(a)[2]
Define the term primary income.
(b)[4]
Explain two factors that affect the shape of a country’s population pyramid.
(c)[6]
Analyse the main causes of poverty.
(d)[8]
Discuss whether imposing import quotas will reduce a trade in goods deficit.
Economics 2281 · O Level · Current account of balance of payments
Current account of balance of payments — practice question
Chad, a Central African nation, has a population pyramid that is triangle-shaped and experiences a high level of poverty. It usually records an overall current account deficit in its balance of payments. Chad normally shows a surplus on secondary income. By contrast, 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 its trade in goods deficit.
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