Eduqas A-level Component 2, June 2025

(i) On average, a typical household wheelie bin contains 65 kg of waste. Using the April 2024 standard tax rate, calculate how much will be paid in Landfill Tax if all of this waste goes to landfill. (ii) Using the data, outline two external costs that result from household waste going to landfill.

Using a demand and supply diagram, explain how a sharp rise in the Landfill Tax will cause prices to rise in industries that send a lot of waste to landfill.

The Consumer Prices Index (CPI) rose by 8.7% in the 12 months to April 2023. Use the data to calculate the real change in the standard rate of Landfill Tax rate between April 2022 and April 2023.

Using an externalities diagram and the data, evaluate the extent to which the Landfill Tax could correct the market failure caused by waste being sent to landfill.

Using a demand and supply diagram, explain why reducing the number of permits in the market for carbon from 1365 million to 936 million allowances/permits will in theory mean that industries "bring their emissions down at the rate needed to reach the UK's goals for greenhouse gas emissions by 2050" (lines 44–46).

Using the data, discuss the view that the use of tradeable pollution permits is better than a carbon tax as a means of reducing greenhouse gas emissions.

(i) Use an exchange rate diagram to outline how import restrictions would have stopped the rupee from depreciating. (ii) Using the data, discuss the possible macroeconomic benefits to Pakistan of ending the policy of keeping the exchange rate artificially above its free market level.

(i) Using the data and an AD/AS diagram, explain two reasons why inflation rose in Pakistan (Figure 2). (ii) Using the data, discuss how effective the increase in interest rates is likely to have been in returning Pakistan's inflation to target.

Using the data, discuss whether the IMF's fiscal recommendations (lines 16–22) are likely to be beneficial for Pakistan.