UNIT ASSESSMENT
Edexcel A Level
Economics (A)
Unit Assessment
4.1 Balance of Payments,
Exchange Rates and
Competitiveness
(Edition 1)
Time: 60 minutes
Maximum marks: 50
Name
Centre Name
, Edexcel A Level Economics (A)
Unit Assessment - 4.1 Trade Part 2: Balance of Payments,
Exchange Rates and Competitiveness
Section A
ANSWER ALL THE QUESTIONS
1a In 2016, the UK had a deficit on the balance of trade in goods of £135.495bn, a surplus on the
balance of trade in goods of £94.818, a total primary income balance of -£50.384bn and a total
secondary income balance of -£22.506bn.
What was the Current Account balance for the UK in 2016?
A Deficit of £208.385bn o
B Deficit of £113.567bn o
C Surplus of £40.677bn o
D Deficit of £40.677bn o
(1 mark)
1b List two possible causes of a ‘trade in goods’ deficit.
(2 marks)
1c Explain the link between Price Elasticity of Demand and the Trade Balance, with reference to the
Marshall-Lerner condition.
(3 marks)
Page 2 Edexcel A Level Economics (A) Unit Assessment www.tutor2u.net/economics
Edexcel A Level
Economics (A)
Unit Assessment
4.1 Balance of Payments,
Exchange Rates and
Competitiveness
(Edition 1)
Time: 60 minutes
Maximum marks: 50
Name
Centre Name
, Edexcel A Level Economics (A)
Unit Assessment - 4.1 Trade Part 2: Balance of Payments,
Exchange Rates and Competitiveness
Section A
ANSWER ALL THE QUESTIONS
1a In 2016, the UK had a deficit on the balance of trade in goods of £135.495bn, a surplus on the
balance of trade in goods of £94.818, a total primary income balance of -£50.384bn and a total
secondary income balance of -£22.506bn.
What was the Current Account balance for the UK in 2016?
A Deficit of £208.385bn o
B Deficit of £113.567bn o
C Surplus of £40.677bn o
D Deficit of £40.677bn o
(1 mark)
1b List two possible causes of a ‘trade in goods’ deficit.
(2 marks)
1c Explain the link between Price Elasticity of Demand and the Trade Balance, with reference to the
Marshall-Lerner condition.
(3 marks)
Page 2 Edexcel A Level Economics (A) Unit Assessment www.tutor2u.net/economics
