Paper 2 — Macroeconomic Performance and Policy

Question bank

Real questions, real marking

5 real questions this paper has actually set, drawn only from genuine Pearson question papers. Each one links to its real mark scheme, its real examiner report where one has been published, and our own level-by-level breakdown of how marks are actually earned — write your own answer first, then compare.

Oct 2024 · Q13

20 marks

Effects of rising unemployment on workers AND public finances — two separate hard ceilings in one question

India's unemployment rate increased from 7.1% in January 2023 to 8.5% in June 2023. Evaluate the likely effects of an increase in the unemployment rate on workers and public finances. Refer to a country of your choice in your answer.

Our analysis

India's unemployment rate increased from 7.1% in January 2023 to 8.5% in June 2023. Evaluate the likely effects of an increase in the unemployment rate on workers and public finances. Refer to a country of your choice in your answer.

20 marks available

Unemployment means people who want to work can't find a job. If unemployment rises, this is bad because fewer people have jobs and the government has to spend more money.

No named country, and only one side (workers, vaguely) is even gestured at — public finances is never mentioned. Under the mark scheme's own two separate N.B. rules, this answer is capped at Level 3 twice over: once for having no country, and once for considering only one of the two required areas.

Oct 2023 · Q13

20 marks

Conflicts between macroeconomic objectives — gated on naming a country AND developing two genuinely separate conflicts

In 2022 the Government of India introduced new legislation with the aim of reducing pollution. It is predicted that this will cause India's real GDP to increase at a slower rate. Evaluate the view that there will always be conflicts between macroeconomic objectives. Refer to a country of your choice in your answer.

Our analysis

In 2022 the Government of India introduced new legislation with the aim of reducing pollution. It is predicted that this will cause India's real GDP to increase at a slower rate. Evaluate the view that there will always be conflicts between macroeconomic objectives. Refer to a country of your choice in your answer.

20 marks available

Governments often want several things at once, like economic growth and protecting the environment, but achieving one can sometimes make the other harder. This means macroeconomic objectives can sometimes conflict with each other.

No named country, and only one conflict is gestured at abstractly, never actually developed with a mechanism. Under the mark scheme's own two separate N.B. rules, this is capped at Level 3 twice over — once for no country reference, once for considering only one conflict.

Oct 2022 · Q13

20 marks

Limitations of using GDP to compare living standards between countries — gated on naming real countries

In 2020 nominal GDP was $6 billion for Guyana, $270 billion for Finland and $14 723 billion for China. Evaluate the limitations of using GDP data to compare living standards between countries.

Our analysis

In 2020 nominal GDP was $6 billion for Guyana, $270 billion for Finland and $14 723 billion for China. Evaluate the limitations of using GDP data to compare living standards between countries.

20 marks available

GDP measures how much an economy produces. Comparing GDP between countries tells you which economy is bigger, but it doesn't always tell you which country has better living standards.

No named country from the real data given (Guyana, Finland, China), and no specific limitation is actually explained — 'doesn't always tell you' asserts the conclusion the question is asking to be derived. Under the mark scheme's own N.B. rule, this is hard-capped at Level 3 (9/12 KAA) regardless of how sophisticated the reasoning becomes, until real countries are engaged with.

Jan 2020 · Q12(e)

14 marks

Impact of low investment on an economy — the real mark scheme requires two separate developed Evaluation points, not one

Using the information in Figure 2 and Extract A, discuss the impact of low investment on Canada's economy.

Our analysis

Using the information in Figure 2 and Extract A, discuss the impact of low investment on Canada's economy.

14 marks available

Investment means firms spending money on capital goods like machinery and buildings. Canada has low investment, which is bad for the economy because Canada won't be able to grow as much.

No real Canada-specific mechanism is derived — 'won't be able to grow as much' just restates the conclusion. A common real error here (Jan 2020 ER) is treating LOW investment as though it were NEGATIVE investment — Canada's investment is still positive, just low relative to other countries — and a stronger version of this same paragraph would still be capped at Level 1 KAA without a genuine chain of reasoning.

Jan 2020 · Q13

20 marks

Costs of rapid economic growth — gated on naming a real country/context throughout

Evaluate the costs of rapid economic growth on an economy of your choice.

Our analysis

Evaluate the costs of rapid economic growth on an economy of your choice.

20 marks available

Rapid economic growth means the economy is producing much more than before. This can have costs, such as pollution and using up resources, which might make the growth a bad thing.

No named country or context, and no specific mechanism — pollution and 'using up resources' are asserted, not derived. Under the mark scheme's own N.B. rule, a country-free answer is hard-capped at Level 3 (9/12 KAA) no matter how developed the content later becomes, so this needs fixing before anything else.