Section A
Q11 mark
1 Which one of the following is an injection into the circular flow of income?
- AInvestment
- BSavings
- CImports
- DConsumption
Show the answer
The answer is A.
TopicNational income, the circular flow and the multiplier
Q21 mark
Which one of the following is most likely to be a benefit of actual economic growth?
- AA decrease in profits for firms
- BA decrease in the rate of inflation
- CA decrease in the rate of unemployment
- DA decrease in government tax revenues
Show the answer
The answer is C.
TopicEconomic growth
Q31 mark
Which one of the following is the percentage decrease in China's government expenditure between 2021 and 2022?
- A4.27
- B17.33
- C20.96
- D82.67
Show the answer
The answer is B.
Q41 mark
Which one of the following is the most likely reason for this change in Brazil's balance of trade in goods and services surplus?
- AA decrease in income tax rates in Brazil
- BA decrease in the quality of Brazil's goods and services
- CA decrease in the savings ratio in Brazil
- DA decrease in the external value of Brazil's currency
Show the answer
The answer is D.
TopicMeasures of economic performance
Q51 mark
Which one of the following is a fiscal policy instrument?
- AChanges in quantitative easing
- BChanges in taxation
- CChanges in lending criteria
- DChanges in liquidity requirements
Show the answer
The answer is B.
TopicFiscal, monetary and supply-side policy
Q61 mark
Which one of the following can be deduced from the table?
- AThere was disinflation between June and July
- BThere was deflation between July and August
- CThe rate of inflation was at its lowest in September
- DThe rate of inflation fell throughout the given period
Show the answer
The answer is A.
TopicMacroeconomic objectives and policy conflicts
Section B
Q7Explain4 marks
Explain one likely disadvantage of a positive output gap for the economy of Belize.
Mark splitKnowledge 1Application 1Analysis 2
TopicEconomic growth
Q8Draw4 marks
Draw an AD and SRAS diagram to show the likely impact of this increase in consumer confidence in the eurozone.
Mark splitKnowledge 1Application 3
TopicAggregate demand
Q9Calculate4 marks
Based on this information, calculate the marginal propensity to consume (MPC) in this economy. Show your workings.
Mark splitKnowledge 1Application 3
TopicAggregate demand
Q10Explain4 marks
With reference to the chart, explain one possible effect of the change in the rate of unemployment between Q3 2020 and Q4 2022 on the public finances of Malta.
Mark splitKnowledge 1Application 1Analysis 2
TopicMacroeconomic objectives and policy conflicts
Q11Explain4 marks
With reference to the data, explain what is meant by the 'wealth effect'.
Mark splitKnowledge 2Application 2
TopicAggregate demand
Section C
Case study
The UK economy
Extracts: Figure 1: Real GDP per capita, £ thousands, 2010-2022 · Figure 2: Index of business investment between 2010 and 2022, (Q1 2016=100) · Extract A: Low rate of economic growth · Extract B: Supply-side policies · Figure 1: adapted from Statista, · Figure 2: adapted from FT,
In the extracts: European Union, GDP, UK's, Increasing, Index, Statista, Supply-side, They
Q12(a)Define2 marks
Define the term 'GDP per capita' (Figure 1).
Mark splitKnowledge 2
TopicMeasures of economic performance
Q12(b)Explain4 marks
With reference to Figure 1, explain the likely impact of higher real incomes on subjective happiness.
Mark splitKnowledge 2Application 2
TopicAggregate demand
Q12(c)Examine8 marks
Examine the likely impact on the UK's real output of 'the rising cost of energy' (Extract A, line 4).
Mark splitKnowledge 2Application 2Analysis 2Evaluation 2
TopicMeasures of economic performance
Q12(d)Analyse6 marks
With reference to Figure 2 and Extract A, analyse two factors that influence business investment.
Mark splitKnowledge 2Application 2Analysis 2
TopicMeasures of economic performance
Q12(e)Discuss14 marks
With reference to the information provided, discuss supply-side policies that the UK Government has introduced to increase the country's productive potential.
Mark splitEvaluation 6
TopicMeasures of economic performance
Section D
Q13OptionalEvaluate20 marks
Evaluate the likely macroeconomic effects of an increase in interest rates on a country of your choice.
Mark splitEvaluation 8
TopicFiscal, monetary and supply-side policy
Q14OptionalEvaluate20 marks
Evaluate possible causes of inflation. Refer to a country of your choice in your answer.
Mark splitEvaluation 8
TopicMacroeconomic objectives and policy conflicts
