A-LevelEconomicsInternational Trade and Global EconomyFeb/Mar 2025Paper 1 Q201 Mark

High economic growth is often accompanied by a worsening of the current account of the balance of payments. Which reason for this trend is not valid?

Q: What topic does this question test?

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

AEconomic growth raises domestic consumption, leaving very little to sell to overseas consumers.

BEconomic growth raises domestic output, leading to lower prices and more price-competitive goods both at home and abroad.

CEconomic growth raises incomes and leads to rising demand for foreign goods.

DEconomic growth results in rising requirements of inputs from other countries.

✓ Correct Answer

The correct answer is B: Economic growth raises domestic output, leading to lower prices and more price-competitive goods both at home and abroad.

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

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2025 examination, Paper 1 Variant 2.

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