Economics 0455 · IGCSE · Current account of balance of payments
Current account of balance of payments — practice question
Abu Dhabi has a rapidly developing economy. Three new museums are being built in its new cultural district, and these may draw in more tourists and improve its balance of payments. Some of the art works in the museums will be extremely expensive.
(a)[2]
Define what is meant by ‘balance of payments’.
(b)[4]
Explain any two characteristics of a rapidly developing economy.
(c)[6]
Analyse how a rise in tourism may raise a country’s inflation rate.
(d)[8]
Discuss whether the rich consistently save more than the poor.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A summary of a country’s economic dealings with other countries” …