AQA GCSE Economics Paper 2 November 2021 question paper

A budget deficit is best described as which of the following?

Which of the following is an example of a supply-side policy?

Which of the following best describes the type of unemployment caused by a general lack of spending in the economy?

Table 1 shows the Consumer Prices Index (CPI) for an economy.

Using Table 1, the annual inflation rate at December 2020 to 1 decimal place is:

Which of the following pairs of policy changes is the most appropriate response to the problem of rising inflation and high economic growth?

‘Using money means that people can buy products now but do not have to pay for them until sometime in the future.’

Which function of money does the above statement most closely relate to?

Which of the following is a direct tax?

Which of the following would best reduce income inequality?

Which of the following is the least likely reason for increased globalisation?

Which of the following identifies the effects a significant increase in the exchange rate will have on inflation and the current account balance?

State two UK Government economic objectives.

Explain one disadvantage of using supply-side policies.

Explain one benefit of globalisation to producers from a developed economy.

Table 2 shows balance of payments data for an economy.

Using Table 2, calculate the value of the balance of trade in £ billions.

Explain one reason why the value of a country’s imports might be larger than the value of exports.

Analyse how fiscal policy can help a government achieve lower unemployment.

State two government policies used to correct market failure associated with positive externalities.

Explain one benefit of free trade for UK producers.

Explain one role of the Bank of England.

An individual decides to open a savings account with a deposit of £8000. The annual interest rate paid on these savings is 1.2%. If they close the account after nine months, calculate how much interest they would receive on their account.

Explain one effect of a fall in interest rates on UK producers.

Figure 2 shows the US Dollar ($) to the British Pound (£) foreign exchange market.

On Figure 2, draw a supply and demand diagram, and label the effects on the exchange rate of increased UK exports to the USA.

Figure 3

Since 2016, the British Pound (£) has remained at a low value against other currencies. This was partially caused by the uncertainty created following the UK’s decision to leave the European Union (EU).

A low (or weaker) exchange rate will affect both consumers and producers in the economy. Businesses that export goods and services are affected when the currency changes in value. Import prices will change, which also affects UK businesses.

Consumers taking foreign holidays and those who buy goods from overseas are affected by changes in the exchange rate.

The diagram here shows that the exchange rate fell by approximately 20% and, although it has risen since, it has remained low against the Euro (€) more or less throughout this period.

Euro (€)/British Pound (£) exchange rate 2016–2019

Using Figure 3, assess whether people in the UK benefitted from changes in the exchange rate between 2016 and 2019.

Justify your answer.

Using Table 3 in Item A calculate the percentage change in the UK’s GDP per capita from 2011 to 2016.

Give your answer to 1 decimal place.

Using Item A explain two consequences of inflation for people in the UK.

Using Item B, analyse possible benefits to the government of low unemployment.

Was the UK economy performing better than the French economy in 2019?

Use Items A and B and your own economic knowledge to justify your view.