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A-LevelEconomicsInternational Trade / Balance of PaymentsMay/June 2020Paper 1 Q211 Mark

Which components are included in the financial account of the balance of payments? the balancing item | foreign direct investment | interest, profits and dividends | key ---|---|---|--- A ✓ | ✓ | X | ✓ = included B ✓ | X | X | X = not included C X | ✓ | ✓ | D X | X | X |

Athe balancing item: included, foreign direct investment: included, interest, profits and dividends: not included
Bthe balancing item: included, foreign direct investment: not included, interest, profits and dividends: not included
Cthe balancing item: not included, foreign direct investment: included, interest, profits and dividends: included
Dthe balancing item: not included, foreign direct investment: not included, interest, profits and dividends: not included

✓ Correct Answer

The correct answer is A. This question tests the candidate's understanding of international trade / balance of payments within the Economicssyllabus. The examiner's mark scheme requires...

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) May/June 2020 examination, Paper 1 Variant 2. It tests the topic of International Trade / Balance of Payments and is worth 1 mark.

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