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

Edexcel International A-level Unit 4, October 2022

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 4 (October 2022), Developments in the global economy. Case studies: The economy of Japan. 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 interventionist strategies could stimulate economic development in Mali?

APromotion of foreign direct investment
BDevelopment of human capital
CRemoval of government subsidies
DPrivatisation of nationalised industries

Show the answer

The answer is B.

TopicGlobalisation

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

Q21 mark

Which one of the following could have caused the depreciation in the exchange rate of the euro against the US dollar?

AThere was greater economic stability in the eurozone than in the USA
BThe eurozone inflation rate decreased relative to that in the USA
CThere was more capital flight from the eurozone than from the USA
DThe eurozone interest rate increased relative to that in the USA

Show the answer

The answer is C.

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

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

AThe Gini coefficient for Peru had decreased
BThe Marshall-Lerner condition was not met
CThe rate of unemployment in Peru had increased
DThe Government of Peru had decreased progressive tax rates

Show the answer

The answer is A.

TopicThe balance of payments and exchange rates

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

Q41 mark

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

AThere was a surplus in the capital and financial accounts
BThere was a fiscal surplus and an increase in the national debt
CThe value of imports was greater than the value of exports
DThe value of exports was greater than the value of imports

Show the answer

The answer is D.

TopicPublic finances and the role of the state

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

Q51 mark

Which one of the following combinations of foreign currency transactions would Canada's central bank use to reduce the value of the Canadian dollar against the UK pound sterling? Canadian dollar UK pound sterling

ABuy Buy
BBuy Sell
CSell Buy
DSell Sell

Show the answer

The answer is C.

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

Q61 mark

Ceteris paribus, which one of the following factors is most likely to have caused this decrease in Pakistan's terms of trade?

AA higher rate of inflation in Pakistan relative to other countries
BThe prices of imports into Pakistan increased at a faster rate than the prices of its exports
CAn appreciation of Pakistan's exchange rate
DT he prices of Pakistan's exports increased at a faster rate than the prices of its imports

Show the answer

The answer is B.

TopicThe balance of payments and exchange rates

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

Section B

Case study

The economy of Japan

Extracts: Figure 1: Inflation rate*, as measured by the Consumer Price Index (CPI), · Figure 2: Percentage of the population aged 65 and over, 2010-2020 · Extract A: Monetary policy · Extract B: Demographic changes · Extract C: Government expenditure · Figure 1: based on data taken from tradingeconomics, https://tradingeconomics.com/japan/inflation-cpi

In the extracts: Japan's, CPI, Japanese, Bank, BoJ's, Demographic, Index, Inflation, Monetary, Traders

Q7(a)Calculate2 marks

With reference to the second and third paragraphs of Extract C, calculate the amount saved by Japanese citizens from the total cash payments made by the Japanese Government. You are advised to show your working.

Mark splitApplication 2

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

Q7(b)Explain4 marks

With reference to Figure 1 and Extract A, explain what is meant by an 'inflation target' (Extract A, line 5).

Mark splitKnowledge 2Application 2

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

Q7(c)Analyse6 marks

With reference to Figure 1 and Extract A, analyse two ways a deflationary monetary policy can 'control the rising rate of inflation'.

Mark splitKnowledge 2Application 2Analysis 2

Question paper p.9 Mark scheme p.8 Examiner report p.6 Open in the tool

Q7(d)Examine8 marks

With reference to Figure 2 and Extract B, examine two reasons why the demographic changes in Japan may constrain its rate of economic growth.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

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

Q7(e)Discuss14 marks

With reference to Extract C, discuss policies that the Japanese Government could implement to increase the country's long-term rate of economic growth.

Mark splitEvaluation 6

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

Section C

Q8OptionalEvaluate20 marks

Evaluate the likely benefits to a developing country of joint ventures between local businesses and transnational companies as a means of promoting economic development.

Mark splitEvaluation 8

TopicGlobalisation

Question paper p.16 Mark scheme p.14 Examiner report p.7 Open in the tool

Q9OptionalEvaluate20 marks

Evaluate whether the benefits of globalisation outweigh the costs. Refer to a country of your choice in your answer.

Mark splitEvaluation 8

TopicGlobalisation

Question paper p.16 Mark scheme p.17 Examiner report p.4 Open in the tool

Q10OptionalEvaluate20 marks

Evaluate the disadvantages of agricultural subsidies paid to farmers in developed countries on developing countries.

Mark splitEvaluation 8

TopicEmerging and developing economies

Question paper p.16 Mark scheme p.20 Examiner report p.8 Open in the tool Practise the subsidy 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 economy of Japan

Section C

Other years of Edexcel International A-level Unit 4

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