International A Level Unit 4, May 2021

Q1 Argentina's national debt rose from about $186bn to nearly $447bn between 2009 and 2018. Identify the most likely effect of rising national debt. (less comparative advantage / lower interest rates / higher debt servicing costs / a stronger currency)

Q2 Armenia's Gini coefficient rose 0.28 (2009) to 0.34 (2017): which cuts income inequality most? (cutting the minimum wage / stronger education and training / lighter progressive taxation / heavier regressive taxation)

Q3 Oil exports were 85% of Nigeria's GDP in 2018. Identify the most likely result of a fall in world oil prices.

Q4 Using a diagram of the relationship between the tax rate and government tax revenue, identify the model represented. (J-curve / Phillips curve / Lorenz curve / Laffer curve)

Q5 Finland's forecast age distribution for 2010 to 2070 is charted; pick the supported claim about welfare spending, the working population, labour shortages and the tax burden.

Q6 Read a table showing Afghanistan's terms of trade across 2015–2017 and pick the valid inference, other things equal.

Q7(a) Given EU inflation of 1.6% in 2018 and Figure 1, calculate the EU's nominal GDP growth rate in 2018, showing workings.

Q7(b) Set out the meaning of 'quantitative easing' as Extract A uses the term.

Q7(c) Account in two ways for the strong growth much of the EU enjoyed after 2012, drawing on Figures 1 and 2 plus Extract A.

Q7(d) Examine two grounds for fearing weaker EU growth ahead, drawing on Extract A together with Figures 1 and 2.

Q7(e) Discuss what the EU could economically gain from a Mercosur trade deal, as set out in Extract B.

Q10 For a country you choose, evaluate what currency depreciation does economically (context: the Turkish lira shedding almost 40% versus the US dollar, January–August 2018).

Q8 For one developed economy you select, evaluate policies that could boost its international competitiveness (context: Belgium slipping four competitiveness places, 2015–2019).

Q9 Taking any developing economy, evaluate debt relief as a route to development (context: average servicing costs on developing-country external debt up more than 60%, 2014–2018).