: Pearson Edexcel past-paper questions pack

Inflation

Past-paper questions pack

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Questions are numbered; the mark schemes (the answer key) follow on separate pages so the question pages can be handed out alone. www.economicsaleveltutor.com

Pearson Edexcel AS and A-level Economics past-paper questions since 2016 · 35 parts · mark schemes follow the questions · www.economicsaleveltutor.com · Questions and mark schemes © Pearson Edexcel

1. June 2025 · AS Paper 2 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(f) Evaluate the possible causes of inflation in the UK. (20)

2. June 2025 · Paper 3 · Q1(d) · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

(d) Evaluate the microeconomic and macroeconomic effects of high levels of inflation. Refer to the UK or any other developed economy in your answer. (25)

3. June 2024 · AS Paper 2 · Q6(a) · 4 marks · AO1=2,AO2=2

(a) With reference to Figure 1, explain the term ‘inflation rate’. (4)

4. June 2024 · AS Paper 2 · Q6(d) · 5 marks · AO1=1,AO2=2,AO3=2

(d) Explain one reason why ‘the fall in the exchange rate of the British pound’ (Extract A, line 21) is likely to increase inflation. (5)

5. June 2023 · AS Paper 2 · Q6(b) · 5 marks · AO1=1,AO2=2,AO3=2

(b) With reference to Figure 2, explain how the CPI inflation rate is measured. Refer to the concept of weights in your answer. (5)

6. June 2023 · AS Paper 2 · Q6(d) · 6 marks · AO1=2,AO2=2,AO3=2

(d) With reference to Extract B, explain two reasons for the increase in the rate of UK inflation. (6)

7. June 2023 · AS Paper 2 · Q6(e) · 15 marks · AO1=3,AO2=3,AO3=3,AO4=6

(e) Discuss the likely economic effects of the high rate of UK inflation on consumers and workers. (15)

8. June 2023 · AS Paper 2 · Q6(g) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(g) Evaluate how interest rates are used to control UK inflation. (20)

9. June 2023 · Paper 3 · Q1(b) · 8 marks · AO1=2,AO2=2,AO3=2,AO4=2

(b) Examine two reasons for the rise in inflation in the UK. Refer to the information provided in your answer. (8)

10. June 2023 · Paper 3 · Q2(e) · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

(e) Evaluate the microeconomic and macroeconomic effects of labour shortages in the UK, or a developed economy of your choice. (25)

11. June 2022 · AS Paper 2 · Q5(a) · 1 marks ·

(a) Which one of the following can be deduced from the chart? (1) A The average price level was lower in January 2018 than in January 2019 B The average price level was unchanged between January 2017 and January 2019 C There was deflation from January 2018 to January 2019 D There was disinflation from January 2016 to January 2017

12. June 2022 · AS Paper 2 · Q5(b) · 3 marks · AO1=1,AO2=1,AO3=1

(b) Explain one limitation of CPI in measuring the rate of inflation. (3)

13. October 2020 · AS Paper 2 · Q1(a) · 1 marks · AO1=1

14. October 2020 · AS Paper 2 · Q1(b) · 2 marks · AO1=2

(b) Explain one likely cause of inflation. (2)

15. October 2020 · AS Paper 2 · Q1(c) · 1 marks ·

(c) From the above data, it can be deduced that the percentage point difference between CPI and RPI was: (1) A 0.0 B 0.2 C 0.4 D 0.6

16. June 2019 · Paper 2 · Q1(b) · 2 marks · AO2=2

(b) Using the chart, calculate an index number for additions to credit card lending in March 2017, using January 2016 as the base. You are advised to show your working. (2)

17. June 2019 · Paper 2 · Q1(c) · 2 marks · AO1=1,AO2=1

(c) Explain one possible link between an increase in credit card lending and the rate of inflation. (2)

18. June 2019 · AS Paper 2 · Q4(a) · 1 marks · AO1=1

19. June 2019 · AS Paper 2 · Q5(b) · 2 marks · AO2=2

(b) Using 2014 as the base year, calculate the index number for (2) (i) 2015 (ii) 2016.

20. June 2019 · AS Paper 2 · Q5(c) · 1 marks · AO1=1

21. June 2019 · AS Paper 2 · Q6(a) · 4 marks · AO1=2,AO2=2

(a) With reference to the first paragraph of Extract A and Figure 1, explain how the change in the exchange rate of the pound has ‘contributed to rising inflation’ (Extract A, line 4). (4)

22. June 2019 · AS Paper 2 · Q6(b) · 6 marks · AO1=2,AO2=2,AO3=2

(b) With reference to Extract A, explain two likely economic effects of the higher rate of UK inflation. (6)

23. June 2019 · AS Paper 2 · Q6(c) · 5 marks · AO1=1,AO2=2,AO3=2

(c) With reference to the last paragraph of Extract A and Figure 2, explain one reason why it is necessary to regularly update the CPI basket of goods and services. (5)

24. June 2019 · AS Paper 2 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(f) Evaluate the use of interest rate changes as a means of controlling UK inflation. (20)

25. June 2019 · Paper 3 · Q2(e) · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

(e) Evaluate the likely microeconomic and macroeconomic effects of relatively high inflation rates in many African countries. (25)

26. June 2018 · AS Paper 2 · Q6(g) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(g) Evaluate the likely impact of high inflation on the UK government’s macroeconomic objectives. (20)

27. June 2017 · AS Paper 2 · Q1(a) · 2 marks · AO2=2

(a) Calculate the percentage change in the UK Consumer Prices Index from September 2014 to September 2015. You are advised to show your working. (2)

28. June 2017 · AS Paper 2 · Q1(b) · 1 marks · AO1=1

29. June 2017 · AS Paper 2 · Q1(c) · 1 marks ·

(c) Which one of the following is most likely to be a cause of deflation? A fall in: (1) A oil prices B unemployment C income tax rates D interest rates

30. June 2017 · Paper 2 · Q3(a) · 1 marks ·

(a) Which one of the following statements is correct about the UK’s inflation record between September 2011 and January 2013? Based on the data shown, the UK experienced: (1) A deflation B disinflation C falling average prices D falling money supply

31. June 2017 · Paper 2 · Q3(b) · 4 marks · AO1=2,AO2=1,AO3=1

(b) With reference to the data provided, explain the process of calculating the rate of inflation in the UK using the Consumer Prices Index. Refer to the concept of weights in your answer. (4)

32. June 2017 · Paper 2 · Q6(b) · 8 marks · AO1=2,AO2=2,AO3=2,AO4=2

(b) With reference to the information provided and your own knowledge, examine two factors which might explain the change in the rate of Eurozone inflation as shown in Figure 2. (8)

33. June 2016 · AS Paper 2 · Q6(d) · 6 marks · AO1=2,AO2=2,AO3=2

(d) With reference to the data, explain two likely reasons for the UK’s falling inflation rate. (6)

34. June 2016 · AS Paper 2 · Q6(e) · 15 marks · AO1=3,AO2=3,AO3=3,AO4=6

(e) With reference to Extracts A and B and your own knowledge, discuss whether the MPC should be concerned about the risk of deflation in the UK economy. (15)

35. June 2016 · AS Paper 2 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(f) Evaluate whether the MPC has been successful in controlling the UK’s inflation rate since 2011. (20)

Mark schemes

1. June 2025 · AS Paper 2 · Q6(f)

2. June 2025 · Paper 3 · Q1(d)

3. June 2024 · AS Paper 2 · Q6(a)

4. June 2024 · AS Paper 2 · Q6(d)

5. June 2023 · AS Paper 2 · Q6(b)

6. June 2023 · AS Paper 2 · Q6(d)

7. June 2023 · AS Paper 2 · Q6(e)

8. June 2023 · AS Paper 2 · Q6(g)

9. June 2023 · Paper 3 · Q1(b)

10. June 2023 · Paper 3 · Q2(e)

11. June 2022 · AS Paper 2 · Q5(a)

12. June 2022 · AS Paper 2 · Q5(b)

13. October 2020 · AS Paper 2 · Q1(a)

14. October 2020 · AS Paper 2 · Q1(b)

15. October 2020 · AS Paper 2 · Q1(c)

16. June 2019 · Paper 2 · Q1(b)

17. June 2019 · Paper 2 · Q1(c)

18. June 2019 · AS Paper 2 · Q4(a)

19. June 2019 · AS Paper 2 · Q5(b)

20. June 2019 · AS Paper 2 · Q5(c)

21. June 2019 · AS Paper 2 · Q6(a)

22. June 2019 · AS Paper 2 · Q6(b)

23. June 2019 · AS Paper 2 · Q6(c)

24. June 2019 · AS Paper 2 · Q6(f)

25. June 2019 · Paper 3 · Q2(e)

26. June 2018 · AS Paper 2 · Q6(g)

27. June 2017 · AS Paper 2 · Q1(a)

28. June 2017 · AS Paper 2 · Q1(b)

29. June 2017 · AS Paper 2 · Q1(c)

30. June 2017 · Paper 2 · Q3(a)

31. June 2017 · Paper 2 · Q3(b)

32. June 2017 · Paper 2 · Q6(b)

33. June 2016 · AS Paper 2 · Q6(d)

34. June 2016 · AS Paper 2 · Q6(e)

35. June 2016 · AS Paper 2 · Q6(f)