June 2017
Explain the factors determining the elasticities of demand and supply of labour.
Explain why firms may not aim to maximise profit and instead pursue other objectives.
Explain why recent UK governments have generally been concerned about high levels of public sector debt.
Explain some of the policies that could be used to try to increase investment in the UK economy at the present time.
What are the possible causes of a current account deficit in the balance of payments?
Explain, using numerical examples, the difference between comparative and absolute advantage in trade.
June 2018
Explain why demand curves slope downwards from left to right and supply curves slope upwards from left to right.
Explain, using diagrams, the reasons that profit maximising firms in monopolistic competition might decide to increase their prices.
Outline two measures of inflation in the UK and explain how they are calculated.
Explain why unemployment creates social and economic costs.
Explain the factors that might cause a country’s exchange rate to depreciate.
Explain the main ways in which countries can protect their domestic industries from foreign competition.
June 2019
Distinguish, using examples, between structural and behavioural barriers to entry.
Explain why public goods are an example of market failure.
Explain why economies such as the UK need a legal framework of regulation for the financial sector.
Explain the process by which neo-classical economists argue that the economy can adjust to long-run equilibrium following a negative demand side shock. Use a diagram to support your answer.
Explain some of the possible measures/indicators of economic development in an LEDC.
Using a diagram(s), explain how the exchange rate will be determined in a free-floating exchange rate system.
June 2020
Using diagrams, explain the ways in which allocative and productive efficiency are efficient.
Explain, with the aid of a diagram, why price elasticity of demand changes along a downward sloping straight-line demand curve.
Using the quantity theory of money, explain why an increase in the money supply might cause a rise in inflation.
With the aid of diagrams, explain the difference between actual growth and potential growth.
Explain why dependency on a narrow range of primary products may damage an economy’s economic development.
Explain, using a diagram, how an EU member could stabilise its currency against the euro prior to joining the eurozone.
June 2021
Using examples, explain how internal and external economies of scale are both able to reduce a firm’s unit costs.
Using diagrams explain, in each case, how changes in population and agricultural productivity may affect an economy’s production possibility frontier.
Explain, using a diagram or diagrams, why some economists argue that the long run Phillips curve is vertical but that the short run Phillips curve is not.
Explain the factors which may affect the level of investment in an economy.
Explain how high levels of government debt might damage the economic growth of a less economically developed country (LEDC).
Using diagrams and the concept of comparative advantage, explain how international trade should allow a country to consume outside its production possibility frontier.
June 2022
Explain why governments might intervene to reduce income inequality.
Explain how firms can sustain their monopoly power.
Explain the main costs of inflation to an economy.
Explain why it may be difficult for governments to achieve their macroeconomic policy objectives at the same time.
Explain why poor governance can be an obstacle to economic growth and development in LEDCs.
Explain why some countries have long-term current account surpluses on their balance of payments.
June 2023
Using diagrams, explain how different values of price elasticity of demand (PED) might affect the incidence of an indirect tax on different products.
Explain, using examples, what is meant by horizontal, vertical and conglomerate mergers.
Explain why some economies might have higher rates of unemployment than others.
Explain the factors that could cause (i) the short run and (ii) the long run aggregate supply curves to shift position.
Explain, using diagrams, why exchange rates can be volatile.
Explain why a non-EU member such as Norway might become part of the single market.