Download Official summer 2024 Pearson Edexcel 8EC0/02 GCE AS Level In Economics A (8EC0) Paper 02 and more Exams Nursing in PDF only on Docsity!
Official summer 2024 Pearson Edexcel 8EC0/02 GCE
AS Level In Economics A (8EC0) Paper 02 The UK
Economy – Performance and Policies Merged
Question Paper + Mark Scheme Official summer 2024
Pearson Edexcel 8EC0/02 GCE AS Level In Economics
A (8EC0) Pape
Official summer 2024 Pearson Edexcel 8EC0/02 GCE AS Level In Economics A (8EC0) Paper 02 The UK Economy – Performance ... Question Paper + Mark Scheme Official summer 2024 Pearson Edexcel 8EC0/02 GCE AS Level In Economics A (8EC0) Paper 02 The UK Economy – Performance and Policies Merand Policies Merged
In what context should students consider economic policies? <<>> Students should consider economic policies in a historical context. What should students identify regarding policymakers' approaches? <<>> Students should identify different approaches that policymakers may use to address macroeconomic issues and the criteria for success. What knowledge should students have about the UK economy? <<>> Students should have knowledge of the UK economy in the last 10 years. What type of coverage will this theme provide? <<>> This theme will provide coherent coverage of macroeconomic content, drawing on local and national contexts. What is the significance of real GDP in economic growth? <<>> Real GDP measures the rates of change of economic growth. What are the distinctions between real and nominal GDP? <<>> Real GDP is adjusted for inflation, while nominal GDP is not. What is the difference between total GDP and per capita GDP? <<>> Total GDP measures the overall economic output, while per capita GDP divides total GDP by the population, indicating average economic output per person. What does GNI stand for and what does it measure? <<>> Gross National Income (GNI) measures the total income earned by a nation's residents and businesses, including any income earned abroad.
What is the Retail Prices Index (RPI)? <<>> RPI is an alternative measure of inflation that includes housing costs and is often higher than CPI. What are the main causes of inflation? <<>> Demand- pull inflation, cost-push inflation, and growth of the money supply. What are the effects of inflation on consumers? <<>> Inflation can reduce purchasing power, affect savings, and alter spending behavior. What measures are used to assess unemployment? <<>> The claimant count and the International Labour Organisation (ILO) measure unemployment. What is the distinction between unemployment and under- employment? <<>> Unemployment refers to individuals actively seeking work but unable to find it, while under- employment includes those working fewer hours than desired or in jobs below their skill level. What are the causes of structural unemployment? <<>> Structural unemployment arises from changes in the economy that create a mismatch between skills and job requirements. What is the significance of migration for employment? <<>> Migration can influence labor supply, skill levels, and competition in the job market. What are the components of the balance of payments? <<>> The balance of payments includes the current account and the balance of trade in goods and services.
What is the current account? <<>> The current account records a country's transactions with the rest of the world, including trade in goods and services. What are the components of aggregate demand (AD)? <<>> Aggregate demand is composed of consumption (C), investment (I), government spending (G), and net exports (X- M). What influences consumer spending? <<>> Disposable income, interest rates, consumer confidence, and wealth effects. What is the distinction between gross and net investment? <<>> Gross investment measures total spending on capital goods, while net investment accounts for depreciation. What are the main influences on government expenditure? <<>> The trade cycle and fiscal policy. What is the significance of the multiplier effect? <<>> The multiplier effect amplifies the impact of initial spending on overall economic output. What are the marginal propensities in economics? <<>> Marginal propensities include the marginal propensity to consume (MPC), save (MPS), tax (MPT), and import (MPM), which affect the multiplier. What is the trade cycle? <<>> The trade cycle refers to the fluctuations in economic activity over time, including periods of expansion and recession. What are the potential conflicts between macroeconomic objectives? <<>> Conflicts may arise between
What approach to studying economics are students encouraged to adopt? <<>> Students are encouraged to use an enquiring, critical, and thoughtful approach to the study of economics. What skills are emphasized for students in this theme? <<>> Students need to acquire competence in quantitative skills relevant to the context of this theme. What is the significance of current economic events in assessments? <<>> Students must demonstrate an awareness of current economic events and policies in their assessments. How does this theme relate to different contexts? <<>> The theme provides coherent coverage of microeconomic content, drawing on local, national, and global contexts. What is the expected outcome for students regarding their economic thinking? <<>> Students should develop an ability to think as an economist. What teaching approaches should be reflected in the content delivery? <<>> Teaching approaches must reflect the need for students to build upon knowledge from previous themes. What types of contexts will students apply their knowledge to? <<>> Students will apply their knowledge to both familiar and unfamiliar contexts. What is the role of competition in business decision making? <<>> Students will understand the role of competition in business decision making through analysis and evaluation of pricing and output decisions.
What is the relationship between market participants and competition? <<>> The number and size of market participants influence the nature of competition and pricing among firms. What are some reasons firms may remain small? <<>> Students will explore reasons for demergers and why some firms tend to remain small. What is the importance of quantitative skills in economics? <<>> Quantitative skills are essential for applying economic concepts and analyzing data relevant to the theme. What is the expected level of understanding regarding government intervention? <<>> Students should be able to critically appraise government intervention in promoting competitive markets. What is the significance of contestability in markets? <<>> Contestability affects the pricing and nature of competition among firms. What is the expected outcome for students in terms of knowledge application? <<>> Students are expected to apply their knowledge and understanding effectively in various economic contexts. What are the reasons why some firms tend to remain small while others grow? <<>> Factors include market size, access to finance, owner objectives, and regulatory constraints. What is the principal-agent problem? <<>> It refers to the conflict of interest between the owners (principals) and the managers (agents) of a firm.
What impact do demergers have on businesses, workers, and consumers? <<>> Impacts can include job losses, changes in market competition, and shifts in consumer choice. What are the different business objectives? <<>> Objectives include profit maximization, revenue maximization, sales maximization, and satisficing. What is the formula for total revenue? <<>> Total revenue is calculated as price multiplied by quantity sold. What is the relationship between price elasticity of demand and revenue? <<>> Price elasticity of demand affects how changes in price influence total revenue; elastic demand means revenue decreases with price increases, while inelastic demand means revenue increases. What are the types of costs in business? <<>> Types include total cost, total fixed cost, total variable cost, average cost, average fixed cost, average variable cost, and marginal cost. What is the concept of economies of scale? <<>> Economies of scale occur when the cost per unit decreases as production increases due to operational efficiencies. What is the minimum efficient scale? <<>> The minimum efficient scale is the lowest level of output at which long- run average costs are minimized. What is allocative efficiency? <<>> Allocative efficiency occurs when resources are distributed in a way that maximizes consumer satisfaction.
What are the characteristics of perfect competition? <<>> Characteristics include many buyers and sellers, homogeneous products, free entry and exit, and perfect information. What is the profit-maximizing equilibrium in monopolistic competition? <<>> It occurs where marginal cost equals marginal revenue, allowing firms to set prices above marginal cost. What are the characteristics of oligopoly? <<>> Characteristics include high barriers to entry, a few large firms dominating the market, interdependence among firms, and product differentiation. What is third-degree price discrimination? <<>> Third- degree price discrimination involves charging different prices to different consumer groups based on their willingness to pay. What are the characteristics of a monopsony? <<>> A monopsony has a single buyer in the market, giving it power to set prices and wages. What are the implications of contestable markets for firm behavior? <<>> In contestable markets, firms may behave competitively to deter potential entrants, even if they have market power. What factors influence the demand for labor? <<>> Factors include the demand for goods and services produced, productivity of labor, and wage rates. What is the significance of government intervention in controlling monopolies? <<>> Government intervention aims to
What should students be able to assess regarding economic policies? <<>> Students should assess policies that might address national and global economic challenges. What is the time frame for trends in the global economy that students should be aware of? <<>> Students should be aware of trends in the global economy over the last 25 years. What approach are students encouraged to take in studying economics? <<>> Students are encouraged to use an enquiring, critical, and thoughtful approach. What ability should students develop to think like economists? <<>> Students should develop the ability to think critically and analytically as economists. What quantitative skills are relevant for students in this theme? <<>> Students need to acquire competence in quantitative skills that are relevant and applied in the context of economics. How should teaching approaches reflect the content of the course? <<>> Teaching approaches must reflect the connections across macroeconomic themes and the application of knowledge. What type of contexts should students apply their knowledge to in assessments? <<>> Students should apply their knowledge to both familiar and unfamiliar contexts. What is the significance of wider reading and research for students? <<>> Wider reading and research help students include relevant examples in their analysis and evaluation.
What critical thinking skills are emphasized in the study of economics? <<>> Students should develop an enquiring, critical, and thoughtful approach to economics. What is the role of the financial sector in the global context? <<>> Students will examine the role of the financial sector as part of their understanding of macroeconomic policies. What are the characteristics of globalisation? <<>> Globalisation involves the increasing interconnectedness of economies, cultures, and populations across the world. What factors have contributed to globalisation in the last 50 years? <<>> Factors include advancements in technology, trade liberalisation, and the rise of multinational corporations. What are the impacts of globalisation on individual countries? <<>> Impacts include changes in government policies, effects on local producers and consumers, and environmental consequences. What is the theory of comparative advantage? <<>> It suggests that countries should specialize in producing goods where they have a lower opportunity cost. What are the assumptions and limitations of the theory of comparative advantage? <<>> Assumptions include perfect competition and mobility of resources; limitations involve real-world factors like trade barriers. What are the advantages of specialisation in trade? <<>> Advantages include increased efficiency, lower costs, and greater variety of goods for consumers.
What is the significance of exchange rate systems? <<>> Exchange rate systems determine how currencies are valued and can influence trade and investment. What is the difference between revaluation and appreciation of a currency? <<>> Revaluation is a deliberate increase in a currency's value by the government, while appreciation is a market-driven increase. What is the difference between devaluation and depreciation of a currency? <<>> Devaluation is a deliberate decrease in a currency's value, while depreciation is a market-driven decrease. What factors influence floating exchange rates? <<>> Factors include interest rates, inflation, political stability, and economic performance. What are measures of international competitiveness? <<>> Measures include relative unit labour costs and relative export prices. What is the Human Development Index (HDI)? <<>> The HDI measures development based on education, health, and living standards. What are the advantages of using the HDI? <<>> Advantages include a comprehensive view of development beyond just economic factors. What are the limitations of using the HDI? <<>> Limitations include its inability to capture inequality and environmental factors.
What are market-oriented strategies for growth and development? <<>> Strategies include trade liberalisation, promotion of FDI, and removal of government subsidies. What are interventionist strategies for growth and development? <<>> Strategies include developing human capital, protectionism, and infrastructure development. What is the role of central banks? <<>> Central banks implement monetary policy, act as bankers to the government, and regulate the banking industry. What is the distinction between capital expenditure and current expenditure? <<>> Capital expenditure refers to long- term investments, while current expenditure involves day-to-day operational costs. What are automatic stabilisers in fiscal policy? <<>> Automatic stabilisers are economic policies that automatically adjust to changes in economic conditions without direct intervention. What is the significance of fiscal deficits and national debts? <<>> The size of fiscal deficits and national debts can impact economic stability, growth, and government policy options. What does the ceteris paribus assumption imply in economic modeling? <<>> It implies that all other variables are held constant while analyzing the relationship between two specific variables. Why can't economics conduct scientific experiments like natural sciences? <<>> Due to the complexity of human behavior and the influence of numerous variables.
