GCSE ECONOMICS — Actual May 2025 PAST PAPER: National and International Economics
All Assessment Questions & Mark Scheme [OCR J205/02]
Exam Resource Summary
The GCSE (9–1) Economics May 2025 National and International Economics Paper (OCR J205/02)
merges the full official examination paper with its detailed mark scheme to provide a structured and
comprehensive revision resource. This paper assesses students’ understanding of economic concepts at
both national and global levels, including economic growth, inflation, unemployment, international trade,
global markets, and government policies. Candidates are expected to apply knowledge to real-world
scenarios, interpret economic data, and construct reasoned arguments supported by evidence. By
presenting each question alongside its marking criteria, the resource clarifies examiner expectations,
highlights the analytical and evaluative skills required for high-band responses, and guides learners in
producing precise, well-structured answers. This integrated format strengthens conceptual understanding,
supports targeted revision, and prepares students thoroughly for the 2026 OCR GCSE Economics
National and International Economics examination.
OCR is an exempt Charity
Turn over
, 2
Section A
Write your answer to each question in the box provided.
1 A government increases its budget deficit.
What is the most likely cost of this decision?
An increase in:
A debt interest
B exports
C government spending
D unemployment
Your answer [1]
2 The claimant count:
A cannot be used to measure the rate of unemployment
B includes people receiving jobseeker’s allowance
C measures the different causes of unemployment
D uses the CPI to measure the level of unemployment
Your answer [1]
3 What is the most likely cause of structural unemployment?
A Different jobs are available in the summer
B High levels of occupational immobility
C Increased migration into the country
D The closure of some discount food stores
Your answer [1]
© OCR 2025
, 3
4 How might an increase in interest rates affect the economy?
A Decrease unemployment
B Improve price stability
C Increase economic growth
D Increase inflation
Your answer [1]
5 A consumer is planning a holiday.
They found a villa that cost €3480 when the exchange rate was £1 = €1.20.
By the time they booked the villa the exchange rate had changed to £1 = €1.16. What
happened to the Sterling price of the villa for the consumer?
A Decreased by £400
B Decreased by £139.20
C Increased by £100
D Remained unchanged
Your answer [1]
6 What is the most likely cost of globalisation for consumers in developed countries?
A Dominant global brands
B Higher prices
C Increased immigration
D Lower prices
Your answer [1]
© OCR 2025 Turn over
, 4
7 The UK government sets an inflation target.
What might happen if inflation is above this target?
Interest rates will:
A decrease to discourage saving
B decrease to encourage more investment
C increase to discourage consumer spending
D increase to encourage more borrowing
Your answer [1]
8 What is not a purpose of government spending?
A To ensure everyone has access to health services
B To increase the welfare of the population
C To maintain a balanced current account
D To reduce inequality in the distribution of income
Your answer [1]
9 An individual’s only source of income has risen in nominal value but fallen in real value.
As a result, the individual will
A be unable to buy all the same products
B decide to save more of their income
C have less money to spend
D not have to pay as much direct tax
Your answer [1]
© OCR 2025
All Assessment Questions & Mark Scheme [OCR J205/02]
Exam Resource Summary
The GCSE (9–1) Economics May 2025 National and International Economics Paper (OCR J205/02)
merges the full official examination paper with its detailed mark scheme to provide a structured and
comprehensive revision resource. This paper assesses students’ understanding of economic concepts at
both national and global levels, including economic growth, inflation, unemployment, international trade,
global markets, and government policies. Candidates are expected to apply knowledge to real-world
scenarios, interpret economic data, and construct reasoned arguments supported by evidence. By
presenting each question alongside its marking criteria, the resource clarifies examiner expectations,
highlights the analytical and evaluative skills required for high-band responses, and guides learners in
producing precise, well-structured answers. This integrated format strengthens conceptual understanding,
supports targeted revision, and prepares students thoroughly for the 2026 OCR GCSE Economics
National and International Economics examination.
OCR is an exempt Charity
Turn over
, 2
Section A
Write your answer to each question in the box provided.
1 A government increases its budget deficit.
What is the most likely cost of this decision?
An increase in:
A debt interest
B exports
C government spending
D unemployment
Your answer [1]
2 The claimant count:
A cannot be used to measure the rate of unemployment
B includes people receiving jobseeker’s allowance
C measures the different causes of unemployment
D uses the CPI to measure the level of unemployment
Your answer [1]
3 What is the most likely cause of structural unemployment?
A Different jobs are available in the summer
B High levels of occupational immobility
C Increased migration into the country
D The closure of some discount food stores
Your answer [1]
© OCR 2025
, 3
4 How might an increase in interest rates affect the economy?
A Decrease unemployment
B Improve price stability
C Increase economic growth
D Increase inflation
Your answer [1]
5 A consumer is planning a holiday.
They found a villa that cost €3480 when the exchange rate was £1 = €1.20.
By the time they booked the villa the exchange rate had changed to £1 = €1.16. What
happened to the Sterling price of the villa for the consumer?
A Decreased by £400
B Decreased by £139.20
C Increased by £100
D Remained unchanged
Your answer [1]
6 What is the most likely cost of globalisation for consumers in developed countries?
A Dominant global brands
B Higher prices
C Increased immigration
D Lower prices
Your answer [1]
© OCR 2025 Turn over
, 4
7 The UK government sets an inflation target.
What might happen if inflation is above this target?
Interest rates will:
A decrease to discourage saving
B decrease to encourage more investment
C increase to discourage consumer spending
D increase to encourage more borrowing
Your answer [1]
8 What is not a purpose of government spending?
A To ensure everyone has access to health services
B To increase the welfare of the population
C To maintain a balanced current account
D To reduce inequality in the distribution of income
Your answer [1]
9 An individual’s only source of income has risen in nominal value but fallen in real value.
As a result, the individual will
A be unable to buy all the same products
B decide to save more of their income
C have less money to spend
D not have to pay as much direct tax
Your answer [1]
© OCR 2025
