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A-LevelEconomicsInternational TradeOct/Nov 2009Paper 1 Q211 Mark

The table shows the balances for four items in a country's current account on the balance of payments for two years. [Table] What can be concluded about the changes between year 1 and year 2?

AThe current account balance has moved into deficit.
BThe difference between the value of exported and imported services has increased.
CThe earnings from ownership of foreign assets have increased.
DThe value of exported goods has fallen.

✓ Correct Answer

The correct answer is A: The current account balance has moved into deficit.

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

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2009 examination, Paper 1 Variant 2.

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