Economics 0455 · IGCSE · Current account of balance of payments
Current account of balance of payments — practice question
Germany has one of the strongest-performing economies in the European Union (EU). Unemployment is low, and the current account of the balance of payments is in surplus. However, single parents, the long-term unemployed, immigrants, the elderly and low-skilled workers have not always shared in Germany’s economic success. This has led to rising levels of relative poverty.
(a)[2]
Define a current account surplus on the balance of payments.
(b)[4]
Explain two reasons why unemployment may be low.
(c)[6]
Analyse how long-term unemployment can lead to relative poverty.
(d)[8]
Discuss whether an increase in a current account surplus of the balance of payments reduces unemployment.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Exports of goods and services are greater than imports” …