Edexcel A-Level Economics AS 2.3.1 4c Distinction Between Balance of Payments Deficits and Surpluses on the Current Account Questions

Knowledge 2, Application 2

Quantitative skills Assessed:

QS9: Interpret, apply and analyse information in written, graphical and tabular forms.

Knowledge

1 mark for defining current account deficit:

- Balance of the sum of trade in goods, trade in services, primary income and secondary income is negative (1)

- Allow value of imports is greater than the value of exports / Allow (M>X) / imports > exports / net exports is negative (1)

1 mark for defining current account surplus:

- Balance of the sum of trade in goods, trade in services, primary income and secondary income is positive (1)

- Allow value of imports is less than the value of exports / Allow (M<X) / imports<exports / net exports is negative (1)

Application

1 mark for correctly identifying a period when Spain was experiencing current account deficit, e.g.:

- In April 2022, current account deficit was € 0.48 billion/ There was a deficit between Dec 2021 and Feb 2022 (1)

1 mark for correctly identifying a period when Spain was experiencing current account surplus, e.g.:

- In May 2022, current account surplus was € 2.85 billion/ There was a surplus between July 2021 and Nov 2021 (1)

(4)