A-LevelEconomicsInternational Trade and Global EconomyMay/June 2022Paper 1 Q241 Mark
The table gives different combinations of possible values for a country's price elasticity of demand for exports and price elasticity of demand for its imports. Following the devaluation of the country's currency, under which combination of elasticities would the country's balance of payments on the current account worsen?
Aprice elasticity of demand for exports: 0.3, price elasticity of demand for imports: 0.3
Bprice elasticity of demand for exports: 0.2, price elasticity of demand for imports: 0.9
Cprice elasticity of demand for exports: 0.6, price elasticity of demand for imports: 0.5
Dprice elasticity of demand for exports: 1.2, price elasticity of demand for imports: 1.2
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of international trade and global economy 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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