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Economics Unit 2 Paper in May

Anyone sitting this exam got any predictions on what they might ask? Particularly Edexcel but even if you have another exam board your views are still welcome.

My teacher thinks a question related to the Olympics will inevitably come up, anyone agree?

I've covered every topic as part of my revision and I suggest you do so as well but we might as well predict for the fun of it at least!

Reply 1

Hmmmmmmmm

Original post by Samer95

My teacher thinks a question related to the Olympics will inevitably come up, anyone agree?

Olympics would be the first thing to come to mind, though it might be a little too obvious. What would the 30 mark question be if it was? Also, what practice questions have you done?

Other possibilities might be high unemployment and high inflation (though they have come up quite recently.)

I personally think maybe something on exchange rates or income redistribution.

Reply 2

Samer95

They could ask "what effects would hosting the Olympics have on 3 UK macroeconomic objectives?(40)".

In Jan 12 the questions were "Assess the likely impact of UK government labour market polices on any three macroeconomic objectives." and "Evaluate the likely impact of higher inflation on three macroeconomic objectives."

June 11 asked "discuss the fiscal and supply side policies the UK government could pursue to reduce the rate of unemployment." and "to what extent might rapid economic growth conflict with at least two other macroeconomic objectives." All questions are worth 30 marks.

Any fresh predictions based on past questions? Exchange rates was on Jan 11 by the way.

Reply 3

Hmmmmmmmm

That would be quite a challenging question. Possibly another one on the olympics..."Evaluate the conflicts between macroeconomic objectives caused by the olympics" though it is similar to the June 11 question. If it was the olympics, I think a 16 mark question might be on the wealth effect caused by increased property prices in the olympic area.

Looking at the Macroeconomics objectives...Growth was done june 11, Inflation was done Jan 12, Unemployment was done June 11 and Balance of payments was done Jan11.

The others left are Income distribution and the environment.

So, "Evaluate the use of government policies to improve income distribution."
And maybe "Evaluate the use of government policies to improve the environment."

There are so many possibilities...
The passage might say consumption is low and then it might say "Evaluate the use of demand side policies to increase consumption" and the same question can be used for Investment aswell.

Reply 4

Warfare

Evaluate the use of government policies to improve income distribution
Evaluate the use of government policies to improve the environment

Could you guys bullet point the answers for that?

Reply 5

Hmmmmmmmm

Original post by Warfare

Evaluate the use of government policies to improve income distribution
Evaluate the use of government policies to improve the environment

Could you guys bullet point the answers for that?

I would be more surprised to see the second question come up on the 30 marker as it is almost a unit 1 type question about reducing external costs but...

Income Distribution:
- Expansionary Monetary policy (not much lower interest rates can go but QE)
- Increase NMW
- Government investment in retraining of unemployed (such as new deal)

Environment:
- Increased government spending on green projects (such as wind farms)
- Increasing/imposing tax on over polluting companies
- Subsidies for R+D in green technologies

Reply 6

Warfare

Thanks, appreciated.
Does anyone have a list of definitions for unit 2 edexcel? And btw, if anyone is up for it, we can group study on msn - exchange ideas, brainstorm, discuss, check eachothers notes etc by chatting. If anyones interested lmk by PM, looking for more people.

Reply 7

Samer95

Monetary policy is not a government policy as far as I know so wouldn't it be irrelevant to include it in that answer as it is set by the MPC?
And what do you mean by R+D?

Reply 8

QwertyG

Whoever sat the June 11 paper is so lucky to have an easy 30 marker (policies+unemployment)

Reply 9

Hmmmmmmmm

Original post by Samer95

Monetary policy is not a government policy as far as I know so wouldn't it be irrelevant to include it in that answer as it is set by the MPC?
And what do you mean by R+D?

Yeah, you're right. If it were to say "Supply and Demand side policies" then you could put that in. Instead, something like increasing benefits or increasing the threshold for the untaxed income.

Also, by R+D I mean research and development.