Tajikistan is among Asia’s low-income nations. Its currency, the somoni, has the main features of money. More than one million Tajik citizens work overseas, mainly in Russia. In 2020, the Tajik government feared that the economy could slip into recession, which might reduce tax revenue. Even with this risk, some Tajik firms still purchased new capital equipment.
(a)[2]
Identify two reasons why tax revenue tends to fall during a recession.
(b)[4]
Explain two characteristics that money possesses.
(c)[6]
Analyse the advantages that an economy may gain when some of its people work in other countries.
(d)[8]
Discuss whether or not consumers would benefit if firms purchased new capital equipment.
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