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2024 AQA GCSE ECONOMICS 8136/2 Paper 2 How the
Economy Works
Verified Question Paper with Marking Scheme Combined.
June 2024
Materials
You will need no other materials. You may use a calculator.
Instructions
- Use black ink or black ball-point pen.
- Fill in the boxes at the top of this page.
- Answer all questions.
- You must answer the questions in the spaces provided. Do not write on blank pages.
- If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s).
- Do all rough work in this book. Cross through any work you do not want to be marked.
Information
- The marks for questions are shown in brackets.
- The maximum mark for this paper is 80.
- Questions should be answered in continuous prose. You will be assessed on your ability to:
- use good English
- organise information clearly
- use specialist vocabulary where appropriate. For Examiner’s Use Section Mark A B TOTAL
Do not write Section A Answer all questions in the spaces provided. outside the box For questions with four responses, only one answer per question is allowed. For each question, completely fill in the circle alongside the appropriate answer. CORRECT METHOD WRONG METHODS If you want to change your answer you must cross out your original answer as shown. If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown. (^0 1) Which of the following is the most likely effect of a large increase in interest rates? [1 mark] A (^) Increased borrowing B Increased consumer spending C (^) Increased economic growth D Increased saving (^0 2) Which of the following is an objective of the UK government? [1 mark] A Increasing inequality B Increasing the budget deficit C Managing environmental change D Minimising economic growth
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Do not write outside the box 0 6 ‘Using money makes it easier to compare the value of different products.’ Which function of money does the above statement most closely relate to? [1 mark] A Means of deferred payment B Medium of exchange C Store of value D Unit of account Which of the following identifies the most likely effects of a significant decrease in tax rates? [1 mark] Effect on economic growth Effect on unemployment A Decrease Decrease B Decrease Increase C Increase Decrease D Increase Increase (^0 8) An individual decides to open a savings account with a deposit of £6000. The annual interest rate paid on these savings is 5%. They close the account after 8 months. Calculate how much interest they would receive. [1 mark] A £ B £ C £ D £
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Do not write outside the box (^1 1) State two examples of indirect taxes used in the UK. [2 marks] 1 2 1 2 Explain what is meant by regressive taxation. [2 marks] 1 3 Explain one role of the Bank of England. [2 marks]
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Do not write outside the box Figure 1 – Achieving lower unemployment Achieving low unemployment is one of the government’s objectives. Some economists think the best way of keeping unemployment low is for the government to keep the economy stable. However, governments can also achieve lower unemployment by changes in government spending. The UK government employs over five million people, such as those employed as nurses, teachers and police officers. There are other ways changes in government spending can affect unemployment, such as through supply-side policies. (^1 5) Using Figure 1 , analyse how changes in government spending can help achieve lower unemployment. [6 marks] Extra space
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Do not write outside the Table 2 shows data relating to real Gross Domestic Product (GDP) for an economy.^ box Table 2 Year GDP (in $ billions) 2022 1675 2023 1704 (^1 9). 1 Using Table 2 , calculate the rate of economic growth for 2023 to one decimal place. [2 marks] Answer % (^1 9). 2 Explain one possible cost of economic growth for an economy. [2 marks]
Do not write outside the Figure 3 – UK inflation^ box In 2022, UK inflation rose above 10%, its highest level for 40 years. This caused problems for the UK government and the population. Incomes did not rise as fast as prices so many people experienced falls in real incomes. This was especially harmful as household heating costs rose significantly over this period. There are other problems caused by rising inflation, such as changes to business confidence. As shown on the chart below, inflation had been kept fairly stable between 1% and 3% for most of the time since the financial crisis of 2007 – 2008. Keeping inflation low and stable is one of the main objectives of the UK government. Some economists think policies used to reduce inflation can conflict with achieving other objectives and these policies may also have negative effects. UK inflation rate: 2007 – 2022 Source: ONS (^2 1) Using Figure 3 , assess whether the UK government should always aim for low and stable inflation as an objective for the UK economy. [9 marks]
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Do not write outside the box Item B Globalisation creates winners and losers. These winners and losers will be found in both developed and less developed economies. Consumers in developed economies can benefit from globalisation through buying goods at cheaper prices. Consumers in less developed economies may benefit from more jobs being created due to multinational companies setting up across the world. However, there are drawbacks to globalisation. Workers in less developed economies may be exploited by multinational companies and these companies can also make it harder for existing local businesses to survive. Businesses in developed economies can benefit from access to more markets across the world. This can be seen in Figure 4 , which shows UK exports over recent years. However, producers in the UK will also face more competition from businesses in less developed economies. Figure 4 – UK exports 2000 – 2021 2 2 Define the term ‘multinational company’. [2 marks] Turn over ►
Do not write outside the box (^2 3) Using Table 3 in Item A , calculate the UK current account balance for 2021 in £ millions. Tick (✓) one box to indicate whether it is in surplus or deficit. [3 marks] Current account balance is in: Surplus Deficit (^2 4) Using Item A , explain two government policies that could reduce a deficit on the current account of the balance of payments. [6 marks] Policy 1 Policy 2
