Finland is a high-income country that usually records a larger value of exports than imports. It has a strong commercial banking sector that has expanded its lending in recent years. The country has an ageing population, with over a quarter of people aged above 65. In 2022, Finland’s Government ran a budget deficit, with government spending higher than tax revenue.
(a)[2]
Identify one way in which an export differs from an import.
(b)[4]
Explain why commercial banks may increase their lending.
(c)[6]
Analyse how an ageing population may affect a country’s economic growth rate.
(d)[8]
Discuss whether supply-side policy measures will cut a government’s budget deficit.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Exports move out of the country” …