A country's exports are initially worth £200 billion and imports £220 billion. Export earnings rise by 8% while spending on imports falls by 5%. Ignoring other current-account flows, what is the new balance?
A £7 billion deficit
A £4 billion surplus
A £7 billion surplus
A £11 billion surplus
22 exam-style questions on OCR GCSE Economics 4.2 Balance of payments, covering 4.2.1 Balance of payments on current account, 4.2.2 Balanced account, surplus and deficit, 4.2.3 Calculate deficits and surpluses, 4.2.4 Analyse exports and imports data, 4.2.5 Importance of the balance of payments, and 4.2.6 Causes of surpluses and deficits. Each one has a worked solution and a mark scheme showing where the marks go.