International economic issues (AS Level)

Worked examples (6)

• 1Identify absolute and comparative advantage (4 marks)
• 2Calculate comparative advantage (5 marks)
• 3Calculate the terms of trade (4 marks)
• 4Explain the gains from trade (5 marks)
• 5Risks of over-specialisation (6 marks)
• 6Evaluate free trade for a developing economy (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Identify tools of protection (4 marks)
• 2Tariff vs quota (4 marks)
• 3Effects of a tariff on a market (5 marks)
• 4Evaluate the infant industry argument (6 marks)
• 5Arguments against protectionism (5 marks)
• 6Evaluate using protection to save jobs (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Classify current-account components (4 marks)
• 2Calculate the current account balance (5 marks)
• 3Explain causes of a deficit (5 marks)
• 4How a deficit is financed (5 marks)
• 5When is a deficit not a problem? (6 marks)
• 6Evaluate seriousness of a deficit (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Identify appreciation vs depreciation (3 marks)
• 2Causes of an appreciation (4 marks)
• 3Show an appreciation on a forex diagram (5 marks)
• 4AD/AS effect of a depreciation (6 marks)
• 5Effects of an appreciation (5 marks)
• 6Evaluate a depreciation (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Classify policies: reducing vs switching (4 marks)
• 2Demand-side policy to cut a deficit (5 marks)
• 3Depreciation to cut a deficit (5 marks)
• 4Supply-side policy and the deficit (6 marks)
• 5Protectionism and the deficit (5 marks)
• 6Evaluate the best policy for a deficit (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style