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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?

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. This question tests the candidate's understanding of international trade and global economy within the Economicssyllabus. The examiner's mark scheme requires...

📋 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...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Feb/Mar 2025 examination, Paper 1 Variant 2. It tests the topic of International Trade and Global Economy and is worth 1 mark.

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