WJEC A Level Economics
WJEC A Level Economics Non-UK Economies: The European Union Exam Questions
Free WJEC A Level Economics revision for Non-UK Economies: The European Union: what you need to know, common mistakes and exam-style questions with answers. Covers EU membership and expansion, economic and monetary union, the European Central Bank and optimal currency area criteria.
Practise Non-UK Economies: The European Union with past papers
Once you have learnt this topic, find the Non-UK Economies: The European Union questions in real WJEC A Level Economics past papers and mark them with the mark scheme. Doing lots of real questions is the quickest way to learn how examiners ask about each idea.
About WJEC A Level Economics Non-UK Economies: The European Union
The European Union is the named non-UK economy in the A2 Trade and Development content of WJEC Economics. You need to analyse and evaluate the advantages and disadvantages of EU membership for current and prospective members, and whether continued expansion benefits existing and new members. You also study economic and monetary union (EMU): its structure, the role of the European Central Bank, and the benefits and drawbacks of the single currency, assessed against optimal currency area criteria. Good answers use evidence from member states, such as the eurozone debt crisis and the experience of countries that joined in later enlargements. It is examined in A2 Units 3 and 4.
What you need to know
- Single market and customs union The EU has free movement of goods, services, capital and labour between members and a common external tariff on imports from outside.
- Advantages of membership Access to a large tariff free market, economies of scale, inward investment, greater competition, labour mobility and structural funds for poorer regions.
- Disadvantages of membership Budget contributions, loss of control over trade policy and some regulation, trade diversion to higher cost EU producers and possible pressure on public services and wages from migration.
- Expansion New members gain market access, investment and funding; existing members gain new markets and workers. Concerns include migration from lower wage members, competition for funding and difficulties reaching agreement.
- EMU and the ECB Eurozone members share a single currency and a single monetary policy set by the European Central Bank, which targets price stability. Fiscal policy stays national but is subject to EU rules on deficits and debt.
- Optimal currency area Criteria include synchronised business cycles, labour mobility, wage and price flexibility and fiscal transfers. Where these are weak, a single interest rate and exchange rate can suit some members while harming others.
Common mistakes in Non-UK Economies: The European Union
- Using EU and eurozone as if they are the same. Some EU members keep their own currencies.
- Listing advantages of the euro without its main cost. Members lose independent monetary policy and the ability to devalue.
- Ignoring trade creation and trade diversion. Membership can create trade with efficient partners but divert it from cheaper non-members.
- Making unsupported claims about individual countries. Use well known examples such as the eurozone debt crisis in Greece.
Try three Non-UK Economies: The European Union exam-style questions
1. Explain what is meant by a common external tariff. (2 marks)
Show the mark scheme answer
A tariff set at the same rate by all members of a customs union; on imports from countries outside the union.
2. Explain why one monetary policy may not suit all eurozone members. (4 marks)
Show the mark scheme answer
The ECB sets one interest rate for the whole eurozone; members may be at different points in the economic cycle; a rate suitable for a booming economy may be too high for one in recession; members cannot devalue to regain competitiveness.
3. Evaluate whether further expansion of the EU would benefit existing members. (15 marks)
Show the mark scheme answer
A strong answer would analyse a larger single market, economies of scale, new sources of labour and investment opportunities; evaluate migration pressures, competition for structural funds, harder decision making and the risk of including economies that do not meet convergence criteria; reach a judgement that depends on how prepared new members are.
Non-UK Economies: The European Union FAQs
What does WJEC A Level Economics Non-UK Economies: The European Union cover?
It covers the advantages and disadvantages of EU membership and expansion, economic and monetary union, the role of the European Central Bank and assessing the eurozone against optimal currency area criteria.
Which unit is the European Union examined in?
It is A2 content, so it is examined in A2 Unit 3 (Exploring Economic Behaviour) and A2 Unit 4 (Evaluating Economic Models and Policies).
How do I evaluate the euro?
Weigh lower transaction costs, price transparency and no exchange rate risk against the loss of independent monetary and exchange rate policy, then judge using optimal currency area criteria and evidence such as the eurozone debt crisis.
