A-LevelEconomicsBalance of PaymentsMay/June 2016Paper 1 Q221 Mark

In July 2013, orders for durable US manufactured goods from computers to aircraft fell 7.3%, the biggest fall for a year. What might explain this change in trade and how would it have affected the US balance of payments?

Q: What topic does this question test?

This question tests Balance of Payments in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Aan expansion in domestic production, increased outflow in the current account

Ban expansion in foreign markets, reduced inflow in the financial account

Crecession in domestic production, increased outflow in the financial account

Drecession in foreign markets, reduced inflow in the current account

✓ Correct Answer

The correct answer is D: recession in foreign markets, reduced inflow in the current account

📋 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 Balance of Payments in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2016 examination, Paper 1 Variant 2.

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