AS & A Level Economics (9708) — May–June 2023, Paper 42

5 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.

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Question 1 · 20 marks · International economic issues - purchasing power parity and comparing living standards

Explain what is meant by purchasing power parity (PPP).

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Question 2 · 20 marks · The price system and the microeconomy - externalities and government microeconomic intervention

The increased use of electric vehicles (EVs) is encouraged as part of governments' climate change policies because they create fewer negative externalities than diesel and petrol…

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Question 3 · 20 marks · The price system and the microeconomy - economies of scale, minimum efficient scale and market structure

Evaluate, with the help of a diagram(s) how total market demand and minimum efficient scale may determine the form of market structure in an industry. [20]

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Question 4 · 20 marks · International economic issues - exchange rates, the balance of payments and economic growth

Consider the extent to which the depreciation of its foreign exchange rate contributes to the economic growth of a low-income country. [20]

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Question 5 · 20 marks · The macroeconomy - monetary policy, inflation and macroeconomic aims

Evaluate the effectiveness of using monetary policy to reduce the rate of inflation and how this policy may affect a government's ability to achieve its other macroeconomic aims.…

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