Consumption (C)

Case study · Changes in the nature of UK towns and cities

Evaluate the microeconomic and macroeconomic effects of falling house prices.

Case study · Branded coffee shops

With reference to the information provided and your own knowledge, evaluate the microeconomic and macroeconomic effects of increased UK demand for coffee at branded coffee shops.

Case study · The UK economy

With reference to Figure 4 and Extract A, examine the likely impact of the ‘freeze in income tax thresholds’ (Extract A line 1) on aggregate demand.

Case study · UK monetary policy since the Global Financial Crisis of 2008

Assess the likely impact of an increase in real wages on the UK economy. Use an aggregate demand and aggregate supply diagram in your answer.

Diagram needed. Open the original question paper for the diagram ↗

Case study · UK government budget and household consumption

With reference to Figure 2 and Extract A, explain two likely influences on the level of UK real household consumption.

Case study · UK government budget and household consumption

Assess the likely impact on the UK economy of an ‘increase in consumption’ (Extract A, lines 5–6). Use an aggregate demand and aggregate supply diagram in your answer.

Diagram needed. Open the original question paper for the diagram ↗

Case study · The UK economy

With reference to Extract A, assess the likely macroeconomic effects of an increase in house prices. Use an aggregate demand and aggregate supply diagram in your answer.

Diagram needed. Open the original question paper for the diagram ↗

Case study · The UK economy

With reference to the information provided, explain one likely factor, other than changes in house prices, that could influence the level of savings of UK households.

Case study · UK incomes, inflation and monetary policy

Assess the likely impact of falling real incomes on UK consumers.

Explain one likely impact of the fall in average UK house prices on existing homeowners between January 2023 and March 2023. Refer to the table on page 4 in your answer.

In Q4 of 2015 average household disposable income was £26 300. Calculate the total amount of money saved by the average household in Q4 of 2015.

Explain one likely reason for the change in total household savings from Q1 2020 to Q2 2020.

Explain one likely factor that could increase the level of consumption of UK households.

With reference to the chart on the previous page, explain the likely effect of a fall in the marginal propensity to consume on the level of real GDP. Refer to the multiplier in your answer.

With reference to the chart on the previous page, explain the likely impact of an increase in average house prices on UK consumption.

Explain the likely impact on aggregate demand of a fall in average house prices.

Using the chart, calculate an index number for additions to credit card lending in March 2017, using January 2016 as the base. You are advised to show your working.

Using 2014 as the base year, calculate the index number for

Explain one likely reason why consumer demand for bank loans has increased.

Calculate the index number for the total value of bank lending in 2016 using 2015 as a base year.

Explain one possible reason for the changes in the marginal propensity to save as shown in the table.

Annotate the aggregate demand and aggregate supply diagram below to show the likely impact of the increase in the personal allowance on the UK’s price level and real output.

Diagram needed. Open the original question paper for the diagram ↗

Explain one likely reason for the change in consumer confidence between 2012 and 2015.

Which one of the following can be deduced from the table?

With reference to the chart above, which one of the following is correct?

Which one of the following is an example of consumption?

With reference to the chart, which one of the following is true? Average UK house prices:

Which one of the following would be most likely to cause an increase in credit card lending?

Which one of the following is the most likely impact of an increase in average UK house prices on existing homeowners?

Which one of the following would be most likely to cause aggregate demand to increase?

Which one of the following is most likely to result from an increase in bank lending to individuals?

Which one of the following is most likely to result from an improvement in UK consumer confidence? A decrease in the marginal propensity to: