AJC_H1_ECONS_QP

1 READ THESE INSTRUCTIONS FIRST Write your name, PDG and index number in the spaces provided on all the work you hand in. Write in dark blue or black ink. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Answer all questions. Begin your answer to each question on a fresh sheet of writing paper. Fasten your answer to each question separately. Fasten this cover page in front of your answers to Question 1. The number of marks is given in brackets [ ] at the end of each question or part question. Name __________________________ ( ) PDG ______/16 This document consists of 8 printed pages and 1 blank page. [Turn over] Question Number Marks Awarded 1 / 30 2 / 30 3 / 4 / 25 Total Marks ANDERSON JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATION 2017 Higher 1 8819/01 ECONOMICS Paper 1 29 August 2017 3 hours Additional Materials: Answer paper

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3 Section A Answer all questions in this section. Question 1 Challenging times ahead Extract 1: UK economic growth has slowed dramatically, latest survey suggests Britain’s economy is losing momentum, knocked by weaker household spending and worries about the global outlook, according to the latest in a string of downbeat business surveys. Business a ctivity grew at the slowest pace for more than two years in Britain’s dominant services sector last month, according to the closely watched Markit CIPS PMI report . “Weakness is spreading from the struggling manufacturing sector, hitting transport and other industrial-related services in particular. There are also signs that consumers have become more cautious and are pulling back on their leisure spending, such as on restaurants an d hotels,” said Chris Williamson, chief economist at survey compilers Markit. “Wider business service sector confidence has meanwhile also been knocked by global economic worries and financial market jitters .” The pound weakened against the euro and the dollar after the report, whic h economists saw as providing further reason for the Bank of England to hold off raising interest rates from 0.5%. Source: The Guardian 5 October 2015 Table 1: Key Economic Indicators in 2015 Indicators UK China Singapore Nominal GDP growth (annual %) 2.2 6.9 1.9 Inflation rate 0.05 1.4 -0.5 Exports as a % of GDP 27.6% 21.9% 177.9% Imports as a % of GDP 29.2% 18.4% 152% Source: The World Bank Data Table 2: UK’s trade with selected countries in 2015 Countries UK’s exports to (£) (Rank) UK’s imports from (£) (Rank) United States 96.4bn (1st) 59.3bn (2nd) China 16.7bn (8th) 38.4bn (3rd) Japan 10.5bn (11th) 9.6bn (14th) Germany 48.5bn (2nd) 70.4bn (1st) Singapore 7.1bn (17th) 3.9bn (27th) Source: Office for National Statistics; www.visual.ons.gov.uk

4 Extract 2: China pledges policy support to economy, r