Master current-account calculations and evaluate why surpluses or deficits arise and how economic policies can respond.
The Central African country Chad has a triangle-shaped population pyramid and a high level of poverty. It regularly has an overall deficit on the current account of its balance of payments. Chad usually has a surplus on its secondary income. However, its trade in goods, trade in services and primary income are all usually in deficit. Some economists suggest that the Chadian Government should impose import quotas to reduce its trade in goods deficit.
Define primary income.
Define primary income.
Component of the current account of the balance of payments (1).
Example of an item: profit / interest / dividends / wages earned abroad (1).
2
Very few candidates understand this term.
Award one mark if there is any understanding that it relates to the balance of payments with other countries.