Paper 2: Macroeconomics · H060/02

OCR AS Paper 2, June 2023

All 8 written questions and 15 multiple choice questions from OCR AS Paper 2 (June 2023), Macroeconomics. 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

Section A

Q11 mark

Which of these is a tool of monetary policy?

AIncome tax
BInterest rates
CSubsidies to firms
DWelfare payments

Show the answer

The answer is B.

TopicMacroeconomic objectives and policyGovernment intervention in markets

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

Q21 mark

Frictional unemployment occurs when:

Acheap steel from abroad reduces demand for UK steelworkers
Bfarm workers do not have a job during the winter months
Cthe economy is in a period of recession
Dworkers are transferring between jobs

Show the answer

The answer is D.

TopicEconomic growth and the economic cycleMeasuring economic performanceDemand, supply and elasticity

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

Q31 mark

Which economic activity is found in the secondary sector?

ABanking
BGrowing corn
CProducing cars
DProviding insurance

Show the answer

The answer is C.

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

Q41 mark

Competition policy is an example of:

Aexchange rate policy
Bfiscal policy
Cmonetary policy
Dsupply side policy

Show the answer

The answer is D.

TopicMacroeconomic objectives and policyInternational trade and exchange ratesCompetition policy and regulation

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

Q51 mark

The diagram shows the circular flow of income. Y HOUSEHOLDS income expenditure FIRMS Which of these could be shown by Y on the diagram?

AExports
BGovernment expenditure
CInvestment
DSavings

Show the answer

The answer is D.

TopicAggregate demandNational income and the circular flowInternational trade and exchange rates

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

Q61 mark

What is included in the calculation of RPI inflation but excluded from the calculation of CPI inflation?

AChildren's clothes
BCouncil tax
CMedicines
DPetrol

Show the answer

The answer is B.

TopicMeasuring economic performance

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

Q71 mark

What will lead to an upward movement along the aggregate demand curve?

AAn increase in consumption
BAn increase in government expenditure
CAn increase in investment
DAn increase in the price level

Show the answer

The answer is D.

TopicAggregate demandDemand, supply and elasticityMeasuring economic performance

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

Q81 mark

The table shows components of the balance of payments for a country in 2020. £bn Capital transfers Exports of goods and services Foreign direct investment Imports of goods and services Portfolio investment Primary income Secondary income What was the current account balance in 2020?

A£50 bn
B£100 bn
C£115 bn
D£170 bn

Show the answer

The answer is A.

TopicInternational trade and exchange ratesAggregate demandMeasuring economic performance

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

Q91 mark

Which of these is a method to calculate a country's gross domestic product?

AExpenditure
BFinancial account
CInput
DLabour force survey

Show the answer

The answer is A.

TopicMeasuring economic performance

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

Q101 mark

The table shows the tax paid by an individual at different levels of income. Annual income Tax paid £20 000 £1000 £25 000 £2000 £30 000 £3000 £35 000 £3500 £40 000 £4500 What is the change in the average tax rate for an individual if their annual income increases from £25 000 to £30 000?

A2%
B8%
C10%
D20%

Show the answer

The answer is A.

TopicGovernment intervention in markets

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

Q111 mark

The chart shows the Yen to Sterling (£) exchange rate between 2016 and 2019. Yen per £1 190 180 170 160 150 140 130 120 2016 2017 2018 2019 What was the change in the exchange rate between 2016 and 2019?

ASterling appreciated by 29%
BSterling depreciated by 22%
CYen appreciated by 29%
DYen depreciated by 22%

Show the answer

The answer is B.

TopicInternational trade and exchange rates

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

Q121 mark

What is the most likely impact of legislation to reduce the power of trade unions?

AAggregate demand shifts left
BAggregate demand shifts right
CAggregate supply shifts left
DAggregate supply shifts right

Show the answer

The answer is D.

TopicAggregate demandAggregate supplyThe labour market

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

Q131 mark

The table shows the nominal GDP for a country. Year Nominal GDP (£m) 2020 200 000 2021 300 000 Between 2020 and 2021 the rate of inflation was 5%. The population of the country was 10 million in 2020 and increased by 8% in 2021. What is the country's real GDP per capita in 2021, at 2020 prices (to the nearest pound)?

A£19 444
B£26 455
C£27 778
D£28 571

Show the answer

The answer is B.

TopicMeasuring economic performance

Question paper p.7 Mark scheme p.9 Open in the tool

Q141 mark

Which of these would be the most effective in reducing expenditure on imports?

AIncreased government expenditure on welfare payments
BIncreased indirect taxation
CReduced interest rates
DReduced research and development subsidies for UK firms

Show the answer

The answer is B.

TopicGovernment intervention in marketsMacroeconomic objectives and policyInternational trade and exchange rates

Question paper p.7 Mark scheme p.9 Open in the tool

Q151 mark

The diagram shows the exchange rate of Sterling (£) to US dollars ($). £/$ exchange rate S S1 P P1 D Q Q1 Quantity of US$ What may have caused the supply curve for US dollars to shift from S to S1?

AA decrease in exports from the US
BA decrease in imports to the US
CAn increase in exports from the US
DAn increase in imports to the US

Show the answer

The answer is D.

TopicInternational trade and exchange ratesDemand, supply and elasticity

Question paper p.8 Mark scheme p.9 Open in the tool

Section B

Q16(a)3 marks

Using Fig. 1, explain the difference between the government budget deficit and the national debt.

TopicMacroeconomic objectives and policyPublic finances and the role of the state

Question paper p.12 Mark scheme p.13 Examiner report p.2 Open in the tool

Q16(b)(i)2 marks

Using Fig. 2, explain at what stage of the economic cycle the UK economy was in Q2 2020.

TopicEconomic growth and the economic cycle

Question paper p.12 Mark scheme p.13 Examiner report p.2 Open in the tool

Q16(b)(ii)2 marks

Lines 9–10 refer to increases in welfare payments for the unemployed. Explain one impact this may have on the supply of labour.

TopicThe labour marketMeasuring economic performanceDemand, supply and elasticity

Question paper p.12 Mark scheme p.13 Examiner report p.2 Open in the tool

Q16(c)4 marks

Lines 13–19 refer to a number of training initiatives announced by the UK government. Using a diagram, explain what impact this is likely to have on long run economic growth in the UK.

TopicEconomic growth and the economic cycle

Question paper p.13 Mark scheme p.14 Examiner report p.2 Open in the tool Draw it: AD/AS diagram

Q16(d)4 marks

Using information from the case study, explain the difference between government current expenditure and government capital expenditure.

TopicMacroeconomic objectives and policyPoverty and inequalityBusiness growth and objectives

Question paper p.13 Mark scheme p.14 Examiner report p.2 Open in the tool

Q16(e)Evaluate10 marks

Evaluate how the change in income for employees placed on furlough may have affected UK consumption.

TopicAggregate demandThe labour market

Question paper p.14 Mark scheme p.15 Examiner report p.2 Open in the tool Practise the AD/AS diagram

Section C

Q17OptionalEvaluate20 marks

Evaluate, using an appropriate diagram(s), the effects of a change in interest rates on the Australian government's ability to achieve macroeconomic objectives.

TopicMacroeconomic objectives and policy

Question paper p.16 Mark scheme p.17 Examiner report p.2 Open in the tool Draw it: AD/AS diagram

Q18OptionalEvaluate20 marks

Evaluate, using an appropriate diagram(s), the effects of an increase in aggregate demand on macroeconomic indicators.

TopicAggregate demand

Question paper p.16 Mark scheme p.20 Examiner report p.2 Open in the tool Draw it: AD/AS diagram

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

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