IGCSE Economics 0455/22 Paper 2 Structured Questions May/June 2023

General Information

• Paper Code: 0455/22
• Duration: 2 hours 15 minutes
• Answer Requirements: Answer four questions
  • Section A: Answer Question 1
  • Section B: Answer three questions
• Total Marks: 90
• Tools allowed: Calculator
• Answer Format: Enclosed answer booklet

Section A: Source Material

How will oil change Guyana?

• Population:
  • Current: 790,000
  • Estimated optimum: 1,100,000
  • Living in poverty: 35%
• Economic Indicators:
  • Economic growth rate: 26%
  • Unemployment rate: 11%
  • Current account balance: $237m
• Economic Background:
  • Fastest growing economy in 2020
  • Key industries: sugar, gold, timber
  • 2020 Challenges: decline in sugar due to weather and demand
  • Growth: driven by increased oil production
  • Oil discovery: Offshore by a foreign MNC in 2015, production started in 2019
  • Future: Guyana predicted to be the largest oil producer per capita by 2025
• Government Plans:
  • Use oil tax revenue for education and infrastructure
  • Projects: railway lines, internet access improvement
• GDP and Internet Access:
  • Comparison with other countries (e.g., Brazil, France, Iceland)
• Demographic Changes:
  • Slow population growth
  • Birth rate: 16.5
  • Death rate: 6.8
  • Net migration: 7.7
  • Expected: Shift to net immigration

Questions in Section A

1. (a) Calculate the number of people in poverty in Guyana 2020.
2. (b) Identify causes for the decrease in sugar output in 2020.
3. (c) Explain how economic growth is measured.
4. (d) Reasons for potential increase in labor mobility in Guyana.
5. (e) Demand and supply diagram for effects of rail transport price decrease on car transport market.
6. (f) Analyze GDP per head and internet access relationship.
7. (g) Discuss the impact of oil discovery on living standards in Guyana.
8. (h) Discuss benefits of population increase in Guyana.

Section B: Structured Questions

Question 2: Thai Bank Merger

• Merger effects on bank service prices and lending
• (a) Influences on customer bank choice
• (b) Reasons for price increases due to merger
• (c) Economic benefits of increased bank lending
• (d) Resource allocation in a market economy

Question 3: Canadian Private Sector Objectives

• Increase in land quality and quantity
• Government investment encouragement
• (a) Private sector firm objectives
• (b) Reasons for land quantity and quality changes
• (c) Investment impact on unemployment
• (d) Government role in unemployment prevention

Question 4: Australia’s National Minimum Wage

• Impact on dairy farms and small businesses
• (a) Reasons for government setting an NMW
• (b) Causes of foreign exchange rate increase
• (c) Milk price increase effects on revenue
• (d) Business viability: small vs. large firms

Question 5: China’s Economic Growth and Tariffs

• Economic growth rate and increased household spending
• Tariff impacts on exports
• (a) Opportunity cost in spending and exporting
• (b) Reasons for high earnings in top sportspeople
• (c) Reasons for imposing tariffs
• (d) Economic growth and current account deficit correlation

Additional Notes

• Coverage of diverse economic scenarios and their implications
• Examination of economic systems, resource allocation, and market dynamics
• Analysis of global economic events and their national impacts