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A-LevelEconomicsExchange RatesFeb/Mar 2018Paper 1 Q241 Mark

Turkey can produce a good but also imports some of the good from Egypt. The Turkish currency depreciates against the Egyptian currency. How is this most likely to affect production of this good in Egypt and in Turkey?

Aproduction in Egypt: decrease, production in Turkey: decrease
Bproduction in Egypt: decrease, production in Turkey: increase
Cproduction in Egypt: increase, production in Turkey: decrease
Dproduction in Egypt: increase, production in Turkey: increase

✓ Correct Answer

The correct answer is B: production in Egypt: decrease, production in Turkey: increase

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

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2018 examination, Paper 1 Variant 2.

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