Edexcel A-Level Economics A2 4.3.5 4a Governments Use Fiscal Policy Monetary Policy Exchange Policies Rate Policy Topic Practice

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Pearson Edexcel IAL Economics

Unit 3: Business Behaviour

3.3.1 - Types and sizes of businesses

3.3.2 - Revenue, costs and profits

3.3.3 - Market structures and contestability

3.3.4 - Labour markets

3.3.5 - Government intervention

Unit 4: Developments in the Global Economy

4.3.1 - Causes and effects of globalisation

4.3.2 - Trade and the global economy

4.3.3 - Balance of payments, exchange rates and international competitiveness

4.3.4 - Poverty and inequality

4.3.5 - The role of the state in the macroeconomy

4.3.5.1a - distinction between capital expenditure, current expenditure and transfer payments

4.3.5.1b - Reasons for the changing size and pattern of public expenditure in an international

4.3.5.1c - significance of differing levels of public expenditure as a proportion of GDP on: •

4.3.5.2a - distinction between, and examples of, direct and indirect taxes

4.3.5.2b - distinction between progressive, proportional and regressive taxes

4.3.5.2c - economic effects of changes in direct and indirect tax rates on: • incentives to work •

4.3.5.3a - distinction between: borrowing and • fiscal deficits and fiscal surpluses public sector

4.3.5.3b - Factors influencing the size of fiscal deficits and national debts

4.3.5.3c - significance of the size of fiscal deficits and national debts: • impact on interest

4.3.5.4a - governments use fiscal policy, monetary policy, exchange- policies rate policy,

4.3.5.4b - Use of demand-side policies in response to the global financial crisis of 2008

4.3.5.4c - Measures to control TNCs: • to reduce tax avoidance • the regulation of transfer

4.3.5.4d - impact of policy changes on: • local economies • national economies • the global economy

4.3.5.4e - Problems facing policymakers when applying policies: • inaccurate information • risks

4.3.6 - Growth and development in developing, emerging and developed economies

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