International economic issues — AS & A Level Economics (9708) questions by topic
Balance of payments, protectionism, exchange rates and terms of trade define this topic, examined across 158 questions from 2023 to 2025 papers with marks running from 1 to 20.
Identify and deduce carry the multiple-choice and table-reading items, while assess and evaluate ask you to weigh protectionist tools against free trade or judge which exchange-rate policy best suits a described economy, always applied to the context given rather than described generically. Drafting a full evaluate response and marking it instantly exposes whether you have distinguished terms of trade from the balance of trade, a confusion the reports flag as a zero-mark trap.
What examiners look for
- A recurring criticism is confusing terms of trade with the rules of trade or the balance of trade, so the vast majority of such answers gained 0 marks for both parts.
- Examiners repeatedly note protectionism defined only as 'protecting domestic businesses', or reduced to a list of tools, without explaining how a specific method supports domestic production.
- Reports flag standard advantages-and-disadvantages discussions of free trade versus protectionism poorly applied to the developing-economy context named in the question.
- Strong answers define protectionism as government intervention that raises the price competitiveness of domestic businesses, then judge a named tool such as tariffs against that definition.
- Strong responses evaluate with reference to timescale, contrasting protectionism as a short-term measure against a longer-term move towards free trade.
May–June 2025, Paper 11
Why does the value of a country's terms of trade have no monetary units? A It cannot be calculated accurately enough. B It includes more than one currency. C It is a ratio of two…
Answer this question and get it marked →Which statement correctly describes a tariff? A It is a complete ban on imports. B It is a minimum price for domestic producers. C It is a payment to exporters. D It is a tax…
Answer this question and get it marked →A country has a persistent deficit on the current account of its balance of payments. What is most likely to improve the situation in the long run? A a lowering of the level of…
Answer this question and get it marked →Primary income and secondary income are components of the current account of the balance of payments. Which option correctly identifies an example of primary income and secondary…
Answer this question and get it marked →The table shows the change in the value of UK sterling over a three-month period. June Sept --- --- --- £1 = $1.38 £1 = $1.32 What is likely to be the short-term impact of the…
Answer this question and get it marked →May–June 2025, Paper 12
Which statement is not a valid reason why a country may impose protectionist measures? A to allow a newly developed domestic industry to grow to a viable size B to enable a…
Answer this question and get it marked →What is most likely to lead to a persistent surplus in a country's current account of its balance of payments? A a low domestic savings rate B an undervalued exchange rate C…
Answer this question and get it marked →Which formula is used to calculate the terms of trade? A the average price of exports divided by the average price of imports B the average price of imports divided by the average…
Answer this question and get it marked →A country is experiencing a deficit on the current account of its balance of payments. Which policy decision could reduce the deficit? A decrease in income tax rates B increase in…
Answer this question and get it marked →The Euro (EUR) is the main currency of the European Union. The diagram shows the exchange rate between the Euro and the US dollar. The supply of Euros increases from S1 to S2, so…
Answer this question and get it marked →May–June 2025, Paper 13
Which argument in favour of protectionism is not generally regarded as economically valid? A Once the protected industry becomes established, it will produce efficiently. B It…
Answer this question and get it marked →A country has a deficit on the current account of the balance of payments. What would be expected to increase the deficit? A an appreciation of the exchange rate B an increase in…
Answer this question and get it marked →A government increases the import quota of cars. What is the likely effect of this? A jobs will be created in the domestic car industry B prices of cars will fall for domestic…
Answer this question and get it marked →The table gives the terms of trade index for a country over three years. year 1 year 2 year 3 --- --- --- --- terms of trade 100 105 112 What is the most likely impact of this…
Answer this question and get it marked →Country X and country Y use the same amount of resources to produce mobile phones and televisions. The table shows how much of each product can be produced if all resources are…
Answer this question and get it marked →May–June 2025, Paper 22
With the help of a diagram, explain two ways in which a fall in the balance of trade in goods may affect the value of a floating exchange rate and consider the extent to which a…
Answer this question and get it marked →May–June 2025, Paper 23
The terms of trade index for an economy changed from 105 to 110 in a given year. Explain two likely reasons for this change and consider the extent to which the change is likely…
Answer this question and get it marked →May–June 2025, Paper 24
With the help of a formula, explain the causes of an improvement in the terms of trade in an economy and consider whether such an improvement can ever be harmful to an economy.
Answer this question and get it marked →May–June 2025, Paper 31
An economy imports a large proportion of its raw materials. Its exchange rate depreciates. What is the impact on the external and internal value of money? external value of money…
Answer this question and get it marked →A country's government imposes a tariff on steel imports. What is the likely impact of this tariff on this country's economy? A It will make this country's steel exports more…
Answer this question and get it marked →The diagram shows the impact of a revaluation of a country's exchange rate on the current account of the balance of payments. [Diagram: axes are 'current account of the balance of…
Answer this question and get it marked →What is not a function of the International Monetary Fund (IMF)? A to encourage exchange rate stability B to provide financial assistance for a country with failed economic…
Answer this question and get it marked →The diagram shows the effect of trade creation if a tariff is removed. [Diagram: axes are 'price' (vertical) and 'quantity' (horizontal). An upward-sloping domestic supply curve…
Answer this question and get it marked →May–June 2025, Paper 32
The value of the currency of an open economy with a fixed exchange rate is significantly below its purchasing power parity value. If the economy decides to adopt a floating…
Answer this question and get it marked →Which policy will help to correct a deficit on the current account of the balance of payments? A decreasing direct taxes B decreasing government regulations C increasing exchange…
Answer this question and get it marked →The following are four conditions sometimes attached to IMF loans to low-income countries. Which condition would conflict with the 'infant industry' argument? A the need to allow…
Answer this question and get it marked →Countries X and Y form a customs union which leads to a removal of tariffs between the countries. The diagram shows the effect on the market for wheat in country X. [Diagram:…
Answer this question and get it marked →May–June 2025, Paper 33
An economy imports a large proportion of its raw materials. Its exchange rate depreciates. What is the impact on the external and internal value of money? external value of money…
Answer this question and get it marked →A country's government imposes a tariff on steel imports. What is the likely impact of this tariff on this country's economy? A It will make this country's steel exports more…
Answer this question and get it marked →The diagram shows the impact of a revaluation of a country's exchange rate on the current account of the balance of payments. [Diagram: axes of 'current account of the balance of…
Answer this question and get it marked →What is not a function of the International Monetary Fund (IMF)? A to encourage exchange rate stability B to provide financial assistance for a country with failed economic…
Answer this question and get it marked →The diagram shows the effect of trade creation if a tariff is removed. [Diagram: axes of 'price' (vertical) and 'quantity' (horizontal). An upward-sloping domestic supply curve…
Answer this question and get it marked →May–June 2025, Paper 34
What will increase the power of a trade union, allowing it to increase wages without reducing the employment of its members in a particular industry? A The economy is experiencing…
Answer this question and get it marked →When will a balance of payments deficit create the most demand-pull inflationary pressure in an economy with a floating exchange rate? price elasticity of demand for exports…
Answer this question and get it marked →The diagram shows the international trading position of a country that had tariffs on imports. The country removed the tariffs on imports. [Diagram: axes labelled 'price $'…
Answer this question and get it marked →What would be the most effective long-term solution to a persistent deficit on the current account of the balance of payments? A to increase borrowing from foreign financial…
Answer this question and get it marked →A country has a deficit on the current account of the balance of payments. The government can try to reduce this deficit by using either an expenditure-switching policy or an…
Answer this question and get it marked →The table gives the values for an economy's short-run and long-run elasticities of demand for exports and imports. In which circumstance does depreciation lead to a J curve where…
Answer this question and get it marked →How would a depreciation of the currency of a low-income economy be most likely to affect its macroeconomic policy objectives? increasing the rate of growth reducing the current…
Answer this question and get it marked →May–June 2025, Paper 41
A free trade area gains all the benefits associated with being a member of a customs union while avoiding all the costs associated with being a member of a customs union. Evaluate…
Answer this question and get it marked →May–June 2025, Paper 42
Globalisation will have an equally beneficial effect on the standard of living in both high-income and low-income countries. Evaluate this statement. [20]
Answer this question and get it marked →May–June 2025, Paper 43
A free trade area gains all the benefits associated with being a member of a customs union while avoiding all the costs associated with being a member of a customs union. Evaluate…
Answer this question and get it marked →May–June 2024, Paper 11
What is a disadvantage of operating a floating exchange rate system? A It makes it difficult to prioritise domestic economic policy aims. B It makes the prices of internationally…
Answer this question and get it marked →What is not an example of protectionism? A export subsidies B import subsidies C quotas D tariffs
Answer this question and get it marked →Countries X and Y both produce goods M and N. They decide to specialise and trade freely in the goods. Under which conditions are the gains from specialisation and free trade…
Answer this question and get it marked →The terms of trade for a country increased from 100 to 120. Which statements are correct? 1 The terms of trade have deteriorated. 2 Fewer exports are needed to buy the same…
Answer this question and get it marked →The table shows the number of Turkish lira (TRY) which can be exchanged for one US dollar (USD) in 2016 and 2021. date exchange rate --- --- July 2016 1 USD = 2.83 TRY July 2021 1…
Answer this question and get it marked →The table shows the current account of a balance of payments for January 2021. $m --- --- exports of goods 15 000 imports of goods 17 000 services credit 2 500 services debit 2…
Answer this question and get it marked →Which policy would not be an argument for the use of import tariffs? A They are an effective way of raising revenue. B They improve the balance of payments on a current account. C…
Answer this question and get it marked →May–June 2024, Paper 12
What would be the best policy for a country to reduce a balance of payments deficit? A an increase in interest rates B an increase in the exchange rate C a reduction in direct…
Answer this question and get it marked →A government wants to protect its textile industry from imports. Which policy is likely to have the least impact on the import of textiles? A a ban on the import of textiles B a…
Answer this question and get it marked →A major European economy announced that the primary income account deficit of its balance of payments changed from $20 billion to $50 billion. What would have contributed to this…
Answer this question and get it marked →The diagram shows the amounts of cotton and butter that can be produced in countries X and Y with a given quantity of resources. [Diagram: 'units of cotton' on the vertical axis…
Answer this question and get it marked →What is indicated by an economy's terms of trade? A the degree of its dependence on imports B the international competitiveness of its exports C the purchasing power of its…
Answer this question and get it marked →What will cause an increase in the demand for the US dollar($)? A dividends paid from US firms to foreign shareholders B foreign firms buying US firms C foreigners who live in the…
Answer this question and get it marked →What is not included in the current account of the balance of payments? A international aid B trade in goods C trade in services D foreign direct investment
Answer this question and get it marked →May–June 2024, Paper 13
The demand for a country’s exports is price elastic. If it is experiencing a deficit on the current account of its balance of payments, which combination of policies is most…
Answer this question and get it marked →What is an unintended consequence of the US government restricting imports of cheap Chinese steel? A US importers of steel pay lower prices for steel. B US manufacturers become…
Answer this question and get it marked →What is an export of services in Jamaica’s current account? A an inflow of funds to Jamaica to buy shares B earnings from US tourists visiting Jamaica C earnings of Haitian…
Answer this question and get it marked →A country imports natural gas for which it has price-inelastic demand. What is the effect if that country imposes an import duty on the gas? A Consumers in the importing country…
Answer this question and get it marked →The table shows the output of goods X and Y in China and the United States (US) before specialisation. good X good Y --- --- --- China 20 000 70 000 US 20 000 50 000 total 40 000…
Answer this question and get it marked →Economists suggest that multilateral trade between many countries is preferable to bilateral trade between two countries. Why is this? A Bilateral trade means that trade diversion…
Answer this question and get it marked →A country experiences an improvement in its terms of trade. What is the most likely cause? A a decrease in its budget deficit B a relatively low rate of domestic inflation C a…
Answer this question and get it marked →May–June 2024, Paper 21
Using Table 1.1: Identify the overall trend in Sri Lanka's balance of trade in goods and services between January 2022 and January 2023.
Answer this question and get it marked →May–June 2024, Paper 22
Explain what is meant by protectionism and consider the effectiveness of using tariffs as a method of protectionism.
Answer this question and get it marked →May–June 2024, Paper 23
Explain two possible causes of a change in the terms of trade in an economy and consider which of these causes is likely to be more important for low-income countries.
Answer this question and get it marked →May–June 2024, Paper 31
What is not a threat to globalisation? A rising fear of losing jobs to immigrant workers B rising political tensions among major economies of the world C stronger trade unions in…
Answer this question and get it marked →What is not an example of an expenditure-reducing policy? A a decrease in government spending B a depreciation of the exchange rate C an increase in direct taxes D an increase in…
Answer this question and get it marked →What does the J-curve effect show? A A successful currency depreciation requires the sum of the import and export elasticities of demand to be greater than 1. B After a currency…
Answer this question and get it marked →What is the most likely consequence of an increase in the number of multinational companies? A a decrease in advancements in technology B a decrease in foreign direct investment C…
Answer this question and get it marked →What will increase the size of a country's optimum population? A a rise in the birth rate B a lowering of the age of retirement C a rise in the stock of capital available in the…
Answer this question and get it marked →May–June 2024, Paper 32
The inflation rate in a country increased. Which effect would this most likely have on the country’s balance of payments? A an improvement in the current account balance B an…
Answer this question and get it marked →A measure encourages consumers to change spending on imports to spending on domestically produced goods. What does this describe? A an expenditure-reducing policy B an…
Answer this question and get it marked →The macroeconomic objective of a government is to move the current account of the balance of payments from deficit to surplus. To achieve this, it devalues the currency. Under…
Answer this question and get it marked →A multinational company (MNC) buys a manufacturing firm in a developing country that produces goods for the developing country’s domestic consumers. The MNC then exports machinery…
Answer this question and get it marked →May–June 2024, Paper 33
What is not a threat to globalisation? A rising fear of losing jobs to immigrant workers B rising political tensions among major economies of the world C stronger trade unions in…
Answer this question and get it marked →What does the J-curve effect show? A A successful currency depreciation requires the sum of the import and export elasticities of demand to be greater than 1. B After a currency…
Answer this question and get it marked →What is the most likely consequence of an increase in the number of multinational companies? A a decrease in advancements in technology B a decrease in foreign direct investment C…
Answer this question and get it marked →May–June 2024, Paper 42
Evaluate the likely impact of globalisation on a low-income country's standard of living. [20]
Answer this question and get it marked →October–November 2024, Paper 11
The table shows the trade in goods and services for an economy between 2019 and 2021. year trade in goods and services ($ millions) --- --- 2019 −1000 2020 −3000 2021 −4000 What…
Answer this question and get it marked →A government subsidises training to improve the skills of workers in the industrial sector of an economy. What is the most likely effect on the current account of the balance of…
Answer this question and get it marked →Using all their resources efficiently, country X can produce 6 million tonnes of wheat or 2 million tonnes of steel whilst country Y can produce 4 million tonnes of wheat or 1…
Answer this question and get it marked →Countries X and Y are trade partners. An increase in which economic indicator in country Y is most likely to cause a fall in the exchange rate of country X? A economic growth B…
Answer this question and get it marked →Which transaction is not recorded in the current account? A aid received from the government of another country B exports of raw materials C investments by a foreign company D…
Answer this question and get it marked →A government decides to place a tariff on imports of raw materials. Which statement about the impact of the tariff is correct? A It will increase costs of production for domestic…
Answer this question and get it marked →In which situation will a country's terms of trade improve? A Its imports rise in value less than its exports. B Its imports rise in volume less than its exports. C The price of…
Answer this question and get it marked →October–November 2024, Paper 12
Which circumstances would most help a firm to gain from a depreciation of the exchange rate? A It sells mainly abroad and relies on domestic suppliers for inputs. B It sells…
Answer this question and get it marked →A country has a floating exchange rate. Its current account on the balance of payments moves from a surplus to a deficit. Which rate is likely to increase in the short run as a…
Answer this question and get it marked →Which policy is most likely to reduce a balance of payments deficit without causing inflation? A decreased import quotas B depreciation of currency C higher interest rates D…
Answer this question and get it marked →The table shows the average price of exports and imports. Which combination of changes in export prices and import prices could result in a country’s terms of trade increasing…
Answer this question and get it marked →What is not an example of protectionism? A the European Union (EU) requiring goods imported into member states to meet safety standards B the Pakistan government increasing the…
Answer this question and get it marked →Turkey imported $220 million worth of goods and services. Turkey exported $12 million worth of goods and services during the same period. Its net income was −$15 million. What is…
Answer this question and get it marked →The table shows the exchange rate for national currencies per US dollar. Which currency has the smallest percentage appreciation against the US dollar between 2019 and 2020? 2019…
Answer this question and get it marked →October–November 2024, Paper 13
A country subsidises domestic production of manufactured goods. What is the most likely outcome? A a rise in economic growth B a rise in imports of manufactured goods C a rise in…
Answer this question and get it marked →What is not a valid explanation of why a government might allow a deficit on the balance of payments current account to continue? A The balance of payments account must always…
Answer this question and get it marked →A country currently producing at point X on its production possibility curve decides to specialise in the manufacture of cars and import trucks. It finds it can import one truck…
Answer this question and get it marked →What is most likely to cause a current account deficit? A a recession in the domestic economy B a relatively high rate of inflation C an undervalued exchange rate D high labour…
Answer this question and get it marked →Two statements describing forms of protectionism a government can use are listed. 1 There is a total ban on imports. 2 All imported goods have to be of a specified standard. Which…
Answer this question and get it marked →When is there an improvement in a country's terms of trade? A when the price of exports falls more than the price of imports B when there is no change in the price of exports but…
Answer this question and get it marked →What is likely to happen if there is a rise in the international value of a country's currency? A a fall in the foreign currency price of its exports B a fall in the volume of its…
Answer this question and get it marked →October–November 2024, Paper 21
Explain the potential advantages of free trade and consider whether such advantages are always greater than the potential disadvantages of free trade.
Answer this question and get it marked →October–November 2024, Paper 23
Explain two methods of protection in international trade and consider which of these is likely to have the bigger impact on employment and output in the economy which imposes them.
Answer this question and get it marked →October–November 2024, Paper 31
Which policy to reduce a current account deficit on the balance of payments could be described as an expenditure-switching policy? A a decrease in government spending B a decrease…
Answer this question and get it marked →Which components are included in the financial account of the balance of payments? foreign direct investment interest, profits and dividends --- --- --- A ✓ ✗ B ✗ ✗ C ✓ ✓ D ✗ ✓…
Answer this question and get it marked →Globalisation means that goods and services, capital and labour are traded on a worldwide basis. Which combination illustrates that each trade partner can benefit when a…
Answer this question and get it marked →October–November 2024, Paper 32
In 2018, the United States (US) government introduced tariffs on a wide range of imports from China. Which type of policy was the US government adopting? A expenditure-reducing B…
Answer this question and get it marked →A US company receives a US$20 million dividend from shares that it owns in a Brazilian company. How would this dividend be shown in the balance of payments of the United States? A…
Answer this question and get it marked →An increase or decrease in exchange rates can take place in both a floating and a fixed exchange rate system but different terminology is used for each system. What is the correct…
Answer this question and get it marked →Company X is a multinational company that produces batteries for electric cars. It decides to invest in a new factory in country N. Under which conditions is this investment most…
Answer this question and get it marked →What is a likely result of globalisation? A Absolute advantage replaces comparative advantage as the basis for trade. B Firms’ supply chains are shortened. C Trade is less likely…
Answer this question and get it marked →October–November 2024, Paper 41
In recent years many countries have joined or established a free trade area (FTA). Evaluate, with the help of a diagram(s), whether membership of an FTA is always beneficial to a…
Answer this question and get it marked →October–November 2024, Paper 42
Between 2010 and 2020, very low interest rates encouraged low-income countries to borrow money from foreign investors and governments to finance long-term economic growth.…
Answer this question and get it marked →October–November 2024, Paper 43
Some high-income countries have introduced a policy of high tariffs on some imports to reduce the negative effects of globalisation on their economies. With the help of a diagram,…
Answer this question and get it marked →May–June 2023, Paper 11
Which statement correctly describes absolute advantage? A It is when a country has a higher opportunity cost in producing a good than another country. B It is when a country has a…
Answer this question and get it marked →The diagram shows production possibility curves for two countries, India and Japan. [Diagram: the vertical axis is 'rice' (with values 0, 500 and 600 marked) and the horizontal…
Answer this question and get it marked →A country's currency has depreciated against all the currencies of its main trading partners. How will the depreciation affect its terms of trade? A The terms of trade will…
Answer this question and get it marked →A country with a floating exchange rate experiences a large surplus on the current account of its balance of payments. What is likely to decrease as a consequence? A the exports…
Answer this question and get it marked →Which measure is aimed directly at promoting international trade? A decreasing existing quotas B increasing interest rates C subsidies paid to export industries D wage subsidy…
Answer this question and get it marked →A country experiences a fall in the value of exports and an increase in the value of imports of goods and services. What are the effects of these changes? aggregate demand balance…
Answer this question and get it marked →May–June 2023, Paper 12
The table contains some figures from the balance of payments account of the United States (US) for a given year. item US$ million --- --- exports of goods 1 632 639 balance of…
Answer this question and get it marked →Which combination of policies would be most effective in reducing a balance of payments current account surplus? a decrease in tariffs on imports a devaluation of the exchange…
Answer this question and get it marked →What will definitely change a country's terms of trade? 1 when the price of imported raw materials increases 2 a change in inflation rates 3 an appreciation of the exchange rate A…
Answer this question and get it marked →A government wishes to reduce the deficit on the secondary income section of its current account. Which policy would be most effective? A an increase in subsidies to exporters B…
Answer this question and get it marked →May–June 2023, Paper 13
A Bangladeshi citizen is employed as a construction worker in Qatar. He sends some of his wages to his family in Bangladesh. How will this be recorded on Qatar's balance of…
Answer this question and get it marked →Which policy is most likely to help to correct an adverse balance on the current account of the balance of payments? A abolishing tariffs B depreciating the currency C reducing…
Answer this question and get it marked →The table shows the relative price of exports compared with imports expressed as an index number for an economy (2013 = 100). date index --- --- 2013 100 2014 97 2015 95 Which…
Answer this question and get it marked →A country had a current account surplus of $141bn. Which policy may its government implement to reduce this surplus in the short run? A a decrease in direct taxes B a decrease in…
Answer this question and get it marked →The diagram shows that the imposition of a tariff raises a product's world price from $10 to $14. [Diagram: 'price $' on the vertical axis and 'quantity (millions)' on the…
Answer this question and get it marked →May–June 2023, Paper 21
With the help of a diagram(s), explain the likely causes of a depreciation of a floating exchange rate and consider whether such a depreciation is always beneficial to an economy.
Answer this question and get it marked →May–June 2023, Paper 22
Two countries each produce two products and wish to trade with each other. Explain the difference between the principles of absolute advantage and comparative advantage and…
Answer this question and get it marked →May–June 2023, Paper 31
A country is a net importer of oil. World oil prices have risen over the year. Assuming that all other factors remain the same, how is this likely to affect inflation, trade…
Answer this question and get it marked →A multinational company (MNC) shifts its manufacturing capacity to a developing country. What is likely to be the short-run effect of this in the developing country? employment…
Answer this question and get it marked →The table shows some United Nations population statistics for 2010 and estimates for 2050. type of region total population (m) 2010 total population (m) 2050 urban population (m)…
Answer this question and get it marked →May–June 2023, Paper 32
An economy imports most of the factors of production used in the manufacture of its exported goods. What effect would depreciation of this economy’s rate of exchange have? price…
Answer this question and get it marked →The diagram shows a J curve which indicates that a fall in the exchange rate will worsen the current account position before it starts to improve. [Diagram: vertical axis showing…
Answer this question and get it marked →May–June 2023, Paper 33
A multinational company (MNC) shifts its manufacturing capacity to a developing country. What is likely to be the short-run effect of this in the developing country? employment…
Answer this question and get it marked →To indicate the changing income distribution, the Kuznets curve plots gross domestic product per capita against an economic variable X. What is variable X? A the exchange rate B…
Answer this question and get it marked →The table shows some United Nations population statistics for 2010 and estimates for 2050. type of region total population (m) 2010 total population (m) 2050 urban population (m)…
Answer this question and get it marked →May–June 2023, Paper 42
Explain what is meant by purchasing power parity (PPP).
Answer this question and get it marked →Consider the extent to which the depreciation of its foreign exchange rate contributes to the economic growth of a low-income country. [20]
Answer this question and get it marked →October–November 2023, Paper 11
The diagram shows the production possibility curves (PPCs) for country X and country Y, the only two countries in the world. Both countries produce just two goods, M and N.…
Answer this question and get it marked →Which item is not included in the current account of a country's balance of payments? A exports of services B interest on foreign loans C profits from foreign investments D the…
Answer this question and get it marked →A Kenyan banker who lives and works in India sends 15% of their wage back to Kenya every month. What would be the change in the current account components for either country? A a…
Answer this question and get it marked →October–November 2023, Paper 12
What must be the result for a country of a rise in its export prices relative to its import prices? A a deficit in its trade in goods B an improvement in its terms of trade C an…
Answer this question and get it marked →Country X can produce a product at a lower opportunity cost than country Y. Which term best describes this statement? A absolute advantage B comparative advantage C specialisation…
Answer this question and get it marked →A country’s current account deficit is larger this year than last. What is the most likely reason for this increase? A Demand for domestically produced goods has risen. B Domestic…
Answer this question and get it marked →A foreign government pays a UK university to educate its students. How would this be recorded on the balance of payments current account of the UK? current account component money…
Answer this question and get it marked →October–November 2023, Paper 13
Which components are included as primary income in the current account of the balance of payments? trade in goods current transfers employment income from abroad --- --- --- --- A…
Answer this question and get it marked →Country R and country S are going to trade 1 unit of product X for ½ unit of product Y. With a given amount of resources: - country R can produce either 30 units of product X or…
Answer this question and get it marked →What is the most likely cause of a current account deficit on the balance of payments? A an undervalued exchange rate B a relatively low rate of inflation C a shrinking domestic…
Answer this question and get it marked →October–November 2023, Paper 21
Explain the difference between an import tariff and an import quota and consider why a government would choose an import tariff rather than an import quota as a tool of protection…
Answer this question and get it marked →October–November 2023, Paper 22
Explain the difference between the terms of trade and the balance of trade in goods and consider whether an economy should be more concerned about its terms of trade than its…
Answer this question and get it marked →October–November 2023, Paper 32
The exchange rate of an economy appreciates. Assuming that the Marshall–Lerner condition holds in this economy, what is the likely outcome for imported inflation and unemployment?…
Answer this question and get it marked →In 2021, a very large cargo ship carrying over 18 000 cargo containers blocked the Suez Canal for seven days. It delayed over 350 other cargo ships, causing shortages of products…
Answer this question and get it marked →October–November 2023, Paper 33
The diagram shows the international trading position of a country that had tariffs on imports. The country removed the tariffs on imports. [Diagram: axes 'price $' (vertical) and…
Answer this question and get it marked →October–November 2023, Paper 41
To what extent do you agree with the view that globalisation benefits high-income countries at the expense of low-income countries?
Answer this question and get it marked →October–November 2023, Paper 42
The presence of multinational corporations (MNCs) in a low-income country always promotes economic growth in that country. Evaluate this statement. [20]
Answer this question and get it marked →Consider the relative merits of gross national income (GNI) and the multidimensional poverty index (MPI) as measures of the standard of living. [20]
Answer this question and get it marked →