Edexcel iGCSE Economics Paper 2 October 2025 Question 1g In March 2024, after 15 years of negotiations, India announced a free trade agreement with four European countries: Switzerland, Iceland, Norway and Liechtenstein. The free trade agreement is expected to create one million jobs over the coming years. Explain one advantage of free trade for a business in
AQA 10 mark question Explain ways in which a government can use fiscal policy to affect the pattern of economic activity AQA AS-Level Economics June 2022 Paper 2 Insert Extract F (lines 1–2 and 8) states: ‘As part of fiscal policy, government spending can be used to allocate resources to different regions and sectors of the economy and consequently, change the pattern of economic activity...Taxation also has a role
Model Paragraphs Revenue Maximisation | A-Level Economics Model Paragraph Revenue maximisation occurs at the quantity where marginal revenue equals zero. It is an important objective for some businesses because their goal might be to increase their market share. As firms increase market share, especially in oligopoly markets, they can improve customer loyalty. Later, they might be able to act
AQA 25 mark question Evaluate how, in the long-run, governments could try to reconcile conflicts between the various objectives of economic policy AQA A-Level Economics Paper 2 June 2023 Evaluate how, in the long-run, governments could try to reconcile conflicts between the various objectives of economic policy. (25 marks) Plan * Paragraph 1 * Argument: the government could reconcile the conflict of low inflation vs slow growth by using expansionary fiscal policy * Diagram: multiplier
AQA 25 mark question Evaluate the view that economic growth leads to an improvement in living standards AQA A-Level Economics Paper 1 June 2017 Insert Evaluate the view that economic growth leads to an improvement in living standards. (June 2023) Plan * Paragraph 1 * Argument: an increase in economic growth should improve living standards as gdp and incomes increase * Diagram: increase in AD * Evaluation: whether its sustainable depends
AQA 25 mark question Assess whether an increase in the money supply is always damaging for an economy AQA A-Level Economics Paper 1 June 2024 Assess whether an increase in the money supply is always damaging for an economy. (June 2024) Plan * Paragraph 1 * Argument: an increase in the money supply can be damaging as it can cause demand-pull inflationary pressure * Diagram: increase in AD * Evaluation: depends on
AQA 25 mark question Discuss the view that high levels of employment are always beneficial for an economy AQA A-Level Economics Paper 1 June 2024 Discuss the view that high levels of employment are always beneficial for an economy. (25 marks) Plan * Paragraph 1 * Argument: high levels of employment are beneficial as this can stimulate further economic growth * Diagram: increase in AD, multiplier effect * Evaluation: depends on consumer
AQA 25 mark question Assess the view that raising direct taxes to finance an increase in government spending is better than raising indirect taxes AQA A-Level Economics Paper 2 June 2025 Assess the view that raising direct taxes to finance an increase in government spending is better than raising indirect taxes. (25 marks) * Paragraph 1 * Argument: raising direct taxes is better as it can be target high earners and therefore have minimal effect on
AQA 25 mark question Evaluate the view that a low rate of inflation is always beneficial for a country’s macroeconomic performance AQA A-Level Economics Paper 2 June 2025 Evaluate the view that a low rate of inflation is always beneficial for a country’s macroeconomic performance. (25 marks) * Paragraph 1 * Argument: low inflation is beneficial, especially compared to the damaging effects of a wage-price spiral or a deflationary spiral * Diagram: negative
IAL 20 mark question Evaluate the likely macroeconomic effects of an increase in indirect taxes Edexcel International A-Level Economics Unit 4 June 2026 In Slovakia the standard VAT (sales tax) rate was increased from 20% to 23% on 1 January 2025. Evaluate the likely macroeconomic effects of an increase in indirect taxes. Refer to a country of your choice in your answer. (January 2026) Plan
Model Paragraphs Profit Maximisation | A-Level Economics Model Paragraph Profit maximisation can benefit shareholders. It can be achieved at the point q1 where marginal costs equal marginal revenue. At any quantity below q1, each extra unit of output generates more revenue than it costs. This incentivises them to produce more output. Alternatively at any level of output above q1,
Edexcel 25 Mark Question Evaluate the factors which may have caused this increase in income inequality. Edexcel A-Level Economics 25 Mark Question Over the past 25 years, income inequality has been increasing in many developed countries. For example, from 2007 to 2011 Spain’s Gini coefficient rose by 6.0 percentage points, and Ireland’s by 6.6 percentage points. Evaluate the factors which may have
Edexcel 25 Mark Question Evaluate possible economic causes of income and wealth inequalities within a country such as Brazil Edexcel A-Level Economics 25 Mark Question In terms of income distribution and wealth distribution Brazil is one of the most unequal countries in the world. Its income Gini coefficient is 0.449 and it is ranked number 2 in the world for its wealth inequality. Evaluate possible economic causes of
AQA 25 mark question Evaluate the view that increasing taxation is the best way to reduce a budget deficit Evaluate the view that increasing taxation is the best way to reduce a budget deficit. (June 2024) Plan * Paragraph 1: * Argument: on the one hand, increasing taxation can be beneficial as it can reduce the budget deficit whilst also reducing inflation * Diagram: left shift in AD * Evaluation: depends on the
AQA 25 mark question Assess the view that very low interest rates are good for the UK economy AQA A-Level Economics Paper 2 June 2023 Insert Use the extracts and your knowledge of economics to assess the view that very low interest rates are good for the UK economy. (25 marks) Plan * Paragraph 1 * Argument: on the one hand, low interest rates are good as they can stimulate
AQA 25 mark question Evaluate the view that the main objectives of UK government macroeconomic policy can be achieved without conflicting with each other AQA A-Level Economics Paper 2 June 2020 Evaluate the view that the main objectives of UK government macroeconomic policy can be achieved without conflicting with each other. (June 2020) Plan * Paragraph 1 * Argument: on the one hand I would argue that the main objectives cannot be achieved without conflict, especially
AQA 25 mark question Evaluate policies which could be used to boost South Korea’s exports and increase its trade surplus AQA A-Level Economics Paper 1 June 2021 Insert Using the data in the extracts and your knowledge of economics, evaluate policies which could be used to boost South Korea’s exports and increase its trade surplus. (25 marks) Plan * Paragraph 1 * Argument: one policy that can be used to increase
AQA 25 mark question Assess the view that a rise in Ireland's corporation tax rate is likely to have a damaging effect on its macroeconomic performance AQA A-Level Economics Paper 2 June 2023 Insert Assess the view that a rise in Ireland's corporation tax rate is likely to have a damaging effect on its macroeconomic performance. (25 marks) * Paragraph 1 * Argument: on the one hand, higher corporation tax rates are damaging as they can
IAL 20 mark question Edexcel International A-Level Economics | 20-mark question | Unit 2 In 2016, the GDP of Argentina was forecast to contract by 2% and consumer price inflation was predicted to increase by 4%. Evaluate supply-side policies that would help Argentina achieve economic growth without inflationary pressure. (Specimen) ‘The availability of credit has a significant influence over the level of consumption.’ Evaluate
Edexcel 25 Mark Question Evaluate the effects of the growth of trading blocs such as the TFTA on global trading patterns Edexcel A-Level Economics 25 Mark Question Three of Africa’s main trading blocs have agreed to form the Tripartite Free Trade Agreement (TFTA). This will create one of the world’s largest free trade areas, stretching across 26 countries with a combined GDP of around £1trillion. Evaluate the effects of
Edexcel 25 Mark Question Evaluate the potential trade-offs between environmental protection and other macroeconomic objectives Edexcel A-Level Economics 25 Mark Question It has been estimated that if climate change led to the world’s temperature rising 2.5°C compared to the temperature in 2010, then global GDP per capita would be 15% lower by 2100. If temperatures rise by 4°C compared to the
Edexcel 25 Mark Question Evaluate the likely impact of globalisation on the global economy Edexcel A-Level Economics 25 Mark Question With global economic growth slowing and inequality rising, the case against globalisation is strengthening. But there are also many benefits to globalisation. Global trade and international trade agreements allow countries to focus on their strengths and share expertise, as well as reducing risk through
Edexcel 25 Mark Question Evaluate macroeconomic policies that could be used to increase international competitiveness in the UK’s export markets Edexcel A-Level Economics 25 Mark Question In 2022 the value of UK exports fell by 14% compared with 2020. In contrast, the global average increase in exports was 8.2% over the same time period. The UK’s competitiveness also fell, dropping five places from 18th in 2021 to 23rd
Edexcel 25 Mark Question Evaluate macroeconomic policies, apart from monetary policy, the UK government could use to reduce inflation. Edexcel A-Level Economics 25 Mark Question UK inflation, as measured by the CPI, rose to 10.1% in the 12 months to July 2022, compared to 2.0% in the 12 months to July 2021. Evaluate macroeconomic policies, apart from monetary policy, the UK government could use to reduce inflation.
Edexcel 25 Mark Question Evaluate the likely impact of cutting tax rates as a policy to increase economic growth In 2018, the United States Government cut the corporation tax rate (tax on company profits) from 35% to 21%. Income tax rates for US citizens were also reduced: for example, the top rate of income tax was cut from 39.6% to 37%. Evaluate the likely impact of cutting tax