AQA 9 mark question Explain how investment in research and development (R&D) can help to increase the long-run growth rate of an economy AQA A-Level Economics Paper 2 June 2021 Extract E (line 14) states: ‘Investment in R&D has been an important driver of economic growth and industrial progress.’ With the help of a diagram, explain how investment in research and development (R&D) can help to increase the
AQA 9 mark question Explain how a depreciation of the pound may cause inflation AQA A-Level Economics Paper 2 June 2024 Extract C (lines 4–5) states ‘Energy and food bills had risen dramatically due to shocks to the economy, such as labour shortages, a depreciation of the pound…’ With the help of a diagram, explain how a depreciation of the pound may
AQA 9 mark question Explain how high economic growth could help to create a budget surplus AQA A-Level Economics Paper 2 June 2023 Extract C (line 13) states: ‘High economic growth rates allowed Ireland to run a budget surplus in 2018 and 2019.’ With the help of a diagram, explain how high economic growth could help to create a budget surplus. (9 marks) 1. Economic
AQA 9 mark question Explain how a low rate of corporation tax may cause short-run and long-run economic growth AQA A-Level Economics Paper 2 June 2024 Extract E (lines 17–18) states: ‘A low rate of corporation tax has also contributed to both short-run and long-run economic growth.’ With the help of a diagram, explain how a low rate of corporation tax may cause short-run
AQA 9 mark question Explain why a trade-off between price stability and low unemployment might occur AQA A-Level Economics Paper 2 June 2018 Extract E (lines 16–17) states ‘However, some argue that trying to maintain stable prices and low unemployment could create trade-offs.’ With the help of a diagram, explain why a trade-off between price stability and low unemployment might occur. 1.
Model Paragraphs Policies to Increase Economic Growth | A-Level Economics Model Paragraph Expansionary fiscal policy Expansionary monetary policy One way to promote economic growth is the use of expansionary fiscal policy. This is when the government increases spending or decreases taxes to influence the level of aggregate demand in the economy. One example is the government reducing income taxes. This allows consumers
Edexcel 10 mark question Assess whether Netflix subscribers behave rationally Edexcel A-Level Economics Paper 1 June 2023 Extract With reference to the information provided, assess whether Netflix subscribers behave rationally. (10 marks) 1. It is possible that Netflix customers act irrationally, which means that they don't always maximise their utility as traditional economic theory suggests. 2. In
Edexcel 10 mark question Assess the extent to which ‘information gaps’ and ‘irrational behaviour’ are the main causes of food waste in the UK. Edexcel A-Level Economics Paper 1 June 2017 Extract Assess the extent to which ‘information gaps’ (Extract B, lines 5 and 6) and ‘irrational behaviour’ (Extract B, line 11) are the main causes of food waste in the UK. (10 marks) 1. Information gaps exist as a result of both
Edexcel 10 mark question Assess the limitations of using GDP to compare living standards over time Edexcel AS-Level Economics Paper 2 June 2022 Extract With reference to the fourth paragraph of Extract A, assess the limitations of using GDP to compare living standards over time. (10 marks) 1. GDP might not be the best way to compare living standards over time as it fails to
Edexcel 10 mark question Profit maximisation is assumed to be the business objective of most firms. Assess whether this is the case for coffee shop owners. Edexcel A-Level Economics Paper 1 June 2022 Extract Profit maximisation is assumed to be the business objective of most firms. With reference to Extract A, assess whether this is the case for coffee shop owners. (10 marks) 1. Profit maximisation occurs when firms produce at the output where marginal
Edexcel 10 mark question Assess how the regulation of energy suppliers’ profits is likely to affect consumers and suppliers in the energy market Edexcel A-Level Economics Paper 1 June 2018 Extract With reference to Extract B, assess how the regulation of energy suppliers’ profits is likely to affect consumers and suppliers in the energy market. (10 marks) 1. A profit cap is likely to increase consumer surplus. 2. A profit cap limits
Edexcel 10 mark question Assess possible reasons why many ‘landline-only’ customers do not switch to a cheaper telephone provider Edexcel A-Level Economics Paper 1 June 2019 Extract With reference to Extract C, assess possible reasons why many ‘landline-only’ customers do not switch to a cheaper telephone provider. (10 marks) 1. One reason customers might not switch to a cheaper provider is due to irrational behaviour. 2. Switching
Edexcel 10 mark question Assess whether complete nationalisation of the rail industry might protect employees Edexcel A-Level Economics Paper 1 June 2020 Extract Assess whether complete nationalisation of the rail industry might protect employees. (10 marks) 1. Nationalisation of the rail industry is likely to protect employees. 2. Nationalisation refers to the government taking ownership of firms in the rail industry. 3. Private firms
Edexcel 10 mark question Assess whether Thomas Cook’s failure was caused by the principal-agent problem Edexcel A-Level Economics Paper 1 June 2021 Extract With reference to Extract C, assess whether Thomas Cook’s failure was caused by the principal-agent problem. (10 marks) 1. On the one hand, you could argue that Thomas Cook's failure was caused by the principal-agent problem.
Edexcel 10 mark question Assess the likely impact on the Rwandan economy of the change in aid received between 2017 and 2018 Edexcel A-Level Economics Paper 2 June 2021 Extract With reference to the information provided, assess the likely impact on the Rwandan economy of the change in aid received between 2017 and 2018. (10 marks) 1. One main impact of the decrease in aid could be that economic growth might
Edexcel 10 mark question Assess whether the market for video game development is contestable Edexcel A-Level Economics Paper 1 June 2025 Extract With reference to the information provided, assess whether the market for video game development is contestable. (10 marks) 1. The market for video game development is arguably contestable as there are signs that there are low barriers to entry and exit
Edexcel 10 mark question Assess two likely benefits of debt relief to Angola Edexcel A-Level Economics Paper 2 June 2023 Extract Assess two likely benefits of debt relief to Angola. Refer to Extract B in your answer. (10 marks) 1. Debt relief would allow the government of Angola to reduce income inequality and alleviate poverty. 2. Extract B mentions that 17 million
AQA 10 mark question Explain why an increase in the tax payable on firms’ profits may lead to lower productivity growth AQA AS-Level Paper 2 June 2025 Insert Extract E (lines 12–13) states: ‘To increase revenue, the main rate of corporation tax, the tax payable on firms’ profits, was increased to 25%.’ Explain why an increase in the tax payable on firms’ profits may lead to lower productivity growth.
AQA 10 mark question Explain two factors considered by the Bank of England’s MPC when setting Bank Rate AQA AS-Level Paper 2 June 2023 Insert Extract B (lines 7–9) states: ‘With this in mind, the government sets the target rate of inflation that the Bank of England’s Monetary Policy Committee (MPC) has to achieve.’ Explain two factors considered by the Bank of England’s MPC
Edexcel 10 mark question Assess policies the Nigerian government could use in response to the concerns of the country’s ‘manufacturers and trade unions’ if they join this trading bloc Edexcel A-Level Economics Paper 2 June 2020 Extract Nigeria is considering joining the African Continental Free Trade Agreement. Assess policies the Nigerian government could use in response to the concerns of the country’s ‘manufacturers and trade unions’ (Extract B paragraph 3) if they join this trading bloc. (10
Edexcel 10 mark question Assess whether firms in the electronics industry benefit from economies of scale Edexcel A-Level Economics Paper 1 June 2024 Extract Assess whether firms in the electronics industry benefit from economies of scale. (10 marks) 1. Firms in the electronics industry are likely to benefit from economies of scale as they are large. 2. Extract C mentions that 'large electronics firms
Edexcel 10 mark question Assess the likely macroeconomic effects of the German government’s budget deficit Edexcel A-Level Economics Paper 2 June 2025 Extract With reference to the information provided and your own knowledge, assess the likely macroeconomic effects of the German government’s budget deficit. (10 marks) 1. The German government's budget deficit is likely to promote economic growth. 2. Figure 2
Edexcel 10 mark question Assess whether a fiscal deficit and national debt should be a cause for concern for the UK government Edexcel A-Level Economics Paper 2 June 2024 Extract Assess whether a fiscal deficit and national debt should be a cause for concern for the UK government. (10 marks) 1. A fiscal deficit exists when government spending exceeds tax revenue in a given year. 2. If a country runs a
Edexcel 10 mark question Assess the likely impact of an appreciation of the euro on the current account of the balance of payments for Eurozone countries Edexcel A-Level Economics Paper 2 June 2017 Extract Since mid-2015 the euro has appreciated. Assess the likely impact of an appreciation of the euro on the current account of the balance of payments for Eurozone countries. (10 marks) 1. An appreciation of the Euro is most likely to
Edexcel 10 mark question Assess the impact of a fall in real incomes on subjective happiness Edexcel A-Level Economics Paper 2 June 2019 Extract With reference to the last paragraph in Extract C, assess the impact of a fall in real incomes on subjective happiness. (10 marks) 1. A fall in real incomes is most likely to lead to a fall in the measure of