Macroeconomics: the Global Context | OCR A-Level Economics (H460)
Macroeconomics: the Global Context
- 102 questions
- 8 subtopics
- Component 02: Macroeconomics
- Component 02 and Component 03
The Global Context is examined on component 02 of OCR Economics, Macroeconomics.
96 recall questions across 8 subtopics.
Sample questions from Macroeconomics: the Global Context
Answer each one closed book first, then open the answer.
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Patterns of international trade and global supply chains
What is intra-industry trade?
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It is trade in similar products within the same industry, such as a country both importing and exporting cars, driven by product differentiation and consumers' taste for variety. -
Advantages and disadvantages of international trade
Why has trade been so valuable to emerging economies?
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Export-oriented manufacturing has brought in foreign exchange, transferred technology and allowed economies of scale, which together have driven rapid growth and large reductions in poverty. -
Exchange rate calculations and how exchange rates are determined
A machine is priced at $9,000 when the exchange rate is £1 = $1.20. Calculate its cost in pounds.
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Dividing by the rate gives 9,000 ÷ 1.20 = £7,500. -
Exchange rate changes, the Marshall-Lerner condition and exchange rate systems
How does a depreciation affect aggregate demand?
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Cheaper exports and dearer imports raise net exports, so aggregate demand shifts to the right and both real output and the price level rise. -
Globalisation, international competitiveness and comparative advantage
What is the difference between price and non-price competitiveness?
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Price competitiveness depends on relative unit labour costs, productivity and the exchange rate, while non-price competitiveness depends on quality, design, reliability, branding and speed of delivery. -
Terms of trade and the impact of globalisation and emerging economies
What have been the main consequences of globalisation for developed economies?
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Cheaper imports and wider choice have raised real incomes and held inflation down, but manufacturing employment has shifted abroad, creating structural unemployment concentrated in particular regions. -
Protectionism and the effects of a tariff
Name three protectionist measures other than tariffs and quotas.
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Subsidies paid to domestic producers, outright embargoes on particular goods or countries, and administrative barriers such as demanding technical standards and deliberately slow customs procedures. -
Quotas, trade creation, economic integration and the World Trade Organisation
Distinguish a free trade area from a customs union.
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Both abolish tariffs on trade between members, but a customs union adds a common external tariff on imports from non-members, whereas in a free trade area each member sets its own external tariff.
The 8 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| Patterns of international trade and global supply chains | Recall questions on international trade, visible and invisible trade, intra-industry trade, changing patterns of world trade, global supply chains and fragmented production. | 11 |
| Advantages and disadvantages of international trade | Recall questions on the advantages and disadvantages of international trade for developed, emerging and developing economies, commodity dependence, inequality and ethical objections. | 8 |
| Exchange rate calculations and how exchange rates are determined | Recall questions on exchange rates, appreciation and devaluation, currency conversion calculations, demand for and supply of pounds, and how a central bank defends a fixed peg. | 14 |
| Exchange rate changes, the Marshall-Lerner condition and exchange rate systems | Recall questions on managed floats, causes and effects of depreciation and appreciation, the Marshall-Lerner condition and J-curve, and fixed versus floating exchange rate systems. | 15 |
| Globalisation, international competitiveness and comparative advantage | Recall questions on globalisation and its causes, transnational corporations, price and non-price competitiveness, relative unit labour costs, and absolute and comparative advantage calculations. | 14 |
| Terms of trade and the impact of globalisation and emerging economies | Recall questions on calculating and interpreting the terms of trade, and the effects of globalisation, emerging economies and transnational corporations on developed and developing countries. | 14 |
| Protectionism and the effects of a tariff | Recall questions on protectionism, tariffs, quotas and other barriers, the infant industry argument, and the tariff diagram with revenue and welfare loss calculations. | 11 |
| Quotas, trade creation, economic integration and the World Trade Organisation | Recall questions on the quota diagram, trade creation and diversion, customs unions and the stages of economic integration, free trade, and the role of the World Trade Organisation. | 15 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
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Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
Nearby topics
OCR A-Level Economics Active Recall Guide
Every topic, not just this one. 1,226 questions with their answers.