A-LevelEconomicsBusiness CyclesMay/June 2021Paper 1 Q261 Mark

Between 2011 and 2013, retailers reported that expenditure on domestically-produced and imported goods had reduced. This was because consumers did not take out loans as the economy was in a recession. What is the likely result of this?

Q: What topic does this question test?

This question tests Business Cycles in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Adecline in the deficit in the trade account

Bdecline in the level of savings

Cdecline in the terms of trade

Ddecline in unemployment

✓ Correct Answer

The correct answer is A: decline in the deficit in the trade account

📋 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 Business Cycles in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2021 examination, Paper 1 Variant 2.

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