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A-LevelEconomicsMacroeconomic PoliciesOct/Nov 2015Paper 1 Q301 Mark

In a time of recession, a government decided to sell a loss-making state-owned industry to a foreign private company. What is the most likely immediate result?

Aan improvement in the financial account of the balance of payments
Ban improvement in the level of unemployment
Can improvement in the rate of inflation
Dan improvement in the trade account of the balance of payments

✓ Correct Answer

The correct answer is A: an improvement in the financial account of the balance of payments

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

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2015 examination, Paper 1 Variant 2.

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