Edexcel A Level Economics A Paper 2: The national and global economy June 2024 question paper 9EC0/02

UK household savings as a percentage of household disposable income, quarter 1 (Q1) 2015 to quarter 3 (Q3) 2021

(Source: https://www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/dgd8/ukea)

With reference to the chart above, which one of the following is correct?

UK household savings as a percentage of household disposable income:

In Q4 of 2015 average household disposable income was £26 300.

Calculate the total amount of money saved by the average household in Q4 of 2015.

Explain one likely reason for the change in total household savings from Q1 2020 to Q2 2020.

Investment in the European Union, percentage of GDP, January 2019 to October 2021

(Source: adapted from https://www.ceicdata.com/en/indicator/ european-union/investment--nominal-gdp)

Which one of the following is the percentage point fall in investment between April 2020 and July 2020?

With reference to the data, explain one likely effect of the fall in investment in 2020.

A group of banks, including Barclays and JP Morgan, have been fined more than €1 billion by the EU’s competition authorities for rigging the foreign exchange market after the Global Financial Crisis of 2008. The EU found that traders at the banks had used online chat rooms to share information about customers’ orders, prices and other trading activities in order to manipulate the currency markets.

(Source: adapted from https://www.ft.com/content/73163fa0-77c5-11e9-bbad-7c18c0ea0201)

With reference to the information above, explain what is meant by ‘market rigging’.

Which one of the following is a role of financial markets?

To:

Which one point on the trade cycle diagram above illustrates a boom?

In July 2020 a survey estimated that the marginal propensity to consume in the UK was 0.1.

(Source: adapted from https://ifs.org.uk/uploads/WP202035-MPCs-through-COVID-spending-saving-and-private-transfers.pdf)

Calculate the total increase in aggregate demand from an increase in government spending of £60 million.

In March 2018 the US imposed a tariff of 25% on steel imports from the UK.

(Source: adapted from https://www.reuters.com/business/us-uk-announce-plans-formal-talks-metals-tariffs-wednesday-sources-2022-01-19/)

Explain the likely impact of this tariff on the steel market in the US.

Which one of the following is likely to give the US a comparative advantage in steel production?

An increase in:

With reference to Figure 4 and your own knowledge, explain the distinction between a progressive and a regressive tax.

With reference to Figure 4 and Extract A, examine the likely impact of the ‘freeze in income tax thresholds’ (Extract A line 1) on aggregate demand.

Assess whether a fiscal deficit and national debt should be a cause for concern for the UK government.

With reference to Extract B, discuss the use of quantitative easing in preventing deflation.

Discuss supply-side policies the UK government could introduce to stimulate economic growth.

In 2021 Brazil’s current account deficit on the balance of payments was US$46.12 billion. The Central Bank of Brazil intervened to sell its own currency, the real, on September 23rd 2022. This was the first time it has intervened in foreign currency markets since December 2021.

(Source adapted from: https://www.statista.com/statistics and https://www.centralbanking. com/central-banks/reserves/foreign-exchange/7953193/brazil-makes-first-fx-intervention-of-the-year)

Evaluate macroeconomic policies that could be used to reduce a current account deficit. Refer to a country of your choice in your answer.

In 2020, exports as a share of world GDP were 12% higher than in 2000, almost twice as high as 50 years ago.

(Source adapted from: https://www.dhl.com/content/dam/dhl/global/dhl-spotlight/ documents/pdf/2021-gci-update-report.pdf)

Evaluate the possible factors contributing to globalisation.

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