A-LevelEconomicsBalance of PaymentsFeb/Mar 2024Paper 1 Q301 Mark

What is not a likely cause of a deficit in the current account of the balance of payments?

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

The correct answer is A: Consumer spending is low..

Q: What topic does this question test?

This question tests Balance of Payments in A-Level Economics (syllabus code 9708). It is worth 1 mark.

AConsumer spending is low.

BPrimary incomes in the form of investment income are low.

CThe rate of exchange is high.

DWage costs of production are high.

✓ Correct Answer

The correct answer is A: Consumer spending is low.

📋 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 Balance of Payments in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2024 examination, Paper 1 Variant 2.

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