A2 Economics 4 Essay Q&A

Past Paper Questions 2002 – 2014


Examination Strategies for Unit 4: Global Economy (Section A)

 

JUNE 2002 Question 1 | Answer

(a)         Examine the factors which have led to an increase in interdependence between countries in the world economy. [40]

(b)         Assess the impact on the global economy of the continued use by trading blocs of measures which restrict free trade. [60]

 

JUNE 2002 Question 2 | Answer

(a)          Examine the impact of falling oil prices on the economies of the European Union. [40]

(b)         Evaluation the potential cost and benefits to the UK economy of a decision by its government to adopt the euro. [60]

 

JUNE 2002 Question 3 | Answer

(a)         Examine the factors which might explain how a surplus of £18bn was achieved on public sector finances in 2000/01. [40]

(b)         Evaluation the likely effects of decisions by multinational companies to relocate production to the UK on the UK’s public finances and on the rest on the UK economy. [60]

 

JUNE 2003 Question 1 | Answer

(a)       Britain had a deficit in its trade in goods balance of £34bn in 2002. Examine the likely causes of this deficit. [40]

(b)       Evaluate measures which could be pursued by individual firms and by the government to improve the competitiveness of British goods [60]

 

JUNE 2003 Question 2 | Answer

Since the early 1990s, the UK rate of inflation has been less than 5% in every year while unemployment has fallen from over 2.7 million to less than 1 million in 2002.

(a)          To what extent do these data contradict the Phillips curve analysis? [40]

(b)        Examine the factors which might explain why the UK has experienced low inflation and low unemployment in recent years. [60]

 

JUNE 2003 Question 3 | Answer

(a)          Examine the significance of the single currency for decisions by multinationals to invest in EU countries. [40]

(b)         The UK is the largest recipient of inward foreign investment within the EU. Evaluate the benefits of such foreign investment for the UK economy. [60]

 

JUNE 2004 Question 1 | Answer

(a)         Examine possible factors which might have led to changes in the value of the pound sterling against the euro in recent years. [40]

(b)         Evaluate the likely economic effects of a significant fall in the value of the pound against the euro. [60]

 

JUNE 2004 Question 2 | Answer

(a)         Examine the impact of the European Union’s Common Agricultural Policy on the world trade in agricultural goods. [40]

(b)        Evaluate the implications of a significant reduction in barriers to the trade in goods and services for the global economy. [60]

 

JUNE 2004 Question 3 | Answer

(a)         In 2002, the unemployment rate in Spain, France and Italy was significantly higher than in the UK. Examine the factors which might explain why the UK’s unemployment rate was lower than in these countries. [40]

(b)       To what extent might the pursuit of full employment conflict with other economic objectives? [60]

 

JUNE 2005 Question 1 | Answer

(a)         Examine the significance of the factors which have contributed to increased globalization in recent years. [40]

(b)        Evaluate the likely implications for the world economy of the predicted decline in non-renewable energy resources. [60]

 

JUNE 2005 Question 2 | Answer

(a)         Examine the factors which affect the international competitiveness of the UK’s goods and services. [40]

(b)         Evaluate the likely economic effects of a fall in the UK’s competitiveness. [60]

 

JUNE 2005 Question 3 | Answer

The average tariff on industrial goods if 4% in the USA, 14% in Brazil and 30% in India.

(a)         Examine the reasons why a country might wish to restrict imports. [40]

(b)         Evaluate the likely economic implications of an increase in protectionism on a country’s economy. [60]

 

JUNE 2006 Question 1 | Answer

(a)         Trading blocs are the most significant factor contributing to globalization. To what extent do you agree with this view? [40]

(b)         Evaluate the likely economic effects of a decision by the UK to withdraw from the European Union. [60]

 

JUNE 2006 Question 2 | Answer

(a)         Both the USA and the UK’s balance of payments accounts are recording large deficits on their trade in goods balances. Do such deficits matter? Justify your answer. [40]

(b)         Compare the effectiveness of supply side and fiscal policies to correct deficits on a country’s current account of the balance of payments. [60]

 

JUNE 2006 Question 3 | Answer

(a)         In 2000/01 the UK’s public expenditure was 37 per cent of GDP. This is forecast to increase to over 42 per cent of GDP by 2007/08. Examine the likely economic implications; apart from increased taxation, of this tread. [40]

(b)         Evaluate the economic effects of a significant increased in taxation on the UK economy. [60]

 

JUNE 2007 Question 1 | Answer

(a)         The number and the size of trading blocs, such as the European Union, have increased in recent years. To what extent does this trend conflict with the aims of the World Trade Organization? [40]

(b)         In several countries there has been increasing pressure for protectionist policies. Evaluate the likely economic effects of an increase in protectionism by the EU. [60]

 

JUNE 2007 Question 2 | Answer

(a)         Between 1999 and 2001 the UK had a fiscal surplus but from 2002 there has been an increasing fiscal deficit. Examine the likely causes of this tread. [40]

(b)         Evaluate the likely economic effects of an increasing fiscal deficit for the UK economy. [60]

 

JUNE 2007 Question 3 | Answer

(a)         In April 2006, the unemployment rate was 16.5% in Poland, 8.2% in Germany but only 5.2% in the UK. Examine the factors which might explain the differing unemployment rates in these EU countries. [40]

(b)        Discuss the view that the Phillips curve is irrelevant in explaining relationship between unemployment and inflation in the UK. [60]

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