Component 2: Exploring Economic Issues · B520U20-1

Eduqas AS Component 2, June 2023

All 12 written questions from Eduqas AS Component 2 (June 2023), Component 2: Exploring Economic Issues. Case studies: Rise of Palm Oil and Woes of Argentina. 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

Rise of Palm Oil

In the extracts: Malaysia, RSPO, GDP, Indonesia and Malaysia, European Union, TPP, Association of Southeast Asian, Trans-Pacific Partnership, Sustainable Palm Oil, EU and Indonesia

Q1(a)8 marks

(i) Define the meaning of a subsidy. (ii) Using the data and a diagram, outline the likely impact of the subsidy on biofuel on the producer and consumer.

TopicGovernment intervention in markets

Question paper p.4 Mark scheme p.4 Examiner report p.9 Open in the tool Draw it: subsidy diagram

Q1(b)Explain4 marks

Explain a possible external benefit of agricultural production.

Mark splitKnowledge 2Analysis 2

TopicMarket failure

Question paper p.4 Mark scheme p.7 Examiner report p.10 Open in the tool

Q1(c)5 marks

Analyse how a decrease in the price of tradeable pollution permits could lead to increased carbon dioxide (CO2) emissions.

Mark splitKnowledge 3Analysis 2

TopicGovernment intervention in marketsMarket failure

Question paper p.4 Mark scheme p.8 Examiner report p.10 Open in the tool

Q1(d)8 marks

Consider whether converting up to 70% of Indonesia's remaining forest into palm plantations is an efficient allocation of resources.

Mark splitApplication 3Analysis 2Evaluation 3

TopicThe economic problem and resource allocation

Question paper p.4 Mark scheme p.10 Examiner report p.10 Open in the tool

Q1(e)Discuss6 marks

Discuss whether sustainability regulations for palm oil should be made compulsory rather than being left to voluntary schemes such as the RSPO.

Mark splitKnowledge 1Application 2Evaluation 3

TopicGovernment intervention in markets

Question paper p.4 Mark scheme p.13 Examiner report p.10 Open in the tool

Q1(f)9 marks

To what extent do you think the EU's move to reduce its use of palm oil will harm Malaysian GDP, employment and trade?

Mark splitApplication 3Analysis 3Evaluation 3

Question paper p.4 Mark scheme p.15 Examiner report p.10 Open in the tool

Case study

Woes of Argentina

In the extracts: GDP, Macri, Argentina, Argentinian, Kirchner, President Cristina Kirchner, Argentinian Presidency, Latin America

Q2(a)Explain3 marks

Explain one reason for a drop in investment by utility firms during Kirchner's Presidency.

Mark splitKnowledge 1Analysis 2

TopicAggregate demand

Question paper p.7 Mark scheme p.18 Examiner report p.11 Open in the tool

Q2(b)4 marks

Using a diagram, explain the likely impact of the Argentinian drought on the price of processed plums and peaches.

Mark splitKnowledge 2Application 1Analysis 1

TopicInternational trade and exchange ratesMacroeconomic objectives and policyAggregate demand

Question paper p.7 Mark scheme p.19 Examiner report p.11 Open in the tool Draw it: supply and demand diagram

Q2(c)11 marks

(i) Explain the impact of a decrease in the exchange rate of the peso against the US dollar on the cost of Argentina's public sector debt. (ii) Given the increase in interest rates, discuss whether the change in the exchange rate of the peso in August 2018 is surprising. Use a diagram in your answer.

TopicInternational trade and exchange ratesMacroeconomic objectives and policyPublic finances and the role of the state

Question paper p.7 Mark scheme p.20 Examiner report p.11 Open in the tool

Q2(d)7 marks

Using the data, consider whether Macri was right to cut government spending in order to improve the budget/fiscal deficit.

Mark splitApplication 2Analysis 2Evaluation 3

TopicMacroeconomic objectives and policyAggregate demandPublic finances and the role of the state

Question paper p.7 Mark scheme p.24 Examiner report p.11 Open in the tool

Q2(e)6 marks

Using a labour market diagram, discuss the likely impact on wages of reforming labour laws.

Mark splitKnowledge 2Analysis 2Evaluation 2

TopicThe labour market

Question paper p.7 Mark scheme p.26 Examiner report p.11 Open in the tool

Q2(f)9 marks

Using a demand and supply diagram, discuss the extent to which price controls on the 60 essential products will be an effective tool to control inflation in Argentina.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 3

TopicMeasuring economic performance

Question paper p.7 Mark scheme p.28 Examiner report p.12 Open in the tool Draw it: maximum price 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.

Rise of Palm Oil

Woes of Argentina

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