Component 2: Exploring Economic Issues · B520U20-1

Eduqas AS Component 2, June 2024

All 10 written questions from Eduqas AS Component 2 (June 2024), Component 2: Exploring Economic Issues. Case studies: Cross-railing and Corbynomics. 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

Cross-railing

In the extracts: London, Crossrail, Shenfield and Abbey Wood, Heathrow Airport

Q1(a)4 marks

Using a diagram, outline the likely impact of new rail lines on the wages of workers in London.

TopicMarket failureAggregate demand

Question paper p.3 Mark scheme p.4 Examiner report p.9 Open in the tool

Q1(b)Discuss6 marks

Discuss the likely cross elasticity of demand between the car parks at Crossrail's Elizabeth Line stations and the number of tickets sold for Crossrail.

Mark splitKnowledge 2Analysis 2Evaluation 2

TopicDemand, supply and elasticity

Question paper p.3 Mark scheme p.6 Examiner report p.9 Open in the tool

Q1(c)6 marks

Using Table 1, explain how the building of Crossrail's Elizabeth Line can lead to the benefits of the multiplier effect (line 11).

Mark splitKnowledge 2Application 2Analysis 2

TopicAggregate demand

Question paper p.3 Mark scheme p.8 Examiner report p.10 Open in the tool

Q1(d)Evaluate10 marks

Evaluate whether increasing infrastructure is better than increased use of road pricing (line 13) to reduce market failure.

Mark splitKnowledge 3Analysis 3Evaluation 4

TopicMarket failure

Question paper p.3 Mark scheme p.10 Examiner report p.10 Open in the tool

Q1(e)14 marks

(i) Define the term 'government failure' and explain why the building of new infrastructure could be considered an example of government failure. (ii) Using the data, assess the extent to which the building of Crossrail would be positive for the short run and long run macroeconomic performance of London and the South East.

TopicGovernment intervention in markets

Question paper p.3 Mark scheme p.13 Examiner report p.10 Open in the tool

Case study

Corbynomics

In the extracts: Great Recession, Corbynomics, GDP, Institute for Fiscal Studies, Bank of England, Jeremy Corbyn

Q2(a)8 marks

(i) Using a PPF diagram, illustrate the impact of a recession on an economy that consists of goods and services. (ii) Using an AD/AS diagram, explain how monetary policy (line 3) can be used to stimulate economic growth.

TopicEconomic growth and the economic cycleMacroeconomic objectives and policyThe economic problem and resource allocation

Question paper p.5 Mark scheme p.19 Examiner report p.10 Open in the tool Draw it: AD/AS diagram Or: PPF diagram

Q2(b)8 marks

Using the data, describe how the proposed new national investment bank and transformation funds could (i) decrease negative externalities (ii) increase positive externalities

TopicMarket failureAggregate demandThe financial sector

Question paper p.5 Mark scheme p.23 Examiner report p.10 Open in the tool Practise the negative externality diagram Practise the positive externality diagram

Q2(c)7 marks

Using a demand and supply diagram, consider who benefits the most from a decrease in ad valorem tax (line 2), the consumer or the firms?

Mark splitKnowledge 3Analysis 2Evaluation 2

TopicGovernment intervention in markets

Question paper p.5 Mark scheme p.26 Examiner report p.11 Open in the tool Draw it: indirect tax diagram

Q2(d)9 marks

Using the data from Table 1, discuss whether the proposed changes to UK tax rates are a good way to raise government revenue.

Mark splitApplication 3Analysis 2Evaluation 4

TopicMacroeconomic objectives and policyGovernment intervention in marketsAggregate demand

Question paper p.5 Mark scheme p.29 Examiner report p.11 Open in the tool

Q2(e)8 marks

Using the data, discuss whether free university tuition or housing policies is the best way to improve income inequality.

Mark splitApplication 2Analysis 3Evaluation 3

TopicPoverty and inequality

Question paper p.5 Mark scheme p.32 Examiner report p.11 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.

Cross-railing

Corbynomics

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