2025 Pearson Edexcel Level 3 GCE Economics A Advanced Subsidiary PAPER 2: The UK Economy – Performance and Policies Combined Question Paper and Marking Scheme

2025 Pearson Edexcel Level 3 GCE Economics A Advanced Subsidiary PAPER 2: The UK Economy – Performance and
Policies Combined Question Paper and Marking Scheme
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Centre Number Candidate Number




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

You must have: Total Marks
Source Booklet (enclosed)



Instructions

•• Use black ink or ball-point pen.
Fill in the boxes at the top of this page with your name,
centre number and candidate number.
• Answer
There are two sections in this question paper.
•• In SectionallB,questions in Section A.
answer all of questions 6(a) to 6(e) and one question from 6(f) or 6(g).
• Answer the questions
– there may in thethan
be more space spaces
youprovided
need.

Information

•• The total mark for this paper is 80.
The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice

•• Read each question carefully before you start to answer it.
Check your answers if you have time at the end.



Turn over


P72115A
©2025 Pearson Education Ltd.
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QUESTION 1 BEGINS ON THE NEXT PAGE
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
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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)




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, 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 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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