Part 1: Classified Past papers from (2010- 2017)

Unit 1: The Basic Economics Problem Choice and Allocation of resources:

o Ch. 1: The Basic Economic problem and production possibility curve. 6

Section 1: Microeconomics

Unit 2: The allocation of resources, how the market works and market
failure:
o Ch.2: Microeconomics, Macroeconomics and the role of markets in allocating
the resources. 11
o Ch.3: Demand and Supply. 13
o Ch.4: Price Elasticity. 18
o Ch.5: Market Failure. 22
o Ch.6: Market and Mixed Economic System 25

Unit 3: Microeconomics Decision Makers:

o Ch.7: Money and Banking. 28
o Ch.8: Households. 31
o Ch.9: Trade Unions 33
o Ch.10: Workers and Labour Market. 35
o Ch.11: Firms 39
o Ch.12: Firms and Production: 43
o Ch.13: Cost, Revenues and Profit. 47
o Ch.14: Market Structure. 49

Section 2: Macroeconomics

Unit 4: Government and the Macroeconomy:

o Ch.15: The Macroeconomic Aims of the Government. 52
o Ch.16: The Government Budget and Taxation. 54
o Ch.17: Government Policies. 58
o Ch.18: Economic Growth. 63
o Ch.19: Employment. 67
o Ch.20: Inflation. 71

1
 Unit 5: Economic Development:
o Ch.21: Standard of Living. 76
o Ch.22: Population. 80
o Ch.23: Difference in Economic Development between countries. 86

Section 3: International Economics

Unit 6: International Trade and Globalization:

o Ch.24: Specialization and International Trade. 89
o Ch.25: Balance of Payments. 95
o Ch.26: Foreign Exchange Rates. 99

2
Part 1: Section
A&B Questions
from 2010 to
2017

3
Unit 1: The Basic Economics Problem
Choice and Allocation of resources:
Ch. 1: The Basic Economic problem and
production possibility curve.

4
Oct/Nov 2017 v23:
1) (d) Analyse, using a production possibility curve diagram, how the discovery of new oil reserves
would affect an economy. [5]

Oct/Nov 2017 v22:

2)(b) Explain two factors that would increase the supply of entrepreneurs in an economy. [4]
3)(c) Analyse, using a production possibility curve diagram, how an increase in labour productivity
will affect an economy.
4)(a) Name two factors of production used in making cars. [2]

Oct/Nov 2017 v21:

1)(a) Identify two factors of production used in producing cigarettes. [2]
1)(d) Analyse, using a production possibility curve diagram, the effect of moving factors of
production from producing cigarettes to producing other products. [5]

May/June 2017 v23:

7) (b) Explain two reasons why governments aim for economic growth. [4]

May/June 2017 v22:

2)(a) Identify the two human factors of production. [2]
2)(b) Explain two economic concepts shown by a production possibility curve diagram. [4]

May/June 2017 v21:

1)(b) Explain opportunity cost and give an example from the extract. [4]
1)(c)Analyse, using a production possibility curve diagram, what effect net immigration is likely to
have on an economy. [6]

5
Feb/March 2017 v22:
3)(a) What is the difference between capital and land? [2]
3)(c) Analyse, using a production possibility diagram, the effect on an economy’s output when
there is a change from full employment to unemployment. [6]

Oct/Nov 2016 v22:

1)(a) Using information from the extract, explain how the Mints illustrate the economic problem.
[2]
5)(c) Using a production possibility curve diagram, analyse the effect of a decrease in
unemployment on an economy’s output. [6]

Oct/Nov 2016 v21:

1)(a) Using information from the extract, explain whether the US was operating on or inside its
production possibility curve in 2014. [2]
7)(a) Giving an example, define ‘labour’. [2]

May/June 2016 v23:

3)(a) Identify two risks that entrepreneurs have to bear. [2]
7)(c) Analyse, using a production possibility curve, the effect of advances in technology. [6]

May/June 2016 v22:

6)(a) Why can the economic problem never be solved? [2]
7)(a) What is meant by ‘scarce resources’? [2]

May/June 2016 v21:

4)(a) Why may less wheat be the opportunity cost of producing more milk? [2]
7)(a) What is meant by a production possibility curve? [2]
7)(b) Explain, giving examples, two factors of production used in the tourism industry. [4]

Feb/March 2016 v22:

6
1)(a) Using information from the extract, identify two examples of the factor of production ‘land’.[2]
5)(a) What is the opportunity cost to a person of going to university? [2]

Oct/Nov 2015 v22:

2)(a) Define ‘resources’. [2]

Oct/Nov 2015 v21:

3) (a) Identify two functions of an entrepreneur. [2]

May/June 2015 v22:

3)(c) Using a production possibility curve diagram, analyse the effect of an increase in unemployment on
a country’s output. [6]

May/June 2015 v21:

1)(a) Define ‘opportunity cost’. [2]
1)(b) Explain why the economic problem can never be solved. [4]
1)(c) Using a production possibility curve diagram, analyse the effect of the destruction of some of
its resources on an economy. [6]

Oct/Nov 2014 v22:

2) (a) Using examples, define the factor of production, ‘capital’. [4]
2) (c) Explain why scarcity gives rise to an ‘opportunity cost’. [6]

Oct/Nov 2014 v21:

2)(a) Explain what is meant by the ‘economic problem’. [2]
2)(b) Describe the two main features of the factor of production, ‘enterprise’. [4]
2)(c) Using a production possibility curve diagram, explain how the curve can be used to show the
consequences of a change in the allocation of resources between the production of two goods. [6]

May/June 2014 v23:

7
 2)(a) What is the difference between labour and enterprise? [4]
2)(b) Explain why farmers should consider opportunity cost when deciding how to use their factors
of production. [4]
2)(c) Using a production possibility curve diagram, analyse the effect of a decrease in the supply of
labour and enterprise on an economy. [5]

May/June 2014 v22:

2)(a) What is meant by the ‘economic problem’? [2]
2)(b) Using a production possibility curve diagram, explain why choices have to be made as to how
to allocate resources. [6]

May/June 2014 v21:

2)(a) Describe two ways in which land is different from labour. [4]
2)(b) Explain the significance of opportunity cost for a government when making its spending
decisions. [4]
2)(c) Using a production possibility curve diagram, analyse the impact of an increase in resources on
an economy. [6]

May/June 2010 v22:

3) b) Explain three factors of production that are involved in the production of airport. [6]

O/N 2014 v22:

2) (b) Explain the nature of the economic problem. [4]

8
 Unit 2: The allocation
of resources, how the
market works and
market failure:

o Ch.2: Microeconomics, Macroeconomics and the role of markets

in allocating the resources.

9
May/June 2017 v23:
1)(d) Analyse how resources are allocated in a mixed economy. [5]

Feb/March 2017 v22:

2)(c) Analyse how the price mechanism influences the allocation of resources in a market
economy.[6]

Oct/Nov 2016 v23:

4)(a) Define ‘a mixed economy’. [2]

Oct/Nov 2016 v22:

1)(d) Explain whether the extract suggests that Mexico operates a market economic system or a
mixed economic system. [3]

May/June 2016 v21:

1) (d) Using information from the extract, explain two merits of a market system. [4]

Oct/Nov 2015 v21:

7) (a) Define ‘mixed economy’. [2]

May/June 2015 v23:

3)(b) Explain how resources are allocated in a market system. [4]

May/June 2015 v22:

6)(d) Discuss whether the advantages of a market economy are greater than its disadvantages. [8]

Feb/March 2015 v22

10
2)(a) Why do choices have to be made about how resources are used? [2]
2)(c) Using a production possibility curve diagram, analyse the effect of an increase in land on an
economy. [6]

May/June 2014 v23:

2) (a) Explain how resources are allocated in a market system. [6]

May/June 2014 v22:

2)(c) Explain how resources are allocated differently in market and mixed economic systems. [4]

O/N 2014 v22:

2)(c) Compare how resources are allocated in market and mixed economic systems. [4]

o Ch.3: Demand and Supply.

11
Oct/Nov 2017 v23:
(a) Define ‘demand’. [2]
(c) Analyse the effect on the market for food of an increase in population combined with a prolonged
peri od of bad weather. [6]

Oct/Nov 2017 v22:

1) (f) Explain, using information from the extract and Fig. 1, what happened to the market for food
in 2015. [4]
2)(c) Analyse how the market for a product would be affected by a reduction of the tax on the
product combined with a fall in the price of a complement. [6]
4)(d) Discuss whether demand for cars is likely to increase in the future. [8]

Oct/Nov 2017 v21:

1)(f) Explain, using information from the extract and Fig. 1, what happened to the market for fruit in
the UK in 2015. [4]
2)(a) Define ‘equilibrium price’. [2]
5) (a) Define a ‘subsidy’. [2]
5)(b) Explain two causes of a decrease in demand for oil. [4]

May/June 2017 v23:

2)(b) Explain two causes of a shift of a demand curve to the left. [4]

May/June 2017 v21:

2)(b) Explain two causes of a shift of a supply curve to the right. [4]
7)(b) Explain two causes of an increase in demand for bus transport. [4]

Feb/March 2017 v22:

12
1)(a) Identify, using information from the extract:
(i) a substitute for air travel [1]
(ii) a complement to air travel. [1]

Oct/Nov 2016 v23:

1|(c) Using information from the extract, draw a demand and supply diagram to show the effects of
the predicted change in fish stocks on the market for fish. [4]

Oct/Nov 2016 v22:

2)(c) Using a demand and supply diagram, analyse the effect of a rise in the price of Firm X’s jeans
on the market for Firm Y’s jeans. [6]

Oct/Nov 2016 v21:

1)(d) Calculate the US’s demand for oil per day in 2013. [3]
1)(g) Using information from the extract, explain why the price of oil may rise more in China than in
the US in the future. [4]
4)(c) Using a demand and supply diagram, analyse the effect on the market for petrol if a subsidy on
petrol is removed. [6]

May/June 2016 v23:

2)(a) Giving an example, define ‘complements’. [2]
2)(c) Using a demand and supply diagram, analyse the effect of a rise in the price of coffee on the
market for tea. [6]

May/June 2016 v22:

1)(f) Discuss whether the price of chocolate is likely to increase in the future. [5]

13
Feb/March 2016 v22:
3)(b) Explain how a falling death rate may affect demand in a country. [4]
6)(c) Using a demand and supply diagram, analyse how an increase in the cost of producing
smartphones will affect the market for smartphones. [6]

Oct/Nov 2015 v22:

3)(a) Define ‘supply’. [2]

Oct/Nov 2015 v21:

1) (b) Explain two reasons why demand for Cambodia’s rice may increase in the future. [4]
2) (a) Define ‘demand’. [2]
2)(b) Explain what impact an imbalance between supply and demand is likely to have on price and
the quantity traded. [4]

May/June 2015 v23:

1) (c) Using information from the extract, explain why the supply of diamonds is price inelastic. [3]

May/June 2015 v22:

4)(c) Using a demand and supply diagram, analyse the effect of an increase in the costs of producing
copper on the market for copper. [6]

May/June 2015 v21:

3) (a) Define ‘equilibrium price’. [2]
3)(c) Using a demand and supply diagram, analyse why a fall in incomes may reduce the market
price of houses. [6]

Feb/March 2015 v22

2)(b) Explain why price tends to move towards equilibrium over time. [4]

14
Oct/Nov 2014 v23:
(a) Using a demand and supply diagram, analyse the effect of these two decisions on the equilibrium
wage rate and the equilibrium quantity of teachers. [6]

Oct/Nov 2014 v22:

3) (b) Using a demand and supply diagram, analyse the effect of the imposition of an indirect tax on
the equilibrium price and equilibrium quantity of tobacco. [6]

Oct/Nov 2014 v21:

3)(a) Using a demand and supply diagram, analyse the effect of a subsidy on the equilibrium price
and the equilibrium quantity in such a market. [6]

May/June 2014 v23:

3)(a) Describe what determines ‘equilibrium price’. [2]
3)(b) Explain two reasons why the supply curve of a product may shift to the right.
1)(b) Using information from the extract, explain why the Bahamas would benefit from an increase in
household incomes in the US. [2]
1)(c) Using information from the extract, draw a demand and supply diagram to show what is likely
to have happened to the price of fish in 2012. [4]

May/June 2014 v22:

1)(b) Using information from the extract, explain why taxi (cab) fares were high in Luanda in 2010.
[2]
1)(c) Using information from the extract, draw a demand and supply diagram to show what is likely
to have happened to the price of diamonds in 2012. [4]3|)(a) Define ‘demand’. [2]
3)(b) Explain three likely causes of an increase in demand for bicycles. [6]
3)(c) Analyse why the demand for a product may be more price elastic in one country than in another
country. [6]

15
May/June 2014 v21:
1) (c) Using information from the extract, draw a demand and supply diagram to show what is likely
to have happened to the price of copper in 2011. [4]
(b) Explain three reasons why the supply of bananas may decrease. [6]
(c) Analyse what effect a rise in the price of apples, which are a substitute for bananas, will have on
the market for bananas. [6]

May/June 2013 v32:

b) Using demand and supply diagram, explain the effect of a tax imposed on the sale of plastic bags
would have on the market for plastic bags. [6]

Oct/Nov 2012 v32:

c) Explain two reasons for the increase in the demand for tickets on Emirates Airline. [4]

16
o Ch.4: Price Elasticity.

Oct/Nov 2017 v23:

2) (C)Analyse how information on the price elasticity of demand for its product can influence a
firm’s pricing decisions. [6]
5) (c) Analyse the factors that can make the supply of a product more price-elastic. [6]

Oct/Nov 2017 v22:

1) (c) Calculate, using information from the extract:
(i) the percentage fall in the global price of a barrel of oil in 2015 [2]

Oct/Nov 2017 v21:

1)(c) Calculate, using information from the extract:
(i) the percentage decrease in the number of cigarette firms in China from 2009 to 2014 [2]

May/June 2017 v23:

1) (c) Calculate, using information from the extract:
(i) the percentage fall in the price of coal between 2010 and 2015 [2]
2)(a) Define ‘price-inelastic demand’. [2]

May/June 2017 v22:

2)(c) Analyse why demand for a product may become more elastic over time. [6]
7)(c) Analyse why price elasticity of supply can differ between products. [6]

Feb/March 2017 v22:

17
 1)(c) Calculate, using information from the extract:
(i) the percentage of the new passenger aircraft that the USA is predicted to purchase between
2015 and 2030 [2]
(ii) the percentage change in demand for air travel if the price of air travel falls by 15%. [2]
1(d) Analyse why demand for a luxury holiday may be price elastic. [5]

Oct/Nov 2016 v23:

3)(b) Explain how perfectly inelastic demand differs from inelastic demand. [4]

Oct/Nov 2016 v22:

2)(a) What is meant by a price elasticity of demand of – 2.5? [2]
2|)(b) Explain the importance of price elasticity of demand for a government. [4]

Oct/Nov 2016 v21:

1)(b) Explain whether the extract suggests the demand for oil in the US is price-elastic or price
inelastic. [2]
3)(a) Define ‘inelastic supply’. [2]

May/June 2016 v23:

2)(b) Explain two reasons why demand for a product may be price-inelastic. [4]

May/June 2016 v22:

1)(b) Explain whether the extract suggests the demand for chocolate is price-elastic or price inelastic
in developed countries. [2]

Feb/March 2016 v22:

6)(b) Explain the difference between inelastic supply and perfectly inelastic supply. [4]

Oct/Nov 2015 v22:

18
3) (c) Analyse why demand for a product may become more price elastic. [6]

May/June 2015 v22:

3)(b) Explain two reasons why the supply of a product may be price inelastic. [4]

May/June 2015 v21:

1)g) Using information from the extract, explain whether demand for IKEA’s products is price
elastic or price inelastic. [2]

Feb/March 2015 v22

3)a) Define ‘price elasticity of supply’. [2]

Oct/Nov 2014 v21:

3)(b) Explain what factors influence the price elasticity of demand for public transport. [6]

May/June 2014 v21:

(a) Define ‘price elasticity of supply’. [2]

O/N 2012 v23:

3) (a) Explain what is meant by the price elasticity of supply. [6]
3) (b) Explain what influnces the price elasticity of demand for a product. [6]

O/N 2012 v32:

2)b) What does the price elasticity of demand – 1.5 for hotel accommodation mean? [4]

O/N 2010 v21:

19
 2 In recent years there has been publicity that eating fish is often healthier than eating meat. At the
same time, environmentalists in one country complained that the local supply of some fish had
declined and they persuaded their government to limit the amount of fish that could be caught.

(a) Describe, with the aid of a demand and supply diagram, what might have happened in the market
for fish. [5]
(b) Explain how the changes mentioned might affect

(i) the incomes of fishermen [4]

(ii) the profits of food retailers. [4]

o Ch.5: Market Failure.

20
Oct/Nov 2017 v22:
4)(c) Analyse the social costs created by car production and car use. [6]

May/June 2017 v23:

1)(a) Identify, using information from the extract, two external costs that arise from using coal to
produce electricity. [2]
7)(c) Analyse why the social benefits of education are greater than the private benefits. [6]

May/June 2017 v21:

1)(a) Define ‘private cost’ and give an example from the extract. [2]
2)(a) Why is pollution an example of market failure? [2]
4)(c) Analyse why the social costs of oil extraction may be greater than the private costs. [6]

Feb/March 2017 v22:

7)(b) Explain two causes of market failure. [4]

Oct/Nov 2016 v23:

5)(a) Identify two external costs of smoking. [2]

Oct/Nov 2016 v22:

3)(b) Explain why market failure occurs. [4]

May/June 2016 v23:

1)(c) Using information from the extract, explain two external costs that shipbuilding can cause. [4]
4)(c) Analyse the social benefits of giving vaccinations. [6]

May/June 2016 v22:

21
2)(b) Explain the difference between private costs and social costs. [4]

May/June 2016 v21:

4) (b) Explain two reasons why the supply of a product may be price-inelastic. [4]

Feb/March 2016 v22:

1)(g) Explain the cause of the example of market failure referred to in the extract. [4]

Oct/Nov 2015 v22:

2)(b) Explain how international travel may create external costs. [4]

Oct/Nov 2015 v21:

2)(d) Discuss whether the social costs of operating power stations are likely to be greater than the
social benefits. [8]

May/June 2015 v23:

3)(c) Analyse the causes of market failure. [6]

Oct/Nov 2014 v23:

2) (b) Analyse three reasons why a market system could fail. [6]

Oct/Nov 2014 v22:

2) (b) Using examples, distinguish between a private cost and an external cost. [4]
3) (a) Explain why, in a market economy, some goods and services are over-consumed and some
under-consumed. [6]

May/June 2014 v22:

5)(c) Explain why pollution is an example of market failure. [5]

22
May/June 2014 v21:
1)(g) Using information from the extract, explain why the social costs of mining are higher than the
private costs of mining in Mongolia. [2]

O/N 2011 V22

6)b) Analyze how the local area are likely to be affect by the building of a motorway. [6]

May/June 2010 v22:

2) (c) A proposal has been put forward to build a new runway at an airport. Discuss the social costs
and benefits of such a decision. [8]

o Ch.6: Market and Mixed Economic System.

23
May/June 2017 v23:
2)(c) Analyse how a government could promote the purchase of bicycles. [6]

May/June 2017 v21:

3) (c)Analyse why private sector banks may earn higher profits than public sector banks. [6]

Feb/March 2017 v22:

6)(e) Discuss whether airlines should be state-owned or operated by the private sector. [5]
7)(a) Define ‘regulation’. [2]

Oct/Nov 2016 v22:

5)(d) Discuss whether it is better to work in the public sector or the private sector. [8]

May/June 2016 v23:

4)(d) Discuss whether health care should be provided by the public sector or the private sector. [8]
5)(b) Explain the different goals that state-owned commercial banks and privately-owned
commercial banks may have. [4]

May/June 2016 v21:

5) (b) Explain how government regulation may reduce market failure. [4]
5) (d) Discuss whether the social benefits of building flood defenses will exceed the social costs
involved. [8]

Oct/Nov 2015 v22:

6) (d) Discuss whether new airports should be built and operated by governments or the private
sector. [8]

May/June 2015 v23:

3)(a) Define ‘regulation’. [2]

24
Oct/Nov 2014 v21:
3)(c) Discuss whether transport in a country should be provided by the public sector or by the
private sector. [8]

May/June 2010 v21:

2)(c) Analyze how can the government change the market price of a good a part from a subsidy. [2]

O/N 2010 v21:

7)(c) Analyze how the government influence a private industry? [6]

25
 Unit 3:
Microeconomics
Decision Makers:

o Ch.7: Money and Banking.

Oct/Nov 2017 v23:

26
(d) Discuss whether a central bank should lend to commercial banks which get into financial
difficulties. [8]

Oct/Nov 2017 v21:

7)(b) Explain two reasons why a commercial bank may prefer to lend to the rich rather than to the
poor. [4]

May/June 2017 v23:

5)(a) Define ‘Central Bank’. [2]

May/June 2017 v22:

3)(a) Identify two ways a commercial bank differs from a central bank. [2]

May/June 2017 v21:

3)(a) Define ‘a standard for deferred payments’. [2]
3)(d) Discuss whether an increase in bank lending will benefit an economy. [8]

Feb/March 2017 v22:

2)(b) Explain two functions of a commercial bank. [4]
5)(a) Define ‘balance of payments’. [2]

Oct/Nov 2016 v23:

6)(b) Explain two reasons why the poor may find it difficult to get loans from commercial banks. [4]

Oct/Nov 2016 v22:

4)(c) Analyse how a central bank might reduce household borrowing. [6]

27
Oct/Nov 2016 v21:
4)(b) Explain two reasons why firms may find it difficult to obtain loans from commercial banks. [4]

May/June 2016 v23:

5)(a) Identify two reasons why people may keep some of their money in a savings account at a
commercial bank. [2]

May/June 2016 v22:

5)(b) Explain two ways in which a central bank differs from a commercial bank. [4]

May/June 2016 v21:

1) (g) Using information from the extract, explain two functions of commercial banks. [4]
3) (a) Identify two functions of money. [2]

Oct/Nov 2015 v22:

5) (a) Define ‘medium of exchange’. [2]
5) (b) Explain two ways in which a central bank differs from a commercial bank. [4]

May/June 2015 v23:

4)(b) Explain why cash (notes and coins) is money. [4]
4)(c) Analyse the possible effects of an increase in bank lending on economic growth. [6]

May/June 2015 v22:

1)(f) Using information from the extract, describe two functions of a central bank. [4]
1)(g) Discuss whether the growth of a commercial bank will benefit its customers. [6]

Feb/March 2015 v22

4) (b) Explain two functions of money. [4]

28
Oct/Nov 2014 v22:
4)(a) Explain how well money performs its function as a medium of exchange. [5]
4)(b) Analyse the importance of a central bank in an economy. [7]
4)(c) Discuss whether a country’s largest commercial banks should be nationalised and so become
public corporations, and taken under government control. [8]

May/June 2014 v22:

4) (a)Describe two functions of a central bank. [4]

May/June 2014 v21:

5)(b) Explain why an item has to be generally acceptable and divisible for it to carry out the
functions of money. [4]

M/J 2012 V22

4) a) Explain why it is better for individuals to use money rather than the barter system. [6]

O/N 2012 V31

f) Discuss whether a central should reduce its interest rate. [6]

o Ch.8: Households.
May/June 2017 v22:

29
 4)(a) Identify two ways in which the expenditure patterns of the poor and the rich are different. [2]

Feb/March 2017 v22:

5)(d) Discuss whether the rich always save more than the poor. [8]

Oct/Nov 2016 v23:

5)a) How does the amount and the proportion of income spent on food change as people get richer?
[2]
5)(b) Explain the difference between saving and borrowing. [4]

May/June 2016 v22:

7)(c) Analyse how the spending, saving and borrowing patterns of young workers may differ from
older workers. [6]

May/June 2016 v21:

3) (b) Explain two reasons why household borrowing may increase. [4]

May/June 2015 v23:

4)(a) Identify two influences on the amount people save. [2]
4)(d) Discuss whether the poor are more likely to borrow than the rich. [8]

May/June 2015 v21:

3)(b) Explain two reasons why borrowing may decrease. [4]

Oct/Nov 2014 v22:

1)(f) Using information from the extract, explain two influences, other than interest rates, on how
much people save. [4]

30
May/June 2014 v22:
4)(c) Explain how the spending pattern of high paid workers is likely to differ from the spending
pattern of low paid workers. [4]

O/N 2012 V22

4) b) Explain how commercial banks may encourage savings. [6]

O/N 2011 V21

4) a) Explain what could influence people to save more. [6]
4) (b) Analyze the consequences to an economy of people saving a high proportion of their income.
[6].

o Ch.9: Trade Unions.

Oct/Nov 2017 v23:
3)(d) Discuss whether an economy would benefit from an increase in the strength of its trade unions. [8]

31
May/June 2017 v22:
5)(a) Define a ‘trade union’. [2]

Feb/March 2017 v22:

6)(a) Identify two aims of a trade union. [2]
6)(b) Explain two reasons for a decline in trade union membership. [4]

Oct/Nov 2016 v23:

2)(a) Define ‘a trade union’. [2]
2)(b) Explain two influences on the strength of a trade union. [4]

Oct/Nov 2016 v22:

1)(g) Using information from the extract, explain two functions of a trade union. [4]

May/June 2016 v23:

3)(d) Discuss whether the activities of trade unions are likely to increase or decrease a country’s
economic growth rate. [8]

May/June 2016 v21:

6) (a) Identify two reasons why workers go on strike. [2]

May/June 2015 v21:

4)(b) Explain why governments may discourage strikes. [4]
4)(c) Analyse three reasons why trade union membership may decrease in a country. [6]

32
Oct/Nov 2014 v21:
4)(c) Describe what is meant by a trade union. [4]
4)(d) Discuss whether membership of a trade union will always be beneficial for a worker. [6]

May/June 2014 v21:

5) (d) Discuss whether a firm will benefit from encouraging its workers to join a trade union. [8]

Oct/Nov 2013 v22:

3) b) Explain the different forms of payment that a worker can receive. [4]

o Ch.10: Workers and Labour Market.

Oct/Nov 2017 v23:

33
 (b) Explain two reasons why some young workers may earn more than some old workers. [4]

Oct/Nov 2017 v22:

1) (e) Discuss whether the supply of workers for unskilled jobs will be high in a country. [5]
3)(a) What is a possible opportunity cost of working? [2]
3)(b) Explain two reasons why older workers tend to earn more than younger workers. [4]
7)(b) Explain two disadvantages that workers may experience from specialising. [4]

Oct/Nov 2017 v21:

2)(b) Explain two reasons why a worker may continue in a job despite a cut in pay. [4]

May/June 2017 v23:

3)(a) Identify two factors that affect an individual’s choice of occupation. [2]
3(c) Analyse why dentists are paid more than hotel cleaners. [6]

May/June 2017 v22:

5)(b) Explain two possible causes of a fall in a worker’s earnings. [4]

May/June 2017 v21:

3)(b) Explain two reasons why agricultural workers may be paid less than manufacturing workers. [4]

Feb/March 2017 v22:

4)(a) Identify two wage factors that workers take into account when deciding on their occupation. [2]
4)(d) Discuss whether a rise in the wages paid to low-paid workers would benefit an economy. [8]
6)(c) Analyse why someone may switch from working in the public sector to working in the private
sector. [6]

Oct/Nov 2016 v22:

1)(c) Using information from the extract, explain two reasons why the earnings of workers in Nigeria
are likely to increase. [4]

34
Oct/Nov 2016 v21:
7)(c) Analyse why the wages of workers in a particular occupation may fall. [6]

May/June 2016 v22:

6)(b) Explain two reasons why workers specialising can reduce the average cost of production. [4]
7)(b) Explain two reasons why someone may be willing to do a low-paid job with little job
security.[4]

May/June 2016 v21:

1) (c) Explain, using information from the extract, why wages in the UK car industry fell in 2008. [2]
7) (c) Analyse why doctors are paid more than nurses. [6]

Feb/March 2016 v22:

2)(d) Discuss whether a decrease in wage rates and an increase in working hours will always reduce
the supply of workers to a firm. [8]
7)(c) Analyse why workers with the same skills may be paid different wage rates. [6]

Oct/Nov 2015 v21:

1)(g) Discuss whether a company will have to raise wage rates to attract more workers. [6]
3) (d) Discuss whether workers benefit from specialising. [8]
5)(a) Identify two causes of an increase in the size of a country’s labour force. [2]

May/June 2015 v23:

7) (d) Discuss whether coal miners are likely to be paid more than car assembly workers. [8]

Oct/Nov 2014 v23:

3(b) Describe why the earnings of teachers can change over a period of time. [4]

35
3 (c) Consider whether teachers working in the private sector and in the public sector are likely to
receive different earnings. [4]
3)(d) Discuss whether highly-paid teachers are likely to spend more and borrow more than less well-
paid teachers. [6]

Oct/Nov 2014 v21:

4)(a) Describe three factors that can influence an individual’s choice of occupation. [6]
4)(b) Explain two reasons why an unskilled worker is usually paid less than a skilled worker. [4]

May/June 2014 v23:

4) (b) Explain two reasons why someone may be prepared to work for a low wage. [4]

May/June 2014 v22:

5) (d) Discuss whether workers employed in banking are likely to earn more than workers employed
in agriculture. [8]

May/June 2014 v21:

5)(c) Explain two advantages of working for a large company. [4]

O/N 2014 v22:

3)(c) Explain how an individual’s earnings are likely to change over their lifetime.[4]

O/N 2014 v23:

5)(b) Explain two factors that determine the demand for labour in an economy. [4]

M/J 2013 V33

36
 e) Analyze the factors that will influence whether people will want to work for a large rubber
producing firm. [6]

O/N 2012 V21

2)a) Explain three causes of an increase in the supply of labour for a particular industry. [6]

M/J 2011 V2
5)(c) Discuss whether wages are the most important factor influencing the choice of occupation of
many individuals. [8]

o Ch.11: Firms.

37
Oct/Nov 2017 v22:
5)(d) Discuss whether having a relatively small population is an advantage or a disadvantage for an
economy.

Oct/Nov 2017 v21:

1)(b) Explain two reasons why firms merge. [4]
3)(b) Explain two influences on the size of firms. [4]

May/June 2017 v23:

4)(a) Define ‘conglomerate integration’. [2]
4)(d) Discuss whether a large firm will always have lower average costs of production than a small
firm. [8]

May/June 2017 v22:

2)(d) Discuss whether small firms can compete successfully against large firms. [8]

May/June 2017 v21:

2)(d) Discuss whether large firms or small firms benefit consumers more. [8]
4)(a) Define the ‘secondary sector’ and give an example. [2]

Feb/March 2017 v22:

1)(b) Explain two advantages that firms may gain from a horizontal merger. [4]

Oct/Nov 2016 v23:

38
 1)(e) Analyse two reasons why the average cost of the EU fishing industry is lower than the
Mauritanian fishing industry. [4]
3)(d) Discuss whether a merger between two large firms in the same industry will increase the price
of the product. [8]
4)(d) Discuss the advantages and disadvantages of small firms. [8]

Oct/Nov 2016 v22:

2)(d) Discuss whether long-established and well-known firms are likely to be more successful than
firms that are new to an industry. [8]

Oct/Nov 2016 v21:

1)(c) Using information from the extract, explain two economies of scale that US oil companies are
experiencing. [4]

May/June 2016 v23:

1)(f) Discuss whether a merger between two shipbuilding firms will improve the quality of ships
built. [5]
5)(c) Analyse how the growth in the size of commercial banks may benefit their customers. [6]

May/June 2016 v22:

4)(c) Analyse two internal diseconomies of scale that a large firm may experience. [6]
6)(d) Discuss whether consumers benefit from horizontal mergers. [8]

May/June 2016 v21:

1) (h) Discuss whether small car manufacturing firms can compete with large car manufacturing
firms. [6]

Feb/March 2016 v22:

1) (f) Discuss whether an increase in output always reduces average cost. [5]

39
Oct/Nov 2015 v22:
1) (a) Using information from the extract, calculate what percentage of Mexico’s labour force
was employed in the tertiary sector in 2012. [2]

Oct/Nov 2015 v21:

4)(c) Analyse three advantages of small firms. [6]

May/June 2015 v23:

6)(a) Define ‘horizontal integration’. [2]

May/June 2015 v21:

1)(h) Discuss whether growth is the main goal of most firms. [6]
4) (d) Discuss whether a rise in the wages a firm pays would reduce its profits. [8]
6)(c) Analyse how an increase in the size of farms may affect the cost of producing food. [6]

Oct/Nov 2014 v22:

5)(c) Using examples, distinguish between vertical, horizontal and conglomerate integration. [5]
5)(d) Discuss whether it is likely that the majority of small firms in an economy will remain small.
[6]

Oct/Nov 2014 v21:

5)(b) Explain how some large firms can experience economies of scale, while others face
diseconomies of scale. [6]

May/June 2014 v23:

3)(d) Discuss whether the price of food is likely to increase in the future. [8]

40
 4)(c) Analyse two ways a bank can help a firm increase in size. [4]
4)(d) Discuss, using the Nigerian film (movie) industry as an example, whether consumers will
benefit from larger firms. [8]
5)(b) Explain what can cause an increase in the costs of production. [4]

May/June 2014 v22:

4)|(b) Explain two types of internal economy of scale that a growing bank can enjoy. [4]

May/June 2014 v21:

(c) Analyse the advantages of vertical integration. [4]

O/N 2014 v22:

4)(b) Explain the reasons why small firms continue to exist in all economies. [6]

M/J 2011 V22

5) (c) Explain how firms can grow in size. [4]
5) (d) Discuss Whether some large firms can benefit from reducing their size. [6]

o Ch.12: Firms and Production.

41
Oct/Nov 2017 v22:
5)(a) What is meant by a ‘labour-intensive industry’? [2]

Oct/Nov 2017 v21:

2)(c) Analyse how employing specialised workers may reduce a firm’s average costs of
production.[6]
3)(c) Analyse the causes of an increase in labour productivity. [6]

May/June 2017 v22:

3)(d) Discuss whether an increase in spending on capital goods will help to achieve the aims of
government policies. [8]

Feb/March 2017 v22:

2)(a) Identify two goals that business organisations may have. [2]
3)(b) Explain two reasons why a firm may decide to use more labour and less capital in producing its
products. [4]

Oct/Nov 2016 v23:

4)(b) Explain why the growth of a firm may lead to profit maximisation in the long term. [4]

Oct/Nov 2016 v22:

3)(a) Define ‘productivity’. [2]
6)(c) Analyse what determines a firm’s demand for capital goods. [6]

Oct/Nov 2016 v21:

7)(b) Explain two reasons why a firm may change from labour-intensive to capital-intensive
production. [4]

May/June 2016 v23:

42
1)(e) Analyse two reasons, referred to in the extract, why shipbuilding is declining in the UK. [4]

May/June 2016 v22:

1)(c) Using information from the extract, explain two reasons why cocoa bean farmers do not use
much capital equipment. [4]
1)(g) Using information from the extract, explain what is likely to be the main goal of chocolate
producers. [4]
4)(a) Define ‘capital-intensive’. [2]

May/June 2016 v21:

6) (c) Analyse how a fall in a firm’s revenue may influence its spending on capital goods. [6]

Feb/March 2016 v22:

2)(b) Explain why some firms may have survival as a short-term goal. [4]
2)(c) Analyse how consumers may suffer as a result of a fall in the profits firms earn. [6]
5) (c) Analyse how an increase in investment may affect unemployment. [6]

Oct/Nov 2015 v22:

4)(a) Define ‘productivity’. [2]
4)(b) Explain two reasons why productivity may increase. [4]
6)(a) Define ‘capital good’. [2]

Oct/Nov 2015 v21:

5) (c) Analyse how free trade can reduce firms’ costs of production. [6]
6) (b) Explain two influences on the amount firms spend on capital goods. [4]

May/June 2015 v23:

5)(b) Explain two influences on what factors of production a firm uses. [4]
5)(c) Analyse how an increase in the size of a firm can increase its profit. [6]

43
May/June 2015 v22:
3)(a) What is meant by an industry being ‘capital-intensive’? [2]

Feb/March 2015 v22:

3)(b) Explain why many firms try to maximise profits. [4]

Oct/Nov 2014 v23:

4)(b) Distinguish between productivity and production. [4]

Oct/Nov 2014 v22:

5)(b) Explain two reasons why production by a firm might be changed from capital-intensive to
labour-intensive. [6]

May/June 2014 v23:

3)(c) Analyse what effect a fall in price may have on a farmer’s profit. [6]

May/June 2014 v22:

1)(g) Using information from the extract, explain two reasons why labour productivity is low in
Angola. [4]

May/June 2014 v21:

6) (d) Discuss what impact a rise in output is likely to have on a farmer’s profit. [6]

M/J 2013 V23

2) b) Distinguish between an increase in productivity and increase in production. [6]

44
M/J 2012 V21
6)b) Analyze why most firms want to maximize its profit. [6]

o Ch.13: Cost, Revenues and Profit.

Oct/Nov 2017 v22:

(a) Define ‘average costs’. [2]

45
May/June 2017 v23:
1)(b) Explain two reasons why a firm may continue to produce a good despite making a loss. [4]
1)(c) Calculate, using information from the extract:
(ii) the cost (in US$) of producing a tonne of coal in Poland in 2015. [2]

May/June 2017 v22:

1)(c) Calculate, using information from the extract:
(i) the value of diamonds produced in Botswana in 2015 [2]
(ii) the average price of a 1.5 carat diamond in 2015. [2]
1)(d) Analyse why a country could have lower production costs for a particular good than another
country. [5]

May/June 2017 v21:

2)c) Analyse why the price of a product may be higher in the USA than China. [6]

Feb/March 2017 v22:

(3)d) Discuss whether an increase in output will increase the profits that firms receive. [8]

Oct/Nov 2016 v22:

3)(b) Explain the difference between average fixed cost and average variable cost. [4]
6)(b) Explain why fixed costs are high in the aircraft-making industry. [4]

Oct/Nov 2016 v21:

5)(b) Explain how a fall in output will affect average fixed cost and average total cost. [4]
5)(c) Analyse how a firm could reduce its output and increase its total profit. [6]

46
May/June 2016 v23:
1)(a) Using information from the extract, explain whether the average cost of building the largest
container ships in China rose or fell between 2012 and 2013. [2]

May/June 2016 v21:

4)(d) Discuss whether the average cost of production always decreases when a firm increases the
total output that it produces. [8]

May/June 2015 v22:

3)(c) Analyse what effect an increase in output will have on fixed, variable and average costs. [6]

Oct/Nov 2014 v23:

4)(c) Using an example of each, explain the difference between fixed costs and variable costs in car
production. [4]

May/June 2014 v23:

4)a) Describe how fixed costs and variable costs are influenced by a rise in output. [2]

May/June 2010 v22:

3)a) Distinguish between fixed cost and variable cost. [4]

o Ch.14: Market Structure.

Oct/Nov 2017 v23:

2) (d) Discuss whether a merger of two firms in the same industry will be likely to reduce the

47
 price of the product. [8]

Oct/Nov 2017 v21:

2)(d) Discuss whether consumers would benefit if a firm became a monopoly. [8]
3)(a) Define ‘perfect competition’. [2]

May/June 2017 v23:

4)(b) Explain why firms in a perfectly competitive market are price-takers. [4]

Oct/Nov 2016 v22:

6)(d) Discuss whether the quality of products is likely to be higher in a monopoly or in a perfectly
competitive market. [8]

May/June 2016 v22:

4)(b) Explain two characteristics of perfect competition. [4]

May/June 2016 v21:

1)(a) Using information from the extract, identify two characteristics of monopoly. [2]

Feb/March 2016 v22:

3)(a) Define a ‘monopoly’. [2]
3) (c) Analyse why price can be lower in a monopoly market than in perfect competition. [6]

Oct/Nov 2015 v22:

1) (f) Explain two ways in which a monopoly differs from perfect competition. [4]
1) (g) Discuss whether selling a state monopoly, such as Pemex, to the private sector would benefit
consumers in Mexico. [6]

48
Oct/Nov 2015 v21:
3) (c) Analyse why price may be higher and output lower in a monopoly than in a more competitive
market. [6]

May/June 2015 v23:

6)(b) Explain two characteristics of perfect competition. [4]
6)(d) Discuss whether price is likely to be higher in a monopoly than in a perfectly competitive
market. [8]

Oct/Nov 2014 v21:

5)(c) Discuss whether a monopoly is always in the public interest. [8]

May/June 2014 v21:

4)(b) Explain three ways in which monopoly differs from perfect competition. [6]

O/N 2013 V22

4)b) distinguish between a firm that is a price taker and one that is a price maker. [4]

M/J 2011 V2
4)(b) Describe the characters of perfect competition. [6]

49
 Part 2:
Macroeconomics

Unit 4: Government
and the
Macroeconomy:

o Ch.15: The Macroeconomic Aims of the Government

May/June 2017 v23:

1)(e) Discuss whether governments should regulate the coal industries of their countries. [5]
2)(d) Discuss whether governments should discourage car use. [8]

50
May/June 2017 v22:
4)(a) What is meant by ‘redistribution of income’? [2]
1)(g) Discuss the economic arguments for and against providing free hospital treatment to patients. [6]

Oct/Nov 2016 v23:

6)(d) Discuss whether an increase in consumer expenditure would be beneficial for an economy. [8]

May/June 2016 v22:

3)(a) Identify two government economic aims. [2]

May/June 2015 v21:

1) (d) Explain why a country may both export and import cars. [2]

Oct/Nov 2014 v23:

(c) Discuss whether government intervention in a market is always to be supported. [8]

Oct/Nov 2014 v22:

3) (c) Discuss whether government regulations on private producers always achieve their intended aims.
[8]

Oct/Nov 2014 v21:

2) (d) Discuss whether a decision by a government, with limited financial resources, to increase
expenditure on education by 25% over a three year period, is likely to be an appropriate decision. [8]

May/June 2014 v21:

2)(d) Discuss whether the building of more roads will benefit an economy. [8]

51
o Ch.16: The Government Budget and Taxation.

Oct/Nov 2017 v23:

3)(a) Identify two reasons why governments impose taxes. [2]
3)(c) Analyse how a cut in tax rates could increase tax revenue. [6]
5)(d) Discuss whether a decrease in government spending will benefit an economy. [8]

52
7)(b) Explain two reasons why government spending may be greater than tax revenue. [4] -

Oct/Nov 2017 v21:

1)(c) Calculate, using information from the extract:
(ii) the total tax revenue that the Chinese Government received in 2014. [2]
1)(g) Discuss the arguments for and against the Chinese Government increasing the tax on cigarettes. [6]
4)(d) Discuss whether a rise in direct taxes will reduce economic growth. [8]

May/June 2017 v21:

7)(a) Define ‘indirect taxes’ and give an example. [2]
7)(d) Discuss whether a government should increase taxes on food. [8]

Feb/March 2017 v22:

1)(g) Discuss whether a cut in taxation will reduce inflation. [6]
7)(c) Analyse the possible opportunity costs of an increase in government spending on higher education
services. [6]

Oct/Nov 2016 v23:

3)(c) Analyse two ways, apart from imposing an indirect tax, in which a government could discourage
smoking. [6]

Oct/Nov 2016 v22:

7)(a) Define ‘a progressive tax’. [2]
7)(b) Explain the difference between direct and indirect taxes. [4]
7)(d) Discuss whether a government should increase tax rates. [8]

May/June 2016 v23:

6)(b) Explain two reasons why tax revenue may fall. [4]

53
May/June 2016 v22:
2)(a) Giving an example, define ‘a sales tax’. [2]
2)(c) Using a demand and supply diagram, analyse the effect of imposing a tax on fizzy drinks. [6]

May/June 2016 v21:

2)(a) Define ‘an indirect tax’. [2]
2)(b) Explain how a cut in the rate of corporation tax could result in an increase in tax revenue. [4]
2)(c) Using a demand and supply diagram, analyse the effect of removing an indirect tax on the market
for the product. [6]
2)(d) Discuss whether an increase in taxes will reduce inflation. [8]

Feb/March 2016 v22:

4)(d) Discuss whether a cut in corporation tax will increase economic growth. [8]

Oct/Nov 2015 v21:

6) (a) Define ‘regressive tax’. [2]
6) (d) Discuss whether an increase in the rate of a sales tax would benefit an economy. [8]

May/June 2015 v23:

2)(b) Explain why government spending on unemployment benefits involves an opportunity cost. [4]

May/June 2015 v21:

5)(a) What is meant by ‘tax’? [2]
5(b) Explain two reasons why an increase in unemployment may reduce tax revenue. [4]

Oct/Nov 2014 v22:

1)(d) Discuss whether an increase in the rate of a sales tax will cause unemployment. [6]

54
Oct/Nov 2014 v21:
1(e) Explain why governments impose taxes. [4]

May/June 2014 v23:

(a) Name two types of tax. [2]

May/June 2014 v22:

1)(h) Discuss whether a cut in taxes will reduce unemployment. [6]
3)(d) Discuss whether a government should impose indirect taxes only on products with inelastic demand.
[6]

May/June 2014 v21:

1) (h) Discuss whether a rise in incomes in a country will always increase tax revenue. [5]
3)(d) Discuss whether a government should increase the tax on cigarettes. [8]
7)(c) Discuss whether a government should increase or decrease taxes to reduce inflation. [8]

Oct/Nov 2013 v31:

d) Explain why a cut in income tax may reduce unemployment. [6]

May/June 2012 v32:

1) c) Explain why may obesity lead to an increase in government spending? [4]

e) Discuss whether the US government should tax chocolate. [8]

Oct/Nov 2012 v23:

5) c) Discuss whether a government should increase income taxes. [8]

55
May/June 2010 v22:

5)(b) Explain using examples, the differences between direct and indirect taxes. [4]

o Ch.17: Government Policies.

O/N 2017 v23:

1) (a) Identify, from the extract, two monetary policy measures. [2]

O/N 2017 v22:

1) (a) Identify, from the extract, two aims of government policies. [2]

56
May/June 2017 v23:
5)(c) Analyse how fiscal policy could reduce the inflation rate. [6]
6)(c) Analyse how advances in technology can affect demand and supply. [6]

May/June 2017 v21:

1)(c) Calculate, using information from the extract:
(ii) the amount the Egyptian Government spent on healthcare in 2015. [2]

Feb/March 2017 v22:

3)(d) Discuss whether it is always possible for a country to have low unemployment and low inflation at
the same time. [8]

Oct/Nov 2016 v23:

6)(a) Define ‘the rate of interest’. [2]

Oct/Nov 2016 v22:

4)(d)Discuss whether a government should encourage an increase in saving. [8]
7)(c) Analyse how a fall in unemployment can increase tax revenue. [6]

Oct/Nov 2016 v21:

2)(c) Analyse why it may be difficult for an economy to have both low unemployment and low inflation
at the same time. [6]
3)(c) Analyse how a government could reduce meat consumption. [6]
7)(d) Discuss whether a government should subsidise the provision of training. [8]

May/June 2016 v23:

6)(d) Discuss whether a government should spend more than it raises in taxation. [8]

57
May/June 2016 v21:
1)(e) Analyse two reasons, referred to in the extract, why a decrease in employment may increase labour
productivity. [4]

Feb/March 2016 v22:

1)(e) Using information from the extract, analyse two reasons why the productivity of Indian agricultural
workers is likely to increase in the future. [4]
5)(d) Discuss whether supply-side policy measures will reduce inflation. [8]

Oct/Nov 2015 v22:

3)(b) Explain two ways a government could influence the price of a product. [4]
7) (b) Explain two reasons why people may spend most of their income. [4]
1)(e) Discuss whether rises in costs of production in China will benefit the Mexican economy. [5]

Oct/Nov 2015 v21:

4)(b) Explain how government subsidies can increase the size of firms. [4]
6)(c) Analyse how monetary policy could increase the price level. [6]

May/June 2015 v23:

1)(d) Analyse how a subsidy to farmers may affect the market for food. [5]
2)(d) Discuss whether a rise in unemployment will cause a fall in inflation. [8]
6)(c) Analyse how two supply-side policy measures could improve the performance of an airline industry.
[6]

May/June 2015 v22:

7)(a) Define ‘monetary policy’. [2]

58
May/June 2015 v21:
3)(d) Discuss whether the building of houses should be subsidised. [8]
7)(c) Analyse how supply-side policy measures could increase productivity. [6]

Feb/March 2015 v22:

1)(e) Explain two ways a government could try to increase investment. [4]
1)(f) Discuss whether governments should encourage households to borrow more. [5]
3)(d) Discuss whether a government should regulate supermarket firms. [8]
4)(c) Analyse how monetary policy can reduce the rate of inflation. [6]

Oct/Nov 2014 v23:

5)(c) Discuss whether fiscal policy, rather than monetary policy, is always a better way to bring down
the rate of inflation in an economy. [8]

Oct/Nov 2014 v22:

6)(d) Discuss whether there is likely to be a conflict between the government aims of low inflation and
low unemployment. [6]

Oct/Nov 2014 v21:

1) (a) Define ‘Gross Domestic Product’. [2]
1) (b) Using information from the extract, calculate the Gross Domestic Product per head in Mauritius in
2011. [2]
1) (c) Discuss the extent to which economic growth is advantageous for a country. [6]

May/June 2014 v23:

59
 1)(e) Analyse whether the information in Table 1 supports the view that an increase in GDP reduces
unemployment and a decrease in GDP raises unemployment. [4]
5)(c) Analyse why a reduction in the rate of interest may cause inflation. [6]

May/June 2014 v22:

6) (a) What is meant by ‘monetary policy’? [2]

O/N 2014 v23:

5) (d)Discuss whether or not the government should intervene in the economy using subsidies. [8]

O/N2013 V33:
2) a) Define supply-side policy. [2]

M/J 2012 V32:

c) Explain how raising the rate of interest can reduce aggregate demand. [4]

O/N 2012 V31

What is meant by fiscal policy? [2]

O/N 2012 V21

4) c) Analyze how the government could encourage people to spend a higher proportion of their income.
[6]

O/N 2012 V31

e) Discuss Whether a reduction in consumption of palm oil by Pakistan would reduce global CO2
emissions. [6]

M/J 2011 V21

2) (c)Discuss whether government intervention is always successful in correcting a market failure. [8]

60
o Ch.18: Economic Growth.

Oct/Nov 2017 v23:

1) (c) Calculate, using information from the extract:
(i) the value in US$ of China’s contribution to global GDP growth in 2015 [2]
4)(b) Explain two disadvantages of a decrease in a country’s output. [4]
7(d) Discuss whether monetary policy measures can increase economic growth. [8]

61
Oct/Nov 2017 v22:
6(d) Discuss whether a government should increase tax rates during a recession. [8]

Oct/Nov 2017 v21:

4)(b) Explain two reasons for conserving resources. [4]

May/June 2017 v23:

7)(b) Explain two reasons why governments aim for economic growth. [4]

May/June 2017 v22:

1)(e) Discuss whether Botswana should mine all its diamonds and sell them as quickly as possible. [5]

May/June 2017 v21:

1)(d) Analyse how a global recession could affect demand for sea transport. [5]
4)(b) Explain two benefits that an economy may gain as a result of the discovery of oil on its land. [4]
4)(d) Discuss whether a country would benefit from devoting more resources to producing capital goods.
[8]

Oct/Nov 2016 v23:

1)(b) Calculate Mauritania’s economic growth rate in 2013. [3]
1)(h) Discuss whether an economy should or should not conserve its fish stocks. [6]
7)(b) Explain two causes of a high economic growth rate. [4]

Oct/Nov 2016 v21:

4)(a) Define ‘GDP per head’. [2]

62
May/June 2016 v23:
3)(c) Analyse why households and firms may borrow more during times of rapid economic growth. [6]

May/June 2016 v22:

6)(c) Analyse how an increase in bank lending can increase economic growth. [6]

May/June 2016 v21:

1)(b) Calculate the total output of car parts in US$ in 2013. [3]
5)(c) Analyse the effect of a decrease in resources on government economic aims. [6]

Oct/Nov 2015 v22:

7) (c) Analyse how an increase in investment may increase a country’s economic growth rate. [6]

Oct/Nov 2015 v21:

1)(c) (i) Explain why high economic growth can increase investment. [4]
(ii) Using Table 1, comment on whether the information supports the view that high economic
growth leads to a high rate of investment. [3]
2)(c) Analyse why economic growth may increase demand for electricity. [6]

May/June 2015 v23:

1)(b) Using information from Fig. 1:
(i) describe what happened to output in Lesotho between 2008 and 2009 [2]
(ii) explain in which year output was highest in Lesotho. [2]
3)(d) Discuss whether an economy will benefit from its forests being cut down. [8]

May/June 2015 v22:

63
4) a) Define ‘Gross Domestic Product’. [2]
4)(b) Explain two benefits of an increase in Gross Domestic Product. [4]
5)(b) Explain two causes of economic growth. [4]

May/June 2015 v21:

1)(c) Using information in Table 1, describe what happened to:
(ii) Sweden’s GDP between 2009 and 2010. [2]
7)(a) Define ‘recession’. [2]

Feb/March 2015 v22:

1)(a) Using information from the extract, explain whether India experienced a recession or economic
growth in 2013. [2]
2)(d) Discuss whether devoting more of its resources to fishing would benefit an economy. [8]
6) (b) Explain two reasons why a country may have a low GDP per head. [4]

Oct/Nov 2014 v23:

1)(d) Using information from the extract, calculate what would have been the estimated size of the
informal economy in Bulgaria in 2012 in US$. [1]
1)(e) Using information from the extract, explain why such a large percentage of the Bulgarian Gross
Domestic Product goes unrecorded. [3]

Oct/Nov 2014 v22:

1)(c) Using information from the extract, explain two reasons why Japan’s government debt, as a
percentage of Gross Domestic Product, is so high. [4]
2)(d) Discuss whether a decision to cut down trees for wood is an appropriate use of a scarce resource.
[8]

May/June 2014 v23:

64
 1)(h) Discuss whether the Bahamas should exploit any oil reserves it may find. [6]

May/June 2014 v22:

6) (c) Analyse how an increase in government spending may cause economic growth. [6]

May/June 2014 v21:

1)(a) Define ‘economic growth’. [3]
5)(a) Describe two influences on the amount people spend. [4]

O/N 2010 v21:

5) (b) Analyze the economic policies might the government of a developing country use to reduce the
problem of food shortages? [6]

O/N 2014 v23:

6) (c) What is meant by real gross domestic product? [2]

O/N 2014 v23:

6) (c) What is meant by real gross domestic product? [2]

O/N 2012 v33:

d) Discuss whether other countries would benefit from Ecuador preventing oil extraction. [6]

o Ch.19: Employment.

Oct/Nov 2017 v22:

1) (d) Analyse why an increase in unemployment might cause an increase in government spending. [5]
(6) c) Analyse how an increase in the rate of interest could increase unemployment. [6]

65
Oct/Nov 2017 v21:
6)(a) Identify two ways in which a high rate of unemployment may affect firms. [2]
7)(c) Analyse the effects that an increase in the labour force will have on an economy. [6]

May/June 2017 v22:

7)(a) Identify two problems that prevent a worker finding employment. [2]
7)(b) Explain two costs of long-term unemployment to those who are unemployed. [4]

May/June 2017 v21:

1)(c) Calculate, using information from the extract:
(ii) the amount the Egyptian Government spent on healthcare in 2015. [2]
7) (c) Analyse how a reduction in government spending on education could cause unemployment.

Feb/March 2017 v22:

7)(d) Discuss whether government policy measures can reduce unemployment. [8]

Oct/Nov 2016 v23:

2)(c) Analyse how wage rises may cause unemployment. [6]
7)(c) Analyse how the pattern of employment within a country tends to change as the economy develops.
[6]
7)(d) Discuss whether an increase in tariffs on imports would reduce unemployment. [8]

Oct/Nov 2016 v22:

5)(a) Define ‘unemployment’. [2]

Oct/Nov 2016 v21:

1)(f) Discuss whether a cut in the rate of interest will increase a country’s economic growth rate. [5]
5)(d) Discuss whether workers who lose their jobs are likely to still be unemployed a year later. [8]

66
May/June 2016 v23:
1)(d) Calculate how many more people were unemployed in China than in South Korea in 2013. [3]

May/June 2016 v22:

3)(b) Explain two reasons why someone may be of working age but not in the labour force. [4]
3)(c) Analyse what may cause an increase in a country’s labour force. [6]
3)(d) Discuss whether an economy will benefit from having a younger labour force. [8]

Feb/March 2016 v22:

4)(a) Identify two costs of unemployment. [2]
4)(c) Analyse how a reduction in government spending may affect unemployment. [6]
5)(b) Explain why there may be some people unemployed whilst there are job vacancies. [4]

Oct/Nov 2015 v22:

3)(d) Discuss whether the wages of all workers will increase during a period of economic growth. [8]
4) (d) Discuss whether a country would benefit from having full employment. [8]

Oct/Nov 2015 v21:

5) (d) Discuss whether unemployment always harms an economy. [8]

May/June 2015 v22:

5) (a) Define ‘unemployment’. [2]

May/June 2015 v21:

5)(c) Analyse two reasons why unemployment may increase. [6]

67
Feb/March 2015 v22:
5)(c) Analyse why the pattern of employment in a country may change over time. [6]
5)(d) Discuss whether a government should aim for an unemployment rate as low as 0.5%. [8]

Oct/Nov 2014 v23:

1)(a) Explain what is the difference between the rate of unemployment and the level of unemployment.
[2]
1)(b) Analyse three ways a government could reduce the rate of unemployment in a country. [6]

Oct/Nov 2014 v22:

6)(c) Distinguish between frictional and cyclical unemployment. [4]

Oct/Nov 2014 v21:

1) (f) Using Table 1, calculate the percentage of the labour force in Mauritius employed in the
services (tertiary) sector. [2]

May/June 2014 v23:

1)(d) Explain why an increase in a country’s GDP is likely to reduce unemployment. [3]
1)(g) Explain how the two supply-side policy measures mentioned in the extract may reduce
unemployment. [4]

May/June 2014 v22:

6) (d) Discuss whether a reduction in a country’s unemployment rate will always benefit an economy. [8]

May/June 2014 v21:

7)(b) Explain why governments aim for low unemployment. [6]

O/N 2014 v23:

68
 6) (b) Analyse the possible consequences of unemployment for a country. [6]

O/N 2011 V21

5) (a) Define full employment. [2].
Define the unemployment rate [2].
5) c) Discuss whether a rise in employment always benefit an economy. [8]

O/N 2010 v21:

3)(b) Apart from lack of skills, explain three other reasons that might prevent a person moving from one
job to another. [6]

3)(d) Analyze how a government might influence the demand for and the supply of labour. [6]

O/N 2010 v22:

5)(a) Describe what is meant by full employment. [3]

5)(b) Explain different types of unemployment that can exist in an economy. [6]

o Ch.20: Inflation.

Oct/Nov 2017 v23:

7)(a) Identify two causes of inflation. [2]

Oct/Nov 2017 v22:

1)(b) Explain two problems caused by inflation. [4]

69
1) (c) Calculate, using information from the extract:
(ii) the consumer prices index in China at the end of 2015. [2]
1) (g) Discuss whether a decrease in income tax would reduce deflation. [6]
5)(c) Analyse the effects of an increase in unemployment on inflation. [6]

Oct/Nov 2017 v21:

4) (a) What is used to measure a country’s inflation rate? [2]
6)(b) Explain two causes of deflation. [4]
6)(c) Analyse the disadvantages of a very high rate of inflation. [6]
6)(d) Discuss whether increased government spending on training will always reduce inflation. [8]

May/June 2017 v23:

5)(d) Discuss whether inflation causes more problems than deflation. [8]

May/June 2017 v21:

5)(a) Define ‘inflation’. [2]
5)(d) Discuss whether a low inflation rate always benefits an economy. [8]

Feb/March 2017 v22:

5)(c) Analyse how an increase in tourism can increase a country’s inflation rate. [6]

Oct/Nov 2016 v23:

6)(c) Analyse how an increase in spending on education could increase inflation in the short run but
decrease it in the long run. [6]

Oct/Nov 2016 v22:

4)(a) Define ‘deflation’. [2]
4)(b) Explain the difference between demand-pull inflation and cost-push inflation. [4]

Oct/Nov 2016 v21:

70
2)(d) Discuss whether an increase in taxes will cause deflation. [8]

May/June 2016 v23:

6)(a) What is meant by an inflation rate increasing? [2]

May/June 2016 v22:

1)(d) Calculate the rate of inflation in Indonesia in 2014. [3]
5)(a) Define a ‘weighted price index’. [2]
5)(d) Discuss whether a cut in the rate of interest would end deflation. [8]

Oct/Nov 2015 v22:

5)(c) Analyse how an increase in the money supply may cause inflation and a fall in saving. [6]
5)(d) Discuss whether price stability should be a government’s main economic aim. [8]

Oct/Nov 2015 v21:

5)(b) Explain how a country’s inflation rate is measured. [4]

May/June 2015 v23:

2)(a) Define ‘inflation’. [2]

May/June 2015 v22:

1) (b) Using information in Fig. 1:
(i) describe what happened to the price level in Panama between 2008 and 2009 [2]
(ii) explain in which year the price level was highest in Panama. [2]
1)(c) Using information from the extract and in Fig. 1, explain the likely effects of Peru and Panama
having different average annual inflation rates between 2008 and 2013. [4]
5)(c) Analyse why a fall in the inflation rate may reduce a country’s unemployment rate. [6]
5)(d) Discuss whether a decrease in government spending will reduce inflation. [8]

Feb/March 2015 v22:

71
 1)(c) Using information from the extract, explain what is likely to have happened to the price of gold in
India in 2013. [3]
4)(a) Define ‘consumer prices index’. [2]
4)(d) Discuss whether deflation always harms an economy. [8]

Oct/Nov 2014 v23:

5)(a) Describe how changes in the price level are measured in an economy. [5]
5)(b) Explain how a situation of ‘too much money chasing too few goods’ can lead to inflation. [5]

Oct/Nov 2014 v22:

1)(a) Explain what is meant by ‘deflation’. [2]
6)(a) Distinguish between demand-pull and cost-push inflation. [4]
6)(b) Explain three reasons why inflation is regarded as a serious economic problem. [6]

May/June 2014 v23:

5) (a)Explain what is meant by a fall in the rate of inflation. [2]
5)(d) Discuss whether inflation harms everyone in an economy. [8]

May/June 2014 v22:

6)(b) Explain two reasons why governments aim for low and stable inflation. [4]

May/June 2014 v21:

1)(d) Explain why countries with high inflation rates tend to have higher interest rates than those with
lower inflation rates. [3]
1)(e) Analyse whether the information in Table 1 supports the view that countries with high inflation
rates have higher interest rates than those with lower inflation rates. [5]

M/J 2012 V31

72
 6) (b) Explain why spending on capital equipment may decrease during a period of a harmful fall in the
price level. [6]

M/J 2011 V22

6) (b) Analyze how a consumer price index can be calculated. [6]

Unit 5: Economic
Development:
73
o Ch.21: Standard of Living.

Oct/Nov 2017 v23:

7)(c) Analyse how an increase in labour productivity can increase living standards. [6]

Oct/Nov 2017 v22:

3)(d) Discuss whether the rich in one country will save more than the rich in another country. [8]
6)(b) Explain two causes of an increase in living standards. [4]
7(d) Discuss whether producing more food will increase living standards. [8]

74
Oct/Nov 2017 v21:
1)(e) Discuss whether people in countries with a high HDI always enjoy a high standard of living.
[5]
4)(c) Analyse how subsidies given to farmers could raise living standards. [6]
7)(d) Discuss whether providing loans to the poor will reduce poverty. [8]

May/June 2017 v23:

6)(a) Define the ‘Human Development Index’. [2]
6)(c) Analyse how a reduction in the rate of interest could reduce poverty. [6]
(d) Discuss whether rapid economic growth always increases living standards. [8]

May/June 2017 v22:

4)(c) Analyse why the elimination of absolute poverty would not solve the economic problem. [6]
4)(d) Discuss whether Gross Domestic Product (GDP) per head is the best measure of comparative
living standards. [8]
7)(d) Discuss whether increasing government spending will reduce poverty. [8]

Feb/March 2017 v22:

4)(b) Explain two indicators of living standards. [4]
4)(c) Analyse how fiscal policy can produce a more even distribution of income. [6]

Oct/Nov 2016 v23:

1(f) Discuss whether a decrease in unemployment will always reduce poverty. [5]
5)(c) Analyse three ways in which a country’s HDI value could increase. [6]

75
Oct/Nov 2016 v22:
1)(f) Discuss whether the Human Development Index is a good measure of living standards. [5]

May/June 2016 v23:

4)(b) Explain two measures of comparative living standards. [4]
6)(c) Analyse how a fall in unemployment may increase inflation. [6]
7)(a) Define ‘absolute poverty’. [2]
7)(d) Discuss whether increased spending on education will always reduce absolute poverty. [8]

May/June 2016 v22:

1)(a) Using information from the extract, identify two indicators of improved living standards in
Indonesia. [2]

May/June 2016 v21:

6)(d) Discuss whether an increase in a country’s labour force will increase income per head. [8]

Feb/March 2016 v22:

1)(c) Using information from the extract, calculate the rise in GDP per head in India from 2012 to
2013. [3]
1) (h) Discuss whether food subsidies reduce poverty. [6]

Oct/Nov 2015 v22:

1)(c) (i) Explain why people in countries with a higher GDP per head have a longer life expectancy
than people in countries with a lower GDP per head. [2]
(ii) Using Table 1, comment on whether the information supports the view that countries with a
higher GDP per head have a longer life expectancy than countries with a lower GDP per head. [3]
7)(d) Discuss whether fiscal policy measures will reduce poverty. [8]

Oct/Nov 2015 v21:

3)(b) Explain two ways a government could redistribute income from the rich to the poor. [4]

76
May/June 2015 v22:
1)(a) Using information from the extract, identify two reasons why Panama had a higher Human
Development Index (HDI) value than Peru in 2013. [2]
1)(d) Discuss whether a fall in the unemployment rate will reduce poverty. [5]
2)(d) Discuss whether graduates should pay the full cost of their university education. [8]
4)(c) Analyse why a country may have a high HDI value. [6]

May/June 2015 v21:

5)(d) Discuss whether a reduction in government spending on education will reduce living
standards. [8]

Feb/March 2015 v22:

6)(c) Analyse how a rise in tax rates may influence poverty. [6]
(6)d) Discuss whether a fall in GDP may reduce living standards. [8]

Oct/Nov 2014 v23:

1)(f) Discuss whether the Human Development Index is a perfect measure to compare living
standards in different countries. [6]
6)(c) Explain what is meant by ‘absolute poverty’. [2]

Oct/Nov 2014 v21:

6)(a) Distinguish between relative poverty and absolute poverty. [2]
(c) Discuss whether GDP per head is the best way to compare living standards in different
countries. [8]

May/June 2014 v23:

6)(b) Explain two measures of living standards. [4]
6)(c) Analyse how a rise in productivity may increase living standards. [4]

77
May/June 2014 v22:
1)(f) Discuss whether an increase in a country’s GDP will reduce poverty in that country. [5]
2)(d) Discuss whether an economy would benefit from an increase in the provision of health care.
[8]

M/J 2013 V22

7) b) Explain how the human development index is measured. [6]

M/J 2011 V22

7)(a) Analyze how a country measures its living standard. [6]
7)(c) Analyze the actions the government can take to reduce poverty. [8]

O/N 2011 V22

5)d) Discuss whether a government should increase its spending on education and health care rather
than spending on other forms of expenditures.[8]

O/N 2011 V23

5)b) Discuss whether the government should try to redistribute the income more evenly. [8]

o Ch.22: Population.

Oct/Nov 2017 v23:

1) (b) Explain two causes of a fall in the birth rate. [4]
6)(c) Analyse why developed countries usually have lower death rates than developing countries.
[6]
1) c) Calculate, using information from the extract:
(ii) the number of children born in Nauru in 2015. [2]

Oct/Nov 2017 v22:

78
6(a) Identify two influences on the size of a country’s population. [2]

Oct/Nov 2017 v21:

5)(d) Discuss whether a government should be concerned about a growing deficit on the current
account of its balance of payments. [8]

May/June 2017 v23:

4) (d) Discuss whether an economy will benefit from recruiting workers from other countries. [8]

May/June 2017 v22:

5)(d) Discuss whether an ageing population benefits an economy. [8]
6) (d) Discuss the economic arguments for and against a government raising the school-leaving age.
[8]

May/June 2017 v21:

1)(e) Discuss whether a fall in a country’s death rate will always result in an increase in its population
size. [5]
6)(a) Identify two causes of a fall in a country’s birth rate. [2]
6)(b) Explain two reasons why more educated people tend to live longer than less educated people. [4]
6)(d) Discuss whether the government of a country should reduce the pensions it pays to retired people. [8]

Oct/Nov 2016 v23:

1)(g) Using information from the extract, explain whether the population of Mauritania increased
or decreased in 2013. [4]
5)(d) Discuss whether a government should encourage some of the country’s people to work
abroad. [8]

Oct/Nov 2016 v22:

1)(b) Calculate how many children were born in Turkey in 2014. [2]
1)(h) Discuss whether countries with high population growth have high economic growth. [6]

79
Oct/Nov 2016 v21:
3)(d) Discuss whether population growth is likely to exceed the growth of food production in the future.
[8]
6)(a) Identify two reasons why a country may have more women than men. [2]
6)(b) Explain two causes of a fall in the death rate. [4]
6)(c) Analyse three policy measures a government could introduce to increase the birth rate. [6]
6)(d) Discuss whether the government of a country with an ageing population should raise the
retirement age. [8]

May/June 2016 v23:

3)(b) Explain two reasons why firms may prefer to employ local managers rather than foreign
managers. [4]
4)a) Identify two influences on a country’s birth rate. [2]
5)(d) Discuss whether living standards are likely to be higher in a mixed economy or a market
economy. [8]

May/June 2016 v21:

7)(d) Discuss whether living standards are always lower in developing countries than in developed
countries. [8]

Feb/March 2016 v22:

1)(d) Discuss whether an increase in a country’s population size will cause an increase in living
standards. [8]

Oct/Nov 2015 v22:

1)(d) Using information from the extract, explain two reasons why emigration from Mexico has fallen. [4]

Oct/Nov 2015 v21:

1) (d) Using information from the extract, explain whether Cambodia experienced an increase or a
decrease in population in 2012. [2]

80
 7)(b) Explain two reasons why the world population in 2050 may be more than forecast. [4]
7)(c) Analyse how the population structure of a developing country is likely to differ from that of a
developed country. [6]
7)(d) Discuss the effectiveness of possible government policy measures to reduce the growth of
population. [8]

May/June 2015 v23:

1)(e) Discuss whether Lesotho would benefit from more of its people working abroad. [5]
7)(c) Analyse the effects of a rise in unemployment on living standards in a country. [6]

May/June 2015 v22:

6)(a) Define ‘death rate’. [2]
6) (b) Explain two causes of a fall in a country’s death rate. [4]
6) (c) Analyse why people may migrate to a country with a high unemployment rate. [6]

May/June 2015 v21:

1) (b) Explain how a rise in the retirement age may increase a country’s economic growth rate. [4]
1(d) Discuss whether a country will benefit from the emigration of some of its people. [8]
6)(a) Define ‘birth rate’. [2]
6)(b) Explain two causes of a high birth rate. [4]

Feb/March 2015 v22:

5)(a) Define ‘fertility rate’. [2]
5)(b) Explain two reasons why a country may have more males than females in its population. [4]
7)(b) Explain two economic reasons why someone may decide to work in another country. [4]

81
Oct/Nov 2014 v23:
1)(g) Define the terms ‘birth rate’ and ‘death rate’. [4]
1)(h) Discuss whether the Bulgarian Government should try to reverse the decline in the country’s
population size. [6]

Oct/Nov 2014 v22:

1)(g) Using Table 2, calculate the difference between average life expectancy in Japan and Kenya. [1]
1)(h) Discuss whether an ageing population is always a problem for an economy. [6]

Oct/Nov 2014 v21:

(b) Explain three reasons why some developing countries experience immigration. [6]

May/June 2014 v23:

1)(f) Discuss whether a fall in the birth rate will benefit an economy. [5]

May/June 2014 v22:

1)(d) Explain why countries with a high population growth rate may have a lower average income
than countries with a lower population growth rate. [3]
1)(e) Analyse whether the information in Table 1 supports the view that countries with a high
population growth rate have a lower average income than countries with a lower population
growth rate. [4]

May/June 2014 v21:

1)(b) Using information from the extract, explain why Mongolia’s Human Development Index value is
likely to increase in the future. [2]
6)(a) Describe how the birth rate differs from the fertility rate. [4]
6)(b) Analyse how an increase in average incomes may influence a country’s population size. [6]

82
 (c) Discuss whether a government should be concerned about a fall in the country’s population size. [8]

O/N 2013 V32

6) a) Explain how the rate of population growth may differ between a developed country and a
developing country. [4]
6) c) Explain what is meant by an ageing population. [2]

O/N 2013 V32

2) b) Discuss whether an economy will benefit from net immigration. [6]

M/J 2012 V21

6) c) Discuss whether a country should be worried about having an aging population. [8]

O/N 2012 V33

2)b)Explain two reasons why a country’s fertility rate may fall but its population size increases. [4]

O/N 2011 V21

5)c) Discuss whether a rise in the population of the country should always be regarded as undesirable.
[8]

O/N 2011 V22

6)b) Explain what influences a country’s birth rate. [6]

O/N 2011 V23

7)a) describe what is meant by net emigration. [2]
7)b) Explain why some people might emigrate. [6]

May/June 2010 v22:

83
 6)(b) Explain the reasons for the different rates of population growth in different countries. [6]

O/N 2010 v22:

6)a) (i) What is meant by net migration? [2]

(ii) Identify two other factors that influence the size of a country’s population. [2]

o Ch.23: Difference in Economic Development between countries.

Feb/March 2017 v22:

(b) Explain two characteristics of a rapidly developing economy. [4]

Feb/March 2016 v22:

1)(d) Explain two characteristics of the US mentioned in the extract that suggest that it is a developed
country. [4]
7)(d) Discuss how population problems in developing countries may differ from those in developed
countries. [8]

Oct/Nov 2015 v22:

84
 7)(a) Identify two characteristics of a developed country. [2]

May/June 2015 v23:

1)(a) Using information from the extract, identify three reasons why Lesotho is considered to be a
developing country. [3]

May/June 2015 v21:

1)(a) Using information from the extract, identify two reasons why Sweden is considered to be a highly
developed country. [2]

Feb/March 2015 v22:

(a) Define ‘developed country’. [2]

Oct/Nov 2014 v23:

6)(a) Describe three features of a developing country. [6]
6)(b) Describe the changes that are likely to occur as a country becomes more developed in
(i) its occupational structure, and
(ii) the geographical distribution of its population. [4]
6)(d) Discuss whether government policies can always reduce poverty in a developing country. [8]

May/June 2014 v23:

6)(a) Identify four characteristics of a developed country. [4]
6)(d) Discuss whether developed countries are likely to attract more foreign investment than
developing countries. [8]

85
M/J 2012 V21
6) b) Explain the main feature of a country being classified as developing country. [6]

O/N 2010 v21

5) (C) Explain how might low rainfall have such a disastrous effect in many developing countries? [4]

Part 3: International
Economics

86
 Unit 6: International
Trade and
Globalization:

o Ch.24: Specialization and International Trade.

Oct/Nov 2017 v23:

1) (g) Discuss whether engaging in free trade increases living standards in a country. [6]
2) (b) Explain two reasons why a country might want to restrict exports. [4]
5)(a) Identify two reasons why a government may place an embargo on the import of a product. [2]
6)(a) Define ‘trade protection’. [2]
6)(b) Explain two advantages of countries specialising. [4]

Oct/Nov 2017 v22:

2)(d) Discuss whether low unemployment in a country will encourage multinational companies
(MNCs) to set up there. [8]
4)(b) Explain how two methods of trade protection may reduce imports. [4]

87
 7)(a) Define ‘specialisation’. [2]

Oct/Nov 2017 v21:

3)(d) Discuss whether a country that engages in free trade is likely to have a higher economic growth
rate than one that uses trade protection. [8]

May/June 2017 v23:

7)a) Define ‘free trade’. [2]
7)(d) Discuss whether multinational companies (MNCs) will always locate in countries with a high
GDP per head. [8]

May/June 2017 v22:

1)(a) Identify, using information from the extract, two reasons why a foreign diamond company may
set up in Botswana. [2]
1)(b) Explain two benefits that a country may gain from the presence of a foreign multinational
company. [4]
6)(b) Explain how money helps specialisation and trade to occur. [4]

May/June 2017 v21:

1)(g) Discuss whether a government should protect infant industries. [6]
5)(b) Explain why a country’s exports to one country may increase, while those to another
country decrease. [4]

Feb/March 2017 v22:

6)(d) Discuss whether a decrease in imports would increase a country’s economic growth rate.
[8]

Oct/Nov 2016 v22:

3)(c) Analyse the advantages that a country may gain from specialising in a product such as
smartphones. [6]
3)(d) Discuss whether protectionism saves jobs. [8]

88
5)(b) Explain two benefits that a firm may gain from producing in another country. [4]

Oct/Nov 2016 v21:

4)(d) Discuss whether a fall in a country’s GDP will result in net emigration. [8]
5)(a) Define ‘specialisation’. [2]

May/June 2016 v23:

1)(h) Discuss whether a government should protect its country’s shipbuilding industry. [6]

May/June 2016 v22:

1)(e) Analyse two benefits of specialisation referred to in the extract. [4]
1)(h) Discuss whether free trade always benefits producers. [6]

(d) Discuss whether consumers would benefit from an increase in imports. [8]

May/June 2016 v21:

1)(f) Discuss whether a declining car industry should be protected by the government. [5]
3)(c) Analyse three ways in which international trade differs from internal trade. [6]
4)(c) Analyse how an increase in exports could increase a country’s employment rate and inflation
rate. [6]

Feb/March 2016 v22:

6) (a) Define an ‘export quota’. [2]
6)(d) Discuss whether a country exporting its raw materials always benefits its economy. [8]

Oct/Nov 2015 v22:

1) (b) Using information from the extract, explain two benefits of free trade for Mexican firms. [4]
2)(c) Analyse how an increase in international travel may influence incomes. [6]

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Oct/Nov 2015 v21:
4) (d) Discuss whether imposing tariffs will benefit an economy. [8]

May/June 2015 v23:

1)(f) Explain two reasons why governments impose tariffs. [4]
5)(d) Discuss whether an economy would benefit from a foreign producer setting up in the country.
[8]

May/June 2015 v22:

1) (e) Analyse why countries specialise and trade. [5]
7) (d) Discuss whether a reduction in a country’s trade protection will improve its economic
performance. [8]

May/June 2015 v21:

1)(f) Discuss whether a fall in a country’s inflation rate will increase the international
competitiveness
of its products. [5]
5)(a) Define ‘multinational company’. [2]
6)(d) Discuss whether a reduction in its imports will always benefit an economy. [8]

Feb/March 2015 v22:

3)(c) Analyse what determines in which countries a multinational company produces. [6]

Oct/Nov 2014 v23:

4)(a) Describe two reasons why car production is usually undertaken by large multinational
companies. [4]

90
4)(d) Discuss whether the establishment of a multinational company in a country will always be
beneficial for all the workers it employs.

Oct/Nov 2014 v22:

7(a) Explain what is meant by ‘specialisation’. [4]
7)(b) Describe the benefits and disadvantages of specialisation at a regional level. [6]
7)(c) Discuss whether an economy will always benefit from an increase in international trade. [10]

Oct/Nov 2014 v21:

1)(g) Using information from the extract, explain why there has been substantial investment by
foreign firms in Mauritius in recent years. [4]
1) (h) Discuss whether an economy would benefit from becoming less specialised and having a
greater range of different industries. [6]
7)(c) Describe two methods of trade protection that a country could use. [4]
7)(d) Discuss whether trade protection should always be preferred to free trade. [6]

May/June 2014 v23:

7)(d) Discuss whether engaging in free trade will always benefit an economy. [8]

May/June 2014 v22:

1)(a) Why is the Angolan economy considered to be ‘specialised’? [2]
5)(a) Define a ‘multinational company’. [2]
5)(b) Explain one goal a multinational company may have other than profit maximisation. [3]
5)(d) Discuss whether a mine operated by the government would be more likely to benefit an
economy than one operated by a foreign multinational company. [8]

May/June 2014 v21:

91
 1)(f) Discuss whether a rise in a country’s exchange rate will reduce its international
competitiveness. [6]

O/N 2013 V22

7) a) Explain three benefits of free trade. [6]
7)b) Distinguish between quotas and exchange controls as methods of trade protection. [4]
7)c) Explain how subsidy can be used to protect an industry from foreign competition. [4]
7)d) Discuss whether government should protect a declining and inefficient industry in a country. [6]

O/N 2013 V33

e) Discuss whether attracting more multinational companies will reduce a developing country’s
unemployment rate. [6]

M/J 2013 V33

2) a) What is meant by ‘embargo’.[2]

O/N 2011 V22

6)b) Discuss whether encouraging multinational companies to come and locate in the country would
reduce the country’s level of poverty. [8]

May/June 2010 v22:

7)(c) Describe two methods of trade protection.

7)(d) Discuss whether a country should impose more trade restrictions.[8]

O/N 2010 v22:

7)(c) What is meant by specialisation? [4]
7) (d) Discuss the benefits and disadvantages of specialisation at the national level. [6]

O/N 2010 v23:

92
7) (a) Explain two factors, other than the change in the exchange rate that coulf cause an increase in
the volume of a country’s import.[4]

o Ch.25: Balance of Payments.

Oct/Nov 2017 v23:

6)(d) Discuss whether a rise in income tax will reduce a current account deficit. [8]

Oct/Nov 2017 v22:

5)(b) Explain two reasons why a country may stop exporting a product. [4]
7)(c) Analyse how a country could reduce its reliance on imports. [6]

May/June 2017 v23:

93
1)(g) Discuss whether a government should use trade protection to reduce a current account deficit.
[6]
3)(b) Explain two effects of a country having a surplus on the current account of its balance of
payments. [4]

Oct/Nov 2016 v23:

1)(d) State the two parts of a country’s current account balance not identified in the extract. [2]

Oct/Nov 2016 v21:

1)(h) Discuss whether a government should try to reduce a surplus on the current account of its
country’s balance of payments. [6]

May/June 2016 v23:

2)(d) Discuss whether improving the quality of the coffee that a country produces will result in a
surplus on the current account of its balance of payments. [8]

May/June 2016 v22:

7)(d) Discuss whether developing countries should encourage foreign tourism. [8]

May/June 2016 v21:

6)(b) Explain two disadvantages of a decrease in a country’s export revenue. [4]

Feb/March 2016 v22:

7) (a) How are earnings received by a country from foreign tourism recorded in the current account
of its balance of payments? [2]
7) (b) Explain two factors that could cause an increase in foreign tourists to a country. [4]

Oct/Nov 2015 v22:

2)(d) Discuss whether demand for international travel is likely to continue to increase. [8]

94
6)(b) Explain two reasons why a country’s export revenue might increase when export prices rise.
[4]
6)(c) Analyse how a government could increase the surplus on the country’s current account of the
balance of payments. [6]

Oct/Nov 2015 v21:

1) (a) Using information from the extract, calculate the value of Cambodia’s clothing exports in
2012. [2]
1) (e) Discuss whether building more roads and ports would increase Cambodia’s exports of rice.[5]

May/June 2015 v23:

1)(g) Discuss whether a rise in China’s Gross Domestic Product is likely to reduce Lesotho’s current
account deficit. [6]

May/June 2015 v22:

4)(d) Discuss whether a rise in demand for copper would cause Chile to experience a current account
surplus. [8]

May/June 2015 v21:

1) (c) Using information in Table 1, describe what happened to:
(i) Sweden’s current account position over the period shown [2]

Feb/March 2015 v22:

1)(d) Using Table 1, comment on the relationship shown between the change in world GDP and
India’s export revenue. [4]
1)(g) Using information from the extract, explain the opportunity cost of exporting onions. [2]
1)(h) Discuss whether India is likely to be a net importer or a net exporter of onions in the future. [6]
7)(c) Analyse how a more educated labour force could reduce a country’s current account deficit on
its balance of payments. [6]

95
Oct/Nov 2014 v23:
1)(c) Using information from the extract, calculate the percentage increase in migrant remittances
sent home by Bulgarians between 2008 and 2012. [2]
7)(a) Explain two consequences of a current account deficit. [4]
7)(b) Analyse what can cause a surplus in the current account of the balance of payments. [8]
7)(c) Discuss whether a current account surplus is always to be regarded as desirable. [8]

Oct/Nov 2014 v22:

1)(b) Using information from the extract, calculate the level of government debt in US$ in Japan in
2011. [1]

Oct/Nov 2014 v21:

5) (a) Explain what is meant by ‘a current account deficit of the balance of payments’. [4]
7)(b) Analyse why the depreciation of its currency’s exchange rate may lead to a reduction in a
country’s current account deficit. [6]

May/June 2014 v23:

2)(d) Discuss whether an increase in the quality of a country’s factors of production will always
increase its exports. [7]
7)(a) Describe what is meant by a current account surplus. [4]
7)(d) Discuss whether engaging in free trade will always benefit an economy. [8]

May/June 2014 v22:

7)(a) Describe how a tariff could reduce imports. [4]
7)( (b) Analyse three causes of a current account deficit. [6]
7)( (c) Discuss whether a government should always be concerned about a growing current account
deficit. [8]

96
May/June 2014 v21:
7)(a) Describe two reasons why a country’s exports may increase. [4]

May/June 2013 v32:

(e) Discuss whether an increase in tourism will benefit the economy. [6]

M/J 2012 V21

7) c) Explain how a country could increase its exports. [6]

M/J 2011 V21

7)(d) Discuss whether an improvement in a country’s current account position will result in an
increase in employment. [8]

O/N 2010 v22:

7)(b) Explain the policies a government could use to reduce a deficit on the current account of the
balance of payments. [6]

o Ch.26: Foreign Exchange Rates.

Oct/Nov 2017 v23:

1) (e) Discuss whether a firm would benefit from a fall in its country’s exchange rate. [5]
4)(a) Define ‘devaluation’. [2]

May/June 2017 v23:

4)(c) Analyse the causes of an increase in a country’s exchange rate. [6]
5)(b) Explain the difference between a fixed exchange rate and a floating exchange rate. [4]

May/June 2017 v22:

97
3)(c) Analyse how a fall in the rate of interest may affect a country’s exchange rate. [6]

May/June 2017 v21:

5|)(c) Analyse how an appreciation of the exchange rate may reduce the country’s inflation rate.
[6]

Oct/Nov 2016 v23:

1(a) Describe the opportunity cost of Mauritania exporting fish. [2]
2)(d) Discuss whether a government should devalue the country’s exchange rate. [8]
7)(a) Define ‘a depreciation’ in the value of a currency. [2]

Oct/Nov 2016 v22:

1)(e) Analyse how the change in Indonesia’s exchange rate in 2014 is likely to have affected the
country’s import expenditure. [4]

Oct/Nov 2016 v21:

(a) What is meant by a ‘depreciation’ of a currency? [2]
(b) Explain how a depreciation of a currency can cause a rise in the inflation rate of a country. [4]

May/June 2016 v23:

1)(g) Using information from the extract, explain whether the value of the South Korean won was
expected to rise or fall in 2014. [4]

May/June 2016 v22:

5)(c) Analyse how a fall in the value of a currency may increase a current account surplus on the
balance of payments. [6]

May/June 2016 v21:

3)(d) Discuss whether an increase in exports will increase the exchange rate. [8]

98
Feb/March 2016 v22:
1) (b) Explain the type of exchange rate system referred to in the extract. [2]

May/June 2015 v23:

7)(a) Define ‘exchange rate’. [2]
7)(b) Explain two benefits of a floating exchange rate system. [4]

May/June 2015 v21:

7) (b) Explain two reasons why an economy may have a high foreign exchange rate. [4]
7)(d) Discuss whether a fall in the international value of its currency will always benefit an
economy. [8]

Feb/March 2015 v22:

1)(b) Explain two ways a central bank could try to stop a fall in the international value of its
country’s currency. [4]
7)(d) Discuss whether a country’s exchange rate should be determined by market forces or by the
government. [8]

May/June 2014 v23:

7)(b) Analyse why a country’s exchange rate may rise in value. [6]

May/June 2013 v22

6) b) Explain how the government maintains the external value of its currency if a fixed exchange
system. [6]
6)c) Explain why a government might want the external value of its currency to fall. [4].
6) d) Discuss whether it is better for the country to have a floating exchange rate rather than a fixed
exchange rate. [8]

O/N 2011 V23

6)b) Explain what can cause fluctuations in a country’s exchange rate.[6]

99
6)d) Discuss whether a change in the exchange rate will always solve a country’s deficit on the current
account of the balance of payment. [8]

May/June 2010 v22:

7)a) Define the exchange rate. [2]

O/N 2010 v23

7)b) Analyze the advantage of maintaining a fixed exchange rate. [6]
7) (c) Discuss whether an economy will benefit from a fall in its exchange rate. [8]

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