International A Level Unit 4, Oct 2020

Q1 India specialises in services and China in manufacturing. Identify what is likely to occur if each specialises and trades according to comparative advantage. (higher world output / fewer exports and imports / lower living standards / more absolute poverty)

Q2 Two countries are compared by Lorenz curves: which statement holds about how evenly income is distributed, the Gini coefficient, tax rates and GDP per capita?

Q3 Finland slipped six places on the Global Competitiveness Index from 2015 to 2018: which policy would best restore its competitiveness? (less infrastructure spending / stricter labour regulation / better education and training / more trade restrictions)

Q4 Floating sterling moved from £1 = $1.53 in January 2015 down to £1 = $1.26 four years later; name what happened (devalued / revalued / depreciated / appreciated).

Q5 Using a diagram of the imposition of a tariff, identify the true statement about government revenue, net welfare loss, producer surplus and consumer surplus.

Q6 Using a table of Sweden's GDP per capita from 2015 to 2017, calculate the index number for 2017 with 2016 as the base year.

Q7(a) Using Figure 1, work out how tourist numbers changed in percentage terms across 2012 to 2017, setting out your method.

Q7(b) Taking Figure 1 with Extract A, analyse two ways Mauritius gains economically as visitor numbers climb.

Q7(c) Set out what Extract A means where it refers to a smaller fiscal deficit.

Q7(d) Using the material given, examine two ways Mauritius' economy might respond as the base rate drops from 4% to 3.5% (Extract A).

Q7(e) Drawing on Extract B, discuss the policies a government might adopt to keep private sector expansion going.

Q10 Assess what might lie behind a current account deficit in a country you select, given 2017 deficits of $47.1bn for Turkey and $36.8bn for France.

Q8 Evaluate how far a rising national debt should worry a developed country of your choosing, given Portugal's debt climbing from 71% to 126% of GDP between 2008 and 2017 while Italy's went 102% to 132%.

Q9 Evaluate the likely macroeconomic effects of introducing an indirect tax in a developing country of your choice (context: Saudi Arabia and five neighbours introducing 5% VAT in January 2018).