2025 AQA GCSE ECONOMICS Paper 2 How the Economy
Works Question Paper & Mark Scheme (Merged) May 2025
[VERIFIED]
Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signature
I declare this is my own work.
GCSE
ECONOMICS
Paper 2 How the Economy Works
Thursday 22 May 2025 Afternoon Time allowed: 1 hour 45 minutes
Materials For Examiner’s Use
You may use a calculator.
Section Mark
Instructions A
Use black ink or black ball-point pen. Draw diagrams in pencil. B
Fill in the boxes at the top of this page.
TOTAL
Answer all questions.
You must answer the questions in the spaces provided. Do not write on
blank pages.
If you need extra space for your answer(s), use the lined pages at the end of this book. Write the
question number against your answer(s).
Do all rough work in this book. Cross through any work you do not want to be marked.
Information
The marks for questions are shown in brackets.
The maximum mark for this paper is 80.
Questions should be answered in continuous prose. You will be assessed on your ability to:
– use good English
– organise information clearly
– use specialist vocabulary where appropriate.
IB/H/Jun25/G4002/E7 8136/2
, 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
Works Question Paper & Mark Scheme (Merged) May 2025
[VERIFIED]
Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signature
I declare this is my own work.
GCSE
ECONOMICS
Paper 2 How the Economy Works
Thursday 22 May 2025 Afternoon Time allowed: 1 hour 45 minutes
Materials For Examiner’s Use
You may use a calculator.
Section Mark
Instructions A
Use black ink or black ball-point pen. Draw diagrams in pencil. B
Fill in the boxes at the top of this page.
TOTAL
Answer all questions.
You must answer the questions in the spaces provided. Do not write on
blank pages.
If you need extra space for your answer(s), use the lined pages at the end of this book. Write the
question number against your answer(s).
Do all rough work in this book. Cross through any work you do not want to be marked.
Information
The marks for questions are shown in brackets.
The maximum mark for this paper is 80.
Questions should be answered in continuous prose. You will be assessed on your ability to:
– use good English
– organise information clearly
– use specialist vocabulary where appropriate.
IB/H/Jun25/G4002/E7 8136/2
, 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
