A-level
ECONOMICS
Paper 2 National and International Economy
Monday 18 May 2026 Afternoon Time allowed: 2 hours
Materials
For this paper you must have:
• an AQA 12-page answer book
• a calculator.
Instructions
• Use black ink or black ball-point pen. Pencil should only be used for drawing.
• Write the information required on the front cover of your answer book.
The Paper Reference is 7136/2.
• In Section A, answer EITHER Context 1 OR Context 2.
• In Section B, answer ONE essay.
Information
• The marks for questions are shown in brackets.
• The maximum mark for this paper is 80.
• There are 40 marks for Section A and 40 marks for Section B.
Advice
• You are advised to spend 1 hour on Section A and 1 hour on Section B.
IB/M/Jun26/G4003/V5 7136/2
, 2
Section A
Answer EITHER Context 1 OR Context 2.
EITHER
Context 1 The UK’s international competitiveness Total for this context: 40 marks
Study Extracts A, B and C, and then answer all parts of Context 1 which follow.
Extract A:
Figure 1: UK monthly balance of trade in goods and Figure 2: Top 5 UK goods exports,
services, £bn, January 2020 to December share of total value, 2024
2024
Category Share (%)
Cars 9.0
Mechanical power
8.9
generators
Pharmaceuticals 6.7
Crude oil 4.6
Aircraft 3.5
Source: ONS, August 2025 Source: , September 2025
Extract B: How internationally competitive is the UK economy?
International competitiveness refers to a country’s ability to produce goods and services that are
able to compete with other countries in terms of price, quality, innovation and branding. In the
short term, exchange rates and inflation can affect a nation’s competitiveness. However, in the
long term competitiveness is shaped by structural elements, including the skills of the labour
force, research and development, the capital stock and productivity. 5
The UK benefits from a strong financial sector, advanced technological infrastructure and a
high-quality education system, which help give it a competitive advantage in services. However,
the UK has faced challenges in being competitive with its export of goods. A combination of high
production costs, a relatively small manufacturing base and trade barriers, following leaving the
European Union, have made it more difficult to access key international markets. 10
Some argue that the UK Government should adopt more interventionist supply-side policies to
increase exports. Others believe a free-market approach is the key driver of competitiveness.
Source: News reports, 2025
IB/M/Jun26/7136/2
ECONOMICS
Paper 2 National and International Economy
Monday 18 May 2026 Afternoon Time allowed: 2 hours
Materials
For this paper you must have:
• an AQA 12-page answer book
• a calculator.
Instructions
• Use black ink or black ball-point pen. Pencil should only be used for drawing.
• Write the information required on the front cover of your answer book.
The Paper Reference is 7136/2.
• In Section A, answer EITHER Context 1 OR Context 2.
• In Section B, answer ONE essay.
Information
• The marks for questions are shown in brackets.
• The maximum mark for this paper is 80.
• There are 40 marks for Section A and 40 marks for Section B.
Advice
• You are advised to spend 1 hour on Section A and 1 hour on Section B.
IB/M/Jun26/G4003/V5 7136/2
, 2
Section A
Answer EITHER Context 1 OR Context 2.
EITHER
Context 1 The UK’s international competitiveness Total for this context: 40 marks
Study Extracts A, B and C, and then answer all parts of Context 1 which follow.
Extract A:
Figure 1: UK monthly balance of trade in goods and Figure 2: Top 5 UK goods exports,
services, £bn, January 2020 to December share of total value, 2024
2024
Category Share (%)
Cars 9.0
Mechanical power
8.9
generators
Pharmaceuticals 6.7
Crude oil 4.6
Aircraft 3.5
Source: ONS, August 2025 Source: , September 2025
Extract B: How internationally competitive is the UK economy?
International competitiveness refers to a country’s ability to produce goods and services that are
able to compete with other countries in terms of price, quality, innovation and branding. In the
short term, exchange rates and inflation can affect a nation’s competitiveness. However, in the
long term competitiveness is shaped by structural elements, including the skills of the labour
force, research and development, the capital stock and productivity. 5
The UK benefits from a strong financial sector, advanced technological infrastructure and a
high-quality education system, which help give it a competitive advantage in services. However,
the UK has faced challenges in being competitive with its export of goods. A combination of high
production costs, a relatively small manufacturing base and trade barriers, following leaving the
European Union, have made it more difficult to access key international markets. 10
Some argue that the UK Government should adopt more interventionist supply-side policies to
increase exports. Others believe a free-market approach is the key driver of competitiveness.
Source: News reports, 2025
IB/M/Jun26/7136/2
