Paper 2: Macroeconomics · H060/02
OCR AS Paper 2, June 2025
All 8 written questions and 15 multiple choice questions from OCR AS Paper 2 (June 2025), Macroeconomics. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.
Section A
Q1
What might cause a fall in unemployment?
- AAn increase in the minimum wage
- BAn increase in the rate of income tax
- CAn increase in the working population
- DAn increase in unemployment benefits
Show the answer
The answer is A.
TopicMeasuring economic performanceThe labour marketGovernment intervention in markets
Q2
Which target is set for the Bank of England?
- AExchange rate
- BInflation
- CInterest rate
- DNational debt
Show the answer
The answer is B.
TopicMacroeconomic objectives and policyInternational trade and exchange ratesPublic finances and the role of the state
Q3
In which sector does an insurance company operate?
- APrimary
- BQuaternary
- CSecondary
- DTertiary
Show the answer
The answer is D.
Q4
What is meant by the government budget?
- ABalance between government receipts and expenditure
- BDecisions made by the government about expenditure and receipts
- CGovernment expenditure is greater than government receipts
- DGovernment receipts are greater than government expenditure
Show the answer
The answer is A.
Q5
The table shows the balance of payments position for four countries. Current account Financial and capital (£bn) accounts (£bn) Country A –4587 –4587 Country B –1548 +1548 Country C –2497 +1267 Country D –6472 –7163 Which country has a sustainable balance of payments position?
- ACountry A
- BCountry B
- CCountry C
- DCountry D
Show the answer
The answer is B.
TopicInternational trade and exchange ratesMeasuring economic performance
Q6
The table shows the percentage change in real GDP during the year ending Quarter 1 2022. Change in real GDP (%) UK 10.6 USA 3.7 Japan 0.6 Germany 3.5 France 4.8 Eurozone 5.5 G7 4.0 OECD 4.6 Which statement is true?
- AEurozone GDP growth was 4.9% percentage points lower than Japan
- BFrance was the fastest growing economy
- CThe UK's GDP growth was 5.8 percentage points higher than France
- DThe USA had the lowest GDP growth
Show the answer
The answer is C.
Q7
What would cause the long run aggregate supply curve to shift to the right?
- ADecrease in employment levels
- BDecrease in productivity
- CIncrease in investment
- DIncrease in wages
Show the answer
The answer is C.
TopicAggregate demandAggregate supplyDemand, supply and elasticity
Q8
What is the definition of full employment?
- AAll those of working age are working at the going wage rate
- BAll those willing and able to work can find a job at the going wage rate
- CSome of those able to work are not accepting a job at the going wage rate
- DSome of those willing to work are not able to find a job at the going wage rate
Show the answer
The answer is B.
TopicThe labour market
Q9
The diagram shows trade as a percentage of GDP for selected countries. 60% United Kingdom 50% 40% China 30% United States 20% 10% 0% 1980 1985 1990 1995 2000 2005 2010 2015 2020 What is the change in trade as a percentage of GDP for China from 1980 to 2020?
- AApproximately a five times increase
- BApproximately a four times increase
- CApproximately a three times increase
- DApproximately a two times increase
Show the answer
The answer is C.
Q10
Crowding out occurs when:
- Aincreased government spending leads to less private sector activity
- Bincreased imports lead to an increase in the exchange rate
- Cincreased income tax rates lead to less government tax revenue
- Dincreased interest rates causes household borrowing to fall
Show the answer
The answer is A.
TopicMacroeconomic objectives and policyInternational trade and exchange ratesAggregate demand
Q11
The diagram shows the annual change in GDP in the UK. 10% 5% 0% –5% –10% –15% 2018 2019 2020 2021 2022 Which statement about the diagram is correct?
- AAnnual economic growth was highest in 2020
- BAnnual economic growth was lowest in 2018
- CAnnual economic growth was negative between 2018 and 2019
- DAnnual economic growth was positive between 2021 and 2022
Show the answer
The answer is D.
Q12
Which policy is likely to include an increase in the money supply?
- AContractionary fiscal policy
- BContractionary monetary policy
- CExpansionary fiscal policy
- DExpansionary monetary policy
Show the answer
The answer is D.
Q13
The diagram shows the trade balance in goods and services for the UK. £bn –10 –20 –30 –40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 What can be concluded about the trade balance?
- AThere was a trade deficit for the entire period
- BThere was a trade surplus for the entire period
- CThere was a trade surplus for 2020
- DThere was a trade surplus for 2021
Show the answer
The answer is C.
TopicMeasuring economic performanceInternational trade and exchange rates
Q14
The Sterling exchange rate does not have an influence on:
- Aexports from the UK
- Bimports into the UK
- Cincome of consumers overseas
- Dpurchasing power of consumers overseas
Show the answer
The answer is C.
Q15
The diagram shows the proportion of household income paid in taxes. Key 30% direct taxes indirect taxes 20% 10% 0% Lowest 2nd 20% 3rd 20% 4th 20% Highest earning earning 20% 20% What can be concluded from the diagram about the impact of taxes on households?
- AHouseholds experience a progressive effect from indirect taxes
- BThe lowest earning 20% of households pay the highest proportion of their income in taxes
- CThe lowest earning 20% of households pay the most indirect taxes
- DThe total tax paid by a household is proportional to its income
Show the answer
The answer is B.
Section B
Q16(a)
Using Fig. 1, describe the difference in the inflation rate between the UK and USA in January 2023.
Mark splitKnowledge 1Application 1
Q16(b)(i)
Using Fig. 2, explain how real wages changed for workers in the private sector in January 2023.
Mark splitKnowledge 1Application 2
Q16(b)(ii)
Using the case study, explain one disadvantage for the UK of relying on importing salad and vegetable crops.
Mark splitKnowledge 2
Q16(c)
The UK government is concerned that "...large pay rises could push inflation higher". Lines 25–26. Using a diagram, explain how pay rises could push inflation higher.
Mark splitKnowledge 2Application 2
Q16(d)
Using the case study, explain two supply side policies the UK government could use to help farmers with rising costs. 1 2
Mark splitKnowledge 2Application 2
TopicMacroeconomic objectives and policyGovernment intervention in markets
Q16(e)
Evaluate whether increases in UK inflation harm UK farmers.
Mark splitApplication 1Analysis 4Evaluation 5
Section C
Q17
Evaluate, using an appropriate diagram(s), whether the opening of new coal mines will affect a policy of sustainable development.
Mark splitKnowledge 3Application 4Analysis 6Evaluation 7
Q18
Evaluate, using an appropriate diagram(s), whether a loss of confidence in an economy will affect the exchange rate.
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.