Component 2: Exploring Economic Issues · B520U20-1

Eduqas AS Component 2, June 2018

All 10 written questions from Eduqas AS Component 2 (June 2018), Component 2: Exploring Economic Issues. Case studies: Higher oil price and weaker pound start to push up inflation. 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

Q1(a)10 marks

(i) Assuming that the eMoov forecast in Extract 2 is correct, calculate the predicted average price of a house in areas affected by the third runway, following the Government's announcement. (ii) Using a supply and demand diagram, discuss how likely it is that house prices will fall by 20% in affected areas over the next few years.

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

Q1(b)10 marks

To what extent might the decision to build a third runway at Heathrow be considered to be an example of government failure?

Mark splitKnowledge 2Application 2Analysis 2Evaluation 4

TopicGovernment intervention in markets

Question paper p.3 Mark scheme p.5 Open in the tool

Q1(c)8 marks

(i) Using the data in Extract 3, calculate the forecast number of passengers for Heathrow in 2040 assuming that there are no supply constraints. (ii) Using a supply and demand diagram, explain how the construction of a third runway at Heathrow is expected to prevent a £200 increase in the price of a return flight.

Mark splitKnowledge 2Application 2Analysis 4

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

Q1(d)12 marks

Using AD/AS diagrams, evaluate the claims made by the Department of Transport in the first paragraph of Extract 1.

Mark splitKnowledge 4Application 2Analysis 2Evaluation 4

Question paper p.3 Mark scheme p.9 Open in the tool Draw it: AD/AS diagram

Case study

HIGHER OIL PRICE AND WEAKER POUND START TO PUSH UP INFLATION

In the extracts: Brexit, Singapore, ONS, Office for National Statistics, Margaret Thatcher, Bank of England, Patrick Minford

Q2(a)4 marks

Using a supply and demand diagram, explain why a higher oil price and a weaker pound could cause the price of a product to rise.

Mark splitKnowledge 2Analysis 2

TopicMacroeconomic objectives and policyMeasuring economic performanceInternational trade and exchange rates

Question paper p.5 Mark scheme p.12 Open in the tool Draw it: supply and demand diagram

Q2(b)4 marks

Why might a business's ability to "absorb rising costs or pass them on to consumers" (line 9) depend upon the price elasticity of demand for its product?

Mark splitKnowledge 2Analysis 2

TopicDemand, supply and elasticity

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

Q2(c)4 marks

Using an appropriate diagram, outline possible causes of the change in the value of the pound at the start of Friday the 24th June (Figure 1).

Mark splitKnowledge 2Application 2

TopicMacroeconomic objectives and policyMeasuring economic performanceInternational trade and exchange rates

Question paper p.5 Mark scheme p.14 Open in the tool

Q2(d)8 marks

To what extent will "a fall in the value of the pound" (line 10) benefit UK firms?

Mark splitKnowledge 4Analysis 2Evaluation 2

TopicMacroeconomic objectives and policyMeasuring economic performanceInternational trade and exchange rates

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

Q2(e)10 marks

Using AD/AS diagrams and with reference to the data, discuss whether the Bank of England will need to increase interest rates to prevent inflation from rising above its target level.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 4

TopicMacroeconomic objectives and policyMeasuring economic performance

Question paper p.5 Mark scheme p.17 Open in the tool Draw it: AD/AS diagram

Q2(f)10 marks

Using an appropriate diagram and with reference to the data, evaluate the economic effects of UK tariffs being imposed on products imported from the rest of the EU.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 4

TopicInternational trade and exchange rates

Question paper p.5 Mark scheme p.19 Open in the tool

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.

HIGHER OIL PRICE AND WEAKER POUND START TO PUSH UP INFLATION

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