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

Edexcel International A-level Unit 4, June 2025 (paper A)

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 4 (June 2025), Developments in the global economy. Case studies: The economy of Argentina. 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 is best explained by the Lewis structural dual-sector model?

APrivatisation
BIndustrialisation
CMicrofinance schemes
DDevelopment of primary industries

Show the answer

The answer is B.

TopicDevelopment strategies and international institutions

Question paper p.2 Mark scheme p.4 Examiner report p.3 Open in the tool

Q21 mark

Assuming the demand for oil and gas are price inelastic, which one of the following is most likely to result from a fall in world oil and gas prices?

AAn improvement in Saudi Arabia's terms of trade
BA deterioration in Saudi Arabia's current account deficit
CA reduction in Saudi Arabia's budget deficit
DAn increase in transportation costs in Saudi Arabia

Show the answer

The answer is B.

TopicInternational trade, protectionism and trading blocs

Question paper p.2 Mark scheme p.4 Examiner report p.3 Open in the tool

Q31 mark

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

AThe Gini coefficient for Zambia had decreased
BThe Government of Zambia had reduced its highest rate of income tax
CThe Marshall-Lerner condition had not been met
DThe rate of unemployment in Zambia had increased

Show the answer

The answer is A.

TopicThe balance of payments and exchange rates

Question paper p.2 Mark scheme p.4 Examiner report p.3 Open in the tool

Q41 mark

If September 2023 = 100, which one of the following was Australia's terms of trade in September 2024?

A6.18
B16.18
C94.24
D106.12

Show the answer

The answer is C.

TopicInternational trade, protectionism and trading blocs

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

Q51 mark

Which one of the following statements is true about the Laffer curve?

AIt shows the relationship between quantitative easing and the rate of interest
BIt shows the relationship between the level of investment and the savings ratio
CIt shows the relationship between the unemployment rate and the rate of inflation
DIt shows the relationship between tax rates and the government's tax revenues

Show the answer

The answer is D.

TopicPublic finances and the role of the state

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

Q61 mark

Which one of the following statements may be deduced from the data in the table?

AThailand was more economically developed than Malaysia
BStudents spent longer in education in Thailand than in Malaysia
CHealthcare provision was better in Thailand than in Malaysia
DAverage incomes were higher in Thailand than in Malaysia

Show the answer

The answer is C.

TopicEmerging and developing economies

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

Section B

Case study

The economy of Argentina

Extracts: Figure 1: Annual rate of inflation*, as measured by the consumer price index (CPI), · Figure 2: Argentine peso-US dollar exchange rate, January 2023 to · Extract A: Economic outlook · Figure 1: adapted from FT, https://tradingeconomics.com/argentina/inflation-rate-mom · Figure 2: adapted from Pound Sterling, https://www.poundsterlinglive.com/history/USD-ARS-2024 · Extract A: adapted from FT, https://www.ft.com/content/35b444a1-608c-48b5-a991-01f2ac3362be

In the extracts: Apr May Jun Jul, Dec Jan Feb Mar, Jan Mar May Jul, Sep Nov Jan Mar, Aug Sep, Central Bank, Javier Milei, Jul Sep, Pound Sterling, GDP

Q7(a)Calculate2 marks

With reference to Figure 1, calculate the percentage change in the rate of inflation between December 2023 and September 2024. You are advised to show your working.

Mark splitApplication 2

TopicThe balance of payments and exchange rates

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

Q7(b)Examine8 marks

With reference to Extract A, examine the likely effect of the depreciation of the Argentine peso against the US dollar on Argentina's current account and its capital and financial accounts.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicThe balance of payments and exchange rates

Question paper p.6 Mark scheme p.7 Examiner report p.3 Open in the tool

Q7(c)Analyse6 marks

With reference to Figure 2, analyse two policies that the Central Bank of Argentina can use to limit any further depreciation of the Argentine peso against the US dollar.

Mark splitKnowledge 2Application 2Analysis 2

TopicThe balance of payments and exchange rates

Question paper p.6 Mark scheme p.8 Examiner report p.4 Open in the tool

Q7(d)Explain4 marks

Explain what is meant by 'absolute poverty'. (Extract A, line 20)

Mark splitKnowledge 2Application 2

TopicThe balance of payments and exchange rates

Question paper p.6 Mark scheme p.9 Examiner report p.4 Open in the tool

Q7(e)Discuss14 marks

With reference to the information provided and your own knowledge, discuss the likely economic effects of a reduction in public expenditure as a proportion of GDP on Argentina's economy.

Mark splitEvaluation 6

TopicThe balance of payments and exchange rates

Question paper p.6 Mark scheme p.10 Examiner report p.4 Open in the tool

Section C

Q8OptionalEvaluate20 marks

Evaluate the likely effects of a reduction in China's rate of economic growth on the global economy.

Mark splitEvaluation 8

Question paper p.14 Mark scheme p.12 Examiner report p.4 Open in the tool

Q9OptionalEvaluate20 marks

Evaluate the likely benefits of a significant increase in migration into the EU.

Mark splitEvaluation 8

Question paper p.14 Mark scheme p.15 Examiner report p.4 Open in the tool

Q10OptionalEvaluate20 marks

Evaluate the disadvantages of an increase in a country's national debt. Refer to a country of your choice in your answer.

Mark splitEvaluation 8

TopicPublic finances and the role of the state

Question paper p.14 Mark scheme p.18 Examiner report p.5 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 Argentina

Section C

Other years of Edexcel International A-level Unit 4

Topics on this paper