businesses reported experiencing a shortage of workers leading to upward pressure on wages’. With the help of a diagram, explain how and to what extent a shortage of labour is likely to affect the wage in a competitive labour market.
Extract F (lines 12–13) states that ‘Collective pay bargaining, reinforced by the threat of strikes, has achieved some notable successes for workers’. Using the data in the extracts and your knowledge of economics, evaluate the view that trade unions improve the operation of labour markets by protecting the interests of workers.
Explain why imperfect and asymmetric information may lead to market failure in the market for food.
1.2.2 Imperfect Information · 1.8.6 Market Imperfections
Evaluate the view that the consumption of unhealthy foods can best be reduced through the use of nudges and other techniques from behavioural economics.
1.2.4 Behavioural Economics and Policy · 1.8.5 Merit and Demerit Goods
Explain the likely impact on consumer surplus and producer surplus as an industry moves away from a competitive market structure to one that is dominated by a few large firms.
1.5.11 Consumer and Producer Surplus
Evaluate the view that price discrimination is damaging for consumers.
1.5.7 Price Discrimination
Explain, using examples, how the existence of economies and diseconomies of scale affect firms’ average costs of production.
1.4.5 Economies and Diseconomies of Scale
Assess the view that privatised industries, such as electricity and gas, should be taken back into public ownership.
Using the data in Extract A, calculate the ratio of the UK’s GDP per hour worked to $1 of GDP per hour worked in Hungary. Give your answer to two decimal places.
Explain how the data in Extract A show that higher productivity may result in higher living standards.
2.2.6 Determinants of LRAS · 2.1.4 Uses of National Income Data
Extract C (lines 4–5) states ‘Energy and food bills had risen dramatically due to shocks to the economy, such as labour shortages, a depreciation of the pound…’ With the help of a diagram, explain how a depreciation of the pound may cause inflation.
2.2.5 Determinants of SRAS · 2.3.3 Inflation and Deflation
Extract B (lines 4–5) states: ‘Historically, productivity has increased over time, which has contributed to real wage rises and improved living standards.’ Using the data in the extracts and your knowledge of economics, assess the view that the government should make raising productivity a priority in order to improve living standards in the UK.
Using the data in Extract D, calculate the percentage change in Vietnam’s GDP per capita between the years 2010 and 2021. Give your answer to one decimal place.
Explain how the data in Extract D show that Vietnam may have outperformed the other selected Southeast Asian economies between 2010 and 2021.
Extract E (lines 17–18) states: ‘A low rate of corporation tax has also contributed to both short-run and long-run economic growth.’ With the help of a diagram, explain how a low rate of corporation tax may cause short-run and long-run economic growth.
Extract F (lines 19–20) states: ‘The slowing, or reversal, of globalisation could mean that the benefits of specialisation and foreign direct investment are lost.’ Using the data in the extracts and your knowledge of economics, discuss the view that a slowing, or reversal, of globalisation would be harmful to developing economies such as Vietnam.
Explain possible reasons why a country may enter a recession.
Assess whether an increase in the money supply is always damaging for an economy.
2.4.3 Central Banks and Monetary Policy · 2.3.3 Inflation and Deflation
Explain the factors which determine the natural rate of unemployment.
Discuss the view that high levels of employment are always beneficial for an economy.
Explain how the multiplier and accelerator affect the overall level of economic activity.
2.2.4 The Multiplier
Evaluate the view that increasing taxation is the best way to reduce a budget deficit.
To what extent, if at all, do the data suggest that people living in the South East (SE) of England are better off than people living in the North East (NE) of England?
Explain why investment in infrastructure in the less-prosperous regions could help to improve the prosperity of people living in these regions.
After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the government intervene in the economy to try to reduce the differences in the economic prosperity of the various regions of the United Kingdom? Justify your recommendation.
Using the data in Extract A (Table 1), calculate the index of total car sales in 2021 if, in the base year, total car sales were 1.25 million. Give your answer to two decimal places.
Explain how the data in Extract A (Table 1 and Figure 1) show that developments in the car market are the main reason for the changing demand for lithium-ion batteries in the UK.
Extract C (lines 3–4) states that ‘the mining, manufacturing and disposal process for batteries could soon become an environmental disaster.’ With the help of a diagram, explain why the production and sale of lithium-ion batteries might lead to market failure.
Extract B (lines 20–21) states that ‘all vehicle owners should be forced to pay the full costs of their driving. This would incentivise people to consider using public transport, cycling or walking.’ Evaluate policies that could be used to reduce the environmental impact of all types of car.
Use the data in Extract D (Figure 2) to calculate the difference between the mean and median rate of growth of working households’ real pre-tax earnings, over the period 1994–2017.
Explain how the data in Extract D (Figure 3) show that employment is an increasingly ineffective protection against poverty.
Extract E (lines 19–20) states that ‘Some out-of-work benefits have not kept up with inflation, putting downward pressure on wages, contributing to the rise in in-work poverty.’ With the help of a diagram, explain how a reduction in out-of-work benefits may lead to lower wages in some labour markets.
Extract F (lines 1–2) states that ‘Charities and think tanks have called for action to reduce job insecurity, lower housing costs and increase earnings for low-paid workers.’ Using the extracts and your knowledge of economics, evaluate policies that could be used to reduce in-work poverty in the UK.
Explain why, in long-run equilibrium, monopolistically competitive markets are neither productively nor allocatively efficient.
1.5.4 Monopolistic Competition · 1.5.10 Market Structure and Efficiency
Assess the view that competition policy is likely to lead to markets becoming less efficient in the long run.
Explain the determinants of the supply of labour to an industry.
Evaluate the view that labour markets work best when strong monopsony power is balanced by trade union power.
1.6.4 Wages in Imperfect Labour Markets · 1.6.5 Trade Unions
Explain how market contestability affects the performance of an industry.
1.5.9 Contestable Markets
Discuss the view that privatisation is always beneficial because it leads to improvements in efficiency.
Using the data in Extract A (Figure 1), calculate the difference between Ireland’s corporation tax rate and the mean corporation tax rate of the other five European nations. Give your answer to one decimal place.
Explain how the data in Extract A (Figure 2), show that Ireland’s economy performed better than the economies of France and Spain in 2021.
Extract C (line 13) states: ‘High economic growth rates allowed Ireland to run a budget surplus in 2018 and 2019.’ With the help of a diagram, explain how high economic growth could help to create a budget surplus.
Extract B (lines 1–3) states: ‘Ireland has dropped its low-tax policy of the past 18 years, which had helped to persuade some of the world’s biggest companies, including Google and Facebook, to site their European headquarters in Ireland.’ Using the data in the extracts and your knowledge of economics, assess the view that a rise in Ireland’s corporation tax rate is likely to have a damaging effect on its macroeconomic performance.
Using the data in Extract D (Figure 3), calculate the value of bonds that had been purchased by November 2020 for every £1 worth of bonds purchased by November 2009. Give your answer in £s and to two decimal places.
Explain how the data in Extract D (Figure 4), show that the growth in quantitative easing (shown in Figure 3) may have been successful in helping the UK achieve its macroeconomic objectives since 2009.
Extract E (lines 4–5) states: ‘…banks in the UK decreased lending, reducing the availability of credit for households and firms. This damaged the real economy and created high unemployment.’ With the help of a diagram, explain how reduced availability of credit from banks may lead to increased unemployment.
2.4.2 Commercial and Investment Banks
Extract F (lines 18–19) states: ‘Some say that the use of QE is a dangerous addiction and its overuse can lead to problems in the future.’ Using the data in the extracts and your knowledge of economics, assess the view that the continued use of quantitative easing (QE) is damaging for the UK economy.
Explain the main causes of globalisation.
Assess the view that increased globalisation has been beneficial for the UK economy.
Explain the possible causes of a shift in the short-run aggregate supply curve to the left.
2.2.5 Determinants of SRAS
Evaluate how, in the long-run, governments could try to reconcile conflicts between the various objectives of economic policy.
Explain possible causes of economic growth.
Evaluate the view that economic growth usually leads to an improvement in living standards.
2.3.1 Growth and the Economic Cycle · 2.1.4 Uses of National Income Data
To what extent, if at all, do the data suggest that the Sri Lankan economy is more economically developed than the economies of Bangladesh and Pakistan?
Explain possible reasons for fluctuations in the world market price of tea.
1.3.5 Equilibrium Market Prices · 1.3.4 Price Elasticity of Supply
After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the government of Sri Lanka cut its spending to reduce its debt? Justify your recommendation.
Using the data in Extract A (Figure 1), calculate the number of workers doing weekly platform work in 2019 for each worker doing monthly platform work in 2019. Give your answer to two decimal places.
Explain how the data in Extract A (Figure 2) show that the incentive for workers to become self-employed increased between 2009/10 and 2018/19.
Extract C (lines 4–5) states that, as a result of trade union action, ‘The hospital trust increased their £8.21 minimum wage to the London Living Wage of £10.75.’ With the help of a diagram, analyse how a trade union might achieve higher pay for its members.
Extract B (lines 16–18) states that, ‘Gig economy defenders claim that today’s flexible labour markets offer modern workers the opportunity to move freely between jobs and this gives them more choice over their working hours.’ Assess the view that government intervention in the UK labour market is necessary to protect the interests of people who are working in the gig economy.
1.6.2 The Supply of Labour · 1.6.4 Wages in Imperfect Labour Markets
Using the data in Extract D (Figure 3), calculate, in percentage terms, how much more expensive a basket of groceries at Waitrose was than at Lidl in April 2020. Give your answer as a percentage to two decimal places.
Explain how the data in Extract D (Figure 4) show that the supermarket sector is competitive.
1.5.1 Market Structures
Extract E (lines 16–17) states that, ‘Supermarkets set prices interdependently, and price wars look very likely.’ With the help of a diagram, analyse the impact on grocery consumers of interdependence between supermarkets.
Extract E (lines 17–19) states that, ‘the price gap between discounters and conventional supermarkets is now about 10–12%, against more than 20% a few years ago.’ Evaluate the view that the supermarket sector is serving customers' interests well.
Explain how the price mechanism allocates resources in a market economy.
1.8.1 The Price Mechanism
Assess the view that high-speed Internet connection is a necessity for modern life and should be provided by the government, free of charge, to all households.
1.8.3 Public and Private Goods · 1.8.9 Government Intervention
Explain the difference between complete and partial market failure.
1.8.2 The Meaning of Market Failure
Evaluate the view that government failure means that government intervention in markets will rarely lead to an improvement in economic welfare.
1.8.10 Government Failure
Explain the main causes of inequality in the distribution of pre-tax incomes.
Evaluate whether the best way to reduce inequality in disposable income is to reduce differences in pre-tax incomes rather than through taxes and welfare benefits.
Using the data in Extract A (Figure 1), if 2015 is the base year, calculate the index of Egypt’s real GDP in 2018. Give your answer to one decimal place.
2.1.3 Uses of Index Numbers
Explain how the data in Extract A (Figures 1 and 2) show that nations with high and stable economic growth attract rising foreign direct investment (FDI) inflows.
Extract B (lines 18–19) states: ‘FDI can have many benefits. It should create employment, boost long-run economic growth and increase exports.’ With the help of a suitable diagram, explain how a rise in inward foreign direct investment (FDI) may lead to increased exports.
Extract C (lines 13–14) states: ‘Some argue that African governments should be doing more to improve the living standards of their citizens, rather than relying on foreign firms.’ Using the data in the extracts and your knowledge of economics, assess the view that to improve the living standards of their citizens, African nations should pursue policies to attract foreign direct investment (FDI).
Us ing th e data in Extract D (Figure 3), calculate the difference between the UK’s and Argentina’s mean unemployment rates over the period 2015 to 2018. Give your answer to two decimal places.
Explain how the data in Extract D (Figures 3 and 4) show that there may be a short-run trade-off between unemployment and inflation.
Extract E (lines 7–9) states: ‘It was hoped that policy measures, including a reduction in tariffs... would help to reduce inflation’. With the help of a diagram, explain how a reduction in tariffs could help to reduce inflation.
Extract E (lines 15–17) states: ‘Policies were put in place to reduce the money supply and reduce government spending. The control of inflation became the main target of UK government macroeconomic policy.’ Using the data in the extracts and your knowledge of economics, evaluate the view that achieving a low and stable rate of inflation should be the main economic objective of governments.
2.4.3 Central Banks and Monetary Policy · 2.5.1 Fiscal Policy
Explain how expenditure-switching policies can be used to reduce a deficit on a country’s balance of trade in goods and services.
Assess the view that floating exchange rates are always better than fixed exchange rates.
Explain the main problems for an economy of having a large positive output gap.
Evaluate the view that supply-side improvements in the UK economy can best be achieved through the use of interventionist policies.
Explain reasons for changes in the value of exports from the UK to the rest of the world.
Evaluate the view that international trade always benefits nations.
To what extent do the data support the view that Boeing has been more successful than Airbus since 2014? You must use the data in Extract B to support your assessment.
Explain the factors that a commercial aircraft manufacturer, such as Boeing or Airbus, should consider when forecasting the future sales of its aircraft.
After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the UK government provides financial and other support to companies involved in the production of commercial aircraft? Justify your recommendation.
Using the data in Extract A (Figure 1), calculate the mean amount of profit that pharmaceutical companies would have made on a new drug in 2019, given that the average development cost was $2.6bn. Give your answer to the nearest million dollars.
Explain how the data in Extract A (Figure 2) show that greater competition leads to lower prices in the market for generic drugs.
Extract B (lines 9–10) states: ‘After the monopoly’s patent expires, other companies can manufacture and market the same drug under its generic name, usually at a lower price.’ With the help of a diagram, explain why prices of pharmaceutical drugs supplied by a monopoly are likely to be higher than in markets which are more competitive.
1.5.6 Monopoly and Monopoly Power · 1.5.9 Contestable Markets
Extract C (lines 1–3) states: ‘The market for most generic drugs is oligopolistic, with just two or three manufacturers making each product. This enables significant economies of scale within firms, but also presents the risk of consumer interests being harmed.’ Using the extracts and your knowledge of economics, assess the view that the market structure of the pharmaceutical industry is damaging for consumers.
Using the data in Extract D (Figure 3), calculate how much a worker of Bangladeshi ethnicity earned on average in 2018, given that a White British worker earned £28 677. Give your answer to the nearest pound.
Explain how the data in Extract D (Figure 4) show that the ethnic pay gap is more significant for older ethnic minority employees.
Extract F (lines 18–19) states: the Government ‘could also take steps to recognise foreign qualifications, thus removing obstacles for well-qualified foreign-born workers.’ With the help of a diagram, explain how UK firms not recognising foreign qualifications may lead to some ethnic groups receiving lower pay.
Extract E (lines 3–4) states: ‘significant pay gaps remain, even when education and occupation are taken into account, particularly for those born outside the UK.’ Using the extracts and your knowledge of economics, evaluate possible government policies to reduce the ethnic pay gap.
Explain how perfect competition should lead to outcomes which are both productively and allocatively efficient.
1.5.3 Perfect Competition · 1.5.10 Market Structure and Efficiency
Evaluate the view that technological change tends to bring industries closer to the market structure of perfect competition.
1.4.8 Technological Change · 1.5.8 The Dynamics of Competition
Explain how the concept of cross elasticity of demand can be used to understand the relationship between markets.
1.3.2 Elasticities of Demand · 1.3.6 Interrelationship between Markets
Discuss the view that individual economic agents will always act as rational decision makers so as to maximise their utility.
1.2.1 Consumer Behaviour · 1.2.3 Behavioural Economic Theory
Explain how a firm may benefit from both internal and external economies of scale.
1.4.5 Economies and Diseconomies of Scale
Discuss how the divorce of ownership from control may affect both the conduct and performance of firms.
1.5.2 The Objectives of Firms
Using the data in Extract A (Figure 1), calculate the mean annual yield on long-term bonds in Greece over the years shown. Give your answer to one decimal place.
2.4.1 Financial Markets and Assets
Explain how the data in Extract A (Figures 1 and 2) show that in 2012 Greece was more likely to have a problem with its national debt than the UK.
Extract B (line 9) states: ‘The government spending cuts also severely damaged private-sector jobs.’ With the help of a diagram, explain how a reduction in government spending could increase unemployment in the private sector.
2.5.1 Fiscal Policy · 2.2.4 The Multiplier
Extract C (lines 17–18) states: ‘Some argue that the UK should increase taxes rather than add to the national debt.’ Using the data in the extracts and your knowledge of economics, evaluate the view that an increase in a country’s national debt is damaging for its economy.
Us ing th e data in Extract D (Figure 4), calculate South Korea’s rate of inflation for the year ended 31 December 2019. Give your answer to two decimal places.
Explain how the data in Extract D (Figures 3 and 4) show why the South Korean central bank may have been considering a further cut in its base rate of interest.
Extract E (line 14) states: ‘Investment in R&D has been an important driver of economic growth and industrial progress.’ With the help of a diagram, explain how investment in research and development (R&D) can help to increase the long-run growth rate of an economy.
Extract F (lines 7–8) states: ‘Economists said the data reinforced the view that the slump in South Korea’s trade-reliant economy would continue beyond this year’. Using the data in the extracts and your knowledge of economics, evaluate policies which could be used to boost South Korea’s exports and increase its trade surplus.
Explain how a government or central bank can intervene to prevent the value of its currency rising.
Evaluate the possible impact on the cost of living and the standard of living in the UK of a sustained rise in the value of the pound sterling against other currencies, such as the euro and the US dollar.
2.3.3 Inflation and Deflation · 2.1.4 Uses of National Income Data
Explain the main causes of rising consumption in an economy.
To what extent do you agree that a fall in savings is beneficial for the UK economy? Justify your answer.
2.2.3 Determinants of AD · 2.2.1 The Circular Flow of Income
Explain the role of commercial banks in the economy.
2.4.2 Commercial and Investment Banks
Assess policies which can be used to reduce cyclical instability in the UK.
The UK government has set a target to reduce net greenhouse gas (GHG) emissions to zero by 2050. To what extent, if at all, do the data suggest that to achieve its net-zero emissions target, the government should focus on reducing GHG emissions from the transport sector? You must use the data in Extract C to support your assessment.
Explain why, without government intervention, markets are likely to allocate too few resources to dealing with the problem of climate change.
1.8.2 The Meaning of Market Failure · 1.8.4 Externalities
After considering Extract E, and the original evidence in Extracts A, B, C and D, which policies, if any, would you recommend that the UK government should introduce to ensure that it achieves its zero-emissions target by 2050. Justify your recommendation.
Using the data in Extract A (Figure 1) calculate the percentage of all plastics produced in the period 1950–2015 which have either been sent to landfill or incinerated. Give your answer to one decimal place.
Explain how the data in Extract A (Figure 2) show that higher living standards lead to greater volumes of waste per capita being produced.
Extract B (lines 8–10) states: ‘many companies intentionally make it difficult to repair their products in order to increase sales. This is both economically inefficient and environmentally foolish; it imposes costs on the environment even though it may make sense for individual companies.’ With the help of a diagram, explain how the production of goods which are designed not to last long may result in market failure.
1.8.6 Market Imperfections · 1.4.8 Technological Change
Extract C (lines 17–19) states: ‘Many environmental economists suggest that making firms pay for the costs of landfill associated with their products, or taxing raw material inputs, will be necessary to ensure a sustainable future for all.’ Using the extracts and your knowledge of economics, evaluate policies, if any, that governments in developed countries should pursue to reduce waste and encourage the recycling of waste products.
Using the data in Extract D (Figure 3), calculate how much the median care worker earns for every pound earned by the median worker in the whole economy. Give your answer to the nearest penny.
1.6.3 Wages in Competitive Labour Markets
Explain how the data in Extract D (Figure 4) show that there is likely to be substantial upward pressure on the wages of care workers by 2041.
Extract E (lines 5–7) states: ‘Until the 1990s, almost all workers in the care sector were employed by the government, which acted as a monopsonist by keeping wages low.’ With the help of a diagram, explain how a monopsonistic public sector can lead to low pay for social care work.
1.8.8 Privatisation and Regulation · 1.6.4 Wages in Imperfect Labour Markets
Extract F (lines 1–3) states: ‘There are aspects of market failure in the social care sector, though some argue that inappropriate government intervention and a lack of funding are the main reasons why the system is failing to deliver high quality care.’ Using the extracts and your knowledge of economics, assess policies that might be used to improve the provision of social care in the UK.
1.8.2 The Meaning of Market Failure · 1.8.9 Government Intervention
Explain how the imposition of a tax on a good or service affects both consumer surplus and producer surplus.
1.5.11 Consumer and Producer Surplus
Discuss whether governments should consider increasing the regulation and taxation of technology firms which have acquired significant global monopoly power.
1.5.6 Monopoly and Monopoly Power · 1.8.7 Competition Policy
Explain how a production possibility diagram can be used to illustrate some features of the fundamental economic problem.
1.1.5 Production Possibility Diagrams · 1.1.4 Scarcity, Choice and Opportunity Cost
Evaluate the view that government intervention to reduce inequality will lead to an improvement in economic welfare.
Explain why imperfect information can lead to market failure.
1.2.2 Imperfect Information · 1.8.6 Market Imperfections
Assess the view that price discrimination is always damaging.
1.5.7 Price Discrimination
Using the data in Extract A (Figure 1), calculate the mean unemployment rate for the UK from 2007–08 to 2017–18. Give your answer to one decimal place.
Explain how the data in Extract A (Figure 2) show that the UK has had poor real wage growth since 2008.
2.3.2 Employment and Unemployment · 2.1.4 Uses of National Income Data
Extract C (line 19) states: ‘Improving workers’ productivity is the key to increasing real GDP’. With the help of a diagram, explain how improving productivity should lead to rising real GDP.
Extract B (lines 13–14) states: ‘It can be argued that supply-side reforms have gone too far in creating a highly flexible workforce and the government needs to do more in terms of protecting the nation’s workers’. Using the data in the extracts and your knowledge of economics, evaluate the view that free market supply-side reforms to labour markets are beneficial to the UK economy.
Us ing th e data in Extract D (Figure 4), calculate how much was spent by the US on imports from China for every $1 it received from exports to China in 2018. Give your answer to two decimal places.
Explain how the data in Extract D (Figure 3) and (Figure 4) show why the US may have decided to implement protectionist policies.
Extract E (lines 10–11) states: ‘US tariffs on $200bn of Chinese imports came into effect in September.’ With the help of a diagram, explain how the imposition of a tariff may affect the volume of imports.
Extract F (lines 17–19) states: ‘Some argue that many developed countries that now champion free trade, only achieved economic prosperity through protectionist policies.’ Using the data in the extracts and your knowledge of economics, assess the view that developing economies, such as Brazil and China, should pursue protectionist policies to achieve greater economic development.
Explain the possible causes of a falling budget deficit.
To what extent do you agree that reducing the budget deficit is more important to the UK’s macroeconomic performance than reducing the current account deficit on its balance of payments? Justify your answer.
2.5.1 Fiscal Policy · 2.1.1 Objectives of Government Policy
Explain how demand-side and supply-side shocks might increase unemployment in an economy.
2.3.2 Employment and Unemployment · 2.2.2 AD and AS Analysis
Evaluate the view that the main objectives of UK government macroeconomic policy can be achieved without conflicting with each other.
Explain how an appreciation of its currency is likely to affect a country’s rate of economic growth.
2.6.4 Exchange Rate Systems · 2.3.1 Growth and the Economic Cycle
Evaluate the costs and benefits for a country of joining a currency union, such as the eurozone.
To what extent, if at all, do the data suggest that living standards in the UK improved between 2007 and 2017? You must use the data in Extract B to support your assessment.
Explain how a sustained slowdown in the world economy is likely to affect living standards in the UK.
After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the government implement a further substantial increase in the National Living Wage? Justify your recommendation.
Using the data in Extract A (Figure 1), calculate the percentage change in the price of construction sand between January 2014 and January 2018. Give your answer correct to one decimal place.
Explain how the data in Extract A (Figures 1 and 2) show that expansion in the global sand market is leading to prices of construction sand rising in real terms.
Extract B (line 18) states that the global trade in sand has been ‘made possible by cheaper transportation’. With the help of a diagram, explain how cheaper transportation and a construction boom in East Asia have led to growth in the market for sand.
1.3.1 Determinants of Demand · 1.3.5 Equilibrium Market Prices
Extract C (lines 14–15) states that ‘Rising prices will eventually also force builders in developing countries to explore alternatives to sand.’ Use the extracts and your knowledge of economics to assess the view that the increasing scarcity of sand is a problem best solved by market forces, rather than through government intervention.
1.1.4 Scarcity, Choice and Opportunity Cost · 1.8.1 The Price Mechanism
Using the data in Extract D (Figure 3), calculate the amount of government funding per £ of passenger income in the UK rail industry for the year 2015–16. Give your answer correct to the nearest penny.
Explain how the data in Extract D (Figure 4) show that in the UK, between 2004 and 2017, changes in the demand for rail travel contributed to changes in the price of rail travel.
Extract E (lines 10–11) describes the British railway sector as a ‘natural monopoly’, which was split up into ‘no less than 100 pieces’ when it was privatised. With the help of a diagram, explain why breaking up a natural monopoly in rail may affect long-run average costs.
Extract F (lines 9–10) suggests that ‘the British public really don't care about who runs the trains; what they care about is reliability, comfort and price.’ Use the extracts and your knowledge of economics to evaluate the case for renationalising railways in the UK.
Explain how rules of thumb and irrationality can affect consumers’ demand for goods and services.
1.2.3 Behavioural Economic Theory
Using examples to illustrate your answer, assess the usefulness of behavioural economic theory compared to traditional economic policies in helping governments to correct market failures
1.2.4 Behavioural Economics and Policy · 1.2.1 Consumer Behaviour
Explain the factors a profit-maximising firm will take into account when deciding whether to shut down or to carry on operating, both in the short run and in the long run.
1.4.4 Costs of Production · 1.4.7 Profit
Discuss the validity of the traditional economic assumption that the main objective of firms is to maximise profits.
1.5.2 The Objectives of Firms
Explain how the impact of a minimum price for a good or service is affected by its price elasticity of demand and its price elasticity of supply.
1.8.9 Government Intervention · 1.3.2 Elasticities of Demand
Discuss the view that a national minimum wage is beneficial for an economy.
1.6.6 The National Minimum Wage
Using the data in Extract A, calculate the GDP per capita for Costa Rica in 2015/2016 to the nearest dollar.
Explain how the data in Extract A indicate living standards may be higher in the UK than in the USA.
Extract B (lines 8–9) states ‘If injections into an economy’s circular flow of income increase, then this may generate multiple increases in GDP.’ With the help of a diagram, explain how an increase in injections may generate multiple increases in an economy’s GDP.
2.2.1 The Circular Flow of Income
Extract B (lines 13–15) states ‘If real GDP goes up, the economy is doing well; this is associated with higher incomes, more jobs and higher spending.’ Using the data in the extracts and your knowledge of economics, assess the view that to improve the living standards of their citizens, governments across the world should prioritise achieving economic growth.
2.1.4 Uses of National Income Data · 2.3.1 Growth and the Economic Cycle
Using the data in Extract D (Figure 3), calculate, to the nearest pound, the amount of income tax payable for someone in Scotland earning £13 500.
Explain how the data in Extract D (Figure 2) show that the UK’s public finances have been improving since 2010.
Extract E (lines 11–12) states ‘If growth could be increased, the budget deficit would fall much faster.’ With the help of a diagram, explain why a higher rate of economic growth is likely to reduce the budget deficit.
Extract F (line 1) states ‘In most of the UK, reducing the budget deficit has focused on austerity rather than tax rises.’ Using the data in the extracts and your knowledge of economics, evaluate the view that there is a strong case for significant increases in UK income tax rates.
Explain why the value of a currency may fall in a floating exchange rate system.
Assess the view that a depreciation of the pound against other currencies is likely to improve the UK’s macroeconomic performance.
Explain how the monetary policy transmission mechanism works when the Monetary Policy Committee (MPC) raises Bank Rate.
Evaluate the view that strict rules and regulations on financial markets are essential to help create a more stable economy.
2.4.4 Regulation of the Financial System
Explain the main causes of a rise in inflation.
Evaluate the view that inflation is always preferable to deflation.
To what extent, if at all, do the data suggest that houses in the UK were more affordable in 2017 than they were in 2007? You must use the data in Extract C to support your assessment.
Explain the likely causes of the main changes in house prices that have taken place between 2007 and 2017.
1.3.5 Equilibrium Market Prices · 1.3.1 Determinants of Demand
After considering Extract E, and the original evidence in Extracts A, B, C and D, would you recommend that the Government should increase its spending on housing? Justify your recommendation.
Using Extract A, calculate the ratio of customers gained to customers lost by Nationwide. Give your answer correct to one decimal place.
1.5.1 Market Structures
Explain how the data in Extract A show that the market power of the Big Four banks is weakening against competition from smaller rivals.
1.5.6 Monopoly and Monopoly Power · 1.5.8 The Dynamics of Competition
Extract C (lines 10–11) states that ‘There is ample opportunity for new players to enter the sector.’ With the help of a diagram, explain how the lowering of barriers to entry in the banking market might lead to lower prices and a situation in which banks make normal profit.
1.5.9 Contestable Markets
Extract B (lines 4–6) states that ‘banks do not feel enough pressure to compete on price or quality, leading some to call for the Big Four to be split into a number of smaller banks.’ Use the extracts and your knowledge of economics to assess the view that the government should intervene further in the banking sector to promote greater competition.
Using Extract D, calculate the number of transportation and storage jobs at high risk of automation, as a percentage of those who are at high risk across all industries. Give your answer to two decimal places.
Explain how the data in Extract D show that workers employed in routine, repetitive work are at greater risk from automation.
1.4.8 Technological Change · 1.6.1 The Demand for Labour
Extract E (lines 4–5) claims that workers in the 18th century saw wages rise in line with productivity. With the help of a diagram, explain how advances in modern technology are likely to lead to rising wages in some industries.
1.6.3 Wages in Competitive Labour Markets · 1.4.1 Production and Productivity
Extract E (lines 14–16) states that ‘The market economy is not going to create the jobs by itself for those workers who are most affected by the change.’ Extract F (lines 4–5) states that ‘taxing productivity-enhancing tools like robots or machines makes no economic sense.’ Use the extracts and your own knowledge of economics to evaluate whether governments should allow markets to respond freely to the opportunities and challenges presented by technological progress, without any state intervention.
Explain why the use of petrol and diesel cars may be a source of market failure.
Assess the view that regulation is a better policy for dealing with the problem of air pollution than the allocation of property rights or taxation.
Explain how the Lorenz curve and Gini coefficient may be used to illustrate increasing income inequality in a country.
Assess the view that, in the UK, the consequences of wealth inequality are more damaging than the consequences of income inequality.
Explain the role of profit in a market economy.
Evaluate the view that a firm making low profits must be inefficiently managed.
Using the data in Extract A (Figure 1), calculate the change in the effective exchange rate index, as a percentage, between November 2015 (point A) and November 2016 (point B). Give your answer to two decimal places.
Extract B describes the trade figures as ‘disappointing’. Explain how the data in Extract A (Figure 2) show that the UK’s trade performance has been ‘disappointing’ given the fall in the value of the pound since November 2015.
Extract C (lines 8–9) states ‘Trade deficits and surpluses may be self- correcting in a floating exchange rate system.’ With the help of a diagram showing the supply of and demand for a currency, explain how a floating exchange rate may help to correct a trade surplus.
Extract B (lines 19–21) states ‘Although some argue that a current account deficit is not a problem, others point to the worryingly large and persistent nature of the deficit.’ Using the data in the extracts and your knowledge of economics, assess the impact of a persistent current account deficit on the macroeconomic performance of the UK economy.
Using the data in Extract D (Figure 4), calculate the average amount saved per household in 2016 if average household income was £26 300. Give your answer to the nearest pound.
Explain how the data in Extract D (Figures 3 and 4) show that consumer confidence may have risen since 2014.
Extract E (lines 16–17) states ‘However, some argue that trying to maintain stable prices and low unemployment could create trade-offs.’ With the help of a diagram, explain why a trade-off between price stability and low unemployment might occur.
Extract F (lines 10–12) states ‘The Austrian economist, Friedrich Hayek, highlighted artificially low interest rates and excessive credit creation as being the main causes of cyclical instability.’ Using the data in the extracts and your knowledge of economics, evaluate the view that maintaining low interest rates for a sustained period of time may be damaging to the UK’s macroeconomic stability.
Explain the main barriers that LEDCs face when attempting to achieve stable, long-term economic growth.
Evaluate the view that MNCs play a positive role in the development of LEDCs.
Explain how fiscal policy can be used to try to improve the supply side of an economy.
Evaluate whether achieving a budget surplus is a desirable objective of economic policy.
Explain the causes of cyclical and structural unemployment.
Assess the view that falling unemployment will inevitably lead to an improvement in the standard of living for people in the UK.
2.3.2 Employment and Unemployment · 2.1.4 Uses of National Income Data
To what extent, if at all, do the data suggest that the reliance on fossil fuels to produce energy is falling? You must use the data in Extract C to support your assessment.
Explain how a sustained low world market price for oil would be likely to affect the economic development of a less economically developed oil-producing country such as Nigeria or Venezuela.
After considering Extract E, and the original evidence in Extracts A, B, C and D, would you recommend to the members of OPEC that they continue to restrict the supply of oil to try to raise the world market price of oil? Justify your recommendation.
Using the data in Extract A (Figure 1), calculate the three-firm concentration ratio in the UK parcels delivery market. Give your answer, as a percentage, to one decimal place.
Explain how the data in Extract A (Figure 2) show that the UK parcels delivery market is displaying dynamic efficiency.
Extract B (lines 12–14) states that ‘The Universal Postal Service obligations require Royal Mail to deliver letters and parcels to all parts of the country six days a week’. With the help of a monopoly diagram, explain how the Universal Postal Service obligations are likely to affect Royal Mail’s costs and profits.
Extract C (line 2) states that ‘Many competitors are using digital technology to drive innovation’. Use the extracts and your knowledge of economics to assess whether the benefits outweigh the costs when the Government privatises organisations such as Royal Mail and opens up the market to competition.
1.4.8 Technological Change · 1.5.8 The Dynamics of Competition
Using the data in Extract D (Figure 3), calculate the mean female labour force participation rate for the five countries listed. Give your answer to one decimal place.
Explain how the data in Extract D (Figure 4) show that the degree of inequality between the pay of male and female workers is falling.
Extract E (lines 22–23) states that ‘The tendency for women to participate in low-productivity sectors is now a bigger factor in their low pay than discrimination’. With the help of a diagram, explain how the difference between the marginal revenue product of male and female workers might account for the lower average earnings of women.
1.6.7 Labour Market Discrimination · 1.4.1 Production and Productivity
Extract F (lines 19–20) notes that ‘The UK Government recognises the need to raise aspirations and attainment for girls’. Use the extracts and your knowledge of economics to evaluate the policies that government might use to reduce the gender pay gap.
1.6.7 Labour Market Discrimination · 1.6.2 The Supply of Labour
Explain how price and output are determined for a firm in a monopolistically competitive market, in both the short run and the long run.
1.5.4 Monopolistic Competition
Evaluate the view that government regulation of monopolistically competitive markets is unnecessary, and that polices to encourage competition and prevent the abuse of monopoly power should focus entirely on oligopolies and monopolies.
1.5.4 Monopolistic Competition · 1.8.7 Competition Policy
Explain the main causes of poverty in the UK.
To what extent can the problem of poverty in the UK be solved through the operation of market forces? Justify your answer.
1.7.2 The Problem of Poverty · 1.7.3 Policies on Poverty and Inequality
Explain why, in a free market, sugary drinks may be overconsumed.
1.8.5 Merit and Demerit Goods · 1.8.4 Externalities
Evaluate the view that imposing a tax is the most effective government policy for reducing the market failures arising from overconsumption of unhealthy food and drink.
1.8.9 Government Intervention · 1.8.5 Merit and Demerit Goods
Using the data in Extract A (Figure 2), calculate, to two decimal places, the mean growth rate for India from 2010 to 2014.
Explain why the data in Extract A (Figure 1) show that living standards in India have improved.
Extract B (lines 17–19) states ‘India still protects its economy with anti-dumping measures and export subsidies that are designed to promote economic growth.’ With the help of a diagram, explain how export subsidies may help promote economic growth in India.
Extract C (lines 2–3) states ‘More recently, India has begun to use more market-based strategies to help its development, including liberalising trade and privatisation.’ Using the data in the extracts and your knowledge of economics, evaluate the view that greater use of market-based strategies is the best way to improve the economic development of India.
Using the data in Extract D (Figure 3), calculate, to two decimal places, the mean inflation rate for Japan from 2010 to 2015.
Explain how the data in Extract D (Figure 4) show that Japan has been less successful than the UK in achieving a stable rate of economic growth.
2.3.3 Inflation and Deflation · 2.1.1 Objectives of Government Policy
Extract E (lines 9–10) states ‘Improvements in productivity on the supply side of the economy could actually lead to more deflation.’ With the help of a diagram, explain how improvements in productivity could cause deflation.
Extract F (lines 19–20) states ‘What is not clear is what should be done if low inflation turns to bad deflation.’ Using the data in the extracts and your knowledge of economics, evaluate the view that monetary policy is the most effective way of tackling deflation in developed economies such as the UK and Japan.
Explain how government policies can reduce the natural rate of unemployment.
2.3.2 Employment and Unemployment · 2.5.2 Supply-Side Policies
Discuss the view that falling unemployment will inevitably lead to trade-offs with other macroeconomic policy objectives.
Explain the possible reasons for changes in the pattern of trade between the UK and the rest of the world.
Evaluate the measures that might be taken to reduce a deficit on the current account of the UK’s balance of payments.
Explain how changes in both government spending and taxation might affect the level of economic activity.
Evaluate the economic consequences for the UK economy of a significant shift in the burden of taxation from direct taxes to indirect taxes.
To what extent, if at all, do you consider that the UK manufacturing sector has been in decline since 2003? You must use the data in Extract B to support your assessment.
2.3.1 Growth and the Economic Cycle · 2.1.2 Macroeconomic Indicators
Explain why, in advanced economies, economic growth is usually accompanied by a fall in employment in manufacturing but an increase in employment in the service sector.
2.3.2 Employment and Unemployment · 2.6.5 Growth and Development
Taking into account Extract D, and the original evidence presented in Extracts A, B and C, would you recommend that the government should intervene to support the UK steel industry? Justify your recommendation.
No questions match that search.
Try a broader term — for example monopoly, inflation, exchange rates, externalities or 25 marks.
Past papers show you the question — feedback shows you the marks. Send an essay for examiner-style marking, or work through the topics you keep losing marks on with a specialist tutor.