Skip to main content
A-LevelEconomicsInternational Trade and Global EconomyFeb/Mar 2025Paper 1 Q281 Mark

A country experiences a rising trade deficit and a current account surplus at the same time. Which combination of events might explain this? Event 1 Event 2

Aglobal recession resulting in decreased prices of commodities Gross National Income (GNI) rises faster than Gross Domestic Product (GDP)
Bincreased subsidies for exporters increased donations received from abroad to combat a humanitarian crisis
Cremoval of restrictions on imports removal of restrictions on the remittance of profits of foreign-owned producers
Drising imports of machinery to help raise exports in the future increased secondary income from workers' remittances from abroad

✓ Correct Answer

The correct answer is D: rising imports of machinery to help raise exports in the future increased secondary income from workers' remittances from 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.

🔒

Unlock the Examiner's Analysis

Sign up for free to reveal the full examiner report, trap analysis, and mark scheme breakdown for this question.

Sign Up Free to Unlock →

Join thousands of Cambridge students already using Oracle Prep

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.

Practice on Oracle Prep

Oracle Prep provides AI-powered practice for all Cambridge O-Level and A-Level subjects. Our platform includes topic predictions with 87.7% accuracy, AI essay grading, and a comprehensive question bank spanning 25 years of past papers across 29 subjects.

Related Economics Questions

© 2026 Oracle Prep — The AI-Powered Cambridge Exam Engine