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EnglandEconomics

Component 2: Macroeconomics - International and development economics

5 dot points across 5 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How does economic development differ from growth, and what helps or hinders developing economies?

2.4 Economic development: the difference between growth and development, the measurement of development including the HDI, the barriers to development, and strategies to promote development.
An OCR H460 answer to economic development, covering the difference between growth and development, the measurement of development including the Human Development Index, the barriers to development, and market-based and interventionist strategies to promote it.
11 min answer →

How are exchange rates determined, and what does the balance of payments record?

2.4 Exchange rates and the balance of payments: floating and fixed exchange-rate systems, the causes and effects of exchange-rate changes, and the structure of the balance of payments and the current account.
An OCR H460 answer to exchange rates and the balance of payments, covering floating and fixed exchange-rate systems, the causes and effects of a depreciation or appreciation (and the Marshall-Lerner condition), and the structure of the balance of payments and the current account.
11 min answer →

What is globalisation, and why do governments use protectionism despite the gains from free trade?

2.4 Globalisation and protectionism: the causes and effects of globalisation, trading blocs, the methods of protection (tariffs, quotas and subsidies), and the arguments for and against protectionism.
An OCR H460 answer to globalisation and protectionism, covering the causes and effects of globalisation, trading blocs and the WTO, the methods of protection (tariffs, quotas and subsidies) including the welfare effect of a tariff, and the arguments for and against protectionism.
11 min answer →

Why do countries trade, and what does the theory of comparative advantage say about the gains from trade?

2.4 International trade: absolute and comparative advantage, the gains from specialisation and trade, the terms of trade, and the limitations of comparative advantage.
An OCR H460 answer to international trade, covering absolute and comparative advantage, how specialisation and trade raise total output, the terms of trade, and the assumptions and limitations of the theory of comparative advantage.
11 min answer →

How do you combine microeconomic and macroeconomic analysis to answer an unseen theme in Component 3?

Component 3 synoptic: drawing together microeconomic and macroeconomic analysis to evaluate an unseen theme, the structure of the Themes in economics paper, and the synoptic skills examiners reward.
An OCR H460 answer to the synoptic Themes in economics paper (Component 3), covering how to combine microeconomic and macroeconomic analysis on an unseen theme, the structure of the paper (multiple choice plus data response and extended response), and the synoptic skills examiners reward.
10 min answer →