: Pearson Edexcel past-paper questions pack
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The balance of payments

Past-paper questions pack

Name
Class
Date set
Date due
Score/ 102

Questions are numbered; the mark schemes (the answer key) follow on separate pages so the question pages can be handed out alone. www.economicsaleveltutor.com

Pearson Edexcel AS and A-level Economics past-paper questions since 2016 · 19 parts · mark schemes follow the questions · www.economicsaleveltutor.com · Questions and mark schemes © Pearson Edexcel

1. June 2025 · Paper 2 · Q2(a) · 1 marks ·
(a) With reference to the chart above, which one of the following is correct? (1) A The current account was in surplus during the entire period shown B The deficit on the current account was smallest in 2021 C The UK Government’s fiscal deficit was largest in 2016 D The value of exports was greater than the value of imports in 2012
2. June 2025 · Paper 2 · Q2(b) · 4 marks · AO1=2,AO2=1,AO3=1
(b) With reference to the chart on the previous page, explain one likely reason for the change in the UK current account deficit from 2016 to 2021. (4)
3. June 2025 · Paper 2 · Q4(c) · 2 marks · AO1=1,AO3=1
(c) Explain the likely impact of the change in China’s terms of trade from 2012 to 2020 on China’s current account. Assume that demand for China’s exports and imports is price elastic. (2)
4. June 2025 · AS Paper 2 · Q5(a) · 1 marks ·
(a) Which one of the following can be deduced from the chart? (1) A The government was spending less than it received in taxation B The government was spending more than it received in taxation C The value of imports was greater than the value of exports D The value of imports was smaller than the value of exports
5. June 2025 · AS Paper 2 · Q5(b) · 3 marks · AO1=1,AO2=1,AO3=1
(b) Explain one likely reason for the deficit in the UK balance of trade in goods and services. Refer to the chart on page 10 in your answer. (3)
6. June 2024 · Paper 2 · Q7 · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9
7 In 2021 Brazil’s current account deficit on the balance of payments was US$46.12 billion. The Central Bank of Brazil intervened to sell its own currency, the real, on September 23rd 2022. This was the first time it has intervened in foreign currency markets since December 2021. (Source adapted from: https://www.statista.com/statistics and https://www.centralbanking. com/central-banks/reserves/foreign-exchange/7953193/brazil-makes-first-fx-intervention- of-the-year) Evaluate macroeconomic policies that could be used to reduce a current account deficit. Refer to a country of your choice in your answer.
7. June 2023 · AS Paper 2 · Q6(a) · 4 marks · AO1=2,AO2=2
(a) With reference to Figure 1, explain the term ‘balance of trade in goods and services’. (4)
8. June 2023 · AS Paper 2 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6
(f) Evaluate the main influences on the UK’s net trade balance. (20)
9. June 2022 · AS Paper 2 · Q6(d) · 5 marks · AO1=1,AO2=2,AO3=2
(d) Explain one likely reason why ‘the UK Government expects the UK economy to perform better than Germany and Italy’ (Extract A, lines 19–20). (5)
10. November 2021 · Paper 2 · Q3(b) · 4 marks · AO1=2,AO2=1,AO3=1
(b) Explain the likely impact of the change in the exchange rate of the pound shown in the graph from 1st January 2018 to 1st January 2019 on the UK current account of the balance of payments. (4)
11. October 2020 · AS Paper 2 · Q3(a) · 1 marks ·
(a) Which one of the following can be inferred from the above chart over the period shown? (1) A The government was spending more than it received in taxation B The UK’s balance of trade, by value, was always in equilibrium C The value of imports was greater than the value of exports D The value of inflows was greater than the value of outflows
12. October 2020 · AS Paper 2 · Q3(b) · 3 marks · AO1=1,AO2=1,AO3=1
(b) Explain one likely reason for the UK’s balance of trade in goods and services over the period shown. Refer to the chart on page 6 in your answer. (3)
13. June 2018 · Paper 2 · Q3(a) · 2 marks · AO2=2
(a) Calculate the percentage change in the United States current account deficit on the balance of payments between 1998 and 2006. (2)
14. June 2018 · Paper 2 · Q3(b) · 2 marks · AO1=2
(b) Explain the term ‘current account of the balance of payments’. (2)
15. June 2018 · Paper 2 · Q3(c) · 1 marks ·
(c) Using the chart on page 6, which one of the following may be inferred about the United States balance of payments? (1) A The current account deficit decreased between 2001 and 2006 B The current account surplus increased between 2001 and 2006 C There was a current account deficit for the entire period shown D There was a current account surplus for the entire period shown
16. June 2017 · AS Paper 2 · Q6(b) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4
(b) With reference to the information provided and your own knowledge, assess the likely causes of the UK’s trade deficit. (10)
17. June 2017 · Paper 2 · Q6(c) · 10 marks · AO1=2,AO2=2,AO3=2,AO4=4
(c) Since mid-2015 the euro has appreciated. Assess the likely impact of an appreciation of the euro on the current account of the balance of payments for Eurozone countries. (10)
18. June 2016 · AS Paper 2 · Q4(a) · 1 marks ·
(a) Which one of the following can be inferred from Figure 1 in the period shown? (1) A The total UK trade deficit was the largest in June 2013 B The trade in goods was always in surplus between January 2013 and January 2015 C The total UK trade deficit was the smallest in January 2014 D The trade in goods deficit was the smallest in June 2013
19. June 2016 · AS Paper 2 · Q4(b) · 3 marks · AO1=1,AO2=1,AO3=1
(b) Explain one likely reason for the reduction in the total UK trade deficit in January 2015. (3)

Mark schemes

1. June 2025 · Paper 2 · Q2(a)
Mark scheme June 2025 Paper 2 Q2(a)
2. June 2025 · Paper 2 · Q2(b)
Mark scheme June 2025 Paper 2 Q2(b)
3. June 2025 · Paper 2 · Q4(c)
Mark scheme June 2025 Paper 2 Q4(c)
4. June 2025 · AS Paper 2 · Q5(a)
Mark scheme June 2025 Paper 2 Q5(a)
5. June 2025 · AS Paper 2 · Q5(b)
Mark scheme June 2025 Paper 2 Q5(b)
6. June 2024 · Paper 2 · Q7
Mark scheme June 2024 Paper 2 Q7
7. June 2023 · AS Paper 2 · Q6(a)
Mark scheme June 2023 Paper 2 Q6(a)
8. June 2023 · AS Paper 2 · Q6(f)
Mark scheme June 2023 Paper 2 Q6(f)
9. June 2022 · AS Paper 2 · Q6(d)
Mark scheme June 2022 Paper 2 Q6(d)
10. November 2021 · Paper 2 · Q3(b)
Mark scheme November 2021 Paper 2 Q3(b)
11. October 2020 · AS Paper 2 · Q3(a)
Mark scheme October 2020 Paper 2 Q3(a)
12. October 2020 · AS Paper 2 · Q3(b)
Mark scheme October 2020 Paper 2 Q3(b)
13. June 2018 · Paper 2 · Q3(a)
Mark scheme June 2018 Paper 2 Q3(a)
14. June 2018 · Paper 2 · Q3(b)
Mark scheme June 2018 Paper 2 Q3(b)
15. June 2018 · Paper 2 · Q3(c)
Mark scheme June 2018 Paper 2 Q3(c)
16. June 2017 · AS Paper 2 · Q6(b)
Mark scheme June 2017 Paper 2 Q6(b)
17. June 2017 · Paper 2 · Q6(c)
Mark scheme June 2017 Paper 2 Q6(c)
18. June 2016 · AS Paper 2 · Q4(a)
Mark scheme June 2016 Paper 2 Q4(a)
19. June 2016 · AS Paper 2 · Q4(b)
Mark scheme June 2016 Paper 2 Q4(b)