The shorter ones!
1. Look at the question paper and then
match the answers with the appropriate
question (bearing in mind they aren’t all
perfect answers – in fact some are wrong)
2. Identify and correct any deliberate errors
3. Assess questions that were correct but not
necessarily thorough enough against the
mark scheme. Award a mark and then
improve to get higher marks. (In particular
focus upon other possible answers for 2b,
then look at 3b, 4c, 5a & 5b for
improvement)
This refers to firms and
consumers within a
country’s economy
trading/exchanging goods
& services in return for
money with firms and
consumers from
economies of foreign
countries.
Quotas to restrict the
import of goods in to a
country
Export subsidies to
discourage exporting
This is the total output of a
country’s entire economy,
divided by the population
count to arrive at an
output per head figure.
This provides a truer
comparison of economic
progress between
countries of different sizes
Inflation – If aggregate
demand increases, and
demand already utilises most
of aggregate supply, then
rapid economic growth will
lead to a sharp rise in price
levels in the short term.
Increase in income inequality
– because inflation that
occurs suddenly and is not
planned for will result in a
redistribution of wealth that
may not be viewed as good
for the longer term health of
the economy.
Consumer expenditure
went up, because prices
got cheaper due to a fall in
inflation and there was less
poverty and less
unemployment
There will be a positive
relationship between
changes in consumer
expenditure and
investment. More
consumer expenditure will
boost the animal spirits of
businesses and encourage
them to invest.
Prices fell by 0.8% in
comparison to the
previous year
Argentina had a surplus of
$1.3 billion, from a deficit
of $1.7
USA had a budget surplus
of $13.7 up from a surplus
of $2.4
No, it isn’t possible
The tax cut will have
caused inflation by
creating an increase in
aggregate demand
A budget deficit is when a
government spends more
than it collects in tax. A cut in
tax rates can commonly be
associated with a budget
deficit as taxes like VAT and
income tax are a significant
source of government
income. A fall in such income
would appear to increase the
likelihood of a budget deficit
as the government will collect
less in taxes.