A-LevelEconomicsGovernment Macroeconomic InterventionMay/June 2018Paper 1 Q291 Mark
China had a US$155 billion current account surplus in 2012. Which combination of policies might the Chinese Government use to reduce the surplus?
Adecrease income tax and raise the value of the Chinese currency, the Yuan
Bincrease income tax and lower the value of the Chinese currency, the Yuan
Cincrease subsidies to Chinese firms and reduce income tax
Dincrease tariffs on imports and increase income tax
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of government macroeconomic intervention 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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