A-LevelEconomicsExchange RatesOct/Nov 2011Paper 1 Q291 Mark

Other things being equal, what will happen if a British company raises the sterling price of goods it sells to Pakistan by the full extent of a depreciation of sterling against the rupee?

Q: What topic does this question test?

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

AThe demand for the company's goods will fall in Pakistan.

BThe company's earnings in Pakistan will remain constant in pounds sterling.

CThe company's earnings in Pakistan will remain constant in Pakistan rupees.

DThe profit margin on sales to Pakistan will decline.

✓ Correct Answer

The correct answer is C: The company's earnings in Pakistan will remain constant in Pakistan rupees.

📋 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.

🔒

Unlock the Examiner's Analysis

Join thousands of Cambridge students already using Oracle Prep

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 Oct/Nov 2011 examination, Paper 1 Variant 2.

Practice on Oracle Prep

Oracle Prep provides AI-powered practice for all Cambridge O-Level and A-Level subjects. Our platform includes topic predictions with 87.7% accuracy, AI essay grading, and a comprehensive question bank spanning 25 years of past papers across 29 subjects.