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

Edexcel International A-level Unit 4, January 2024

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 4 (January 2024), Developments in the global economy. Case studies: The economy of Greece. 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

Q31 mark
Ceteris paribus, which one of the following is the most likely reason for this increase in the EU's capital and financial account surplus?
  1. AAn increase in inward foreign direct investment (FDI) and portfolio investment
  2. BAn increase in the value of EU exports and a decrease in the value of EU imports
  3. CAn increase in public sector borrowing and an increase in public sector debt
  4. DAn increase in inflows into the primary income component of the EU's balance of payments
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The answer is A.

TopicGlobalisation

Question paper p.2Mark scheme p.3Examiner report p.3Open in the tool
Q41 mark
Ceteris paribus, which one of the following is a possible cost of globalisation on the global economy?
  1. ALower prices and higher consumer surplus
  2. BLower rates of unemployment
  3. CHigher long-run average costs for transnational companies
  4. DHigher external costs arising from increased trade
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The answer is D.

TopicGlobalisation

Question paper p.3Mark scheme p.3Examiner report p.3Open in the tool
Q51 mark
Which one of the following combinations of foreign currency transactions would Japan's central bank be most likely to use if it wanted to raise the value of the yen against the US dollar? Japanese yen US dollar
  1. ABuy Buy
  2. BBuy Sell
  3. CSell Buy
  4. DSell Sell
Show the answer

The answer is B.

Question paper p.3Mark scheme p.4Examiner report p.3Open in the tool
Q61 mark
Ceteris paribus, which one of the following can be deduced from this table?
  1. ABetween 2000 and 2018 Bosnia and Herzegovina's terms of trade worsened by 73.3%
  2. BBetween 2000 and 2020 Bosnia and Herzegovina's terms of trade improved by 72.9%
  3. CBosnia and Herzegovina had to export the same amount of goods and services to purchase a given quantity of imports each year
  4. DBosnia and Herzegovina's index of import prices exceeded its index of export prices each year
Show the answer

The answer is B.

TopicInternational trade, protectionism and trading blocs

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

Section B

Case study

The economy of Greece

Extracts: Figure 1: Real GDP, $ billion, 2008-2022 · Figure 2: National debt, % of GDP, 2008-2022 · Extract A: Economic outlook · Figure 1: adapted from trading economics, https://tradingeconomics.com/greece/gdp · Figure 2: adapted from trading economics, https://tradingeconomics.com/greece/government-debt-to-gdp · Extract A: adapted from FT, https://www.ft.com/content/1a568ff6-41ef-4dfe-8bcf-2137eeeb405b; IMD,

In the extracts: European Central Bank, European Union, Monetary Fund, GDP, IMF, Greece's, ECB, CCC', Economic, Greek

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.