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?

Q: What topic does this question test?

This question tests Government Macroeconomic Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

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: decrease income tax and raise the value of the Chinese currency, the Yuan

📋 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 Government Macroeconomic Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2018 examination, Paper 1 Variant 2.

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