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

Edexcel International A-level Unit 4, June 2022

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 4 (June 2022), Developments in the global economy. Case studies: The economy of Iran. 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

1 Which one of the following factors has contributed to increased globalisation in the last 50 years?

AAn increase in the cost of transport
BAn increase in the cost of communications
CA reduction in tariffs and quotas
DA reduction in the number of trading blocs

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

Ceteris paribus, which one of the following is the most likely effect of this decision?

AAn increase in the rate of inflation
BAn increase in the rate of unemployment
CA decrease in the money supply
DA decrease in the rate of economic growth

Show the answer

The answer is A.

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

Q31 mark

Which one of the following is also a measure that governments may use to control TNCs?

ACutting costs of bureaucracy
BImproving access to banking
CIncreasing indirect taxes
DRegulation of transfer pricing

Show the answer

The answer is D.

TopicPublic finances and the role of the state

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

Q41 mark

Which one of the following can be deduced from these charts?

AIn 2021 Australia's current account surplus was approximately AUD 100 billion
BIn 2020 Australia's fiscal deficit was approximately AUD 150 billion
CAustralia experienced a fiscal surplus throughout the given period
DAustralia experienced a current account deficit throughout the given period

Show the answer

The answer is B.

TopicThe balance of payments and exchange rates

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

Q51 mark

5 The table shows the UK's Gross National Income (GNI) between 2018 and 2020. Year GNI (£ millions) 2018 2 113 914 2019 2 203 701 2020 2 073 880 (Source: https://www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/abmz/ukea) If 2019 is the base year, what is the index number for 2020?

A94.1
B98.1
C104.2
D106.3

Show the answer

The answer is A.

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

Q61 mark

Ceteris paribus, which one of the following is most likely to have caused an increase in Afghanistan's terms of trade?

ALower relative inflation rates
BA decrease in the price of exports
CDepreciation of its exchange rate
DA decrease in the price of imports

Show the answer

The answer is D.

TopicThe balance of payments and exchange rates

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

Section B

Case study

The economy of Iran

Extracts: Figure 1: Annual real GDP growth rate, Q1 2010 - Q4 2020 · Figure 2: Monthly inflation rate, as measured by the Consumer Price Index (CPI), · Extract A: Trade restrictions · Extract B: Economic development · Figure 1: based on data taken from tradingeconomics, https://tradingeconomics.com/iran/ · Figure 2: based on data taken from tradingeconomics, https://tradingeconomics.com/iran/inflation-cpi

In the extracts: Mr Hassan Rouhani, Mr Rouhani, Iran's GDP, Iran's President, CPI, USA, Annual, Economic, Index, Iranians

Q7(a)Calculate2 marks

In 2020 Iran's GDP was $635.72 billion. With reference to Figure 3, calculate Iran's national debt in 2020. You are advised to show your workings.

Mark splitApplication 2

TopicPublic finances and the role of the state

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

Q7(b)Analyse6 marks

With reference to Figure 3, analyse two disadvantages of an increase in Iran's national debt.

Mark splitKnowledge 2Application 2Analysis 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)Explain4 marks

With reference to the second paragraph of Extract A, explain what is meant by 'trade restrictions'.

Mark splitKnowledge 2Application 2

TopicPublic finances and the role of the state

Question paper p.6 Mark scheme p.8 Examiner report p.10 Open in the tool

Q7(d)Examine8 marks

With reference to Figure 1, Figure 2 and the last paragraph of Extract A, examine two likely economic effects of trade restrictions reimposed by the US Government on Iran.

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.12 Open in the tool

Q7(e)Discuss14 marks

With reference to Extract B, discuss the strategies introduced by the Iranian Government to promote economic development.

Mark splitEvaluation 6

TopicPublic finances and the role of the state

Question paper p.6 Mark scheme p.11 Examiner report p.17 Open in the tool

Section C

Q8OptionalEvaluate20 marks

Evaluate the likely macroeconomic effects of an increase in the top rate of income tax on a country of your choice.

Mark splitEvaluation 8

Question paper p.16 Mark scheme p.15 Open in the tool Practise the AD/AS diagram

Q9OptionalEvaluate20 marks

Evaluate factors that influence a country's 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.19 Open in the tool

Q10OptionalEvaluate20 marks

Evaluate government policies that could be used to reduce income inequality in a developing country of your choice.

Mark splitEvaluation 8

TopicPoverty and inequality

Question paper p.16 Mark scheme p.23 Examiner report p.4 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 Iran

Section C

Other years of Edexcel International A-level Unit 4

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