Country X moves from a £30 billion current account deficit to a £5 billion deficit during a deep recession. Which assessment is most accurate?
The smaller deficit alone proves that economic performance improved
The balance may have improved because falling incomes reduced imports, while output and employment worsened
A current account deficit cannot fall during a recession
The change guarantees stronger export competitiveness
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.