Case study
TRUMP: "LETS MAKE AMERICA GREAT AGAIN"
In the extracts: GDP, Mexico, Australia and Canada, President Trump, North American, Donald Trump
Q1(a)6 marks
With the use of a tariff diagram, outline: (i) How US imports from Mexico will be affected by tariffs on Mexican goods. (ii) How Trump plans to finance the border wall. (iii) Why some commentators argue that it will be US consumers who actually pay for the border wall.
Mark splitKnowledge 6
TopicInternational trade and exchange rates
Q1(b)12 marks
(i) Outline what economists mean by economic growth. (ii) With reference to economic theory and Chart 1, discuss the extent to which economic growth is a major influence on the US Balance of Trade (part of the current account of the Balance of Payments).
Mark splitKnowledge 2Application 3Analysis 3Evaluation 4
TopicInternational trade and exchange ratesEconomic growth and the economic cycleMeasuring economic performance
Q1(c)8 marks
Using the data, discuss whether President Trump's trade reforms and immigration controls will be good for the US economy.
Mark splitApplication 2Analysis 3Evaluation 3
TopicThe labour market
Q1(d)14 marks
(i) Outline what is meant by fiscal expansion. (ii) Outline what is meant by public sector debt (national debt). (iii) Discuss whether the proposed fiscal expansion and greater deregulation are likely to increase the long term rate of US economic growth from 2% to 3%.
TopicPublic finances and the role of the stateEconomic growth and the economic cycleGovernment intervention in markets
Case study
OLIVE OIL ON THE UP OLIVE OIL PRICES GO UP, AND UP, AND UP
In the extracts: Mediterranean, Italian, Britain, Greece, Brexit, Italy, Spain, OIL, IOC, International Olive Council
Q2(a)7 marks
(i) Calculate the percentage change in the demand for olive oil in the UK between 1990 and 2015. (ii) With reference to the data and using a demand and supply diagram, outline why the price of olive oil has been rising in recent years.
TopicDemand, supply and elasticity
Q2(b)6 marks
With the aid of the data, discuss the likely cross elasticity relationship between olive oil and sunflower oil.
Mark splitApplication 2Analysis 2Evaluation 2
TopicGrowth and developmentDemand, supply and elasticity
Q2(c)10 marks
(i) Outline what is meant by inelastic price elasticity of supply. (ii) Using the data, discuss whether the price elasticity of supply of olive oil is likely to be more elastic in the long run than the short run.
Mark splitKnowledge 3Application 2Analysis 3Evaluation 2
TopicDemand, supply and elasticity
Q2(d)7 marks
With the aid of a diagram, discuss the effects on the UK restaurant sector if EU migrants leave the UK labour market as a result of Brexit.
Mark splitKnowledge 3Analysis 2Evaluation 2
TopicInternational trade and exchange ratesGrowth and developmentThe labour market
Q2(e)10 marks
Using a diagram, discuss whether governments should intervene to stabilise agricultural prices.
Mark splitKnowledge 2Analysis 4Evaluation 4
