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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: the balancing item: included, foreign direct investment: included, interest, profits and dividends: not included

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests International Trade / Balance of Payments in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2020 examination, Paper 1 Variant 2.

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