(a)[8]
Explain how a country's various international transactions are recorded in its balance of payments account.
(b)[12]
Discuss the use of tariffs and quotas as policies to reduce a current account deficit.
Economics 9708 · AS & A Level · 6.3
6.3 — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The transactions cover trade in goods and services, incomes from work and investment, profits and dividends (IPD), government and private transfers (remittances), direct investment, portfolio investment and short term capital flows.” …
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