, 2
Do not write
outside the
Section A box
Answer all questions in the spaces provided.
For questions with four responses, only one answer per question is allowed.
For each question, completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.
0 1 Monetary policy would involve changes in which of the following?
[1 mark]
A Government spending
B Interest rates
C Investment in training
D Taxation
IB/H/Jun25/8136/2
, 3
Do not write
outside the
0 2 Table 1 shows the unemployment rate in an economy between 2020 and 2024. box
Table 1
Year Unemployment rate (%)
2020 6.2
2021 5.9
2022 4.5
2023 4.9
2024 5.1
Using Table 1, the average (mean) unemployment rate over this period to one decimal
place is:
[1 mark]
A 5.1%
B 5.2%
C 5.3%
D 5.4%
0 3 Which of the following is not a role of a high street bank?
[1 mark]
A Ensuring funds are available for investment.
B Keeping inflation at its target rate.
C Lending funds to those wishing to borrow.
D Providing a place for savers to securely deposit their money.
Turn over for the next question
Turn over ►
IB/H/Jun25/8136/2
, 4
Do not write
outside the
box
0 4 Which pair of policies is most likely to increase income inequality?
[1 mark]
A Less progressive income taxes and increased unemployment benefits.
B Less progressive income taxes and reduced unemployment benefits.
C More progressive income taxes and increased unemployment benefits.
D More progressive income taxes and reduced unemployment benefits.
0 5 ‘Transactions between buyers and sellers are made easier if money is widely accepted.’
Which function of money does the above statement most closely relate to?
[1 mark]
A Means of deferred payment
B Medium of exchange
C Store of value
D Unit of account
0 6 Which of the following pairs of changes is most likely to reduce inflation?
[1 mark]
Tax rates Exchange rate
A Decrease Decrease
B Decrease Increase
C Increase Decrease
D Increase Increase
IB/H/Jun25/8136/2
Do not write
outside the
Section A box
Answer all questions in the spaces provided.
For questions with four responses, only one answer per question is allowed.
For each question, completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.
0 1 Monetary policy would involve changes in which of the following?
[1 mark]
A Government spending
B Interest rates
C Investment in training
D Taxation
IB/H/Jun25/8136/2
, 3
Do not write
outside the
0 2 Table 1 shows the unemployment rate in an economy between 2020 and 2024. box
Table 1
Year Unemployment rate (%)
2020 6.2
2021 5.9
2022 4.5
2023 4.9
2024 5.1
Using Table 1, the average (mean) unemployment rate over this period to one decimal
place is:
[1 mark]
A 5.1%
B 5.2%
C 5.3%
D 5.4%
0 3 Which of the following is not a role of a high street bank?
[1 mark]
A Ensuring funds are available for investment.
B Keeping inflation at its target rate.
C Lending funds to those wishing to borrow.
D Providing a place for savers to securely deposit their money.
Turn over for the next question
Turn over ►
IB/H/Jun25/8136/2
, 4
Do not write
outside the
box
0 4 Which pair of policies is most likely to increase income inequality?
[1 mark]
A Less progressive income taxes and increased unemployment benefits.
B Less progressive income taxes and reduced unemployment benefits.
C More progressive income taxes and increased unemployment benefits.
D More progressive income taxes and reduced unemployment benefits.
0 5 ‘Transactions between buyers and sellers are made easier if money is widely accepted.’
Which function of money does the above statement most closely relate to?
[1 mark]
A Means of deferred payment
B Medium of exchange
C Store of value
D Unit of account
0 6 Which of the following pairs of changes is most likely to reduce inflation?
[1 mark]
Tax rates Exchange rate
A Decrease Decrease
B Decrease Increase
C Increase Decrease
D Increase Increase
IB/H/Jun25/8136/2
