International A Level Unit 4, Oct 2021

Q1 French public spending slipped to 55.6% of GDP by 2019 from 57.2% in 2014; identify the probable effect (less unemployment / less crowding out / more injections / more inflationary pressure).

Q2 New Zealand planned a 4 cents per litre fuel tax rise from July 2020. Identify the type of tax being increased. (progressive / proportional / regressive / direct)

Q3 Niger has an HDI of 0.35. Identify which market-orientated strategy could promote its development. (buffer stock schemes / state investment in human capital / state investment in infrastructure / microfinance schemes)

Q4 Using a diagram of a tariff imposed on a commodity, identify the true statement about consumer surplus, government revenue, net welfare loss and producer surplus.

Q5 From a chart tracking Austria's terms of trade over 2000-2018, state what follows about export prices relative to import prices.

Q6 The Netherlands rose from sixth to fourth on the Global Competitiveness Index on higher labour productivity. Identify the most likely combination of effects on unit labour costs and export prices.

Q7(a) By November 2019 the Bank of Zambia's base rate stood at 11.5%, up 1.75 percentage points since April; calculate the April rate, showing workings.

Q7(b) Analyse how a higher base interest rate might affect Zambia's trade balance with South Africa, as set out in Extract A.

Q7(c) Explain the term 'the Gini coefficient' as it is used in Extract A's fourth paragraph.

Q7(d) Using the material given, examine two difficulties that follow from Zambia's economic reliance on copper.

Q7(e) Beyond primary product dependency, discuss which economic factors could hold back growth in Zambia.

Q10 For a developing country you pick, evaluate the drawbacks of running a current account deficit (context: Turkey's US$47.4bn and Argentina's US$31.3bn shortfalls in 2019).

Q8 For countries you select, evaluate how fast expansion in emerging economies reshapes world trade patterns (context: India and China both growing above 6% in 2019).

Q9 Choosing one developed country, evaluate the possible gains from specialisation and trade (context: Italy and Canada have smaller service shares of GDP than the UK and USA).