AS LEVEL ECONOMICS A: Actual May 2025 PAST PAPER 2: The UK Economy:
Performance and Policies. All Assessment Questions & Mark Scheme [Edexcel 8EC0/02]
Exam Resource Summary
The May 2025 Edexcel AS Level Economics A 8EC0/02 – Paper 2: The UK Economy: Performance and Policies –
Merged Question Paper & Mark Scheme document integrates the official examination paper with its complete
mark scheme. This paper evaluates students’ understanding of the UK economy, including measures of
economic performance, government macroeconomic policies, market dynamics, and the causes and effects of
economic fluctuations. The merged format presents each question alongside its marking criteria, providing
students with clarity on examiner expectations, mark allocation, and question structure. This resource enables
targeted revision, application of economic theory to practical scenarios, and the development of analytical and
evaluative skills, making it essential for preparation for the May 2025 Edexcel AS Level Economics Paper 2
examination.
Turn over
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
DO NOT WRITE IN THIS AREA
Some questions must be answered with a cross in a box . If you change your mind about an
answer, put a line through the box and then mark your new answer with a cross .
You are advised to spend 25 minutes on this section.
Use the data to support your answers where relevant.
You may annotate and include diagrams in your answers.
1 Between January 2020 and December 2020, the rate of unemployment in the UK
increased from 3.9% to 5.2%. This was as a result of the UK economy experiencing
a recession.
(a) Which one of the following best describes this cause of unemployment?
(1)
A Cyclical
B Frictional
C Seasonal
DO NOT WRITE IN THIS AREA
D Structural
(b) With reference to the information above, explain one possible effect of the
increase in the rate of unemployment on the UK government budget.
(3)
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(Total for Question 1 = 4 marks)
,2 The table shows average UK house prices between January 2023 and March 2023.
DO NOT WRITE IN THIS AREA
Month and year Average house price (£)
January 2023 286 321
February 2023 284 152
March 2023 281 555
(Source: adapted from https://landregistry.data.gov.uk/)
(a) Which one of the following can be deduced from the table?
(1)
A Between January 2023 and February 2023, average UK house prices fell
by £2 597
B The average UK house price in March 2023 is 16.65% higher than in
January 2023
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C The index number of average UK house prices for March 2023 is 100
D The ratio of the average UK house price in February 2023 to the
average UK house price in March 2023 is 1 : 0.99
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, (b) Explain one likely impact of the fall in average UK house prices on existing
homeowners between January 2023 and March 2023. Refer to the table on
page 4 in your answer.
DO NOT WRITE IN THIS AREA
(3)
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DO NOT WRITE IN THIS AREA
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(Total for Question 2 = 4 marks)
DO NOT WRITE IN THIS AREA
Performance and Policies. All Assessment Questions & Mark Scheme [Edexcel 8EC0/02]
Exam Resource Summary
The May 2025 Edexcel AS Level Economics A 8EC0/02 – Paper 2: The UK Economy: Performance and Policies –
Merged Question Paper & Mark Scheme document integrates the official examination paper with its complete
mark scheme. This paper evaluates students’ understanding of the UK economy, including measures of
economic performance, government macroeconomic policies, market dynamics, and the causes and effects of
economic fluctuations. The merged format presents each question alongside its marking criteria, providing
students with clarity on examiner expectations, mark allocation, and question structure. This resource enables
targeted revision, application of economic theory to practical scenarios, and the development of analytical and
evaluative skills, making it essential for preparation for the May 2025 Edexcel AS Level Economics Paper 2
examination.
Turn over
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
DO NOT WRITE IN THIS AREA
Some questions must be answered with a cross in a box . If you change your mind about an
answer, put a line through the box and then mark your new answer with a cross .
You are advised to spend 25 minutes on this section.
Use the data to support your answers where relevant.
You may annotate and include diagrams in your answers.
1 Between January 2020 and December 2020, the rate of unemployment in the UK
increased from 3.9% to 5.2%. This was as a result of the UK economy experiencing
a recession.
(a) Which one of the following best describes this cause of unemployment?
(1)
A Cyclical
B Frictional
C Seasonal
DO NOT WRITE IN THIS AREA
D Structural
(b) With reference to the information above, explain one possible effect of the
increase in the rate of unemployment on the UK government budget.
(3)
. . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. .. . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . .. . .. .. . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. .. . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . ......................
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(Total for Question 1 = 4 marks)
,2 The table shows average UK house prices between January 2023 and March 2023.
DO NOT WRITE IN THIS AREA
Month and year Average house price (£)
January 2023 286 321
February 2023 284 152
March 2023 281 555
(Source: adapted from https://landregistry.data.gov.uk/)
(a) Which one of the following can be deduced from the table?
(1)
A Between January 2023 and February 2023, average UK house prices fell
by £2 597
B The average UK house price in March 2023 is 16.65% higher than in
January 2023
DO NOT WRITE IN THIS AREA
C The index number of average UK house prices for March 2023 is 100
D The ratio of the average UK house price in February 2023 to the
average UK house price in March 2023 is 1 : 0.99
DO NOT WRITE IN THIS AREA
, (b) Explain one likely impact of the fall in average UK house prices on existing
homeowners between January 2023 and March 2023. Refer to the table on
page 4 in your answer.
DO NOT WRITE IN THIS AREA
(3)
. . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. .. . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . .. . .. .. . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. .. . . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . ......................
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DO NOT WRITE IN THIS AREA
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(Total for Question 2 = 4 marks)
DO NOT WRITE IN THIS AREA
