20 Marks (Micro) 20 Marks (Macro)
With the help of a diagram, assess the view that government ‘Devaluation of a country’s currency will reduce a persistent balance of payments
intervention can be used successfully to correct market failure deficit on its current account in goods and services in the short run but this will
caused by positive externalities. inevitably lead to high levels of inflation in the long run.’ Evaluate this statement.
With the help of a diagram, assess whether imperfect labour Assess the contribution of Foreign Direct Investment (FDI) to the improvement of
markets will always lead to lower wages and higher unemployment. the standard of living in low-income countries.
The use of air travel leads to market failure caused by negative Expenditure-reducing policies will reduce a balance of payments deficit but will
externalities. With the help of a diagram, assess the extent to which also cause significant unemployment. Evaluate this statement.
a government can intervene to correct this market failure.
Some firms in oligopoly markets choose to collude rather than Assess the impact of globalisation on the standard of living in low-income
engage in price competition. This will lead to higher prices and a less countries.
efficient allocation of resources. Evaluate this statement.
To improve allocative efficiency economists frequently advise An increase in a government’s budget surplus will increase unemployment in the
governments to remove existing subsidies to the private sector short run but it will make it easier to control a balance of payments deficit on the
providers of education. With the help of a diagram, evaluate this current account in the long run. Evaluate this statement.
advice.
Some firms frequently use price discrimination. Assess the view that To what extent do you agree that an increase in productivity will lead to a higher
when this occurs, price discrimination will always benefit the standard of living in low-income countries?
producer at the expense of the consumer and society.
The increased use of electric vehicles (EVs) is encouraged as part of Consider the extent to which the depreciation of its foreign exchange rate
governments’ climate change policies because they create fewer contributes to the economic growth of a low-income country.
negative externalities than diesel and petrol (gas) vehicles. Evaluate,
with the help of a diagram(s), two policies that a government may
use to encourage the use of EVs.
Evaluate, with the help of a diagram(s) how total market demand Evaluate the effectiveness of using monetary policy to reduce the rate of inflation
and minimum efficient scale may determine the form of market and how this policy may affect a government’s ability to achieve its other
structure in an industry. macroeconomic aims.
To improve allocative efficiency economists frequently advise An increase in a government’s budget surplus will increase unemployment in the
governments to remove existing subsidies to the private sector short run but it will make it easier to control a balance of payments deficit on the
providers of education. With the help of a diagram, evaluate this current account in the long run. Evaluate this statement.
advice.
With the help of a diagram, assess the view that government ‘Devaluation of a country’s currency will reduce a persistent balance of payments
intervention can be used successfully to correct market failure deficit on its current account in goods and services in the short run but this will
caused by positive externalities. inevitably lead to high levels of inflation in the long run.’ Evaluate this statement.
With the help of a diagram, assess whether imperfect labour Assess the contribution of Foreign Direct Investment (FDI) to the improvement of
markets will always lead to lower wages and higher unemployment. the standard of living in low-income countries.
The use of air travel leads to market failure caused by negative Expenditure-reducing policies will reduce a balance of payments deficit but will
externalities. With the help of a diagram, assess the extent to which also cause significant unemployment. Evaluate this statement.
a government can intervene to correct this market failure.
Some firms in oligopoly markets choose to collude rather than Assess the impact of globalisation on the standard of living in low-income
engage in price competition. This will lead to higher prices and a less countries.
efficient allocation of resources. Evaluate this statement.
To improve allocative efficiency economists frequently advise An increase in a government’s budget surplus will increase unemployment in the
governments to remove existing subsidies to the private sector short run but it will make it easier to control a balance of payments deficit on the
providers of education. With the help of a diagram, evaluate this current account in the long run. Evaluate this statement.
advice.
Some firms frequently use price discrimination. Assess the view that To what extent do you agree that an increase in productivity will lead to a higher
when this occurs, price discrimination will always benefit the standard of living in low-income countries?
producer at the expense of the consumer and society.
The increased use of electric vehicles (EVs) is encouraged as part of Consider the extent to which the depreciation of its foreign exchange rate
governments’ climate change policies because they create fewer contributes to the economic growth of a low-income country.
negative externalities than diesel and petrol (gas) vehicles. Evaluate,
with the help of a diagram(s), two policies that a government may
use to encourage the use of EVs.
Evaluate, with the help of a diagram(s) how total market demand Evaluate the effectiveness of using monetary policy to reduce the rate of inflation
and minimum efficient scale may determine the form of market and how this policy may affect a government’s ability to achieve its other
structure in an industry. macroeconomic aims.
To improve allocative efficiency economists frequently advise An increase in a government’s budget surplus will increase unemployment in the
governments to remove existing subsidies to the private sector short run but it will make it easier to control a balance of payments deficit on the
providers of education. With the help of a diagram, evaluate this current account in the long run. Evaluate this statement.
advice.
