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

Edexcel International A-level Unit 4, June 2021

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 4 (June 2021), Developments in the global economy. Case studies: The European Union (EU). 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

Q11 mark

Which one of the following is the most likely effect of an increase in national debt of a country?

AA decrease in its comparative advantage
BA decrease in its interest rates
CAn increase in its debt servicing costs
DAn increase in the external value of its currency

Show the answer

The answer is C.

TopicInternational trade, protectionism and trading blocs

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

Q21 mark

Which one of the following is most likely to reduce Armenia's income inequality?

AA reduction in the national minimum wage
BAn improvement in education and training
CA decrease in progressive tax rates
DAn increase in regressive tax rates

Show the answer

The answer is B.

TopicPoverty and inequality

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

Q31 mark

Which one of the following is most likely to result from a fall in world oil prices?

AA deterioration in Nigeria's current account deficit
BAn improvement in Nigeria's terms of trade
CAn increase in transportation costs in Nigeria
DA reduction in Nigeria's budget deficit

Show the answer

The answer is A.

TopicInternational trade, protectionism and trading blocs

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

Q41 mark

Which one of the following models is represented by this relationship?

AThe J-curve
BThe Phillips curve
CThe Lorenz curve
DThe Laffer curve

Show the answer

The answer is D.

TopicThe balance of payments and exchange rates

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

Q51 mark

Which one of the following can be deduced from the chart?

AThe tax burden on the working population is likely to decline by 2070
BFinland is likely to experience labour shortages by 2070
CThe working population is forecast to rise by nearly 16%
DS ocial welfare spending on the population aged 65 years and over is likely to decrease

Show the answer

The answer is B.

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

Q61 mark

Ceteris paribus, which one of the following can be deduced from the data?

AThe value of Afghanistan's imports have risen relative to the value of its exports
BThe average price of Afghanistan's exports have fallen relative to the average price of its imports
CAfghanistan is likely to experience an improvement in its living standards
DAfghanistan is likely to experience a deterioration in the financial account of the balance of payments

Show the answer

The answer is C.

TopicThe balance of payments and exchange rates

Question paper p.5 Mark scheme p.5 Open in the tool

Section B

Case study

The European Union (EU)

Extracts: Figure 1: Annual real GDP growth rate (%), 2000-2018 · Figure 2: Annual inward foreign direct investment to the EU (% of GDP), 2000-2018 · Extract A: Economic growth · Extract B: Trade agreement · Figure 1: based on data taken from https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2018& · Figure 2: based on data taken from https://data.worldbank.org/indicator/BX.KLT.DINV.WD.GD.ZS?end=2018

In the extracts: US President Donald Trump, European Central Bank's, European Union, South American, GDP, ECB, EU's, Annual, China, DINV

Q7(a)Calculate2 marks

With reference to Figure 1, calculate the nominal GDP growth rate of the EU in 2018. You are advised to show your workings.

Mark splitApplication 2

TopicInternational trade, protectionism and trading blocs

Question paper p.6 Mark scheme p.6 Open in the tool

Q7(b)Explain4 marks

Explain what is meant by 'quantitative easing' (Extract A, lines 8-9).

Mark splitKnowledge 2Application 2

TopicInternational trade, protectionism and trading blocs

Question paper p.6 Mark scheme p.6 Open in the tool

Q7(c)Analyse6 marks

With reference to Figure 1, Figure 2 and Extract A, analyse two reasons why 'Many EU countries experienced strong economic growth after 2012' (Extract A, lines 2-3).

Mark splitKnowledge 2Application 2Analysis 2

TopicInternational trade, protectionism and trading blocs

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

Q7(d)Examine8 marks

With reference to Figure 1, Figure 2 and Extract A, examine two reasons why 'there is concern that the future rate of economic growth in the EU might be much lower' (Extract A, lines 12-13).

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicInternational trade, protectionism and trading blocs

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

Q7(e)Discuss14 marks

With reference to Extract B, discuss the likely economic benefits to the EU of forming a trade agreement with Mercosur.

Mark splitEvaluation 6

TopicInternational trade, protectionism and trading blocs

Question paper p.6 Mark scheme p.10 Open in the tool

Section C

Q8OptionalEvaluate20 marks

Evaluate measures that a developed country might take to increase its international competitiveness. Refer to a developed country of your choice in your answer.

Mark splitEvaluation 8

TopicInternational competitiveness

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

Q9OptionalEvaluate20 marks

Evaluate the case for promoting economic development through debt relief. Refer to a developing country of your choice in your answer.

Mark splitEvaluation 8

TopicEmerging and developing economies

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

Q10OptionalEvaluate20 marks

Evaluate the economic effects of a depreciation of a country's currency. Refer to a country of your choice in your answer.

Mark splitEvaluation 8

TopicThe balance of payments and exchange rates

Question paper p.16 Mark scheme p.19 Open in the tool Practise the AD/AS diagram

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 European Union (EU)

Section C

Other years of Edexcel International A-level Unit 4

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