A-LevelEconomicsNational Income and Economic GrowthFeb/Mar 2023Paper 1 Q181 Mark

Which statement about the circular flow of income is correct?

Q: What topic does this question test?

This question tests National Income and Economic Growth in A-Level Economics (syllabus code 9708). It is worth 1 mark.

AExports and imports do not affect the equilibrium level of national income because they always cancel each other out.

BThe greater the level of saving, the greater the level of injections in the form of investment must be.

CWhen consumers use past savings to increase their spending, there will be a rise in national income.

DWhen a government increases withdrawals by increasing the rate of income tax, there must be an equivalent increase in injections to compensate.

✓ Correct Answer

The correct answer is C: When consumers use past savings to increase their spending, there will be a rise in national income.

📋 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 National Income and Economic Growth in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2023 examination, Paper 1 Variant 2.

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