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

Edexcel International A-level Unit 4, October 2020

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 4 (October 2020), Developments in the global economy. Case studies: The economy of Mauritius. 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

advantage, then which one of the following is likely to occur?

AAn increase in world output
BA fall in exports and imports
CA fall in the standard of living
DAn increase in absolute poverty

Show the answer

The answer is A.

TopicPoverty and inequality

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

Q21 mark

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

AGDP per capita in Country B is higher than in Country A
BIncome tax rates in Country B are higher than in Country A
CThe Gini coefficient of Country A is larger than it is for Country B
DIncome is more evenly distributed in Country A than in Country B

Show the answer

The answer is D.

TopicPoverty and inequality

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

Q31 mark

Which one of the following measures is most likely to increase Finland's international competitiveness?

AA reduction in spending on infrastructure
BStricter regulation of labour markets
CImprovements in education and training
DMore restrictions on free trade

Show the answer

The answer is C.

TopicInternational competitiveness

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

Q41 mark

4 The UK pound sterling exchange rate is allowed to float freely. The value of the pound sterling changed from £1 = $1.53 in January 2015 to £1 = $1.26 in January 2019. This means that the value of pound sterling against the dollar has

Adevalued
Brevalued
Cdepreciated
Dappreciated

Show the answer

The answer is C.

TopicThe balance of payments and exchange rates

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

Q51 mark

5 The diagram illustrates the imposition of a tariff. Price per unit Domestic supply B E P2 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 Government tax revenue is area BEDC
BNet welfare loss areas are ACQ2Q1 and DFQ4Q3
CProducer surplus has decreased by the area P1 P2 E F
DConsumer surplus has increased 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.5 Open in the tool

Q61 mark

6 The table shows Sweden's GDP per capita between 2015 and 2017. Year GDP per capita 2015 $55 395 2016 $56 473 2017 $56 935 If 2016 is the base year, the index number for 2017 is:

A100.0
B100.8
C101.9
D102.8

Show the answer

The answer is B.

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

Section B

Case study

The economy of Mauritius

Extracts: Figure 1: Number of tourist arrivals, 2012-2017 (millions) · Figure 2: Annual inflation rate as measured by the Consumer Price Index, 2012-2017 · Extract A: Economic growth · Extract B: The private sector · Figure 1: based on data taken from https://www.statista.com/statistics/801358/tourist-arrivals-mauritius/; · Figure 2: based on data taken from https://www.statista.com/statistics/729017/inflation-rate-in-mauritius/

In the extracts: Bank's Doing, Mauritius' GDP, SMEs, Annual, Earnings, Economic, Financing, Higher, Index, Innovation

Q7(a)Calculate2 marks

With reference to Figure 1, calculate the percentage change in the number of tourists between 2012 and 2017. You are advised to show your working.

Mark splitApplication 2

TopicPublic finances and the role of the state

Question paper p.8 Mark scheme p.6 Examiner report p.3 Open in the tool

Q7(b)Analyse6 marks

With reference to Figure 1 and Extract A, analyse two economic benefits of the growth in the number of tourists to Mauritius.

Mark splitKnowledge 2Application 2Analysis 2

TopicPublic finances and the role of the state

Question paper p.8 Mark scheme p.7 Examiner report p.3 Open in the tool

Q7(c)Explain4 marks

Explain what is meant by a 'reduction in the fiscal deficit' (Extract A, line 16).

Mark splitKnowledge 2Application 2

TopicPublic finances and the role of the state

Question paper p.8 Mark scheme p.8 Examiner report p.3 Open in the tool

Q7(d)Examine8 marks

With reference to the information provided, examine two likely effects on Mauritius' economy of the reduction in the 'base interest rate from 4% to 3.5%' (Extract A, line 10).

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicPublic finances and the role of the state

Question paper p.8 Mark scheme p.9 Examiner report p.3 Open in the tool Practise the AD/AS diagram

Q7(e)Discuss14 marks

With reference to Extract B, discuss measures that the Government can implement to ensure that the private sector continues to grow.

Mark splitEvaluation 6

TopicPublic finances and the role of the state

Question paper p.8 Mark scheme p.11 Examiner report p.4 Open in the tool

Section C

Q8OptionalEvaluate20 marks

Evaluate the extent to which an increase in the national debt is a cause for concern. Refer to a developed country of your choice in your answer.

Mark splitEvaluation 8

TopicEmerging and developing economies

Question paper p.18 Mark scheme p.14 Examiner report p.8 Open in the tool

Q9OptionalEvaluate20 marks

Evaluate the likely macroeconomic effects of the introduction of an indirect tax on a developing country of your choice.

Mark splitEvaluation 8

TopicEmerging and developing economies

Question paper p.18 Mark scheme p.17 Examiner report p.4 Open in the tool Practise the AD/AS diagram

Q10OptionalEvaluate20 marks

Evaluate the possible causes of a current account deficit. Refer to a country of your choice in your answer.

Mark splitEvaluation 8

TopicThe balance of payments and exchange rates

Question paper p.18 Mark scheme p.20 Examiner report p.9 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 Mauritius

Section C

Other years of Edexcel International A-level Unit 4

Topics on this paper