Unit 4 Macro: EdExcel Unit 4 Macro Exam Topic Tracker

This blog tracks question topics on the EdExcel Unit 4 macro paper. It will be updated as soon as possible after each exam session.

June 2013

Essay Topics

1a: Causes of faster economic growth in developing compared to developed countries

1b: Monetary policy and economic growth in developed countries

2a: Causes of trade imbalances (deficits and surpluses)

2b: Evaluate means by which trade imbalances can be reduced

3a: Assess the effects of globalisation on inequality in the world economy

3b: Evaluate impact of policies designed to reduce inequality in a country of your choice

Data Response

4: Africa

• External debt relief and the balance of payments
• Analysis of two benefits of improved technology for Africa
• Impact on poverty of economic growth in Africa
• Assess reasons why Africa is shaking off decades of decline
• Evaluate factors that limit economic development in many African countries

5: Brazil

• Changes in Brazil’s GDO
• Analysis of two causes of an appreciation of the currency
• Likely effects of a currency appreciation on the balance of payments
• Assessment of problems associated with primary product dependenc
• Evaluate benefits of inward FDI for a country such as Brazil

June 2012

Essay Topics

1a: Rising global commodity prices and impact on the global economy

1b: Macro policies to respond to high commodity prices and slow economic growth

2a: Significance of 3 factors that limit development

2b: Debt cancellation and trade liberalization – evaluating effects on development

3a: Transnational companies as driver of globalisation

3b: To what extent do costs of globalisation outweigh the benefits

Data Response

4: Inequality

• Absolute and relative poverty
• Measurement of inequality
• Inequality and the capitalist process
• Reasons for changing inequality within countries
• Evaluate policies that can reduce inequality within countries

5: Crisis in the Euro Zone

• Budget deficit and the national debt
• Problems of weak growth and high unemployment for debt-ridden countries
• Different growth rates for Euro Zone and non Euro Zone countries
• Policies to improve competitiveness of PIGS
• Evaluating the case for fast reduction of fiscal deficits

June 2011

Essay Topics

1a: Causes of increases in fiscal deficits in different countries

1b: Evaluating case for cutting G rather than tax rises as way to cut fiscal deficits

2a: Causes of absolute poverty in a developing country

2b: Is reducing absolute poverty sufficient to achieve economic development?

3a: Economic effects of the growth of regional trading blocs

3b: Do the benefits of membership of a monetary union outweigh the costs?

Data Response

4: Sub-Saharan Africa and the Global Recession

• Concept of a minimum desirable growth rate
• Explaining faster growth in S-SA compared to advanced countries
• Assess benefits of FDI into primary industries
• Assess benefits of increased trade between S-SA and BRICs
• To what extent might aid from the BRICs aid development in S-SA?

5: Trade Imbalances

• Explaining the role of the WTO
• Effects of an under-valuation of the Chinese Yuan on the US economy
• Impact of a rise in US savings as a way of correcting trade imbalances
• Evaluation – are large trade imbalances a cause for concern?
• Evaluating impact of tariffs by Mexico et al on US consumers and producers

June 2010

Essay Topics

1a: Cause of income and wealth inequality

1b: Economic effects of 50% top rate income tax on UK economy

2a: Primary product dependency – a constraint on development?

2b: Evaluate four ways in which growth and development can be promoted

3a: Examining causes of a fall in international competitiveness

3b: Evaluating strategies for businesses and governments to improve competitiveness

Data Response

4: The Global Financial Crisis

• Characteristics of de-globalisation
• Reasons why some countries have suffered a deeper recession than others
• Effects of recession on countries with well-established tourist industries
• Why the banking crisis has hit global trade so severely
• Likely effects of an increase in protectionism in the global economy

5: Public Finances

• Explaining changes in the size of the UK fiscal deficit
• Examining problems resulting from worsening public finances
• Evaluating reasons why the UK was in a weak position following 2007 GFC
• Likely effectiveness of monetary policy post financial crisis
• Likely implications of the 25% depreciation of sterling from 2009 onwards