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?
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. This question tests the candidate's understanding of balance of payments within the Economicssyllabus. The examiner's mark scheme requires...
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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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