Edexcel A Level Economics A Paper 2: The national and global economy June 2025 question paper 9EC0/02

Selected economic data on Morocco and Pakistan, 2021, constant values.

(Source adapted from: https://hdr.undp.org)

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

than in Pakistan

With reference to the data provided, explain one limitation of using GDP to compare living standards between countries.

UK current account of the balance of payments, percentage of GDP, 2012–2022.

% of 0

(Source adapted from: https://data.worldbank.org/indicator/BN.CAB.XOKA.GD.ZS?end=2022 &locations=GB&start=2012)

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

With reference to the chart on the previous page, explain one likely reason for the change in the UK current account deficit from 2016 to 2021.

UK real GDP percentage growth, quarter 1 (Q1) 2022 to quarter 1 (Q1) 2023.

(Source adapted from: https://www.ons.gov.uk/economy/grossdomesticproductgdp/ bulletins/quarterlynationalaccounts/januarytomarch2023)

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

Explain one likely disadvantage of a decline in GDP on:

workers

government.

China terms of trade index (base year 2000 = 100), 2010–2020.

(Source adapted from: https://data.worldbank.org/indicator/TT.PRI.MRCH.XD.WD?end=2020 &locations=CN&start=2000)

Explain what is meant by ‘terms of trade’.

Which one of the following is the percentage change in China’s terms of trade between 2012 and 2020, to the nearest whole number?

Explain the likely impact of the change in China’s terms of trade from 2012 to 2020 on China’s current account. Assume that demand for China’s exports and imports is price elastic.

The UK’s labour force inactivity rate was 20.2% in January 2020 and increased to 21.5% in January 2022.

After an increase in the early stages of the global health crisis, most developed countries have recorded a decrease in the inactivity rate back to, and below, levels in 2019. This is not the case in the UK.

(Source adapted from: https://www.theguardian.com/business/2023/apr/13/ uk‑worst‑performer‑g7‑workforce‑participation‑since‑covid; tradingeconomics.com)

The total UK labour force in January 2022 was 34.5 million. With reference to the information above, calculate the total number of inactive people in the UK labour force in January 2022.

Explain one likely reason for the high levels of inactivity in the UK labour force.

Which one of the following would be the most likely result of an increase in the rate of employment ?

(a) With reference to Figure 1, explain the distinction between direct and indirect taxation.

(b) With reference to Extract A, examine two factors influencing the short‑run aggregate supply of the German economy.

(c) With reference to the information provided and your own knowledge, assess the likely macroeconomic effects of the German government’s budget deficit.

(d) With reference to Extract B, discuss the impact of the planned investment by Intel in a new semiconductor factory on Germany’s aggregate demand. Use an aggregate demand and aggregate supply diagram in your answer.

(e) Discuss supply‑side policies the German government could use ‘to improve its economic performance’ (Extract A, line 6).

With reference to Figure 1, explain the distinction between direct and indirect taxation.

With reference to Extract A, examine two factors influencing the short‑run aggregate supply of the German economy.

With reference to the information provided and your own knowledge, assess the likely macroeconomic effects of the German government’s budget deficit.

With reference to Extract B, discuss the impact of the planned investment by Intel in a new semiconductor factory on Germany’s aggregate demand. Use an aggregate demand and aggregate supply diagram in your answer.

Discuss supply‑side policies the German government could use ‘to improve its economic performance’ (Extract A, line 6).

In January 2023 the UK prime minister, Rishi Sunak, promised to halve inflation by the end of the year.

In July 2023 the Bank of England governor, Andrew Bailey, said: “It is crucial that we… return inflation to its 2% target and provide the environment of price stability in which the UK economy can thrive. This is the best contribution monetary policy can make to the prosperity of the United Kingdom.”

(Source adapted from: https://www.theguardian.com/politics/2023/jan/04/ sunak‑vows‑to‑be‑steady‑hand‑on‑tiller‑but‑are‑his‑pledges‑all‑sleight‑of‑hand and https://www.theguardian.com/business/2023/jul/10/ inflation‑bank‑of‑england‑boss‑andrew‑bailey‑speech)

Evaluate the possible conflicts between macroeconomic objectives when seeking to control inflation.

In Sudan, public services such as healthcare are struggling to keep running. Power outages, blocking of internet access, and fuel shortages, will mean hospitals struggle to operate. Many of the hospitals in the capital city, Khartoum, have reported shortages of doctors, blood, transfusion equipment, medical supplies, and other skilled workers and commodities.

(Source adapted from: https://www.thelancet.com/journals/lancet/article/ PIIS0140‑6736(23)00858‑9/fulltext)

Evaluate the possible factors influencing the level of economic development in a developing country of your choice.

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