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

Edexcel International A-level Unit 4, January 2025

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 4 (January 2025), Developments in the global economy. Case studies: The economy of Ghana. 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

Q11 mark

Which one of the following strategies could promote economic development in Chad?

AReducing investment in infrastructure
BRestricting foreign direct investment inflows
CRemoving restrictions on free trade
DLimiting joint ventures between domestic firms and TNCs

Show the answer

The answer is C.

TopicGlobalisation

Question paper p.2 Mark scheme p.4 Examiner report p.5 Open in the tool

Q21 mark

Which one of the following would best describe the impact of this policy?

AThe exchange rate would appreciate
BThe exchange rate would be devalued
CThe exchange rate would depreciate
DThe exchange rate would be revalued

Show the answer

The answer is B.

TopicThe balance of payments and exchange rates

Question paper p.2 Mark scheme p.4 Examiner report p.5 Open in the tool

Q31 mark

Ceteris paribus, if each country specialises and trades in the sector in which it has a comparative advantage, which one of the following is likely to occur?

AA fall in the volume of exports and imports
BA fall in the standard of living
CAn increase in world output
DAn increase in absolute poverty

Show the answer

The answer is C.

TopicInternational trade, protectionism and trading blocs

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

Q41 mark

4 The table shows global GDP per capita in 2002, 2012 and 2022. Year GDP per capita ($) 2002 5 537 2012 10 576 2022 12 647 If 2022 is the base year, what will be the index number for 2002?

A43.78
B83.62
C119.58
D228.41

Show the answer

The answer is A.

Question paper p.3 Mark scheme p.4 Examiner report p.6 Open in the tool

Q51 mark

Which one of the following can be deduced from this information?

AT he EAC is a common market where member countries can benefit from the free movement of labour
BThe EAC is a trading bloc where member countries follow rules set by the World Bank
CThe EAC is an economic and monetary union where member countries share the same currency
DT he EAC is a customs union where member countries can benefit from trade creation

Show the answer

The answer is D.

TopicInternational trade, protectionism and trading blocs

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

Q61 mark

6 The diagram illustrates the imposition of a tariff on steel. Price per unit Domestic supply P2 B E World supply + tariff

AC D F P1 World supply Domestic demand 0 Q1 Q2 Q3 Q4 Quantity Which one of the following statements is true? A Imports of steel decreased from Q1-Q4 to Q2-Q3
BGovernment tax revenue is area A B E F
CProducer surplus increased by the area P1 P2 E F
DConsumer surplus decreased by the area P1 P2 B A

Show the answer

The answer is A.

TopicInternational trade, protectionism and trading blocs

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

Section B

Case study

The economy of Ghana

Extracts: Figure 1: National debt, % of Gross Domestic Product (GDP), 2010-2022 · Figure 2: Annual rate of inflation*, as measured by the consumer price index (CPI), · Extract A: Economic outlook · Figure 1: adapted from https://tradingeconomics.com/ghana/ · Figure 2: and Extract A adapted from FT, https://www.ft.com/content/bd67731c-cea0-4045-96d4-5fff001f1fd2

In the extracts: Gross Domestic Product, Monetary Fund, IMF, GDP, Ghana's, CPI, African, Annual, Economic, Government's

Q7(a)Calculate2 marks

In 2022, the Gross Domestic Product (GDP) of Ghana was $72.84 billion. With reference to Figure 1, calculate the value of Ghana's national debt. You are advised to show your working.

Mark splitApplication 2

TopicPublic finances and the role of the state

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

Q7(b)Explain4 marks

With reference to Figure 2 and the third paragraph of Extract A, explain what is meant by the 'rate of inflation'.

Mark splitKnowledge 2Application 2

TopicPublic finances and the role of the state

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

Q7(c)Analyse6 marks

With reference to the fourth paragraph of Extract A and your own knowledge, analyse two roles of the IMF.

Mark splitKnowledge 2Application 2Analysis 2

TopicPublic finances and the role of the state

Question paper p.6 Mark scheme p.8 Examiner report p.7 Open in the tool

Q7(d)Examine8 marks

With reference to Figure 1 and Extract A, examine two disadvantages of an increase in Ghana's national debt.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicPublic finances and the role of the state

Question paper p.6 Mark scheme p.9 Examiner report p.7 Open in the tool

Q7(e)Discuss14 marks

With reference to the information provided and your own knowledge, discuss the likely macroeconomic effects of the introduction of an additional marginal rate of income tax of 35% on the economy of Ghana.

Mark splitEvaluation 6

TopicPublic finances and the role of the state

Question paper p.6 Mark scheme p.11 Examiner report p.8 Open in the tool Practise the AD/AS diagram

Section C

Q8OptionalEvaluate20 marks

Evaluate government policies, apart from changes in income tax rates, that could be used to reduce income inequality in a developed country of your choice.

Mark splitEvaluation 8

TopicEmerging and developing economies

Question paper p.16 Mark scheme p.13 Examiner report p.4 Open in the tool

Q9OptionalEvaluate20 marks

Evaluate the likely effects of a decrease in productivity on a country of your choice.

Mark splitEvaluation 8

Question paper p.16 Mark scheme p.16 Examiner report p.10 Open in the tool

Q10OptionalEvaluate20 marks

Evaluate the possible causes of the increase in global commodity prices. Refer to examples of commodities in your answer.

Mark splitEvaluation 8

Question paper p.16 Mark scheme p.18 Examiner report p.10 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

Section B

The economy of Ghana

Section C

Other years of Edexcel International A-level Unit 4

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