Paper 2: Macroeconomics · H060/02

OCR AS Paper 2, June 2024

All 8 written questions and 15 multiple choice questions from OCR AS Paper 2 (June 2024), 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

Agovernment budget deficit occurs when: A imports exceed exports
Bits expenditure is less than its revenue
Cits expenditure is more than its revenue
Dthe national debt is decreasing

Show the answer

The answer is C.

TopicMacroeconomic objectives and policyInternational trade and exchange ratesPublic finances and the role of the state

Question paper p.2 Mark scheme p.11 Open in the tool

Q21 mark

What is not an example of a supply side policy?

AIncreasing expenditure on education
BIncreasing the rate of income tax
CInvesting in road infrastructure
DProviding subsidies for research and development

Show the answer

The answer is B.

TopicGovernment intervention in marketsMacroeconomic objectives and policy

Question paper p.2 Mark scheme p.11 Open in the tool

Q31 mark

What would be the least effective way to increase long run economic growth?

AIncrease government expenditure on welfare payments
BIncrease labour productivity
CIncrease the level of technology
DIncrease the number of women joining the workforce

Show the answer

The answer is A.

TopicEconomic growth and the economic cycleThe labour market

Question paper p.2 Mark scheme p.11 Open in the tool

Q41 mark

What is the difference between real and nominal values of economic variables?

AThe exchange rate
BThe inflation rate
CThe interest rate
DThe tax rate

Show the answer

The answer is B.

TopicInternational trade and exchange ratesMeasuring economic performanceMacroeconomic objectives and policy

Question paper p.3 Mark scheme p.11 Open in the tool

Q51 mark

Which stage of the economic cycle occurs when actual GDP is above its trend value?

ABoom
BRecession
CRecovery
DTrough

Show the answer

The answer is A.

TopicEconomic growth and the economic cycle

Question paper p.3 Mark scheme p.11 Open in the tool

Q61 mark

In 2022, a basket of goods and services cost £1350. In 2023, the same basket cost £1674. What is the value of the price index for 2023 based on 2022 being the base year? A B C 124 D 193

Show the answer

The answer is C. Open the question paper to read the options.

TopicMeasuring economic performance

Question paper p.3 Mark scheme p.11 Open in the tool

Q71 mark

What is an example of a contractionary monetary policy?

AIncreasing government expenditure by £1bn
BIncreasing interest rates by 1%
CIncreasing quantitative easing by £100m
DIncreasing VAT by 2%

Show the answer

The answer is B.

TopicMacroeconomic objectives and policyGovernment intervention in markets

Question paper p.4 Mark scheme p.11 Open in the tool

Q81 mark

Which of these is most likely to cause an increase in the rate of inflation?

AAn increase in labour productivity and a higher price of oil
BAn increase in technological advancements and falling employment
CAn increase in the budget deficit and falling consumer confidence
DAn increase in the minimum wage and a depreciation of the exchange rate

Show the answer

The answer is D.

TopicInternational trade and exchange ratesMacroeconomic objectives and policyThe labour market

Question paper p.4 Mark scheme p.11 Open in the tool

Q91 mark

The table shows the tax paid by an individual at different levels of income. Annual income (£) Tax paid (£) 15 000 1200 25 000 1700 35 000 2500 50 000 4000 What is the marginal tax rate for an individual whose annual income increases from £25 000 to £35 000?

Show the answer

The answer is D.

Question paper p.4 Mark scheme p.11 Open in the tool

Q101 mark

Which group will be part of the labour force survey measure of unemployment?

APeople claiming job seeker's allowance and not available for work
BPeople without a job and actively seeking work in the last two weeks and available to start work the next week
CPeople without a job and actively seeking work in the last four weeks and available to start work in the next two weeks
DPeople working part-time but seeking other work

Show the answer

The answer is C.

TopicMeasuring economic performance

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

Q111 mark

The diagram shows an increase in aggregate demand from AD1 to AD2. Price level LRAS AD2 AD1 Yfe Output What impact will this have on the economy?

AIncreased output only
BIncreased unemployment
CInflation and increased output
DInflation only

Show the answer

The answer is D.

TopicMeasuring economic performanceAggregate demandAggregate supply

Question paper p.5 Mark scheme p.11 Open in the tool Practise the AD/AS diagram

Q121 mark

Which option will not improve labour market flexibility?

ABetter information about job vacancies
BIncreasing the minimum wage
CLimiting the power of trade unions
DRetraining of workers

Show the answer

The answer is B.

TopicThe labour market

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

Q131 mark

The table shows expected changes in the next year to the main components of aggregate demand. Component Change in value (£m) Consumption +5 Exports +8 Government expenditure –7 Imports +6 Investment –2 Savings Taxation What impact will this have on the value of aggregate demand?

ADecreases
BIncreases
CStays the same
DUnable to say

Show the answer

The answer is A.

TopicAggregate demandInternational trade and exchange rates

Question paper p.6 Mark scheme p.11 Open in the tool

Q141 mark

Which factor is assumed to be fixed when constructing a short run aggregate supply curve?

AExchange rates
BOil prices
CTechnology
DWage rates

Show the answer

The answer is C.

TopicInternational trade and exchange ratesThe labour marketAggregate supply

Question paper p.6 Mark scheme p.11 Open in the tool

Q151 mark

The table shows the nominal GDP for a country. Year Nominal GDP (£m) 2021 160 000 2022 220 000 The price index was 110 in 2022 (2021 = 100). What is the country's real growth rate from 2021 to 2022 (to the nearest whole number)?

A25%
B27%
C38%
D51%

Show the answer

The answer is A.

TopicMeasuring economic performance

Question paper p.6 Mark scheme p.11 Open in the tool

Section B

Q16(a)2 marks

Using Fig. 1, describe the UK's balance of trade in goods in January 2021.

Mark splitKnowledge 1Application 1

TopicInternational trade and exchange rates

Question paper p.10 Mark scheme p.15 Examiner report p.2 Open in the tool

Q16(b)(i)3 marks

Using Fig. 2, explain what happened to the Sterling to euro exchange rate from May 2020 to October 2020.

Mark splitKnowledge 1Application 2

TopicInternational trade and exchange rates

Question paper p.10 Mark scheme p.15 Examiner report p.2 Open in the tool

Q16(b)(ii)2 marks

Lines 28–29 refer to an expected increase in international trade with Japan. Explain one advantage of international trade for developed countries.

Mark splitKnowledge 2

TopicInternational trade and exchange rates

Question paper p.10 Mark scheme p.15 Examiner report p.2 Open in the tool

Q16(c)4 marks

The trade deal with Japan (lines 26–30) may have an impact on the exchange rate between Sterling and the Japanese Yen. Using a diagram, explain the possible impact on the Sterling to Yen exchange rate of an increase in demand from Japan for UK goods.

Mark splitKnowledge 2Application 2

TopicInternational trade and exchange rates

Question paper p.11 Mark scheme p.17 Examiner report p.2 Open in the tool

Q16(d)4 marks

Using information from the Extract, explain how the UK's circular flow of income would have been affected during 2020 and 2021.

Mark splitKnowledge 2Application 2

TopicNational income and the circular flow

Question paper p.11 Mark scheme p.18 Examiner report p.2 Open in the tool

Q16(e)Evaluate10 marks

Evaluate the effect the increase in unemployment in November 2020 to January 2021 from the same period the year before, is likely to have had on the UK economy.

Mark splitApplication 1Analysis 4Evaluation 5

TopicMeasuring economic performance

Question paper p.12 Mark scheme p.19 Examiner report p.2 Open in the tool

Section C

Q17OptionalEvaluate20 marks

Evaluate, using an appropriate diagram(s), whether government spending to keep unemployment low will conflict with objectives a government may have for inflation.

Mark splitKnowledge 3Application 4Analysis 6Evaluation 7

TopicMeasuring economic performanceAggregate demandMacroeconomic objectives and policy

Question paper p.14 Mark scheme p.22 Examiner report p.2 Open in the tool Draw it: AD/AS diagram Or: Phillips curve diagram

Q18OptionalEvaluate20 marks

Evaluate, using an appropriate diagram(s), the usefulness of GDP as an indicator of development.

Mark splitKnowledge 3Application 4Analysis 6Evaluation 7

TopicGrowth and development

Question paper p.14 Mark scheme p.23 Examiner report p.2 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

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