Component 2: Exploring Economic Issues · B520U20-1

Eduqas AS Component 2, June 2016

All 10 written questions from Eduqas AS Component 2 (June 2016), Component 2: Exploring Economic Issues. Case studies: Mixed picture for uk economic health and War on smokers continues. 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

Case study

MIXED PICTURE FOR UK ECONOMIC HEALTH

In the extracts: GDP, Office for National Statistics, Eurozone, Scotland, Chinese, America, Brent

Q1(a)4 marks

Using a diagram, explain why, according to the data, the pound appreciated in 2014.

TopicInternational trade and exchange rates

Question paper p.3 Mark scheme p.3 Examiner report p.6 Open in the tool

Q1(b)Discuss10 marks

Discuss whether the slowing growth in the UK, identified in the data, means that the Government should use fiscal policy to boost aggregate demand.

Mark splitKnowledge 2Analysis 4Evaluation 4

TopicAggregate demandMacroeconomic objectives and policy

Question paper p.3 Mark scheme p.4 Examiner report p.7 Open in the tool Practise the AD/AS diagram Practise the multiplier diagram

Q1(c)14 marks

(i) Using a supply and demand diagram explain why the price of oil fell sharply in the second half of 2014. (ii) Discuss how beneficial the fall in oil prices is likely to be for the UK economy.

TopicEconomic growth and the economic cycleMacroeconomic objectives and policyPoverty and inequality

Question paper p.3 Mark scheme p.6 Examiner report p.7 Open in the tool Draw it: supply and demand diagram

Q1(d)12 marks

(i) Explain, with reference to the data, why rising income inequality might lead to economic and social problems for the UK. (ii) Evaluate the extent to which a more progressive tax system will reduce income inequality in the UK.

TopicPoverty and inequality

Question paper p.3 Mark scheme p.9 Examiner report p.7 Open in the tool

Case study

WAR ON SMOKERS CONTINUES

In the extracts: UKIP, VAT, Action for Smoking and Health, Tobacco Manufacturers, Nigel Farage, Far East, European

Q2(a)Explain2 marks

Explain what is meant by 'all figures at 2010 prices'. (Figure 3)

Mark splitApplication 2

TopicMarket failureDemand, supply and elasticity

Question paper p.5 Mark scheme p.13 Examiner report p.8 Open in the tool

Q2(b)4 marks

Using a demand and supply diagram explain how the revenue of cigarette manufacturers could be affected by the introduction of plain packaging for their brands.

TopicMarket failureDemand, supply and elasticity

Question paper p.5 Mark scheme p.13 Examiner report p.8 Open in the tool Draw it: supply and demand diagram

Q2(c)8 marks

How does the growing of both tobacco and the smoking of cigarettes produce external costs?

TopicMarket failure

Question paper p.5 Mark scheme p.14 Examiner report p.8 Open in the tool Practise the negative externality diagram

Q2(d)6 marks

With the aid of the data discuss the view that the price elasticity of supply of tobacco is inelastic.

TopicDemand, supply and elasticityGrowth and development

Question paper p.5 Mark scheme p.15 Examiner report p.8 Open in the tool

Q2(e)10 marks

With the aid of a diagram and using the data, evaluate the effects of a 5% increase in the price of cigarettes brought about by a rise in indirect taxes.

TopicGrowth and developmentGovernment intervention in markets

Question paper p.5 Mark scheme p.16 Examiner report p.8 Open in the tool Draw it: indirect tax diagram Or: PED and PES diagram

Q2(f)10 marks

"A subsidy to the producers of nicotine patches, lozenges and gum is the best way to reduce smoking." With the aid of a diagram discuss this view.

TopicGrowth and developmentGovernment intervention in markets

Question paper p.5 Mark scheme p.18 Examiner report p.8 Open in the tool Draw it: subsidy diagram

Question text is quoted from the question papers, © WJEC CBAC Ltd (Eduqas), 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.

MIXED PICTURE FOR UK ECONOMIC HEALTH

WAR ON SMOKERS CONTINUES

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