Economics 2281 · O Level · Current account of balance of payments
Current account of balance of payments — practice question
Germany has a higher death rate than several other countries, such as Sweden, Cuba and the Maldives. Between 2011 and 2021, Germany’s labour force grew in size and became more productive. The country has also recorded low inflation and a rising surplus on the current account of its balance of payments.
(a)[2]
Identify two reasons why death rates can differ from one country to another.
(b)[4]
Explain two causes that can increase the size of a country’s labour force.
(c)[6]
Analyse how a rise in labour productivity in a country can increase a surplus on the current account of its balance of payments.
(d)[8]
Discuss why some countries may see lower inflation in the future while others may not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Healthcare provision” …