Elwick is a country whose firms sell business services, such as consultancy and legal advice, to firms abroad. Several of the countries that buy these services now enter a period of faster economic growth.
If nothing else changes, what is the most likely result for Elwick?
Elwick's export earnings rise but its current account balance worsens.
Elwick's export earnings fall and its current account balance worsens.
Elwick's current account balance is unaffected, as the growth is happening abroad.
Elwick's export earnings rise and its current account balance improves.
189 exam-style questions on AQA GCSE Economics 2.2 Government objectives, covering 2.2.1a The main economic objectives, 2.2.1b Conflicts between government objectives, 2.2.1c Other objectives and ethical considerations, 2.2.2a The significance of economic growth, 2.2.2b Causes, costs, benefits and policies for growth, 2.2.2c GDP measures and calculations, 2.2.3a Measuring employment and unemployment, 2.2.3b Types and causes of unemployment, 2.2.3c Consequences and policies for unemployment, 2.2.4a What inflation is, 2.2.4b Measuring inflation with the CPI, 2.2.4c Causes, consequences and control of inflation, 2.2.5a Balance of trade and balance of payments, 2.2.5b Current account surpluses and deficits, 2.2.5c Policies to influence the balance of payments, 2.2.6a Income and wealth inequality in the UK, 2.2.6b Causes and consequences of inequality, and 2.2.6c Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.