All the past questions on F585

June 2013
1

Describe what is meant by fiscal and monetary convergence

Analyse two economic benefits which Estonia might be expected to gain from
membership of the Eurozone

Comment on the likely benefits for Central and Eastern European (CEE) economies of
high levels of foreign direct investment (FDI)

10

Distinguish between economic growth and economic development

With the aid of a diagram, analyse one likely reason for the changes in Estonias price
level and real GDP in 2008

Comment on the importance of international trade as a cause of Estonias economic

growth between 2000 and 2010

10

Discuss the view that future high rates of economic growth alone may enable Estonia
to achieve sustainable development

20

Jan 2013
1

What is meant by a fixed exchange rate, purchasing power parity

Analyse two disadvantages of a fixed exchange rate system

Comment on the consequences of an external shock for an economy such as Greece

which is a member of a monetary union

10

Distinguish between a budget deficit and a national debt

Analyse two reasons why fiscal rules may be important in promoting economic
stability

Other than FDI , comment on the extent to which the exchange rate has been the
most important influence on Argentinas economic growth since 2003

10

Discuss the extent to which FDI such as that to Latin America and Africa is the most
effective way of promoting development

20

June 2012
1

Describe two benefits of inflation targeting

With the aid of a diagram, analyse why the Bank of England expected inflation to rise
at a time when there was significant spare capacity in the UK economy

Comment on the view that higher inflation in China might be advantageous

10

State and explain two reasons for the growing divergence between Chinas real (PPP)
and nominal exchange rates since 2008 as shown in Fig 2.2

Analyse why it is difficult to increase interest rates in order to control inflation when
an economy is operating a fixed exchange rate

Comment on the case for using the ISEW in assessing Chinas success in achieving
sustainable economic development

10

Discuss the case for China banning the export of certain key raw materials from 2015

20

Jan 2012
1

Define what is meant by the: national income multiplier; accelerator.

With reference to Fig. 1.1, analyse how the interaction of the national income
multiplier and the accelerator might, in part, explain the severity and length of the UK
recession 2008 Q2 to2009 Q3.

Comment on the possible consequences for UK economic growth of the Coalition

Governments deficit reduction plan.

10

The Department for International Development (DfID) stated that it would use
additional expenditure to focus aid where it is needed most. (Extract 3)
With reference to Fig. 3.2, state and explain two ways in which UK ODA was not
focused on where it was needed most in 2007.

Analyse two reasons why economic growth, such as that experienced by China and
India, may not raise the level of development.

Comment on the extent to which market-friendly reforms, such as those adopted by

India in 1991, help to promote development

10

Discuss the extent to which global trade and balance of payments imbalances, such as
those mentioned in Extract 5, are a threat to global economic stability.

20

June 2011
1

Describe what is meant by the economic cycle

Analyse why the convergence of economic cycles is important in a monetary union

Comment on the likely consequences for Irelands economy of its high economic
growth in the period 2000 2007

10

Distinguish between short run and long run economic growth

Analyse the implications for Spain of the trend in its competitiveness shown in figs 2.2
and 2.3

Comment on one policy Spain might introduce to improve its international

competitiveness

10

Discuss the view that greater openness to international trade is the key to promoting
economic growth and human development

20

Jan 2011
1

Define what is meant by the terms of trade

With reference to Figs. 1.1 and 2.1, state and explain what is likely to have happened
to St Lucias terms of trade from 2004 onwards.

Using a diagram, analyse why the prices of primary commodities, such as bananas, are
volatile in the short term.

Comment on the case for granting preferential access to EU markets for bananas from
African, Caribbean and Pacific (ACP) states.

10

Fig. 2.2 shows that the Dominican Republic has a lower rate of growth in its HDI than
Guatemala. Explain two possible reasons for this difference in the HDI growth rates.

Analyse the impact of the global economic crisis on Caribbean countries.

Comment on the extent to which high levels of government debt, such as those
experienced by St Kitts and Jamaica, act as a constraint on economic development.

10

Discuss the benefits of regional economic integration for a small economy such as St
Lucia.

20

June 2010
1

For two of the key macro-economic variables, describe the consequences of a period
of negative economic growth such as that experienced by the UK economy in 2008
2009.

Despite the Bank of England cutting interest rates earlier and more aggressively than
the European Central Bank, the UK economy had not emerged from recession by the
third quarter of 2009. Analyse the reasons why this was the case.

Comment on the extent to which an economys macroeconomic performance, such as

that of Estonia, Lithuania and Latvia, is affected by its decision to operate a fixed
exchange rate regime.

10

Distinguish between the fiscal rules of the UK and those of the European Unions
Stability and Growth Pact.

Analyse the impact on economies such as France, Spain and Greece, of adhering to
the fiscal rules of the European Unions Growth and Stability Pact in a time of
recession.

Comment on the case for restricting imports, such as the US tariffs on imported tyres
from China, in a time of recession.

10

Discuss the extent to which international agreements are useful in promoting

sustainability

20

Jan 2010
1

Describe what is meant by economic stability

Analyse how inflation targeting, such as that used in the UK, can help promote
economic stability

Comment on the effectiveness of using expansionary monetary policy during a

downturn in the economic cycle, such as that experienced in the UK in 2008.

10

Explain the role of the International Monetary Fund (IMF).

Using a diagram, analyse the causes of the depreciation of the Hungarian forint which
occurred during 2008.

Comment on the extent to which a deficit on the current account of the balance of
payments, such as that in Hungary and the UK, is a sign of economic weakness.

10

Discuss the impact of globalisation on developing economies

20