Search for notes by fellow students, in your own course and all over the country.
Browse our notes for titles which look like what you need, you can preview any of the notes via a sample of the contents. After you're happy these are the notes you're after simply pop them into your shopping cart.
Title: Edexcel as level economics a question paper 2 june 2024 + mark scheme
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 02 The UK Economy – Performance and Policies
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 02 The UK Economy – Performance and Policies
Document Preview
Extracts from the notes are below, to see the PDF you'll receive please use the links above
Edexcel as level
economics a question
paper 2 june 2024 +
mark scheme
Please check the examination details below before entering your candidate information
Candidate surname
Centre Number
Other names
Candidate Number
Pearson Edexcel Level 3 GCE
Monday 20 May 2024
Morning (Time: 1 hour 30 minutes)
Paper
reference
Economics A
8EC0/02
Advanced Subsidiary
PAPER 2: The UK Economy – Performance and Policies
You do not need any other materials
...
•
in the boxes at the top of this page with your name,
• Fill
centre number and candidate number
...
•
Answer all questions in Section A
...
the questions in the spaces provided
• Answer
– there may be more space than you need
...
•
marks for each question are shown in brackets
• The
– use this as a guide as to how much time to spend on each question
...
Advice
Read each question carefully before you start to answer it
...
Turn over
P72019A
©2024 Pearson Education Ltd
...
If you change your mind about an
answer, put a line through the box and then mark your new answer with a cross
...
Use the data to support your answers where relevant
...
1 In 2019 the average annual percentage increase in real Gross Domestic Product (GDP)
was 1
...
6% in developing countries
...
Write your answers in the spaces provided
...
(3)
...
...
...
...
...
...
...
(1)
...
...
(b) Explain one likely factor that could increase the level of consumption of UK
households
...
...
...
...
...
2
B 0
...
3
D
5
...
8
...
ons
...
uk)
(a) Which one of the following can be inferred from the above chart?
(1)
A
B
etween September 2013 and September 2016, there were nearly
100 000 more people leaving the UK than entering the UK
B Immigration to the UK is likely to decrease the short-run AS curve
C Since the EU referendum, net migration has fallen by around 80 000
D
T here has been a significant decrease in emigration throughout the
given period
6
*P72019A0628*
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
700
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
3 The graph below shows UK long-term migration trends, September 2013 to
September 2019
...
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
(b) With reference to the above chart, explain one likely effect of migration on
employment in the UK
...
...
...
...
...
...
(Total for Question 3 = 4 marks)
*P72019A0728*
7
Turn over
(a) Define the term ‘investment’
...
...
...
Price
level
(2)
SRAS
P1
AD
Real output
Y1
(c) Which one of the following factors might have caused business investment in the
UK to fall?
(1)
A
A decrease in business expectations
B A decrease in government regulations
C An increase in the demand for exports
D
An increase in the rate of economic growth
(Total for Question 4 = 4 marks)
8
*P72019A0828*
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
(Source: adapted from https://www
...
gov
...
5% between Quarter 3 2019 and Quarter 4 2019
...
6
2017
56
...
0
2019
38
...
ons
...
uk/economy/
governmentpublicsectorandtaxes/publicspending/bulletins/
ukgovernmentdebtanddeficitforeurostatmaast/september2019)
(a) Define the term ‘budget deficit’
...
...
...
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
(b) Using the above table, calculate the percentage decrease in budget deficit
between March 2016 and March 2019
...
(2)
...
...
...
...
(c) Which one of the following will most likely lead to a reduction in the budget
deficit?
(1)
A
An increase in government spending and a decrease in taxation
B
An increase in taxation and a decrease in government spending
C
A
n increase in the value of exports and a decrease in the value of
imports
D
A
n increase in the value of imports and a decrease in the value of
exports
(Total for Question 5 = 4 marks)
TOTAL FOR SECTION A = 20 MARKS
*P72019A01128*
11
Turn over
Answer ALL Questions 6(a) to 6(e) and EITHER Question 6(f) OR Question 6(g)
...
Question 6
UK monetary policy since the Global Financial Crisis of 2008
Figure 1: UK inflation rate (as measured by the Consumer Prices Index) and UK
nominal wage growth, annual percentage change, 2008 to 2019
5
%
4
Nominal wage growth
3
Inflation rate
2
1
0
–1
‘08
‘09
‘10
‘11 ‘12
‘13 ‘14
‘15 ‘16
‘17 ‘18 ‘19
(Source: adapted from ONS)
Figure 2: UK real GDP, annual percentage change, Q4 2006 to Q4 2019
%
2
1
0
−1
−2
−3
−4
Q4
2006
Q4
2008
Q4
2010
Q4
2012
Q4
2014
Q4
2016
Q4
2018
(Source: adapted from https://www
...
gov
...
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
SECTION B
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Extract A
Has monetary policy worked?
Between 2008 and 2009, financial markets around the world were crashing and many UK
banks were adversely affected by the collapse of the housing market
...
Faced with these large risks, the Monetary Policy Committee (MPC) of the Bank of
England reduced the base interest rate from 5
...
5% in
March 2009
...
It
drafted the use of a new idea: quantitative easing (QE)
...
This QE was later implemented by the USA’s Federal
Reserve, and was claimed to be a success
...
5
10
This decision has been credited with preventing the recession, caused by the Global
Financial Crisis of 2008, turning into another Great Depression
...
5% in 2009 but had fallen to 4% in 2019, the lowest since the mid-1970s
...
25%
...
Nevertheless, this has resulted in a rise in household debts
...
20
Inflation caused by the fall in the exchange rate of the British pound, higher employment
levels and nominal wage growth has since directed the MPC to increase base interest
rates
...
5% in November 2017, and then to 0
...
However, the uncertainty around the UK’s future trade relationship with the
EU has meant that increases in the base interest rate were only marginal
...
Conversely,
a few economists have argued that QE is no longer effective as a monetary policy
instrument
...
This is more than the UK can currently manage
...
30
The Bank of England is, nonetheless, preparing for the worst-case scenario of a recession
deeper than the downturn after the Global Financial Crisis of 2008
...
theguardian
...
Use an aggregate demand and aggregate supply diagram in your answer
...
(d) Explain one reason why ‘the fall in the exchange rate of the British pound’
(Extract A, line 21) is likely to increase inflation
...
(10)
(6)
(5)
(15)
EITHER
(f ) Evaluate whether expansionary demand-side policies lead to conflicts between
macroeconomic objectives
...
14
*P72019A01428*
(20)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
6 (a) With reference to Figure 1, explain the term ‘inflation rate’
...
(4)
...
...
...
...
...
...
...
...
*P72019A01528*
15
Turn over
(b) Assess the likely impact of an increase in real wages on the UK economy
...
...
...
...
...
...
...
...
...
...
...
...
16
*P72019A01628*
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Use an aggregate demand and aggregate supply diagram in your answer
...
...
...
...
...
...
...
...
...
...
...
...
*P72019A01728*
17
Turn over
...
...
...
...
...
...
...
...
...
...
...
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
(d) Explain one reason why ‘the fall in the exchange rate of the British pound’
(Extract A, line 21) is likely to increase inflation
...
...
...
...
...
...
...
...
...
...
...
*P72019A01928*
19
Turn over
...
...
...
...
...
...
...
...
...
...
...
...
20
*P72019A02028*
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
(15)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
(e) Discuss factors, apart from changes in real wages, which the MPC may have
considered when changing the base interest rate
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
22
*P72019A02228*
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
...
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
EITHER
(f ) Evaluate whether expansionary demand-side policies lead to conflicts between
macroeconomic objectives
...
(20)
Indicate which question you are answering by marking a cross in the box
...
Chosen question number:
Question 6(f)
Question 6(g)
Write your answer here:
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
Mark Scheme (Results)
Summer 2024
Pearson Edexcel GCE AS Level
In Economics A (8EC0)
Paper 02 The UK Economy – Performance and
Policies
1
General marking guidance
•
All candidates must receive the same treatment
...
•
Mark schemes should be applied positively
...
•
Examiners should mark according to the mark scheme – not according to their
perception of where the grade boundaries may lie
...
Examiners
should always award full marks if deserved, i
...
if the answer matches the mark
scheme
...
•
Where some judgement is required, mark schemes will provide the principles by
which marks will be awarded and exemplification/indicative content will not be
exhaustive
...
•
Crossed-out work should be marked unless the candidate has replaced it with
an alternative response
...
g
...
g
...
9 pp in growth rates (1)
Reference to own example (1)
Analysis:
1 mark for linked development, e
...
•
•
•
•
Exchange rates might not accurately reflect the
differences in purchasing power of currencies (1)
Population growth accounts for most of the growth
in developing countries (1)
Presence of informal and unpaid economy will imply
that some output is unrecorded (1)
Subsistence, barter and the hidden economy will
3
•
undervalue real output (1)
In some countries, wealth is concentrated in the
hands of a few high income households (1)
(3)
4
Question
Number
2(a)
Question
Number
2(b)
Question
Number
2(c)
Answer
Mark
Knowledge 1
Knowledge:
1 mark for definition, e
...
• It is the proportion of extra income that is spent on
consumption (1)
• The additional consumer spending from an increase
in national income (1)
• Change in consumption/change in income (∆C/∆Y)
(1)
Answer
Mark
Knowledge 2
Knowledge/understanding:
2 marks for, e
...
• Increase in employment/disposable income (1) so
increases purchasing power/greater affordability (1)
• Lower interest rates (1) so reduces the cost of
borrowing/reward for savings (1)
• Increase in consumer confidence (1) due to greater
job security and raises consumer spending (1)
• Positive wealth effects (1) so increases confidence
and raises consumer spending (1)
(2)
Answer
Mark
The only correct answer is D
A is not correct because this figure is determined by
(1-0
...
8)
C is not correct because this figure is determined by
(1/0
...
g
...
g
...
g
...
g
...
g
...
9 / 83
...
71 (also allow 54 / 53
...
g
...
g
...
g
...
Displays isolated or imprecise knowledge and understanding
of terms, concepts, theories and models
...
Descriptive approach which has no link between causes and
consequences
...
Applies economic ideas and relates them to economic
problems in context, although does not focus on the broad
elements of the question
...
Demonstrates accurate knowledge and understanding of the
concepts, principles and models
...
Economic ideas are applied appropriately to the broad
elements of the question
...
Identification of generic evaluative comments without
supporting evidence/ reference to context
...
Evaluative comments supported by chains of reasoning and
appropriate reference to context
...
11
Question
Number
6(c)
Answer
Mark
Knowledge 2, Application 2, Analysis 2
Knowledge/understanding
Identification of two characteristics (2) for, e
...
• Falling inflation (1)
• Rising unemployment (1)
• Falling profits/investment of firms (1)
• Rising budget deficit/worsening of fiscal position (1)
• Reduction in the base interest rate (1)
• Loss of consumer/business confidence (1)
Application
1 mark for each data reference (1+1), e
...
• Figure 1: inflation fell by around 3
...
5% in
2009 (1)
• Extract A: Bank of England reduced the base interest
rate from 5
...
5% in March
2009 (1)
Analysis
Linked development (1+1) e
...
• Falling inflation due to lower consumer confidence
and a reduction in consumer expenditure (1)
• Rising unemployment due to lower demand for
workers caused by falling real output (1)
• Falling profits/investment of firms possibly leading
to high level of business failures (1)
• Rising budget deficit/worsening of the fiscal position
due to a rise in government spending on benefits/a
fall in tax revenues (1)
• Reduction in the base interest rate will encourage
borrowing and consumption/investment (1)
NB Award up to 4 marks for one characteristic
well developed (1kn + 1ap + 2an)
(6)
12
Question
Number
6(d)
Answer
Mark
Knowledge 1, Application 2, Analysis 2
Knowledge/understanding
1 mark, for e
...
• Explanation of inflation (1)
• Understanding of exchange rate (1)
• AD shifts outwards / SRAS shifts inwards (1)
Application
2 marks (1+1), for e
...
• Weaker pound due to lack of confidence as a
result of the UK’s decision to leave the EU (1)
• X-M as a component of AD increases (1)
• Accurately drawn AD/AS diagram (1)
• More injections/less leakages from CFI (1)
Analysis
2 marks for linked development (1+1), e
...
• Imports become relatively more expensive (1)
• Exports become relatively cheaper (1)
(5)
13
Question
Number
6(e)
Indicative content
Knowledge 3, Application 3, Analysis 3
•
•
•
•
•
•
•
•
•
•
Economic growth/recession/output gap/spare
capacity – use of Figure 2 OR reference to own
knowledge (e
...
global health crisis): ensure that
AD will grow in line with productive potential
Forecast rates of inflation/inflation expectations –
use of Figure 1 OR reference to recent inflation
trends
Level of confidence in the economy: business and
consumer confidence – “the uncertainty around the
UK’s decision to leave the EU”: can indicate turning
points in the business cycle
Unemployment levels – “UK unemployment rate
peaked at 8
...
Displays isolated or imprecise knowledge and understanding
of terms, concepts, theories and models
...
Descriptive approach which has no chains of reasoning or
links between causes and consequences
...
Applies economic ideas and relates them to economic
problems in context, although does not focus on the broad
elements of the question
...
Demonstrates accurate knowledge and understanding of the
concepts, principles and models
...
Economic ideas are carefully selected and applied
appropriately to economic issues and problems
...
14
Question
Number
6(e)
continued
Indicative content
Evaluation 6
•
•
•
•
•
•
•
•
•
Level
Mark
Level 1
Mark
0
1–2
Level 2
3–4
Level 3
5–6
Inaccuracies or inadequacies of data may mean that
the UK’s economic growth may not be low as it has
been estimated
Reliability of data/uncertainty of forecasting: many
statistics are revised later, such as GDP
Difficulty of estimating amount of output gap/spare
capacity in the economy
Lagged effect of many influences on the inflation rate,
e
...
unemployment is a lagging indicator and may be
of little use
Oil prices and commodity process are very volatile:
increase in price might be temporary – therefore,
problem of using the current inflation rate to guide
monetary policy decisions
Potential for economic shocks changing the global
economic landscape considerably leading to higher
uncertainty in the world economy
Lagged effect of monetary policy
Prioritisation of the relative significance of each factor
Combination of factors are likely to be considered
(6)
Descriptor
No evaluative comments
...
No evidence of a logical chain of reasoning
...
Evaluative comments with supporting evidence/reference to
context and a partially developed chain of reasoning
...
Evaluation is balanced and considers the broad elements of
the question
...
Potential conflict
with inflation and protection of environment
• Reduction in taxation, lowering tax burden so
increasing AD, increasing employment and/or
growth
...
Potential conflict with inflation
• Reduction in interest rates (or an increase in
money supply), weakening exchange rate thus
improving current account position of balance of
payments
...
Evaluation 6
•
•
•
•
•
•
•
If government spending increases on health and
education, AS will increase therefore no inflation
If increased government spending increases
growth, this should increase tax revenues
Lower interest rates might lead to increased
investment causing AS to increase, reducing
inflationary pressures
Tax cuts will be ineffective if used to increase
savings or repay debts
Cuts in Bank of England’s interest rate will be
ineffective if banks unwilling to lend or if banks
do not reduce interest rates to customers
Time lag for full effect of these policies (takes
nearly 18 to 24 months)
Depends on the elasticity of the LRAS curve/
spare capacity
(20)
16
Knowledge, application and analysis
Level
Mark
Descriptor
0
A completely inaccurate response
...
Use of generic or irrelevant information or examples
...
Level 2
4–6
Displays elements of knowledge and understanding of
economic principles, concepts and theories
...
A narrow response or superficial, two-stage chain of
reasoning only
...
Ability to apply economic concepts and relate them directly to
the broad elements of the question with evidence integrated
into the answer
...
Chains of reasoning are developed but the answer may lack
balance
...
Ability to link knowledge and understanding in context using
appropriate examples
...
Economic ideas are carefully selected and applied
appropriately to economic issues and problems
...
Evaluation
Level
Mark
0
Level 1
1–2
Level 2
3–4
Level 3
5–6
Descriptor
No evaluative comments
...
No evidence of a logical chain of reasoning
...
Evaluative comments with supporting evidence/reference to
context and a partially developed chain of reasoning
...
Evaluation is balanced and considers the broad elements of
the question, leading to a substantiated judgement
...
75%
points and increasing QE by “£375 billion” has led
to a rise in real GDP – use of Figure 2: “preventing
the recession, from the Global Financial Crisis,
turning into another Great Depression”
Inflation has been under control and mostly within
the target rate of inflation – use of Figure 1
Increase in AD has led to falling unemployment –
UK unemployment has “fallen to 4% in 2019, the
lowest since the mid-1970s”
Lower interest rates reduce hot money flows, thus
leading to weaker currency – “fall in the exchange
rate of the British pound”: an improvement in the
current account of the BoP as net exports rise
Rising real incomes/standard of living since 2014
– use of Figure 1: “Households with mortgages
benefitted from the low interest rate, enabling
them to keep consuming”
Evaluation 6
MPC has not been successful:
•
•
•
•
•
Increase in real GDP since the crisis has only been
modest – use of Figure 2: between 2010 and 2018
it has been less than 1% annual growth
Inflation has been out of tolerance – use of Figure
1 OR own knowledge of recent inflation trends:
perhaps indicating these are mostly affected by
cost-push factors not under MPC’s control
Real incomes falling for much of the period between
2008 and 2014 – use of Figure 1: reduces standard
of living and quality of life
Could lead to rise in income inequality – “the lower
interest rates have led to a rise in household debts”
There is no evidence that QE has worked in the UK
– “They drafted the use of a new idea: quantitative
easing” – and they had additional rounds of asset
purchases to increase money supply, e
...
“further
expanded it QE programme by £60 billion” in 2016
N
...
Candidates can argue why the MPC has not been
successful as analysis and the opposite as evaluation
(20)
18
Knowledge, application and analysis
Level
Mark
Descriptor
0
A completely inaccurate response
...
Use of generic or irrelevant information or examples
...
Level 2
4–6
Displays elements of knowledge and understanding of
economic principles, concepts and theories
...
A narrow response or superficial, two stage chains of
reasoning only
...
Ability to apply economic concepts and relate them directly to
the broad elements of the question with evidence integrated
into the answer
...
Chains of reasoning are developed but the answer may lack
balance
...
Ability to link knowledge and understanding in context using
appropriate examples
...
Economic ideas are carefully selected and applied
appropriately to economic issues and problems
...
Evaluation
Level
Mark
0
Level 1
1–2
Level 2
3–4
Level 3
5–6
Descriptor
No evaluative comments
...
No evidence of a logical chain of reasoning
...
Evaluative comments with supporting evidence/reference to
context and a partially developed chain of reasoning
...
Evaluation is balanced and considers the broad elements of
the question, leading to a substantiated judgement
Title: Edexcel as level economics a question paper 2 june 2024 + mark scheme
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 02 The UK Economy – Performance and Policies
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 02 The UK Economy – Performance and Policies