Pearson Edexcel Level 3 GCE
Monday 19 May 2025
Morning (Time: 1 hour 30 minutes) Paper
reference 8EC0/02
Economics A
Advanced Subsidiary
PAPER 2: The UK Economy – Performance and Policies
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QUESTION 1 BEGINS ON THE NEXT PAGE
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BLANK PAGE
2
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
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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
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)
3
*P72115A0328* Turn over
, 2 The table shows average UK house prices between January 2023 and March 2023.
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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 B
etween January 2023 and February 2023, average UK house prices fell
by £2 597
B T he average UK house price in March 2023 is 16.65% higher than in
January 2023
C T he index number of average UK house prices for March 2023 is 100
D T he ratio of the average UK house price in February 2023 to the
average UK house price in March 2023 is 1 : 0.99
4
*P72115A0428*
Monday 19 May 2025
Morning (Time: 1 hour 30 minutes) Paper
reference 8EC0/02
Economics A
Advanced Subsidiary
PAPER 2: The UK Economy – Performance and Policies
,DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
QUESTION 1 BEGINS ON THE NEXT PAGE
*P72115A0228*
BLANK PAGE
2
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA 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
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)
3
*P72115A0328* Turn over
, 2 The table shows average UK house prices between January 2023 and March 2023.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA 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 B
etween January 2023 and February 2023, average UK house prices fell
by £2 597
B T he average UK house price in March 2023 is 16.65% higher than in
January 2023
C T he index number of average UK house prices for March 2023 is 100
D T he ratio of the average UK house price in February 2023 to the
average UK house price in March 2023 is 1 : 0.99
4
*P72115A0428*
