Unit 4: Developments in the global economy · WEC14/01

Edexcel International A-level Unit 4, January 2021

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 4 (January 2021), Developments in the global economy. Case studies: Inequality. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paperMark schemeExaminer report

Section A

Q11 mark
Ceteris paribus, which one of the following is the most likely effect of this decision by the ECB for an economy in the eurozone?
  1. AA decrease in the money supply
  2. BA decrease in economic growth
  3. CAn increase in unemployment
  4. DAn increase in the rate of inflation
Show the answer

The answer is D.

Question paper p.2Mark scheme p.4Examiner report p.5Open in the tool
Q31 mark
Ceteris paribus, which one of the following is the most likely impact of this depreciation on Australia's economy?
  1. AA fall in the price of imports and a rise in the price of exports
  2. BAn increase in public sector borrowing and an increase in national debt
  3. CAn improvement in the capital and financial account of the balance of payments
  4. DA decrease in the cost of borrowing and a decrease in the reward for saving
Show the answer

The answer is C.

TopicThe balance of payments and exchange rates

Question paper p.2Mark scheme p.4Examiner report p.5Open in the tool
Q41 mark
Which one of the following can be deduced from this chart?
  1. APay growth not adjusted for inflation was lowest in 2009
  2. BPay growth adjusted for inflation was highest in 2015
  3. CDisinflation occurred between 2016 and 2017
  4. DDeflation occurred between 2012 and 2014
Show the answer

The answer is B.

Question paper p.3Mark scheme p.4Examiner report p.5Open in the tool
Q51 mark
Which one of the following is the most likely reason for this fall in India's international competitiveness?
  1. AA decrease in its inflation rate relative to other countries
  2. BA decrease in its unit labour costs relative to other countries
  3. CA decrease in its labour productivity relative to other countries
  4. DA decrease in its transportation costs relative to other countries
Show the answer

The answer is C.

TopicInternational competitiveness

Question paper p.4Mark scheme p.5Examiner report p.5Open in the tool
Q61 mark
6 The table shows the maximum possible production of cars and lorries by Country A and Country B in a given year. Country Cars Lorries
  1. A40 000 OR 20 000
  2. B16 000 OR 16 000 Which one of the following can be deduced from this table? A Both countries will not benefit from specialisation and trade B Country A has a comparative advantage over Country B in the production of cars and lorries
  3. CCountry B has an absolute advantage over Country A in the production of cars and lorries
  4. DCountry B has a lower opportunity cost of producing lorries whereas Country A has a lower opportunity cost of producing cars
Show the answer

The answer is D.

TopicInternational trade, protectionism and trading blocs

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

Section B

Case study

Inequality

Extracts: Figure 1: Global Gini coefficient (for income) 2000-2014 · Extract A: Inequality - causes and policies · Figure 1: and Extract A based on data taken from https://www.mckinsey.com/industries/public-sector/our-insights/

In the extracts: Inequality, GDP, Challenges, Gini, Household, Long-term, Personal, Relative, Residents, Wealth

Section C

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.