CAIE A-Level Economics 6.3.1 Current Account Components

CAIE A-Level Economics 6.3.1 Current Account Components
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise classifying goods, services, primary income and secondary income as credits or debits and using component balances to explain an overall current-account result.

How this is tested

  • classify merchandise as goods and tourism or telecommunications as services
  • classify profits, interest or overseas earnings as primary income and transfers as secondary
  • record overseas receipts as credits and payments as debits before combining component balances

Question 27

[Maximum number: 1]

What is an example of primary income in the current account of the balance of payments of Pakistan?

A

dividends received by a Pakistani resident from shares in a domestic firm

B

profits of Pakistani businesses exporting goods

C

rent received by a Pakistani resident from a property in another country

D

salary received by a Pakistani engineer from a foreign-owned producer operating in Pakistan