A LEVEL ECONOMICS: Actual May 2025 PAST PAPER 2: Macroeconomics. All
Assessment Questions & Mark Scheme [OCR H460/02]
Exam Resource Summary
The A Level Economics May 2025 Paper 2: Macroeconomics (OCR H460/02) – All Assessment
Questions & Mark Scheme combines the complete official examination paper with its detailed mark
scheme, offering a clear and comprehensive guide to assessment standards. This paper tests students’
understanding of key macroeconomic principles, including economic growth, inflation,
unemployment, fiscal and monetary policy, international trade, exchange rates, and the balance of
payments. It emphasizes the ability to analyse economic data, evaluate government policies, and
construct coherent, evidence-based arguments about national and global economic issues. The merged
format aligns each question with its marking criteria, providing transparent insight into examiner
expectations, mark allocation, and effective essay-writing techniques. This resource is essential for
focused revision, self-assessment, and the development of strong analytical and evaluative skills,
ensuring confident preparation for the May 2025 OCR A Level Economics Paper 2 and continued
success in advanced economic study.
© OCR 2025 [601/4799/4] OCR is an exempt Charity
DC (CJ/FC) 345195/5 Turn over
, 2
Section A
Read the stimulus material and answer all parts of Question 1.
What is the future for Bolivia?
Export tariffs and quotas are imposed by a number of countries. Reducing exports can increase
domestic supply which can affect the price of products sold on the home market and the
country’s tax revenue. It can also affect the supply of the country’s raw materials available to rival
foreign producers.
Both Argentina and Bolivia, impose export tariffs on soya beans. Argentina also imposes an 5
export tariff on lithium, a rare earth metal used in the production of electric cars. Bolivia has the
world’s largest resources of lithium which it is just beginning to extract. Bolivia already mines
gold, silver, nickel and other natural metals. Mining is part of the primary sector. Fig. 1 shows the
share of the labour force in the different sectors in Argentina and Bolivia in 2021.
Fig. 1
Share of the labour force in the different sectors in Argentina and Bolivia 2021
Primary sector
Secondary sector
Tertiary sector
Argentina Bolivia
5%
27%
28%
49%
63%
24%
Exporting lithium can affect Bolivia’s terms of trade and the current account of its balance of 10
payments. In 2021, Bolivia’s terms of trade were 62 and its index of average export prices was
85.56. In that year, Bolivia had a surplus on its current account. It also had the lowest inflation
rate in South America.
Fig. 2 shows the inflation rate and current account balance as a percentage of GDP of selected
countries in 2021, when the global average inflation rate was 3.5%. 15
© OCR 2025
, 3
Fig. 2
The inflation rate and current account balance as a percentage of GDP of selected
countries 2021
3
Bolivia
2
China
1
0 Canada
0 1 2 3 4 5 6 7
–1 Paraguay
Current account
balance as –2
% of GDP Peru
–3
Bangladesh
–4
–5
–6
Chile
–7
Inflation rate (%)
A current account surplus can put upward pressure on a country’s exchange rate. There are,
however, other influences on a country’s exchange rate. Bolivia has a fixed exchange rate
against the US dollar. This fixed exchange rate has provided some certainty and is credited with
helping to keep inflation low. In 2023, speculation put downward pressure on the exchange rate.
Bolivia’s central bank, Banco Central de Bolivia, intervened to support the value of the boliviano 20
which significantly reduced the country’s foreign exchange reserves.
As well as maintaining the exchange rate, the Banco Central de Bolivia manages the country’s
national debt. A country’s national debt increases as a result of government budget deficits.
Bolivia has had a government budget deficit for many years. A relatively high proportion of
Bolivians work in the informal economy and do not pay any income tax. The country has a 25
relatively low flat rate of income tax of 13%. Some economists suggest that a rise in this rate of
income tax would increase government tax revenue and reduce the budget deficit. Others have
suggested that Bolivia should introduce a progressive income tax system. Bolivia has the highest
income inequality in South America, that is gradually reducing.
Bolivia has a standard rate of VAT of 13%. Additional indirect taxes are imposed on other 30
products such as cigarettes, alcohol and luxuries, including perfume and cosmetics.
© OCR 2025 Turn over
, 4
1
(a) Using information from the stimulus material, identify two reasons for imposing export tariffs.
1. ......................................................................................................................................................
..........................................................................................................................................................
2. ......................................................................................................................................................
..........................................................................................................................................................
[2]
(b) Using Fig. 1, explain how Bolivia’s level of development compared to Argentina’s level of
development in 2021.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
. ................................................................................................................................................. [2]
(c) Calculate Bolivia’s index of average import prices in 2021.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
. ................................................................................................................................................. [2]
© OCR 2025
Assessment Questions & Mark Scheme [OCR H460/02]
Exam Resource Summary
The A Level Economics May 2025 Paper 2: Macroeconomics (OCR H460/02) – All Assessment
Questions & Mark Scheme combines the complete official examination paper with its detailed mark
scheme, offering a clear and comprehensive guide to assessment standards. This paper tests students’
understanding of key macroeconomic principles, including economic growth, inflation,
unemployment, fiscal and monetary policy, international trade, exchange rates, and the balance of
payments. It emphasizes the ability to analyse economic data, evaluate government policies, and
construct coherent, evidence-based arguments about national and global economic issues. The merged
format aligns each question with its marking criteria, providing transparent insight into examiner
expectations, mark allocation, and effective essay-writing techniques. This resource is essential for
focused revision, self-assessment, and the development of strong analytical and evaluative skills,
ensuring confident preparation for the May 2025 OCR A Level Economics Paper 2 and continued
success in advanced economic study.
© OCR 2025 [601/4799/4] OCR is an exempt Charity
DC (CJ/FC) 345195/5 Turn over
, 2
Section A
Read the stimulus material and answer all parts of Question 1.
What is the future for Bolivia?
Export tariffs and quotas are imposed by a number of countries. Reducing exports can increase
domestic supply which can affect the price of products sold on the home market and the
country’s tax revenue. It can also affect the supply of the country’s raw materials available to rival
foreign producers.
Both Argentina and Bolivia, impose export tariffs on soya beans. Argentina also imposes an 5
export tariff on lithium, a rare earth metal used in the production of electric cars. Bolivia has the
world’s largest resources of lithium which it is just beginning to extract. Bolivia already mines
gold, silver, nickel and other natural metals. Mining is part of the primary sector. Fig. 1 shows the
share of the labour force in the different sectors in Argentina and Bolivia in 2021.
Fig. 1
Share of the labour force in the different sectors in Argentina and Bolivia 2021
Primary sector
Secondary sector
Tertiary sector
Argentina Bolivia
5%
27%
28%
49%
63%
24%
Exporting lithium can affect Bolivia’s terms of trade and the current account of its balance of 10
payments. In 2021, Bolivia’s terms of trade were 62 and its index of average export prices was
85.56. In that year, Bolivia had a surplus on its current account. It also had the lowest inflation
rate in South America.
Fig. 2 shows the inflation rate and current account balance as a percentage of GDP of selected
countries in 2021, when the global average inflation rate was 3.5%. 15
© OCR 2025
, 3
Fig. 2
The inflation rate and current account balance as a percentage of GDP of selected
countries 2021
3
Bolivia
2
China
1
0 Canada
0 1 2 3 4 5 6 7
–1 Paraguay
Current account
balance as –2
% of GDP Peru
–3
Bangladesh
–4
–5
–6
Chile
–7
Inflation rate (%)
A current account surplus can put upward pressure on a country’s exchange rate. There are,
however, other influences on a country’s exchange rate. Bolivia has a fixed exchange rate
against the US dollar. This fixed exchange rate has provided some certainty and is credited with
helping to keep inflation low. In 2023, speculation put downward pressure on the exchange rate.
Bolivia’s central bank, Banco Central de Bolivia, intervened to support the value of the boliviano 20
which significantly reduced the country’s foreign exchange reserves.
As well as maintaining the exchange rate, the Banco Central de Bolivia manages the country’s
national debt. A country’s national debt increases as a result of government budget deficits.
Bolivia has had a government budget deficit for many years. A relatively high proportion of
Bolivians work in the informal economy and do not pay any income tax. The country has a 25
relatively low flat rate of income tax of 13%. Some economists suggest that a rise in this rate of
income tax would increase government tax revenue and reduce the budget deficit. Others have
suggested that Bolivia should introduce a progressive income tax system. Bolivia has the highest
income inequality in South America, that is gradually reducing.
Bolivia has a standard rate of VAT of 13%. Additional indirect taxes are imposed on other 30
products such as cigarettes, alcohol and luxuries, including perfume and cosmetics.
© OCR 2025 Turn over
, 4
1
(a) Using information from the stimulus material, identify two reasons for imposing export tariffs.
1. ......................................................................................................................................................
..........................................................................................................................................................
2. ......................................................................................................................................................
..........................................................................................................................................................
[2]
(b) Using Fig. 1, explain how Bolivia’s level of development compared to Argentina’s level of
development in 2021.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
. ................................................................................................................................................. [2]
(c) Calculate Bolivia’s index of average import prices in 2021.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
. ................................................................................................................................................. [2]
© OCR 2025
