2023 AQA A-level ECONOMICS 7136/2 Paper 2 National and International Economy Question Paper&Mark scheme (Merged) June 2023 [VERIFIED]

2023 AQA A LEVEL ECONOMICS 7136/2 PAPER 2 NATIONAL AND INTERNATIONAL ECONOMY QUESTION PAPER AND MARK SCHEME { MERGED} JUNE 2023 COMPLETE AND VERIFIED A-level ECONOMICS Paper2NationalandInternational Economy Monday22May 2023 Afternoon Timeallowed:2 hours Materials Forthispaperyoumust have: • anAQA12 -pageanswer book • a calculator. Instructions • Useblackinkorblackball -pointpen.Pencilshouldonlybeusedfor drawing. • Writetheinformationrequiredonthefrontcoverofyouranswerbook. The Paper Reference is 7136/2. • InSectionA ,answer EITHER Context1 ORContext 2. • InSectionB ,answer ONE essay. Information • Themarksforquestionsareshownin brackets. • Themaximummarkforthispaperis 80. • Thereare40marksfor SectionA and40marksfor Section B. Advice • Youareadvisedtospend1houron SectionA and1houron Section B. 2 Section A Answer EITHER Context1 ORContext 2. EITHER Context1Totalforthiscontext:40marksCorporationtaxin Ireland Study ExtractsA ,BandCandthenanswer all partsofContext1which follow. Extract A Figure 1: Corporation tax rates (%) in selected Figure2:Macroeconomicperformance European nations, 2021 indicators for selected Europeannations, 2021 ExtractB:Irishcorporation tax Note:Maintaxrates only. Somefigures rounded. Source:Officialstatistics, 2022 Ireland has dropped its low -tax policy of the past 18 years, which had helped to persuade some of theworld’sbiggestcompanies,includingGoogleandFacebook,tositetheirEuropeanheadquarters in Ireland. Countries who are members of the Organisation for Economic Co -operation and Development (OECD), have a greed to a minimum corporation tax rate of 15%. Initially, Ireland was one of nine countries that refused to join the scheme but they have now all 5 agreedtodo so. The deal brings an end to the country’s 12.5% corporation tax rate that has applied since Jan uary 2003,whichhasbeencriticisedinotherEUcountriesandtheUK,wherehighercorporationtaxrates haveapplied.Thenewtax,whichwillbelimitedtofirmswithannualglobalrevenuesofover€750m, will come into force in 2023. According to some estimates, it will cost 10 the Iri sh government between € 800mand €2bnayearinlosttaxrevenue.Multinationalcorporations(MNCs)locatedin Ireland and elsewhere, employing up to 500 000 staff, could be affected. Over the years, as a consequence of its low corporate tax policy, Ireland has attracted an estimated1000MNCsinthetechnology,financeandpharmaceuticalsectors,includingPfizer,15 Intel, Yahoo, LinkedIn, TikTok, Apple, IBM and Twitter. Such is the importance of MNCs to the Irish economy, that figures released in May showed that just 100 companies accounted foralmost 80% of government tax revenue. The figures exclude those sectors closed due to the lockdown, including hospitality and travel, but showed Ireland’s reliance on MNCs for employment andtaxrevenue.In2020, about 32%of alljobsinIre landwereinMNCsandthose20 employees contributed 49% of all taxes on income. Source:Newsreports, 2021 IB/G/Jun23/7136/2 France Ireland Spain GDPat current 2935 499 1202 prices ($bn) Exports ($bn) 775 641 462 Inflation (%) 1.6 2.4 3.1 Unemployment 3074 127 3105 (thousands) Labour force 31.0 2.5 23.3 (millions)