A-LevelEconomicsInternational Trade and FinanceFeb/Mar 2020Paper 1 Q281 Mark

A country with a fixed exchange rate and a deficit in the current account of its balance of payments enters a recession. It devalues its currency in an effort to correct its balance of payments. Under which conditions is the deficit most likely to improve?

Q: What is the correct answer to this A-Level Economics question?

The correct answer is D: 0.4, 0.8, 1.2.

Q: What topic does this question test?

This question tests International Trade and Finance in A-Level Economics (syllabus code 9708). It is worth 1 mark.

A0.3, 0.5, 0.8

B0.4, 0.8, 0.8

C0.3, 0.5, 1.2

D0.4, 0.8, 1.2

✓ Correct Answer

The correct answer is D: 0.4, 0.8, 1.2

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

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2020 examination, Paper 1 Variant 2.

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