International A Level Unit 4, Jan 2021

Q1 The ECB restarted quantitative easing in September 2019. Identify the most likely effect for a eurozone economy, ceteris paribus. (smaller money supply / lower growth / higher unemployment / higher inflation)

Q2 Which theory suggests a savings gap constrains growth and development? (Harrod-Domar / Lewis dual-sector / Marshall-Lerner / Prebisch-Singer)

Q3 State the most probable consequence, other things equal, of the Australian dollar's 7.4% slide versus the US dollar over June 2018 to October 2019.

Q4 UK CPI inflation is charted alongside nominal pay growth over 2008 to 2018; state what this shows about deflation, disinflation and real pay growth.

Q5 India's international competitiveness rank fell 10 places in 2019. Identify the most likely reason. (lower relative inflation / lower relative unit labour costs / lower relative labour productivity / lower relative transport costs)

Q6 Two countries' maximum output of lorries and cars is tabulated; settle which conclusion on absolute and comparative advantage holds.

Q7(a) From Extract A's second paragraph, calculate and show workings for the 2000 global wealth share of high-income advanced plus middle-income developing economies.

Q7(b) Analyse what the global Gini coefficient's movement over 2000 to 2014 implies for inequality, using Figure 1 and a Lorenz curve diagram.

Q7(c) Say what relative poverty means, as the term appears in Extract A.

Q7(d) Examine, using Extract A, two forces that generate income inequality inside advanced economies.

Q7(e) Discuss, drawing on Extract A, measures a government might adopt to narrow income inequality at home.

Q10 Spain cut public spending from 48.1% of GDP in 2012 to 41.3% by 2018: evaluate such a fall's economic effects in a developed country you choose.

Q8 Cambodia's terms of trade dropped 31.3% across 2000 to 2018; evaluate, for a country you choose, how worsening terms of trade hit macroeconomic objectives.

Q9 Yemen took over $3 billion in development aid during 2017, nearly 200% above 2013: evaluate aid as a route to development for a chosen developing country.