Essay questions on measures of economic performance
Evaluate the limitations of using GDP data to compare living standards between countries. Refer to countries of your choice in your answer.
Evaluate the likely effects of an increase in the unemployment rate on workers and public finances. Refer to a country of your choice in your answer.
Evaluate the limitations of using GDP data to compare living standards between countries.
Evaluate whether the exchange rate of a country's currency is the main factor influencing the country's balance of trade.
Evaluate the likely impact of an increase in the unemployment rate on workers, public finances and resource utilisation.
Data response questions on measures of economic performance
Case study: The US economy
Define the term 'inflation'.
Case study: The US economy
With reference to Figure 1 and the first paragraph of Extract A, examine two causes of the relatively high rate of inflation in the USA.
Case study: The US economy
With reference to the third paragraph of Extract A, explain the term 'rate of unemployment'.
Case study: The US economy
With reference to the first paragraph of Extract B, analyse two reasons why the USA's rate of economic growth increased in 2023.
Case study: The US economy
With reference to the information provided and your own knowledge, discuss the likely macroeconomic effects of the increase in the base rate of interest on the US economy.
Case study: The Japanese economy
Define the term 'recession'.
Case study: The Japanese economy
With reference to the third paragraph of Extract A, explain the term 'exchange rate'.
Case study: The Japanese economy
Analyse one likely effect of the 'increase in the number of overseas visitors' (Extract A, lines 8 and 9) on Japan's circular flow of income. Illustrate your answer with a circular flow diagram.
Case study: The Japanese economy
With reference to Extract A, examine the likely impact on Japan's real output of the fall in domestic consumption.
Case study: The economy of Brazil
Define the term 'living standards'.
Case study: The economy of Brazil
With reference to Figure 2, explain the difference between disinflation and inflation.
Case study: The economy of Brazil
With reference to the information provided, discuss the likely effects on living standards of the supply-side policies proposed by President Lula.
Case study: The economy of Ireland
Define the term 'corporation tax' (Extract A, lines 4 and 5).
Case study: The economy of Ireland
Explain what is meant by Gross National Income (Extract A, line 24).
Case study: The economy of Ireland
With reference to Extract A, analyse two reasons for the improvement in living standards in Ireland between 2015 and 2022.
Case study: The economy of Ireland
With reference to Figure 2, Extract A and your own knowledge, discuss the limitations of using GDP to compare living standards between countries.
Case study: The UK economy
Define the term 'GDP per capita' (Figure 1).
Case study: The UK economy
Examine the likely impact on the UK's real output of 'the rising cost of energy' (Extract A, line 4).
Case study: The UK economy
With reference to Figure 2 and Extract A, analyse two factors that influence business investment.
Case study: The UK economy
With reference to the information provided, discuss supply-side policies that the UK Government has introduced to increase the country's productive potential.
Case study: The economy of China
Define the term 'real GDP' (Figure 1).
Case study: The economy of China
With reference to Figure 2, explain how ILO unemployment is measured.
Case study: The economy of China
With reference to Extract A, analyse two causes of China's high youth unemployment rate.
Case study: The Indian economy
Define the term 'GDP growth rate' (Extract A, line 23).
Case study: The Indian economy
With reference to Figure 1, explain the difference between a balance of trade deficit and a balance of trade surplus.
Case study: The Indian economy
Analyse how an increase in the rate of inflation could have a 'negative impact on India's balance of trade' (Extract A, line 9).
Case study: The Indian economy
Examine the likely impact on India's real output of its 'increased expenditure on imported oil' (Extract A, line 7).
Case study: The Indian economy
With reference to the information provided and your own knowledge, discuss the likely effects of the increase in the base rate of interest on the Indian economy.
Case study: The German economy
Define the term 'seasonally adjusted' (Figure 1).
Case study: The German economy
With reference to Extract A, analyse two roles of a central bank.
Case study: The German economy
With reference to Figure 1 and Extract A, examine the likely impact of a fall in business confidence on Germany's real output.
Case study: The German economy
With reference to the information provided, discuss the likely macroeconomic effects of a high rate of inflation on the German economy.
Case study: The UK economy
Examine two likely macroeconomic effects of 'significant wage increases' (Extract A, line 21) on the UK economy.
Case study: The eurozone economy
Define the term 'real GDP' (Figure 1).
Case study: The eurozone economy
With reference to Figure 2, explain the difference between disinflation and deflation.
Case study: The eurozone economy
With reference to Figure 1 and the first paragraph of Extract A, analyse two influences on the level of investment in the eurozone.
Case study: The eurozone economy
Examine the likely effects of 'the increase in the exchange rate of the euro against the US dollar' (Extract A, lines 25-26) on the net trade balance of the eurozone.
Case study: The French economy
Define the term 'recession' (Extract A, line 7).
Case study: The French economy
With reference to Figure 2, explain how the CPI inflation rate is calculated.
Case study: The French economy
With reference to Figure 3 and Extract A, examine two likely effects on the French economy of the trend in the inflation rate in 2020.
Case study: The French economy
With reference to Extract A, analyse the likely effect of France's trade balance in April 2020 on its circular flow of income.
Case study: The French economy
With reference to Extract A and your own knowledge, discuss the likely effects of the ECB's monetary policy on the French economy.
Case study: East African* economies
With reference to Figure 1 and Extract A, examine two likely impacts of the annual GDP growth rates on the people living in East African countries.
Case study: East African* economies
With reference to Figure 2, analyse one macroeconomic effect of the change in the current account balance as a percentage of GDP on East African economies.
Case study: The economy of the Philippines
Define the term 'Purchasing Power Parity (PPP)', (Figure 1).
Case study: The economy of the Philippines
With reference to Figure 1, explain the difference between GDP per capita and GNI per capita.
Case study: The economy of the Philippines
With reference to Figure 1, analyse two limitations of using GNI per capita PPP data to compare living standards in the Philippines between 2000 and 2018.
Case study: The economy of the Philippines
With reference to Extract A, examine two reasons why the Philippine economy was forecast to grow from 2019 to 2021.
Case study: The economy of the Philippines
Discuss how supply-side policies might 'help the Philippines to achieve economic growth' (Extract A, lines 12-13). Illustrate your answer with an appropriate diagram(s).
Case study: The Australian economy
Define the term 'Real wage growth' (Extract B, line 8).
Case study: The Australian economy
With reference to Figure 2, explain what is meant by a surplus on the balance of trade in goods and services.
Case study: The Australian economy
With reference to Extract A, analyse the possible impact of net migration on employment or unemployment in Australia.
Case study: The Australian economy
With reference to Extract B, examine the case for a reduction in the base rate of interest by the Australian central bank.
Case study: The Canadian economy
With reference to Figure 1, explain the term 'real GDP growth rate'.
Case study: The Canadian economy
With reference to Extract A, analyse one possible macroeconomic impact of the increase in house prices on the Canadian economy.
Case study: The Canadian economy
With reference to Extract B, examine the likely impact of government policies to increase wellbeing.
Case study: The Canadian economy
Using the information in Figure 2 and Extract A, discuss the impact of low investment on Canada's economy.
Case study: The economy of Argentina
Define the term 'base rate of interest' (Figure 1).
Case study: The economy of Argentina
With reference to Extract B, analyse one possible impact of the fall in the value of the peso on Argentina's current account on the balance of payments.
Case study: The Romanian economy
Define the term 'fiscal policy' (Extract A, line 6).
Case study: The Romanian economy
With reference to Figure 1, explain the term 'real GDP growth'.
Case study: The Romanian economy
With reference to Extract A, analyse one macroeconomic effect of the reduction in indirect tax.
Case study: The Romanian economy
With reference to the information provided, examine the likely impact of increased investment on Romania's economy.
Case study: The Romanian economy
Discuss the likely effects of the increase in the rate of inflation on Romania's economy.
Short answer questions on measures of economic performance
Based on this information, calculate the change in Nepal's GDP between 2013 and 2023. Show your workings.
Explain one reason why it is necessary to regularly update the CPI basket of goods and services.
With reference to the chart, explain one likely cause of the deficit in Colombia's balance of trade in goods and services.
Calculate the change in Thailand's balance of trade between 2020 and 2021. Show your workings.
With reference to the chart, explain one likely effect of this trend in the rate of inflation.
Explain one reason why it is necessary to regularly update the CPI basket of goods and services.
With reference to the chart, explain one likely cause of the deficit in Austria's balance of trade in goods and services.
Based on this information, calculate the change in Bulgaria's GDP between 2015 and 2020. Show your workings.
With reference to the chart, explain one likely effect of this trend in the rate of inflation.
Calculate the change in Canada's balance of trade between 2019 and 2020. Show your workings.
With reference to the chart, explain one likely reason for the surplus in Malaysia's balance of trade in goods and services.
Based on this information, calculate the change in Angola's population between 2019 and 2020. Show your workings.
With reference to the table, explain one reason why it is necessary to regularly update the CPI basket of goods and services.
Based on this information, calculate the change in the balance of trade for Saudi Arabia between 2018 and 2019. Show your workings.
Based on this information, calculate the change in Argentina's GDP per capita between 2018 and 2019. Show your workings.
With reference to the data, explain the likely relationship between income and subjective happiness.
With reference to the chart, explain one likely impact of the trend in the unemployment rate on Jamaica's economy.
With reference to the overall trend of the data, explain what is meant by the term 'growth of real GDP'.
Using 2018 as the base year, calculate an index number for personal disposable income in 2014. Show your workings.
Using the information above, calculate the change in GDP per capita between 2012 and 2017 in US$. Show your workings.
Explain one possible impact of increased real incomes on the USA's net trade balance.
With reference to the chart, explain the difference between a current account deficit and a current account surplus.
Using the information above, calculate the change in GDP per capita between 2016 and 2017. Show your workings.
Multiple choice questions
- AS Unit 2, June 2025, Q6
Which one of the following is the most likely cause of the worsening in Maldives' balance of trade in goods and services?
- AS Unit 2, January 2025, Q3
Which one of the following is the percentage change in the unemployment rate for Turkey between January 2022 and January 2023?
- AS Unit 2, October 2024, Q3
Which one of the following is the ratio of Qatar's GNI in 2022 to its GNI in 2020?
- AS Unit 2, June 2024, Q3
Which one of the following is the GDP per capita for Bahrain in 2022?
- AS Unit 2, June 2024, Q4
Which one of the following is the most likely reason for this increase in the balance of trade deficit for Honduras?
- AS Unit 2, June 2024, Q5
Which one of the following is the most likely effect of this increase in the unemployment rate?
- AS Unit 2, January 2024, Q4
Which one of the following is the most likely reason for this change in Brazil's balance of trade in goods and services surplus?
- AS Unit 2, October 2023, Q6
If 2019 is the base year, which one of the following represents the index number for 2021?
- AS Unit 2, June 2023, Q6
Which one of the following can be deduced from the information in the table?
- AS Unit 2, January 2023, Q4
Which one of the following is the most likely effect of this change in real GDP per capita?
- AS Unit 2, January 2023, Q6
Which one of the following represents the ratio of GNI in 2018 to GNI in 2020?
- AS Unit 2, October 2022, Q4
Which one of the following is the most likely reason for this trend in France's balance of trade in goods and services?
- AS Unit 2, October 2022, Q6
Which one of the following represents the index number for 2020, if 2018 is the base year?
- AS Unit 2, January 2022, Q1
Which one of the following is compared when calculating PPP?
- AS Unit 2, January 2022, Q2
If 2017 is the base year, which one of the following represents the index number for 2019?
- AS Unit 2, January 2022, Q4
Which one of the following can be deduced from the chart over the period shown?
- AS Unit 2, January 2022 (reserve paper), Q6
Which one of the following shows the potential increase in real GDP caused by this government injection?
- AS Unit 2, October 2021, Q1
Which one of the following is most likely to have caused the increase in the unemployment rate between Q1 2020 and Q2 2020?
- AS Unit 2, October 2021, Q4
Which one of the following can be deduced from the chart?
- AS Unit 2, October 2021, Q6
Which one of the following can be deduced from the table? GDP per capita was
- AS Unit 2, June 2021, Q3
Which one of the following is most likely to have contributed to this increase in government expenditure as a proportion of GDP?
- AS Unit 2, January 2021, Q3
3 Which one of the following is most likely to cause a deterioration in a developed country's trade balance?
- AS Unit 2, October 2020, Q1
Ceteris paribus, what would be the final increase in GDP following this injection?
- AS Unit 2, October 2020, Q2
2 The table shows the consumer price index (CPI) for the UK in January 2015 and January 2016. Consumer price index January 2015 200 January 2016 206 (Source: https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/d7g7/mm23)…
- AS Unit 2, October 2020, Q5
Which one of the following is most likely to be associated with this change in Spain's unemployment rate?
- AS Unit 2, January 2020, Q4
4 The diagram shows a shift in the aggregate demand curve for an economy. Average price level AD1 AD Real GDP Which of the following combinations was the most likely cause of the change from AD to AD1? Interest rate Exchange rate
- AS Unit 2, January 2020, Q6
6 The chart shows the UK balance of trade on current account, month on month, May 2017 to May 2018 (£ billion, seasonally adjusted). £bn 0 -5 -10 -15 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 2017 2017 2017 2017 2017 2017 2017…
- AS Unit 2, June 2019, Q6
Which one of the following is the percentage change in the unemployment rate for Greece between January 2017 and October 2017?
