For more practice for AQA Economics A-level paper 2, which is the macroeconomics paper, I have created three practice papers in the style of this exam. The questions also come with brief mark schemes. While the resource is paid, I provide a free sample in the article below. To view this resource, please see the link below:
Also I have written three practice papers in the style of AQA Economics A-level paper 1, the microeconomics paper. The link to those papers is accessible by clicking the grey button below (note this is a paid resource but I provide a free question in a separate blogpost):
Below I post one of the essay questions from these practice papers with the brief mark scheme that accompanies it.
Question
Now consider the following essay question for section B:
1. Explain, using the circular flow of income, how an injection into the economy may cause a larger impact on national income. (15 marks)
2. To what extent is the use of real GDP per capita the most effective way of measuring living standards? (25 marks)
Suggested Points for Question 1
First, some possible points for question 1 include:
- Define injection, national income.
- Draw and explain a diagram for the circular flow of income.
- Explain how an injection influences national income. This could be using the circular flow of income and/or the aggregate demand equation.
- Define the multiplier effect.
- Explain the multiplier process.
- Explanations of the multiplier could include use of multiplier formulae, an explanation using the circular flow diagram or an aggregate supply/aggregate demand diagram.
- Examples from the real world (for example examples of injections or national income data) to support the answer.
Suggested Points for Question 2
Next, some possible points for question 2 include:
- Define real GDP per capita, living standards.
- Explain the link between GDP per capita and living standards.
- But there are disadvantages of using GDP for example: not accounting for inequality, household chores, childcare, DIY, black market or cash-in-hand activities.
- There may be other measures in the answers for example measures for healthcare, education or inequality; indices such as the Human Development Index, political/civil liberties measures etc.
- The advantages and disadvantages of each measure..
- Use of examples to support the argument.
- A judgement that answers the question of “to what extent…”.
- Other evaluation points:
- There is evidence to suggest that happiness increases as income increases but only up to a certain income threshold.
- Higher GDP per capita could be linked to better healthcare outcomes through higher government spending. So GDP could still be useful to the extent it is correlated with other measures.
- There are value judgements to be made about what is good for living standards, for example what degree of inequality is ideal or what are the best political/civil society structures etc.