Economics 0455 · IGCSE · Current account of balance of payments
Current account of balance of payments — practice question
Chad, the Central African country, has a population pyramid with a triangular shape and widespread poverty. It normally records an overall deficit on the current account of its balance of payments. Chad typically shows a surplus on secondary income, but trade in goods, trade in services and primary income are each usually in deficit. Some economists argue that the Chadian Government ought to introduce import quotas to cut the trade in goods deficit.
(a)[2]
Define what is meant by primary income.
(b)[4]
Explain two influences on how a country’s population pyramid is shaped.
(c)[6]
Analyse the factors that cause poverty.
(d)[8]
Discuss whether imposing import quotas will cut a trade in goods deficit.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “An item within the current account of the balance of payments” …