Optional25 marks
Case study · Turkey – an emerging economy
Evaluate the microeconomic and macroeconomic impact of large infrastructure projects such as the building of a third airport in Istanbul.
Specification point 4.5.1 · Theme 4
Public expenditure
Role of the state in the macroeconomy · A global perspective
Questions tagged to this specification point
7 questions
Essay questions
Long-form evaluation and discussion
Optional25 marks
ContextIn 2016 the UK Chancellor of the Exchequer announced that the government would spend an extra £23 billion on innovation and infrastructure over the following five years.
Evaluate the likely economic effects of this planned increase in government expenditure.
Optional25 marks
Case study · The UK economy
With reference to the information provided and your own knowledge, evaluate the microeconomic and macroeconomic effects of a government policy of cutting public expenditure rather than raising taxes as a means of reducing a fiscal deficit.
Data-response questions
Questions built around exam extracts
15 marks
Case study · UK Government spending and inequality
With reference to Extract B, discuss the benefits of an increase in infrastructure spending on the UK economy. Use an aggregate demand and aggregate supply diagram to support your answer.
Diagram needed. Open the original question paper for the diagram
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Short-answer questions
Focused calculations, explanations and diagrams
4 marks
ContextA number of business groups have signed an open letter to the UK Government asking it to commit to delivering the full High Speed 2 rail link. This will connect London to the northern cities of Manchester and Leeds at a cost of £56 billion and reduce journey times by as much as 50%.
Explain one likely impact of this project on aggregate supply in the UK.
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Multiple-choice questions
Quick checks of economic understanding
A-level Paper 2, November 2021, Q4(b)Multiple choice
1 mark
ContextA number of business groups have signed an open letter to the UK Government asking it to commit to delivering the full High Speed 2 rail link. This will connect London to the northern cities of Manchester and Leeds at a cost of £56 billion and reduce journey times by as much as 50%.
Government spending on the High Speed 2 rail link is an example of which of the following?
AAutomatic stabilisers
BCapital expenditure
CCurrent expenditure
DTransfer payments
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A-level Paper 2, June 2019, Q2(b)Multiple choice
1 mark
ContextThe International Monetary Fund has called on the G20 group of large industrialised countries to boost government spending on infrastructure.
Which one of the following would be an example of government spending on infrastructure?
Aconstruction work on new railway lines
Binterest payments on the national debt
Csalaries for teachers
Dunemployment benefit payments
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Question text © Pearson Edexcel, quoted for students' private study. Open the official papers and mark schemes from the links on each question.