Revision:WJEC A2 Economics Past Questions

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Questions 1 and 2 – Competition and Competitive Behaviour

External Costs

1. ‘The Government should substantially increase taxes on air travel in order to reduce the external costs that it creates’ Discuss (2006)
2. To what extent would the UK economy benefit from significantly increased taxes on demerit goods such as tobacco and alcohol? (2005)
3. ‘In order to achieve the socially optimum level of output in transport markets the Government should increase taxes on travel by air and private cars and subsidise rail and bus travel’ Discuss (2004)

Monopoly

1. ‘UK competition policy is based on the assumption that monopoly power is not automatically bad as long as it is regulated’ How far can this approach be justified? (2006)
2. ‘The UK government should put taxes upon all firms which earn abnormal profits’ Discuss (2002)

Oligopoly

1. ‘Many firms such as banking, supermarkets, holidays and petrol are dominated by a few large firms. This lack of competition is bad for the UK economy’ Discuss (2005)

Perfect Competition

1. Should the Government aim to achieve a situation of perfect competition in all markets for goods and services in order to maximise efficiency in the UK economy? (2004)

Mergers

1. Evaluate the view that an increase in the number of mergers between large UK firms would be beneficial to the UK economy. (2003)

Privatisation

1. ‘An economy will be more efficient if the production of most goods and services is carried out by private sector firms operating in a free market’ Discuss (2003)
2. How successful has privatisation been in increasing the efficiency of the UK economy? (2002)

Questions 3 and 4 – Macroeconomic Issues

Inflation

1. ‘The Governments first priority should always be to control inflation in order to achieve its other macroeconomic objectives’ Discuss (2006)
2. Discuss whether increasing interest rates is the best policy to reduce inflation (2005)
3. ‘The best way for the UK Government to achieve all of its macroeconomic objectives is to eliminate inflation entirely’ Discuss (2003)

Unemployment

1. ‘Cutting tax rates should be the government’s main policy for reducing unemployment’ Discuss (2005)
2. Should the UK Government be prepared to increase spending in order to eliminate unemployment? (2002)

Economic Growth

1. To what extent are high rates of UK economic growth desirable in the long-term? (2006)
2. Evaluate the view that economic growth should always be a government’s priority. (2004)
3. Discuss the view that the UK Government should cut all taxes considerably in order to create economic growth. (2003)

Trade-Off

1. Discuss the view that a trade-off exists between inflation and unemployment. (2004)

Questions 5 and 6 – Trade and Development

Euro

1. Discuss the view that the Government is harming the UK economy by refusing to adopt the single European currency. (2006)
2. ‘The UK economy would benefit from being a full member of the European Monetary Union (EMU)’ Discuss (2004)
3. ‘Full membership of the European Monetary Union as soon as possible is the only sensible policy for the UK government to adopt’ Discuss (2002)

Free Trade

1. Discuss the view that the use of free trade policies is the best way to create growth and employment in the world economy. (2005)
2. ‘Free trade does far more for rich industrialised countries that for poor developing countries’ Discuss (2003)
3. Discuss the view that the abolition of protectionist measures is the best way for governments to improve living standards in their countries. (2002)

Balance Of Payments

1. In 2002, the UK had a record balance of trade deficit. Should the UK Government take action to prevent such deficits?

Privatisation for Developing Countries

1. How far is it true to say that free market policies are the best way for developing countries to increase their standard of living? (2006)
2. ‘The best way for the government of a poor country to achieve economic development is to reduce public spending and encourage private enterprise’ Discuss (2002)

Foreign Direct Investment (FDI)

1. To what extent is inward foreign investment by foreign multinational companies beneficial to poor developing countries? (2005)

Barriers To Development

1. Developing countries often have difficulties in competing with industrialised countries. Discuss how the difficulties could be overcome. (2004)

Comments

These notes are aimed at people studying for A Level Business Studies (Unit 4), but will be suitable for other people too.

Originally submitted by dwking on TSR Forums.