Edexcel A-level Economics Theme 2 Exam 2024 Questions & Answers 100% Accurate!

Edexcel A-level Economics Theme 2 Exam 2024 Questions & Answers 100% Accurate!Macroeconomics - ANSWERSThe study of the economy as a whole, including inflation, growth and unemployment. Aggregate demand - ANSWERSThe total amount of goods / services demanded in an economy at a given time at a given price level. Aggregate supply - ANSWERSTotal amount of goods and services supplied in the economy at a given time at given price level. What is GDP? - ANSWERSGross Domestic Product = the total value of all goods and services produced in an economy in a given time period. What does % change in GDP show? - ANSWERSThe rate of economic growth in an economy Difference between real GDP and nominal GDP? - ANSWERSReal = adjusted for inflation. Nominal = A monetary amount not adjusted for inflation Difference between total GDP and GDP per capita? - ANSWERSTotal GDP = Total GDP in an economy. GDP per capita = Total GDP/Total Population What is Gross National Income (GNI)? - ANSWERSThe total amount of money earned by a country's people and businesses plus net overseas interest payments and dividends. Who has the 3 biggest GDPs in the world? - ANSWERS1st = USA, 2nd = China, 3rd = Japan Disadvantages of using GDP to compare economic growth? (4) - ANSWERS1. Inaccurate data (black markets/ tax avoiding sectors) 2. Doesn't show inequality in income distribution (Gini coefficient could help) 3. Doesn't compare quality of goods/services 4. Difficult to compare countries due to exchange rates Benefits of economic growth on consumers (3)? - ANSWERS1. Higher disposable income 2. Standards of living increase 3. Price of goods may fall and quality increase. Benefits of economic growth on firms (2)? - ANSWERS1. Higher revenue/profits = more investment 2. Benefits from more sales (due to higher disposable incomes) Benefits of economic growth on the government (2)? - ANSWERS1. Increase in tax revenue (pay off debts/spend) 2. Wins votes Positive impacts of economic growth on economy as a whole (2)? - ANSWERS1. Country wealth increases 2. Standards of living increase Negative impacts of economic growth on an economy (4)? - ANSWERS1. Pollution = Transport/manufacturing 2. Unsustainable (will reach full capacity) 3. Hyper inflation due to demand driven growth 4. Potential increased inequality Purchasing power parities - ANSWERSAn exchange rate of one currency for another which compares how much a typical basket of goods in one country costs compared to that of another country. How is the UK's national well-being measured? - ANSWERSA national well-being report (started in 2010) asks people 4 questions about satisfaction, happiness, anxiety and worthwhileness. Its updated quarterly.