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Centre Number Candidate Number
Pearson Edexcel International Advanced Level
Wednesday 15 May 2024
Afternoon (Time: 1 hour 45 minutes) Paper
reference WEC12/01
Economics ■ ■
International Advanced Subsidiary
UNIT 2: Macroeconomic performance and policy
You must have: Total Marks
Source Booklet (enclosed)
Instructions
•• Use black ink or ball‑point pen.
Fill in the boxes at the top of this page with your name,
centre number and candidate number.
• Answer ALL questions in Sections A, B and C.
•• Answer ONE question in Section D.
Answer the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this 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.
• Calculators may be used.
Advice
•• Read each question carefully before you start to answer it.
Check your answers if you have time at the end.
Pearson Edexcel International Advanced Level International Advanced Subsidiary UNIT 2: Macroeconomic performance and policy
MAY 2024
DO NOT WRITE IN THIS AREA
Questions must be answered with a cross in a box . If you change your mind about an answer,
put a line through the box and then mark your new answer with a cross .
1 Economists predicted that Canada was likely to experience a recession in 2023.
Which one of the following is most likely to occur when an economy is in a recession?
A A rise in investment and a rise in the profits of firms
B A fall in government expenditure and a rise in real income
C A rise in consumer confidence and a fall in the unemployment rate
D A fall in government tax revenues and a fall in real output
(Total for Question 1 = 1 mark)
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2 Between July 2021 and December 2021, the rate of inflation in Rwanda was negative.
Which one of the following is most likely to account for this decrease in the average
price level in Rwanda?
A A decrease in the savings ratio
B A decrease in the costs of raw materials
C An increase in the level of welfare payments
D An increase in the availability of credit
(Total for Question 2 = 1 mark)
3 In 2022 Bahrain’s GDP was $44 billion and its population was 1.5 million.
Which one of the following is the GDP per capita for Bahrain in 2022? DO NOT WRITE IN THIS AREA
A $29.33
B $66.00
C $29 333.33
D $66 000.00
(Total for Question 3 = 1 mark)
2
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, 4 The net monthly balance of trade deficit in goods and services for Honduras
increased from $475.8 million in April 2022 to $647.9 million in April 2023.
Which one of the following is the most likely reason for this increase in the balance of
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trade deficit for Honduras?
A A decrease in its rate of inflation relative to its trading partners
B An increase in the external value of its currency
C A decrease in the real incomes of its citizens
D An increase in the quality of its goods and services
(Total for Question 4 = 1 mark)
5 The unemployment rate in Sri Lanka increased from 5.2% in 2021 to 6.7% in 2022.
Which one of the following is the most likely effect of this increase in the
unemployment rate?
A An increase in national happiness in Sri Lanka
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B An increase in the level of profits for firms in Sri Lanka
C A decrease in tax revenues for Sri Lanka’s Government
D A decrease in welfare payments by Sri Lanka’s Government
(Total for Question 5 = 1 mark)
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3
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, 6 The table shows average UK house prices between November 2022 and
January 2023.
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Month and year Average house price (£)
November 2022 294 693
December 2022 293 162
January 2023 289 818
Which one of the following can be deduced from the table?
A Existing homeowners experienced negative wealth effects
B Existing homeowners experienced an increase in consumer confidence
C Between November 2022 and January 2023 average house prices fell
by 0.52%
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D There will be a greater incentive for construction companies to build
new houses
(Total for Question 6 = 1 mark)
TOTAL FOR SECTION A = 6 MARKS
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4
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