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A-LevelEconomicsInternational TradeMay/June 2014Paper 1 Q271 Mark

What would lead a country to move from a surplus to a deficit on the current account of the balance of payments?

Adepreciating exchange rate combined with a high rate of inflation and falling productivity
Bdepreciating exchange rate combined with a low rate of inflation and rising productivity
Can appreciating exchange rate combined with a high rate of inflation and falling productivity
Dan appreciating exchange rate combined with a low rate of inflation and rising productivity

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of international trade 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) May/June 2014 examination, Paper 1 Variant 2. It tests the topic of International Trade and is worth 1 mark.

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