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

Edexcel International A-level Unit 4, October 2024

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 4 (October 2024), Developments in the global economy. Case studies: The economy of Vietnam. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paperMark schemeExaminer report

Section A

Q21 mark
This is an example of which one of the following?
  1. AAn interventionist strategy to promote economic growth and development
  2. BA reflationary fiscal policy to reduce inflationary pressures
  3. CA deflationary monetary policy to reduce inflationary pressures
  4. DA market-orientated strategy to promote economic growth and development
Show the answer

The answer is D.

Question paper p.2Mark scheme p.4Examiner report p.6Open in the tool
Q31 mark
Which one of the following can be deduced from this information?
  1. AThe value of consumption was lower than the value of saving
  2. BGovernment spending was greater than tax revenue
  3. CThe value of imports was greater than the value of exports
  4. DGross domestic investment was lower than capital flight
Show the answer

The answer is C.

Question paper p.2Mark scheme p.4Examiner report p.6Open in the tool
Q41 mark
Which one of the following can be deduced from this table?
  1. ACountry X has a lower opportunity cost in the production of watches whereas Country Y has a lower opportunity cost in the production of batteries
  2. BCountry Y has an absolute advantage over Country X in the production of watches and batteries
  3. CCountry X has a comparative advantage over Country Y in the production of watches and batteries
  4. DNeither country will benefit from specialisation and trade
Show the answer

The answer is A.

TopicInternational trade, protectionism and trading blocs

Question paper p.3Mark scheme p.4Examiner report p.6Open in the tool
Q51 mark
Which one of the following best describes the role of NGOs?
  1. ATo provide loans to countries that experience temporary current account deficits on their balance of payments
  2. BTo promote community-based development programmes to support economic growth and development
  3. CTo maintain exchange rate stability by ensuring international monetary cooperation between countries
  4. DTo set the rules for trade and to resolve trade disputes between countries
Show the answer

The answer is B.

TopicThe balance of payments and exchange rates

Question paper p.3Mark scheme p.5Examiner report p.6Open in the tool
Q61 mark
6 Which one of the following aggregate demand (AD) and short-run aggregate supply (SRAS) diagrams represents the likely effect of a substantial currency appreciation? In each diagram the original equilibrium is represented by P1 and Y1. Average Average price SRAS1 price level SRAS2 level SRAS1 SRAS2 P1 P1
  1. ABP2 AD2 P2 AD1 AD1 AD2 O Y1 Y2 Real O Y1 Y2 Real output output Average Average price SRAS2 SRAS price level 1 level SRAS2 P2 P2 SRAS1 C P1 D AD1 P1 AD2 AD2 AD1 O Y2 Y1 Real O Y2 Y1 Real output output A
  2. B
  3. C
  4. D
Show the answer

The answer is B.

TopicThe balance of payments and exchange rates

Question paper p.4Mark scheme p.5Examiner report p.7Open in the toolPractise the AD/AS diagram

Section B

Case study

The economy of Vietnam

Extracts: Figure 1: Foreign direct investment (FDI) in Vietnam, $ billions, 2014-2022 · Figure 2: Largest sources of FDI inflows to Vietnam, $ billions, 2022 · Figure 3: Average monthly earnings of manufacturing employees in Vietnam, · Extract A: Economic challenges

In the extracts: Japan Singapore China Denmark, Vietnam's Finance Minister, South Korea, FDI, USA, Economic, Foreign, Largest, Malaysia, Nevertheless

Section C

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.