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Centre Number Candidate Number
Pearson Edexcel International Advanced Level
Friday 19 January 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.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA 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 Which one of the following is an injection into the circular flow of income?
A Investment
B Savings
C Imports
D Consumption
(Total for Question 1 = 1 mark)
2 In 2022 Kuwait experienced an increase in real GDP of 8.7%.
Which one of the following is most likely to be a benefit of actual economic growth?
A A decrease in profits for firms
B A decrease in the rate of inflation
C A decrease in the rate of unemployment
D A decrease in government tax revenues
(Total for Question 2 = 1 mark)
3 In China, government expenditure was CN¥24.64 trillion in 2021 and
CN¥20.37 trillion in 2022.
Which one of the following is the percentage decrease in China’s government
expenditure between 2021 and 2022?
A 4.27
B 17.33
C 20.96
D 82.67
(Total for Question 3 = 1 mark)
2
*P75594A0228*
, 4 Between January 2023 and March 2023, Brazil’s net monthly balance of trade in
goods and services surplus increased from $2 609 billion to $10 956 billion.
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Which one of the following is the most likely reason for this change in Brazil’s balance
of trade in goods and services surplus?
A A decrease in income tax rates in Brazil
B A decrease in the quality of Brazil’s goods and services
C A decrease in the savings ratio in Brazil
D A decrease in the external value of Brazil’s currency
(Total for Question 4 = 1 mark)
5 Governments use fiscal policies to meet their macroeconomic objectives.
Which one of the following is a fiscal policy instrument?
A Changes in quantitative easing
B Changes in taxation
C Changes in lending criteria
D Changes in liquidity requirements
(Total for Question 5 = 1 mark)
3
*P75594A0328* Turn over
, 6 The table shows Vietnam’s rate of inflation*, as measured by the
consumer price index (CPI), between June 2022 and September 2022.
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Month Rate of inflation
(%)
June 3.37
July 3.14
August 2.89
September 3.94
*This is the year-on-year inflation rate calculated monthly.
Which one of the following can be deduced from the table?
A There was disinflation between June and July
B There was deflation between July and August
C The rate of inflation was at its lowest in September
D The rate of inflation fell throughout the given period
(Total for Question 6 = 1 mark)
TOTAL FOR SECTION A = 6 MARKS
4
*P75594A0428*
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