WJEC · Macroeconomics · The financial sector
WJEC Economics past paper questions: The financial sector
Every WJEC question on The financial sector from 2016 to 2025: 2 data response questions and 1 short answer question. It covers Market failure and Measuring economic performance. Each question links to its paper, mark scheme and examiner report.
SubtopicsMarket failure 1Measuring economic performance 1
Data response questions on the financial sector
Using the House Price Index in Table 1, calculate the price of the graduate's £200 000 house four years later in 2017. Give your answer to two decimal places.
To what extent could the payday lending market be considered to demonstrate market failure before the FCA intervened?
Examiner insight
- What to cover
- Pick one or two types of market failure that the payday lending stem points to (asymmetric information about the true cost of borrowing, monopoly or market power over vulnerable borrowers, negative externalities on families and the state) and for each one show why it causes a misallocation of resources.
- Watch out
- The most common loss of marks was listing the problems given in the stem without naming the market failure and explaining why it is one. A significant number also wrote no evaluation at all.
Short answer questions on the financial sector
With reference to Figures 2 and 3, and other relevant information, to what extent does the growing UK financial sector benefit the Welsh economy?
Examiner insight
- What to cover
- Use Figures 2 and 3 analytically. Link high employment growth in the financial sector to incomes, tax revenue and the multiplier in Wales, then set against it the regional inequality point: those jobs sit in two cities while other areas depend on sectors with negative job growth.
- Watch out
- Describing the data caps AO3 and AO4. Every figure quoted needs a chain of reasoning attached to it.
Question text is quoted from the question papers, © WJEC CBAC Ltd, 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.