A-LevelEconomicsExchange RatesOct/Nov 2019Paper 3 Q281 Mark
A small island economy imports most of its raw materials and demand for its exports is price-elastic. What would be the most likely effect of an appreciation of its currency on its balance of payments on the current account and the rate of inflation? balance of payments rate of inflation on the current account A improves falls B improves rises C worsens falls D worsens rises
📋 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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