O-LEVEL ECONOMICS

REVISION 06

PAPER 2
Identify whether the Q is specific or general

1) Discuss whether or not specialisation at a national level is harmful to

an economy. [6] 2022 MJ P23 Q1
2) Discuss whether or not increased international trade can promote
economic growth. [8] 2020 ON P21 Q4
3) Discuss whether or not free trade is beneficial for a city such as
Cambridge. [6] 2023 On P21 Q1
Discuss whether or not free trade is beneficial for a city
such as Cambridge. [6] 2023 On P21 Q1
 increased export revenues and increased revenue for producers which may leads
to higher AD and higher economic growth in the city
 more imports enable cheaper imports of goods and materials. As a result, there
would be lower costs for firms and lower prices (of exports)
more jobs created reducing the level of unemployment
increase size of the market may leads to economies of scale e.g. purchasing /
technical / marketing / managerial / financial
more competition leads to more transfer of ideas and knowledge and making firms
more efficient; leads to more innovation and lower prices
More export and more imports leading to increased choices for consumers and
higher standards of living
Discuss whether or not free trade is beneficial for a city
such as Cambridge. [6] 2023 On P21 Q1
Evaluation
overdependence on foreign markets make the economy more subject to economic
shocks in other countries can negatively affect revenues of firms and reduce
economic growth and development in the city
more trade leads to more environmental degradation due to more production and
creating negative externalities
Increase amount of imports, decrease total demand of the economy
May lead to diseconomies of scale where long run average costs increase as
output increases
Identify whether the Q is specific or general

1) Discuss whether or not specialisation at a national level is

harmful to an economy. [6] 2022 MJ P23 Q1
2) Discuss whether or not increased international trade can
promote economic growth. [8] 2020 ON P21 Q4
3) Discuss whether or not free trade is beneficial for a city such
as Cambridge. [6] 2023 On P21 Q1
Any Question?