Paper 2: The wider economic environment · 8EB0/02

Edexcel B AS Paper 2, June 2016

All 11 written questions from Edexcel B AS Paper 2 (June 2016), The wider economic environment. Case studies: India’s Income per Capita (Rupees) 2011-2015, Lightbulb moment as first mass market graphene product goes… and Mark Carney: next interest rate move will be up, not down. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme Examiner report

Section A

Case study

India’s Income per Capita (Rupees) 2011-2015

Extracts: A: India’s Income per Capita (Rupees) 2011-2015 · B: Ford to triple exports from India with new $1bn plant

In the extracts: India, Ford, Asia, Maruti Suzuki and Honda, Executive Mark Fields, India Prime Minister, Motor Company, Narendra Modi, India Income, Ford Chief

Q1(a)Define2 marks

What is meant by the term ‘capital intensive’?

Mark splitKnowledge 2

TopicThe economic cycleLife in a global economy

Question paper p.3 Mark scheme p.4 Examiner report p.4 Open in the tool

Q1(b)Calculate4 marks

Calculate, to 2 decimal places, the percentage change in India’s income per capita from 2011 to 2015 (Extract A). You are advised to show your working.

Mark splitKnowledge 1Application 3

TopicThe economic cycle

Question paper p.3 Mark scheme p.4 Examiner report p.5 Open in the tool

Q1(c)Explain4 marks

Using Extract A, explain one impact on households in India of the changes in income per capita.

Mark splitKnowledge 1Application 2Analysis 1

TopicThe economic cycle

Question paper p.4 Mark scheme p.5 Examiner report p.6 Open in the tool

Q1(d)Discuss8 marks

Discuss the possible benefits to Ford of manufacturing cars in India.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicThe economic cycleLife in a global economy

Question paper p.5 Mark scheme p.6 Examiner report p.7 Open in the tool

Q1(e)Assess12 marks

Assess the likely impact on the Indian economy of increased globalisation.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicGlobalisation

Question paper p.6 Mark scheme p.8 Examiner report p.9 Open in the tool

Section B

Case study

Lightbulb moment as first mass market graphene product goes live

Extracts: C: Lightbulb moment as first mass market graphene product goes live

In the extracts: Manchester University, Institute, Graphene, LED, National Graphene Institute, Sir Kostya Novoselov, Graphene Lighting, Prof Colin Bailey, Sir Andre Geim, George Osborne

Q2(a)Define2 marks

What is meant by the term ‘mass market’?

Mark splitKnowledge 2

TopicProductive efficiencyGlobalisation

Question paper p.9 Mark scheme p.10 Examiner report p.11 Open in the tool

Q2(b)Calculate4 marks

The price elasticity of demand for the new graphene lightbulbs is estimated to be -0.8 and they will be priced at £10 each. Calculate the percentage change in quantity demanded following a £5 increase in price. You are advised to show your working.

Mark splitKnowledge 1Application 3

TopicFirms, consumers and elasticities of demand

Question paper p.9 Mark scheme p.10 Examiner report p.12 Open in the tool

Q2(c)Explain4 marks

Explain one factor that may influence the price elasticity of demand for the graphene lightbulbs.

Mark splitKnowledge 1Application 2Analysis 1

TopicFirms, consumers and elasticities of demand

Question paper p.10 Mark scheme p.11 Examiner report p.13 Open in the tool

Q2(d)Discuss8 marks

Discuss the possible benefits of online retailing for firms such as Graphene Lighting.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicProductive efficiencyGlobalisation

Question paper p.11 Mark scheme p.12 Examiner report p.14 Open in the tool

Q2(e)Assess12 marks

Many firms are developing new products that use graphene. Assess the importance to these firms of research and development (R&D) in gaining a competitive advantage.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicBusiness growth and competitive advantage

Question paper p.12 Mark scheme p.14 Examiner report p.16 Open in the tool

Section C

Case study

Mark Carney: next interest rate move will be up, not down

Extracts: D: Mark Carney: next interest rate move will be up, not down

In the extracts: Mr Broadbent, Britain, Carney, Bank Deputy Governors, Bank of England, Chief Economist, Andrew Haldane, Ben Broadbent, Bundesbank, Mr Carney

Q3Evaluate20 marks

Evaluate the impact of an increase in the Bank of England’s base rate on the government’s macroeconomic objectives.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicIntroduction to macroeconomic policy

Question paper p.15 Mark scheme p.16 Examiner report p.18 Open in the tool

Question text is quoted from the question papers, © Pearson Edexcel, 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

India’s Income per Capita (Rupees) 2011-2015

Section B

Lightbulb moment as first mass market graphene product goes live

Section C

Mark Carney: next interest rate move will be up, not down

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