Cambridge IGCSE Economics practice

Paper 2 structured question: Current account of balance of payments

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Paper

Marks

Topic

Current account of balance of payments

Exam-style question

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Paper 2Structured Questions4 marks

Evaluate the effectiveness of tariffs as a policy for stabilizing the balance of payments.

Description

Tariffs can protect domestic industries but may lead to trade disputes.

a
Discuss the potential effectiveness of tariffs in stabilizing the balance of payments.
Your answer
Aim for approximately 4 distinct marking points.
[4]

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Paper 2Structured Questions1 marks

Description

The government can implement exchange rate adjustments, tariffs, and quotas to manage the balance of payments.

a
State one policy that can be used to stabilize the balance of payments.
Your answer
Aim for approximately 1 distinct marking point.
[1]