Paper 2: AS Level Data Response and Essays · 9708/22

Cambridge International (CAIE) AS Paper 2, June 2024

All 13 written questions from Cambridge International (CAIE) AS Paper 2 (June 2024), AS Level Data Response and Essays. Case studies: Dilemma for the European Central Bank (ECB). Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme

Section A

Case study

Dilemma for the European Central Bank (ECB)

In the extracts: Eurozone, ECB, Russia and Ukraine, Eurozone Consumer, European Union, Balazs Koranyi, CPI

Q1(a)Describe2 marks

Describe what has happened to consumer prices in the Eurozone between March 2021 and February 2022.

TopicPrice stability

Question paper p.3 Mark scheme p.7 Open in the tool

Q1(b)Identify2 marks

With the help of an aggregate demand and aggregate supply diagram, identify the main type of inflation in the Eurozone.

TopicPrice stability

Question paper p.3 Mark scheme p.7 Open in the tool Draw it: AD/AS diagram

Q1(c)Consider4 marks

Consider the extent to which the shortage of supply of labour in the Eurozone may have contributed towards the increasing rate of inflation.

TopicPrice stability2.4 The interaction of demand and supply5.3 Monetary policy

Question paper p.3 Mark scheme p.7 Open in the tool

Q1(d)Assess6 marks

Using the concept of price elasticity of demand, assess the relative impact on poorer households, including those on fixed incomes, of rising prices of food and energy.

TopicPrice elasticity, income elasticity and cross elasticity of demand5.3 Monetary policy4.6 Price stability

Question paper p.3 Mark scheme p.8 Open in the tool

Q1(e)Assess6 marks

Assess the advantages and disadvantages of the ECB ‘substantially’ increasing the interest rate to control rising inflation.

TopicMonetary policy4.6 Price stability

Question paper p.3 Mark scheme p.9 Open in the tool

Section B

Q2(a)OptionalExplain8 marks

Explain how the Gini coefficient is used to measure income inequality and consider the relative strength of two economic reasons suggested for such inequality in a low-income country.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicAddressing income and wealth inequality

Question paper p.4 Mark scheme p.10 Open in the tool

Q2(b)OptionalAssess12 marks

Assess the extent to which government policies to redistribute income and wealth are likely to be successful.

TopicAddressing income and wealth inequality

Question paper p.4 Mark scheme p.12 Open in the tool

Q3(a)OptionalExplain8 marks

With the help of an example of each, explain the difference between a merit good and a demerit good and consider whether a subsidy given to a merit good will always be effective in increasing its consumption.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicClassification of goods and services

Question paper p.4 Mark scheme p.14 Open in the tool Practise the positive externality diagram Practise the subsidy diagram

Q3(b)OptionalAssess12 marks

Assess whether fixing a minimum price is likely to be the best policy to reduce the consumption of a demerit good.

TopicMethods and effects of government intervention in markets

Question paper p.4 Mark scheme p.15 Open in the tool Practise the minimum price diagram Practise the negative externality diagram

Section C

Q4(a)OptionalExplain8 marks

With the help of a diagram, explain what is meant by the circular flow of income in an open economy and consider the extent to which it can explain economic growth in such an economy.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicIntroduction to the circular flow of income4.4 Economic growth

Question paper p.4 Mark scheme p.16 Open in the tool

Q4(b)OptionalAssess12 marks

Assess whether supply-side policy is the most effective way to achieve long-run economic growth.

TopicSupply-side policy

Question paper p.4 Mark scheme p.17 Open in the tool Practise the AD/AS diagram

Q5(a)OptionalExplain8 marks

Explain what is meant by protectionism and consider the effectiveness of using tariffs as a method of protectionism.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicProtectionism

Question paper p.4 Mark scheme p.19 Open in the tool

Q5(b)OptionalAssess12 marks

Assess whether free trade is always better than a policy of protectionism for a developing economy that wishes to trade internationally.

TopicThe reasons for international trade6.2 Protectionism

Question paper p.4 Mark scheme p.20 Open in the tool

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.

Section A

Dilemma for the European Central Bank (ECB)

Section B

Section C

Other years of Cambridge International (CAIE) AS Paper 2

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