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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. 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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