Paper 2 Practice: Integrative Economics Skills

Original topic practice

These questions deliberately require selection, application, evaluation and judgement. This is not a complete Paper 2.

Question 1: Food-delivery platforms

A city is considering a minimum payment per delivery and a congestion charge for app-based delivery vehicles.

(a) Explain how a minimum payment above the market equilibrium may affect workers, platforms and consumers. [10]

(b) Discuss whether the minimum payment and congestion charge together are the best response to the city’s concerns. [15]

Question 2: Recovery with imported inflation

A small open economy has unemployment and spare capacity, but imported energy prices are rising rapidly.

(a) Explain how expansionary fiscal policy may affect real output, employment and the general price level. [10]

(b) Discuss the policy mix most likely to improve living standards in this economy. [15]

Outlines: Integrative Economics Skills — Outlines.