0455/22/M/J/24 

Tajikistan is one of Asia’s low-income countries. Its currency, the somoni, has the key characteristics of money. More than one million Tajik people work abroad, mostly in Russia. In 2020, the Tajik government was concerned that the country’s economy might experience a recession which could cause a fall in tax revenue. Despite this possibility, some Tajik firms bought new capital equipment.

• Identify two reasons why tax revenue is likely to fall during a recession. [2] 

0455/21/O/N/23 

Malaysia once specialised in the production and export of natural rubber. The production of natural rubber was very labour‑intensive. However, despite still being in the top 5 of natural rubber exporters in the world, Malaysia has moved towards producing manufactured goods that use natural rubber instead of just producing and exporting this primary product. 

• Discuss whether or not labour‑intensive production will harm an economy. [8] 

0455/23/O/N/22 

Palau is a small island country in the Pacific Ocean. It has received considerable financial support from the US. Living standards are thought to be lower in Palau than in the US. Palau imposes some of the highest tariffs in the world. These trade tariffs affect Palau’s current account of its balance of payments. In 2019, commercial bank lending to firms and households in Palau increased. 

• Discuss whether or not an increase in commercial bank lending will increase economic growth. [8] 

0455/21/O/N/22 

Bulgaria is part of the European Union (EU), but it has much lower corporation tax rates than other EU members. However, regulation by the Bulgarian government has discouraged foreign investment into Bulgaria. In addition, Bulgaria’s economic growth rate has decreased in recent years, due in part to a steady fall in its quantity of labour .

• Discuss whether or not a decrease in a country’s economic growth rate will harm its economy. [8] 

0455/21/M/J/22 

Australia’s foreign exchange rate fluctuates. The value of Australia’s exports is regularly greater than the value of its imports. Australia is Papua New Guinea’s main trading partner. In 2019, the government of Papua New Guinea increased income tax to reduce its inflation rate. It used other policy measures to increase its economic growth rate. 

• Discuss whether or not governments should aim for a high rate of economic growth. [8] 

0455/23/M/J/21 

Global spending on the health sector, by both the private and public sectors, is the highest compared with all other sectors including education and defence. Investment in education and the health sector has resulted in new life-saving technology being introduced. However, demand for certain vaccinations has decreased over the years, shifting the demand curve of vaccinations to the left. 

• Define investment. [2] 

0455/23/M/J/21 

Latvia is one of the fastest growing economies in Europe. Although its GDP per head is below the European average, it is quickly catching up. Living standards are improving. At the same time, a decrease in borrowing has reduced the chance of high inflation. The job market is also improving as the unemployment rate is falling. However, there are concerns that there might be less balance of payments stability. 

• Discuss whether or not having a lower GDP will be a disadvantage to an economy. [8] 

0455/22/M/J/21 

Turkey’s birth rate is falling which is likely to reduce its supply of labour. However, improvements in the quality of labour and the increase in foreign multinational companies (MNCs) operating in Turkey (the host country to the MNCs) may help the economy avoid a recession. One reason why economists are worried that a recession may occur is an expected rise in the interest rate. 

• Analyse how a rise in the interest rate could cause a recession. [6] 

0455/21/M/J/21 

The Canadian government has introduced a number of policy measures designed to encourage more women to enter the labour force. Canada’s labour force has reduced as its population has aged. The number of workers and their output are influenced by changes in the country’s foreign exchange rate and consumer expenditure. In 2018, the Canadian dollar fell in value while Canadian consumer expenditure increased. 

• Discuss whether or not an economy will benefit from an increase in consumer expenditure. [8] 

0455/22/F/M/21 

India has experienced a relatively high economic growth rate in recent years. This growth has been driven by increases in government spending and exports, including exports of textiles. India’s unemployment rate has, however, increased. The government is concerned that trying to reduce unemployment may increase India’s inflation rate. 

• Define economic growth. [2] 

• Analyse how higher government spending could increase economic growth. [6] 

0455/22/O/N/20 

Wage rate growth has increased recently in Kazakhstan, but its economic growth rate has slowed. This is, in part, due to a fall in exports. To try to increase the economic growth rate, the government has increased its spending on investment. In August 2015, it adopted a floating foreign exchange rate system in an attempt to improve the country’s macroeconomic performance. 

• Analyse how a rise in investment could increase a country’s economic growth rate. [6] 

0455/23/M/J/20 

In Nagicho, a small town in Japan, a woman on average has 2.8 children in her lifetime. In Japan as a whole, a woman on average only has 1.4 children in her lifetime. Nagicho’s higher birth rate is partly the result of a lower cost of living for families, as the prices of basic items are lower in Nagicho than in the rest of Japan. The local government not only offers housing at subsidised rates, to get more labour into the area, but also tries to get more investment into the town. 

• Discuss whether or not increased investment is beneficial to an economy. [8] 

0455/22/F/M/20 

African countries are expected to experience growth in their output. It is also predicted that Africa’s population will increase from 1.1bn in 2017 to 4.2bn by 2100, when Nigeria will account for one in twelve of the world’s births. Nigeria and South Africa are expected to experience the greatest rise in investment (spending on capital goods) over this period, and a change in their gender distribution. 

• Explain two benefits of a higher economic growth rate. [4] 

0455/23/M/J/18 

In 2016, there were fears that the Singaporean economy could enter a recession because of falling demand from China, its biggest export market. One of the results of a recession is likely to be a fall in consumer spending. A previous recession in 2008 had led to unemployment increasing from 1.6% to 3.4%. Singapore’s central bank therefore decided to intervene in the foreign exchange market to influence the value of the currency. 

• Define recession. [2] 

• Explain why a recession is likely to reduce consumer spending. [4] 

• Discuss whether or not an exchange rate depreciation will prevent an economy from experiencing a recession. [8] 

0455/22/M/J/18 

World output has grown in recent years, but a number of countries have experienced a recession. The removal of trade restrictions such as import tariffs has slowed down, reducing the growth of world trade. 

• Explain two benefits of an increase in world output. [4] 

• Analyse how a recession may reduce a country’s imports. [6]