Advanced
PAPER 3: The economic environment and business
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(enclosed)
Pearson Edexcel Level 3 GCE Economic B Advanced PAPER 3: The economic environment and
business QP JUNE 2024
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.
Answer the questions in the spaces provided –
there may be more space than you need.
Information
•• The total mark for this paper is 100.
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
• Try
each question carefully before you start to answer it.
to answer every question.
• your answers if you have time at the end.
Check
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Read the following extracts (A to D) before answering Question 1.
Write your answers in the spaces provided.
Extract A
Tesla
In early 2022, Tesla upgraded its Shanghai factory in China. This increased the factory’s output
capacity to 88,000 electric vehicles (EVs) per month.
In September 2022, Tesla produced 83,135 EVs, the highest monthly output for the
factory since production began there in December 2019. 5
(Source: adapted from: https://www.proactiveinvestors.co.uk/companies/news/996196/ tesla-cuts-
prices-for-its-vehicles-in-china-by-up-to-9-report-996196.html)
Extract B
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Risk of Global Recession in 2023
According to a study by the World Bank, the world may be moving toward a global recession in
2023. Central banks around the world have been simultaneously raising interest rates this year, a
trend that is likely to continue into 2023, according to the report.
The global economy is now in its steepest slowdown since 1970. Global consumer 5
confidence has already suffered a much quicker decline than in the run-up to previous global
recessions. The world’s three largest economies – the United States, China and the euro area – have
all been slowing sharply.
(Source: adapted from: https://www.worldbank.org/en/news/press-release/2022/09/15/risk-
of-global-recession-in-2023-rises-amid-simultaneous-rate-hikes)
Extract C
Starbucks invests $1bn in enhancing employee experience, training and pay
Starbucks is to spend $1bn on improving conditions for its employees. This will include increased
pay, benefits and training. From June 2022, there will be increased wages and further increases for DO NOT WRITE IN THIS AREA
long-service employees. All new baristas and new shift supervisors
will have their training time doubled and training programmes will be enhanced. 5
Other planned benefits include opportunities to increase sick leave and advice on student loans
and finance.
Starbucks’ Chief Financial Officer, Rachel Ruggeri said: “We are confident the investments we are
making in our employees, will deliver significant returns, resulting in accelerated long-term
growth.”
(Source: adapted from: https://www.hcamag.com/nz/news/general/starbucks-invests-1- billion-in-
enhancing-employee-experience-training-and-pay/404655)
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, Extract D
Super Mario and the return of supply‑side economics
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When Mario Draghi, the previous Prime Minister of Italy, took office in 2021 he made clear that
supply-side policies were his priority for Italy. Closing the growth gap between Italy and the euro
area was to be achieved through a combination of structural reforms –
taxation, public administration and justice – and a broad public investment plan focused 5
on education, digitisation and infrastructure.
These supply-side policies were very different from the demand-side policies that had been
launched in the previous year to keep economies afloat during the global health crisis.
(Source: adapted from https://www.omfif.org/2021/03/super-mario-and-the-return-of-
supply-side-economics/)
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