Paper 2: Macroeconomics · H060/02

OCR AS Paper 2, June 2022

All 9 written questions and 15 multiple choice questions from OCR AS Paper 2 (June 2022), Macroeconomics. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme

Section A

Q11 mark

In the model of the circular flow of income, which of the following will cause national income to increase?

AAn increase in government spending
BAn increase in imports
CAn increase in savings
DAn increase in taxes

Show the answer

The answer is A.

TopicAggregate demandNational income and the circular flowInternational trade and exchange rates

Question paper p.2 Mark scheme p.9 Open in the tool

Q21 mark

What type of policy is deregulation?

AExchange rate
BFiscal
CMonetary
DSupply side

Show the answer

The answer is D.

TopicInternational trade and exchange ratesGovernment intervention in marketsCompetition policy and regulation

Question paper p.2 Mark scheme p.9 Open in the tool

Q31 mark

Which of the following is a definition of hyperinflation?

APrices are constant
BPrices are falling
CPrices are rising at a slower rate than previously
DPrices are rising excessively

Show the answer

The answer is D.

Question paper p.2 Mark scheme p.9 Open in the tool

Q41 mark

Which of the following may lead to a UK balance of payments current account deficit?

AAn appreciation of the UK pound
BAn increase in tariffs on UK imports
CLower UK inflation relative to other countries
DResearch and development subsidies for UK firms

Show the answer

The answer is A.

TopicInternational trade and exchange ratesMeasuring economic performanceGovernment intervention in markets

Question paper p.2 Mark scheme p.9 Open in the tool

Q51 mark

If government spending increases significantly during a recession, it may cause a:

Acapital account surplus
Bcurrent account surplus
Ccyclical budget deficit
Dstructural budget deficit

Show the answer

The answer is C.

TopicMacroeconomic objectives and policyInternational trade and exchange ratesMeasuring economic performance

Question paper p.2 Mark scheme p.9 Open in the tool

Q61 mark

The table shows the value of imports and exports for a country in 2019. £bn Imports of goods 740 Imports of services 275 Exports of goods 545 Exports of services 950 What was the balance of trade in goods?

A– £675 bn
B– £195 bn
C+ £480 bn
D+ £1285 bn

Show the answer

The answer is B.

TopicInternational trade and exchange rates

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

Q71 mark

The UK government is planning to limit immigration. What impact may this have on the UK economy in the short-run?

AShift aggregate demand to the left
BShift aggregate demand to the right
CShift aggregate supply to the left
DShift aggregate supply to the right

Show the answer

The answer is C.

TopicAggregate demandAggregate supplyThe labour market

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

Q81 mark

Which of the following is most likely to occur in the boom phase of the economic cycle?

AGDP falls and unemployment increases
BGDP increases slowly and unemployment falls
CInvestment expenditure and unemployment increase
DUnemployment falls and asset values increase

Show the answer

The answer is D.

TopicMeasuring economic performanceEconomic growth and the economic cycleAggregate demand

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

Q91 mark

The table shows the tax paid by individuals at different levels of income. Annual Income Tax paid £20 000 £2250 £25 000 £2500 £30 000 £3000 £35 000 £4500 £40 000 £7000 What is the marginal tax rate if an individual's annual income increases from £30 000 to £35 000?

A10%
B13%
C30%
D50%

Show the answer

The answer is C.

TopicGovernment intervention in markets

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

Q101 mark

Which of the following is not a component of aggregate demand?

AConsumption
BExports
CInvestment
DWealth

Show the answer

The answer is D.

TopicAggregate demandInternational trade and exchange rates

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

Q111 mark

The exchange rate at the start of 2020 was £1 = $2. By the end of the year, the pound appreciated by 50% against the dollar. If a UK firm sells £10 000 of products to the USA, how many dollars will it receive after the currency appreciation?

A$10 000
B$15 000
C$20 000
D$30 000

Show the answer

The answer is D.

TopicInternational trade and exchange rates

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

Q121 mark

Which of the following is a component of the current account?

AForeign direct investment
BPortfolio investment
CPrimary income
DReserve assets

Show the answer

The answer is C.

TopicInternational trade and exchange ratesAggregate demand

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

Q131 mark

For a country, the CPI was 108 in 2018 and 120 in 2019. What was the inflation rate, to the nearest whole number, as measured by CPI in 2019?

A–12%
B+10%
C+11%
D+12%

Show the answer

The answer is C.

TopicMeasuring economic performance

Question paper p.5 Mark scheme p.9 Open in the tool

Q141 mark

There is a sharp rise in unemployment in the economy. What will be the likely impact if automatic stabilisers already exist in the economy?

AAggregate demand will fall by less than it otherwise would have
BAggregate demand will fall by more than it otherwise would have
CAggregate demand will rise faster than it otherwise would have
DAggregate supply will fall faster than it otherwise would have

Show the answer

The answer is A.

TopicAggregate demandAggregate supplyPublic finances and the role of the state

Question paper p.5 Mark scheme p.9 Open in the tool

Q151 mark

The table shows the nominal GDP for a country. Year Nominal GDP (£m) 2019 1500 2020 1800 2021 2000 Between 2019 and 2020 the rate of inflation was 3%. What was the country's real GDP in 2020, at 2019 prices (to the nearest pound)?

A£1456 m
B£1545 m
C£1748 m
D£1854 m

Show the answer

The answer is C.

TopicMeasuring economic performance

Question paper p.5 Mark scheme p.9 Open in the tool

Section B

Q16(a)(i)2 marks

Using Fig. 1, explain how the unemployment rate changed in Japan between 2015 and 2020.

TopicMeasuring economic performance

Question paper p.8 Mark scheme p.23 Open in the tool

Q16(a)(ii)2 marks

Line 29 refers to "...unfilled jobs in IT related occupations." Explain one supply side policy the Japanese government could implement to reduce the number of unfilled jobs.

TopicMacroeconomic objectives and policy

Question paper p.8 Mark scheme p.23 Open in the tool

Q16(b)(i)1 mark

Using Fig. 2, state what has happened to Japan's interest rate between 2017 and 2019.

TopicMacroeconomic objectives and policy

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

Q16(b)(ii)2 marks

Other than interest rates, explain one expansionary monetary policy that Japan's central bank could use.

TopicMacroeconomic objectives and policyThe financial sector

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

Q16(c)4 marks

The case study refers to the Tokyo Olympics (lines 19–20). Using a diagram, explain what impact holding the Olympics is likely to have on economic growth in Japan.

TopicEconomic growth and the economic cycle

Question paper p.9 Mark scheme p.15 Open in the tool Draw it: AD/AS diagram

Q16(d)4 marks

Using information from the case study, explain how the change in consumption tax (value added tax) may have affected unemployment in Japan in 2014.

TopicAggregate demandMeasuring economic performanceGovernment intervention in markets

Question paper p.9 Mark scheme p.15 Open in the tool

Q16(e)Evaluate10 marks

Evaluate the consequences of negative economic growth for Japan.

TopicEconomic growth and the economic cycle

Question paper p.10 Mark scheme p.16 Open in the tool

Section C

Q17OptionalEvaluate20 marks

Evaluate, using an appropriate diagram(s), whether international trade is more beneficial to a developing country than a developed country.

TopicGrowth and developmentInternational trade and exchange rates

Question paper p.12 Mark scheme p.18 Open in the tool

Q18OptionalEvaluate20 marks

Evaluate, using an appropriate diagram(s), whether it is beneficial for The Bahamas to operate a fixed exchange rate system.

TopicInternational trade and exchange rates

Question paper p.12 Mark scheme p.21 Open in the tool

Question text is quoted from the question papers, © OCR (Oxford Cambridge and RSA), 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.

Section A

Section B

Section C

Other years of OCR AS Paper 2

Topics on this paper