Unit 2 revision workshop

AS Level Economics – Unit
2 Workshop
Mr. Spicer
Structure of revision workshop
• Unit 2 format
• Work through June 2010 paper short answer
– Question 1
• Main themes introduced/recapped using videos
• Questions discussed/answered.
– Question 2
• Main themes introduced/recapped using videos
• Questions discussed/answered.
• Work through June 2010 essay questions
• Examples of other essay questions
Unit 2 format
• Unit 2 (6EC02): Managing the Economy –
Friday 27th May (am)
• 50% of AS grade
• Time: 1 hour 30 minutes
• Answer EITHER Question 1 OR Question 2 Indicate which question you are answering
(1 or 2).
• The total mark for the paper is 80.
• The marks for each question are shown in
brackets - use this as a guide as to how
much time to spend on each question.
• Use black ink or ball-point pen.
• Fill in the boxes at the top of this page with
your name, centre number and candidate
• Write answers in the spaces provided.
Multi-choice would be nice!
June 2010 – Short answer questions:
Question 1
1. Fiscal policy
• Fiscal policy and the multiplier effect. Video (9.10)
• Fiscal policy. Video (4.35)
2. Monetary policy
• Monetary policy. Video (7.19)
3. Unemployment
• Unemployment. Video (2.20)
• Types of unemployment. Video (4.20)
June 2010 – Short answer questions:
Question 2
1. Inflation
• What is inflation? Video (5.15)
• Inflation explained (and how linked to
unemployment). Video (5.05)
• Inflation rates – How are they calculated? Video (9.52)
2. Macro economic goals
• Macro economic goals of government. Video (7.20)
3. Aggregate demand and supply
• AD & AS. Video (5.33)
The essay plan - a suggested model
June 2010 – essay questions
1. Evaluate the likely effects of a recession (negative
economic growth) on the UK Economy
2. Evaluate three ways in which economic policy can be used
to ‘stimulate UK economic growth’ (Extract 1, lines 4 to 5).
Examples of other essay questions
Compare the effectiveness of supply side and fiscal policies to correct
deficits on a country’s current account of the balance of payments.
Assess the economic effects of a significant increase in taxation on the
UK economy.
Both the UK and US balance of payments accounts are recording large
deficits on their trade in goods balance. Do such deficits matter? Justify
your answer.
Discuss the factors that determine the trade competitiveness of the UK
A government is faced with an unacceptably high level of
unemployment, but does not wish to increase its overall expenditure.
Discuss alternative policies for reducing unemployment.
Explain the possible causes of economic growth.
Explain how a fall in the rate of inflation might be achieved by both
demand-side and supply-side Policies.
Discuss the impact of an increase in interest rates
Examples of other essay questions
9. Discuss how the government might improve the UK’s long term
Economic growth
10. Explain how a decrease in government spending can result in a
greater change in the equilibrium level of national income.
11. Discuss Factors that may limit growth rates in different
12. Discuss the problems an economy might face in recovering
from a period of recession?
13. Assess the impact on UK macroeconomic performance of a
prolonged period of deflation.
14. Evaluate Government Policies which might improve the UK
Balance of trade in goods and services
15. Discuss the role of supply side policies in improving rates of
economic growth.
16. Discuss the impact of a rise in the savings ratio on the UK
Examples of other essay questions
17. Evaluate the importance of managing aggregate demand to bring
about a sustained reduction in the rate of unemployment in the
UK economy.
18. Discuss whether Government policies can overcome a recession
19. Discuss the economic effects of an increase in the inflation rate.
20. Discuss the impact of an increase in government expenditure on
the UK economic performance
21. Discuss the relative merits of interest rates and tax increases as a
means to control inflation in the UK
22. Discuss the effects of a rise in Exports on UK aggregate Demand
23. Discuss the extent to which shifting resources into the public
sector will help the government achieve its macro economic
24. Discuss effectiveness of a cut in the rate of interest in influencing
consumption and investment

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