CAIE A-Level Economics A2 11 International Economic Issues Questions

Practise balance of payments, exchange-rate systems, development measures, population, aid, investment, globalisation and international institutions through data and evaluation.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Question 1

[Maximum number: 1]

All else remaining unchanged, what would result in an outflow of capital funds from a country?

A

a fall in the country's rate of inflation

B

an expected appreciation of the country's exchange rate

C

an increase in foreign interest rates

D

an increase in foreign prices

Question 2

[Maximum number: 1]

What is a trade-weighted exchange rate?

A

the price of one currency against a basket of other currencies

B

the price of one currency in terms of another

C

the price of one currency in terms of its real purchasing power

D

the price of one currency being determined by state intervention

Question 3

[Maximum number: 1]

Which country is likely to be the most highly developed?

Gini coefficient

death rate

relative size of
tertiary sector

high

high

high

low

low

low

low

low

high

low

high

low

Question 4

[Maximum number: 1]

What will increase the size of a country's optimum population?

A

a rise in the birth rate

B

a lowering of the age of retirement

C

a rise in the stock of capital available in the country

D

a decrease in the productivity of the country's industries

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