Ocr Gcse (91) Economics J205/01 Paper 1 June 2023 Final Question Paper Introduction To Economics

Causes of current account surplus (6) {Ans: Exporting more than importing Recession Competitive exports (deflation/disinflation/high quality exports) High level of natural resources Exports worth more than imports High levels of exports}Consequences of inflation for producers {Ans: 1. Increased production costs 2. Menu costs 3. Labour market disputes 4. Lower exports 5. Producers as creditors lose money 6. Erosion of debt for debtors 7. Loss of business confidence}Driving Factors of Globalisation {Ans: 1. Reduction of barriers to international eg. GATT agreement after WWII 2. Improvements in transport reduced export costs and made it easier to be a global business eg. shipping container 3. Worldwide foreign investment and MNC's such as Nestle. eg. China is 2nd largest investor in UK 4. Advances in technology and communications eg. email}Causes of uneven distribution of wealth {Ans: 1. Inheritance 2. Level of a savings}Costs of specialisation for regions {Ans: - Risk of a fall in demand in that particular sector - Resource exhaustion - Loss of advantage as a another country becomes better - Negative environmental externalities}Effect of a rise in excise duty on a good with negative externalities {Ans: 1) Fall in demand for product depending on PED