Edexcel Economics Unit 6 - ULTIMATE REVISION THREAD

This thread is for Edexcel Economics Unit 6 (The UK in the Global Economy, 6356) that is due to destroy us on Friday 13th June.

I saw a number of threads relating to this unit all with random questions on this and that so I thought it would be best to keep all conversations within one megathread just like that old AS thread last week.

F.A.Q.
Q: How long is the exam?
A: 1h 45m

Q: What is the structure of the exam?
A: The first section is an essay consisting of three two-part questions of which you choose one.
the second section is two data-responses of which you pick one (just like Units 2 and 3)
Both sections carry the same weight i.e. essay and data-response are both 50% of the final mark.

Q: What is the best way to answer the essay?
A: For (a) write 3 separate evaluated points and a conclusion (roughly 1 1/4 sides) and for (b) you need 4 seperate evaluated points and conclusion (roughly 1 3/4 sides).

Q: What are the grade boundaries?
A: 96 and 84 UMS (out of 120) for A and B respectively. Raw mark for an A and B were 62 and 55 (out of 100) respectively in June 07.

Q: Where can I find the specification?
A: Here. Page 27.

Q: What can I use to revise?
A: Edexcel's Teacher's Guide (Page 30), Economics Help.org, Philip Alan Updates (book)

Q: Do you have any past paper questions?
A: Yes!

Data-response:

Examine the significance of changes in consumer confidence for economic growth.

Assess two ways in which United Kingdom manufacturers might respond to a strong pound.

To what extent does the pursuit of a low rate of inflation conflict with other macroeconomic objectives?

Examine the factors which might explain why strongly rising domestic demand has run ahead of overall economic growth.

Evaluate two policies which the government might use to increase the competitiveness of the country's goods.

To what extent are trade deficits a cause for concern?

Distinguish between a fiscal deficit and a deficit in the trade balance.

Distinguish between tariffs and quotas.

What is meant by a fixed exchange rate?

To what extent might a high national debt to GDP ratio be a cause for concern?

Evaluate the likely economic implications of a fall in foreign direct investment for the UK economy.

Essay questions (courtesy of chidona)

June 05
1)a)Examine the significance of the factors which have contributed to increased globalisation in recent years. (40)

b)Evaluate the likely implications for the world economy of the predicted decline non-renewable energy resources (60)

2)a)Examine the factors which affect the international competitiveness of the UK's goods and services (40)

b)Evaluate the likely economic effects of a fall in the UK's competitiveness. (60)

3)The average tariff on industrial goods is 4% in the USA, 14% in Brazil and 30% in India:
a) Examine the reasons why a country may restrict imports. (40)
b)Evaluate the likely implications of an increase in protectionism on a country's economy. (60)

Specimen:
1)a) Examine the possible factors which may have led to changed of the value of the pound sterling against the Euro in recent years (40)

b) Evaluate the likely economic effects of a significant fall in the value of sterling against the Euro. (60)

2)a) Examine the effect of the Common Agricultural Policy on the world trade in agricultural goods.(40)

b) Evaluate the implications of a significant reduction in barriers to the trade and services for the global economy.(60)

3)a) In 2002 the unemployment rates in Spain, France and Italy were significantly higher than in the UK. Examine the factors which might explain why the UK's unemployment rate was lower in these countries.(40)

b)To what extent might the pursuit of full employment conflict with other macroeconomic objectives?(60)

Exemplar:
1)a) 'The competitiveness of the Uk's manafacturing sector has declined in recent years'. (40)
Discuss the factors which may have affected the international competitiveness of UK goods.
b) Evaluate the methods by which the UK's international competitiveness could be increased. (60)

2)'Trading blocs are vecoming increasingly important to the world economy'
a)Discuss the benefits to a country belonging to a trading bloc. (40)

b)To what extent might the policies of the WTO conflcit to those of trading blocs? (60)

Even more essay questions - more than you thought possible (courtesy of DHthe2nd)

June 02
1a) Examine the factors which have led to an increase in interdependence between countries in the world economy.
b) Assess the impact on the global economy of the continued use by trading blocs of measures which restrict free trade.

2a) Examine the impact of falling oil prices on the economies of the European Union.
b) Evaluate the potential costs and benefits to the UK economy of a decision to join the euro.

3a) Examine the factors which might explain how a surplus of £18bn was achieved on the UK public sector finances in 2000/01.
b) Evaluate the likely effects of decisions by multinational companies to relocate production to the UK on the UK’s public finances and on the rest of the economy.

June 03
1a) Britain had a deficit in its trade in goods balance of £34bn in 2002. Examine the likely causes of this deficit.
b) Evaluate measures which could be pursued by individual firms and by the government to improve the competitiveness of British goods.

2. Since the early 1990s the UK rate of inflation has been less than 5% in every year while unemployment has fallen from over 2.7million to less than 1 million in 2002.
a) To what extent do these data contradict the Phillips curve analysis?
b) Examine the factors which might explain why the UK has experienced low inflation and low unemployment in recent years.

3a) Examine the significance of the single currency for decisions by multinationals to invest in euro-zone countries.
b) The UK is the largest recipient of inward foreign investment within the EU. Evaluate the benefits of such foreign investment for the UK economy.

June 04
1a) Examine possible factors which might have led to changes in the value of the pound sterling against the euro in recent years.
b) Evaluate the likely economic effects of a significant fall in the value of sterling against the euro.

2a) Examine the impact of the European Union’s Common Agricultural Policy on the world trade in agricultural goods.
b) Evaluate the implications of a significant reduction in barriers to the trade in goods and services for the global economy.

3a) In 2002, the unemployment rates in Spain, France and Italy were significantly higher than in the UK. Examine the factors which might explain why the UK’s unemployment rate was lower than in these countries.
b) To what extent might the pursuit of full employment conflict with other economic objectives?

June 06
1a) ‘Trading blocs are the most significant factor contributing to globalisation.’ To what extent do you agree with this view?
b) Evaluate the likely economic effects of a decision by the UK to withdraw from the European Union.

2a) Both the USA and the UK’s balance of payments accounts are recording large deficits on their trade in goods balances. Do such deficits matter? Justify your answer.
b) Compare the effectiveness of supply side and fiscal policies to correct deficits on a country’s current account of the balance of payments.

3a) In 2000/01 the UK’s public expenditure was 37 per cent of GDP. This is forecast to increase to over 42 per cent of GDP by 2007/08. Examine the likely economic implications, apart from increased taxation, of this trend.
b) Assess the economic effects of a significant increase in taxation on the UK economy.

June 07
1a) The number and size of trading blocs, such as the European Union, have increased in recent years. To what extent does this trend conflict with the aims of the World Trade Organisation?
b) In several countries there has been increasing pressure for protectionist policies. Evaluate the likely economic effects of an increase in protectionism by the EU.

2a) Between 1999 and 2001 the UK had a fiscal surplus but from 2002 there has been an increasing fiscal deficit. Examine the likely causes of this trend.
b) Evaluate the likely economic effects of an increasing fiscal deficit for the UK economy.

3a) In April 2006, the unemployment rate was 16.5% in Poland, 8.2% in Germany but only 5.2% in the UK. Examine the factors which might explain the differing unemployment rates in these EU countries.
b) Discuss the view that the Phillips Curve is irrelevant in explaining relationships between unemployment and inflation in the UK.

Mark schemes for all essays.

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Alright. Just under a week left; let's do this.

Scroll to see replies

Reply 1

Yasmin2K8

Thanks for this :smile:

For the 60 marker question which requires 4 points as most people say, that would be 15 marks per point - but how would you break down the 15? Possibly 5 for application, 5 for evaluation and the other 5 im stuck?

Reply 2

Sports Racer

That's not the way they do it. Grades are based on different level bands.

Level 4 - Perfect analysis and understanding, but no evaluation
Level 5 - Level 4 + Evaluation.

They have a read through your paper, decide which Level you're in and adjust marks within that Level according to the quality of your answer. These Levels then translate to raw marks which are then translated into UMS.

Reply 3

Aza T

Thanks for the thread

Which of those questions are 40 markers and which are 60?

Reply 4

Sports Racer

None. They are taken from data-response from some older papers and marks range from 4 to 12.

Oh Ok

Thanks

Awesome thread, thanks.

I feel better about it now after looking at some of those data response questions as many of them seem to rely on the sort of knowledge we used for our Target 2.0 competition. I'll try to post some of the essay questions later today.

Reply 7

chidona

Essay questions (All I have)

June 2005:

1)a)Examine the significance of the factors which have contributed to increased globalisation in recent years. (40)

b)Evaluate the likely implications for the world economy of the predicted decline non-renewable energy resources (60)

2)a)Examine the factors which affect the international competitiveness of the UK's goods and services (40)

b)Evaluate the likely economic effects of a fall in the UK's competitiveness. (60)

3)The average tariff on industrial goods is 4% in the USA, 14% in Brazil and 30% in India:
a) Examine the reasons why a country may restrict imports. (40)
b)Evaluate the likely implications of an increase in protectionism on a country's economy. (60)

Specimen (I think?) :

1)a) Examine the possible factors which may have led to changed of the value of the pound sterling against the Euro in recent years (40)

b) Evaluate the likely economic effects of a significant fall in the value of sterling against the Euro. (60)

2)a) Examine the effect of the Common Agricultural Policy on the world trade in agricultural goods.(40)

b) Evaluate the implications of a significant reduction in barriers to the trade and services for the global economy.(60)

3)a) In 2002 the unemployment rates in Spain, France and Italy were significantly higher than in the UK. Examine the factors which might explain why the UK's unemployment rate was lower in these countries.(40)

b)To what extent might the pursuit of full employment conflict with other macroeconomic objectives?(60)

Exemplar questions:

1)a) 'The competitiveness of the Uk's manafacturing sector has declined in recent years'. (40)
Discuss the factors which may have affected the international competitiveness of UK goods.
b) Evaluate the methods by which the UK's international competitiveness could be increased. (60)

2)'Trading blocs are vecoming increasingly important to the world economy'
a)Discuss the benefits to a country belonging to a trading bloc. (40)

b)To what extent might the policies of the WTO conflcit to those of trading blocs? (60)

Rightoh, that's me out. I won't be posting up mark-schemes, as that'd drain my time far too much.

Reply 8

NazB

hmmm an awesome thread... any statistics we should know?

Reply 9

Sports Racer

You need to know some general UK and European statistics.

I only know that: the interest rate has been going up on trend, productivity in the UK is higher than in European countries, unemployment is lower and that Germany's economic policies tend to follow rigid guidelines which don't allow for much flexibility.

Reply 10

jamie_jme_brown

god after unit 5, i do hope this will be better!!
60+40 marker then a data repsonse alot of writing will see how it goes,
how is everyone reivsing for this unit?

Reply 11

newlife

i plan to do model essays.. and just learn them inside out. will finish balance of payments/fiscal balance/protectionism tonight =)

Reply 12

egofreako

@ newlife : model essays would be a good form of reference indeed.

anyone out here would be kind enough to share some model essays for this unit? much appreciated in advance!

Reply 13

Epitomessence

This is so nice of you to do this! Have repped you. :smile:

Reply 14

Yasmin2K8

Do people actually write them out when revising or do you just bullet points your answers and just expand on them with a few sentences, i find i can make more use of my time than writing out the whole essay, as long as my points match up with those in the mark schemes and syllabus with decent evaluation i dont bother writing out like 2 sides worth of essay, bad idea?

Reply 15

Sports Racer

Epitomessence

This is so nice of you to do this! Have repped you. :smile:

Thank you very much! :suith:

Yasmin2K8

I just KAE bulletpoint with arrows for increase/decrease/implies as writing it out in full takes too much time. If you know your stuff and know you can write fast, you shouldn't spend long on it.

Reply 16

chidona

I'm spending today going over the course content, will spend tomorrow doing essays. Could someone help though - I'm not really sure what to put for conflicts between the WTO and trading bloc policies? I mean, I know the evident one - promotion of free trade, and the 'Most favoured nation' thingy, and finally that other trading blocs may appear in retaliation. But are there any more?

Reply 17

newlife

yasmin2k8 i dont think ud learn any less if you carry on your method.. unless you need to practise with writing fast under the time conditions, i think the best way would be to bullet point model answers.

Remember they always ask similar questions every year on each topic guys, so if you memorise top points you'l get top marks =D

Reply 18

newlife

Chidona - the main clash between Trading Blocs and WTO is that Trading Blocs have either independant, or common external tariffs on non member countries, so theres a distortion of comparative advantage, and an uneven playing field - which is what the WTO is against.

Trading Blocs ---> Trade Creation between member countries ----> in tune with WTO
----> Trade Diversion away from non member countries ----> against WTO.