O-LevelEconomicsThe allocation of resources2281/21 · May/June 2024 · Q520 Marks
In 2020, the price of gold fell in Vietnam. That year, Vietnam was one of Asia's best performing economies. Unlike some Asian economies, Vietnam did not experience a recession. Its total output, exports and imports all increased. Unemployment did increase from 2.0% to 2.3% but remained very low. One of the aims of fiscal policy can be to achieve full employment.
- (a)Identify how the effect of a fall in the price of gold would be shown on a demand curve for gold.[2]
- (b)Explain two disadvantages of a recession.[4]
- (c)Analyse why a country may demand more imports.[6]
- (d)Discuss whether or not fiscal policy can achieve full employment.[8]
Mark scheme
Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.
- A movement down the demand curve (1) from left to right / extension (1).
- A movement along the demand curve (1).
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