OCR F585 exam question list

Note: describe/explain 4 marks, analyse 6 marks, comment 10 marks, discuss 20 marks

Jan 2010
Describe what is meant by economic stability. 4

Analyse how inflation targeting, such as that used in the UK, can help promote economic
stability. 6
Comment on the effectiveness of using expansionary monetary policy during a downturn in the
economic cycle, such as that experienced in the UK in 2008. 10

Explain the role of the International Monetary Fund (IMF). 4

Using a diagram, analyse the causes of the depreciation of the Hungarian forint which
occurred during 2008.

Comment on the extent to which a deficit on the current account of the balance of payments,
such as that in Hungary and the UK, is a sign of economic weakness.

Discuss the impact of globalisation on developing economies.(20)

June 2010
For two of the key macro-economic variables, describe the consequences of a period of
negative economic growth such as that experienced by the UK economy in 20082009. (4)

Despite the Bank of England cutting interest rates earlier and more aggressively than the
European Central Bank, the UK economy had not emerged from recession by the third quarter of
2009. Analyse the reasons why this was the case

Comment on the extent to which an economys macroeconomic performance, such as that
of Estonia, Lithuania and Latvia, is affected by its decision to operate a fixed exchange rate
regime.

Distinguish between the fiscal rules of the UK and those of the European Unions Stability
and Growth Pact.

Analyse the impact on economies such as France, Spain and Greece, of adhering to the
fiscal rules of the European Unions Growth and Stability Pact in a time of recession.

Comment on the case for restricting imports, such as the US tariffs on imported tyres from
China, in a time of recession.

The discussions which took place in Copenhagen in December 2009 as part of the United Nations
Framework Convention on climate change, together with the Kyoto Protocol are examples of
international agreements aimed at promoting sustainability. Discuss the extent to which international
agreements are useful in promoting sustainability. [20]







Jan 2011
Define what is meant by the terms of trade.

With reference to Figs. 1.1 and 2.1, state and explain what is likely to have happened to St Lucias
terms of trade from 2004 onwards.

Using a diagram, analyse why the prices of primary commodities, such as bananas, are
volatile in the short term.
Comment on the case for granting preferential access to EU markets for bananas from African,
Caribbean and Pacific (ACP) states.

Fig. 2.2 shows that the Dominican Republic has a lower rate of growth in its HDI than
Guatemala. Explain two possible reasons for this difference in the HDI growth rates.

Analyse the impact of the global economic crisis on Caribbean countries.

Comment on the extent to which high levels of government debt, such as those experienced
by St Kitts and Jamaica, act as a constraint on economic development.

Discuss the benefits of regional economic integration for a small economy such as St Lucia.

June 2011
Describe what is meant by the economic cycle.

Analyse why the convergence of economic cycles is important in a monetary union.
Comment on the likely consequences for Irelands economy of its high rate of economic
growth in the period 2000 2007.
Distinguish between short and long run economic growth.
Analyse the implications for Spain of the trend in its competitiveness shown in Figs. 2.2
and 2.3.
Comment on one policy Spain might introduce to improve its international competitiveness.
Discuss the view that greater openness to international trade is the key to promoting economic and
human development. [20]

Jan 2012
Define what is meant by the:
(i) national income multiplier; (ii) accelerator.(2 marks each)

With reference to Fig. 1.1, analyse how the interaction of the national income multiplier and
the accelerator might, in part, explain the severity and length of the UK recession 2008 Q2 to
2009 Q3.

Comment on the possible consequences for UK economic growth of the Coalition
Governments deficit reduction plan.



The Department for International Development (DfID) stated that it would use additional
expenditure to focus aid where it is needed most. (Extract 3)
With reference to Fig. 3.2, state and explain two ways in which UK ODA was not focused on
where it was needed most in 2007.

Analyse two reasons why economic growth, such as that experienced by China and India,
may not raise the level of development.
Comment on the extent to which market-friendly reforms, such as those adopted by India in
1991, help to promote development.
Discuss the extent to which global trade and balance of payments imbalances, such as those
mentioned in Extract 5, are a threat to global economic stability. (20)

June 2012
Describe 2 benefits of inflation targeting

Inflation is likely to pick up between 4-5% and stay above the target of 2%. With the aid of a
diagram analyse why the bank of England expected inflation to rise at a time when there was
significant spare capacity in the economy

Comment on the view that higher inflation in China may be advantageous

State and explain 2 reasons for the growing divergence between Chinas real (PPP) and nominal
exchange rates since 2008 as shown in fig 2.2

Analyse why its difficult to increase interest rates in order to control inflation when an economy is
operating a fixed exchange rate system

Comment on the case for using an adjusted economic indicator such as the ISEW in assessing Chinas
success in achieving sustainable economic development (10)

Discuss the case for China banning the export of certain key raw material from 2015 (20)

Jan 2013
What is meant by a fixed exchange rate

What is meant by purchasing power parity

Analyse 2 disadvantages of a fixed exchange rate system

Comment on the consequences of an external shock for an economy such as Greece, which is
a member of a monetary union.

Distinguish between a budget deficit and a national debt

Argentinas zero deficit law and the EUs SGP are examples of fiscal rules.
Analyse 2 reasons why fiscal rules may be important in promoting economic stability

Other than the impact of FDI, comment on the extent to which the exchange rate has been the
most important influence on Argentinas economic growth since 2003.
Discuss the extent to which Foreign Direct Investment, such as that to Latin America and
Africa is the most effective way of promoting development (20)


June 2013
1. a) In order to get the membership of the Eurozone, countries must achieve a high degree of
monetary and fiscal convergence with existing members.
Describe what is meant by fiscal and monetary convergence (4)

1.b) Analyse 2 economic benefits which Estonia might be expected to gain from membership of
Eurozone. (6)

1.c) Comment on the likely economic benefits for Central & Eastern European (CEE) economies of
high levels of Foreign Direct Investment (FDI). (10)

2.a) Distinguish between economic growth and economic development (4)
2.b) With the aid of a diagram, analyse one likely reason for the chnages in Estonias price level and
real GDP in 2008. (6)

2.c) Comment on the importance of international trade as a cause of Estonias economic growth
between 2000 and 2010. (10)

3. Discuss the view that future high rates of economic growth alone may enable Estonia to achieve
sustainable development. (20)



Past 20 marks Qs list
Discuss the impact of globalisation on developing economies (Jan 2010)
The discussions which took place in Copenhagen in December 2009 as part of the United
Nations Framework Convention on climate change, together with the Kyoto Protocol are
examples of international agreements aimed at promoting sustainability.
Discuss the extent to which international agreements are useful in promoting sustainability.
(June 2010)
Discuss the benefits of regional economic integration for a small economy such as St Lucia.
(Jan 2011)
Discuss the view that greater openness to international trade is the key to promoting
economic and human development. (June 2011)

Discuss the extent to which global trade and balance of payments imbalances, such as those
mentioned in Extract 5, are a threat to global economic stability.(Jan 2012)

Discuss the case for China banning the export of certain key raw material from 2015 June
2012

Discuss the extent to which Foreign Direct Investment, such as that to Latin America and
Africa is the most effective way of promoting development (Jan 2013)

Discuss the view that future high rates of economic growth alone may enable Estonia to
achieve sustainable development. (20) (June 2013)




Trends: In the past the 20 mark Q was given based on the last extract and the heading of the last
extract is usually a clue to the question.