A-LevelEconomicsInternational TradeOct/Nov 2013Paper 1 Q221 Mark
In Australia in 2005 a shipload of exported iron ore paid for 2200 imported flatscreen TVs. In 2010 the same size shipload paid for 22 000 imported flatscreen TVs. Which combination of price changes is certain to cause this change in the terms of trade of Australia? [Table 22.1]
Adecrease, decrease
Bdecrease, increase
Cincrease, decrease
Dincrease, increase
✓ Correct Answer
The correct answer is C: increase, decrease
📋 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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