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O-LevelEconomicsInternational trade and globalisation2281/23 · Oct/Nov 2025 · Q420 Marks

The Central African country Chad has a triangle-shaped population pyramid and a high level of poverty. It regularly has an overall deficit on the current account of its balance of payments. Chad usually has a surplus on its secondary income. However, its trade in goods, trade in services and primary income are all usually in deficit. Some economists suggest that the Chadian Government should impose import quotas to reduce its trade in goods deficit.

  1. (a)Define primary income.[2]
  2. (b)Explain two influences on the shape of a country's population pyramid.[4]
  3. (c)Analyse the causes of poverty.[6]
  4. (d)Discuss whether or not imposing import quotas will reduce a trade in goods deficit.[8]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2025). The mark or mark type is shown in brackets.

  1. [1] Component of the current account of the balance of payments (1).
  2. [1] Example of an item: profit / interest / dividends / wages earned abroad (1).
  3. [1] birth rate / fertility rate (1) a high birth rate / fertility rate will result in a wide base for the pyramid (1)
  4. [1] life expectancy / death rate / aging population (1) high death rate / low life expectancy will result in a narrow top for the pyramid (1)
  5. [1] migration (1) high immigration of people of working age would result in a wide middle in the pyramid (1)
  6. [1] gender balance (1) example of imbalance in overall shape of pyramid (1).
  7. [1] Low quantity / quality of education (1) can reduce job opportunities (1) low skilled jobs (1) low paid jobs (1).
  8. [1] Unemployment (1) lower income (1) reliant on welfare benefits (1).
  9. [1] Illness / disability (1) poor healthcare (1) reduce ability to earn an income (1).
  10. [1] Old age (1) may have low or no state benefits (1) absolute poverty (1).
  11. [1] Uneven distribution of income / wealth (1) resulting in relative poverty (1).
  12. [1] Corruption (1) reducing tax revenue available to spend on reducing poverty (1).
  13. [1] Large families (1) many children (1) trapped in / child poverty (1).
  14. [1] Single parent families (1) parent unable to work (1) reliant on state benefits (1).
  15. [1] Poor housing (1) harms health (1) limited access to employment (1) high cost of living (1).
  16. [1] Natural disaster / conflict (1) causes loss of ability to work / earn income (1).
  17. [1] Geographical immobility (1) prevents access to paid jobs (1).
  18. [1] Work in agriculture (1) where wages are low / not regular income (1).
  19. [1] High inflation (1) cannot afford to buy basic necessities (1).
  20. [1] restrict imports
  21. [1] lower supply may drive up price
  22. [1] consumers and firms may switch to domestic goods
  23. [1] could reduce gap between import expenditure and export revenue.
  24. [1] consumers and firms may switch to domestic substitutes
  25. [1] could reduce gap between import expenditure and export revenue.
  26. [1] import quotas may be higher than demand
  27. [1] depends on the breadth of goods affected – fewer goods, less effective
  28. [1] may not be domestic substitutes
  29. [1] may be retaliation which could reduce export revenue
  30. [1] smuggling may occur
  31. [1] reduction in import spending may appreciate currency value, reducing exports.

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About this question

Topic
International trade and globalisation, O-Level Economics (syllabus 2281). Structured question, 20 marks.
Source
O-Level Economics, Oct/Nov 2025 Paper 2 Variant 3, question 4.

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