Optional20 marks
Case study · UK balance of trade and inflation
Evaluate the main influences on the UK’s net trade balance.
Specification point 2.1.4 · Theme 2
Balance of payments
Measures of economic performance · The UK economy – performance and policies
Questions tagged to this specification point
12 questions
Essay questions
Long-form evaluation and discussion
Data-response questions
Questions built around exam extracts
4 marks
Case study · UK balance of trade and inflation
With reference to Figure 1, explain the term ‘balance of trade in goods and services’.
10 marks
Case study · UK balance of trade and inflation
With reference to Extract A, assess the likely impact of a rise in the value of exports on the UK economy.
10 marks
Case study · UK economic recovery
With reference to the information provided and your own knowledge, assess the likely causes of the UK’s trade deficit.
Short-answer questions
Focused calculations, explanations and diagrams
4 marks
ContextChart: UK current account of the balance of payments, % of GDP, 2012–2022.
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.
3 marks
ContextChart: UK net monthly balance of trade in goods and services, by value, January to October 2023 (£ billions).
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 marks
ContextThe UK’s net monthly balance of trade in goods and services, by value, January 2014 to January 2018, is shown in the chart below. £billions …
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 marks
ContextFigure 1 shows data on the UK’s balance of trade. Figure 1 – UK’s balance of trade January 2013 to January 2015 £ billion, seasonally adjusted …
Explain one likely reason for the reduction in the total UK trade deficit in January 2015.
Multiple-choice questions
Quick checks of economic understanding
A-level Paper 2, June 2025, Q2(a)Multiple choice
1 mark
ContextChart: UK current account of the balance of payments, % of GDP, 2012–2022.
With reference to the chart above, which one of the following is correct?
AThe current account was in surplus during the entire period shown
BThe deficit on the current account was smallest in 2021
CThe UK Government’s fiscal deficit was largest in 2016
DThe value of exports was greater than the value of imports in 2012
AS Paper 2, June 2025, Q5(a)Multiple choice
1 mark
ContextChart: UK net monthly balance of trade in goods and services, by value, January to October 2023 (£ billions).
Which one of the following can be deduced from the chart?
AThe government was spending less than it received in taxation
BThe government was spending more than it received in taxation
CThe value of imports was greater than the value of exports
DThe value of imports was smaller than the value of exports
AS Paper 2, November 2020, Q3(a)Multiple choice
1 mark
ContextThe UK’s net monthly balance of trade in goods and services, by value, January 2014 to January 2018, is shown in the chart below. £billions …
Which one of the following can be inferred from the above chart over the period shown?
AThe government was spending more than it received in taxation
BThe UK’s balance of trade, by value, was always in equilibrium
CThe value of imports was greater than the value of exports
DThe value of inflows was greater than the value of outflows
AS Paper 2, June 2016, Q4(a)Multiple choice
1 mark
ContextFigure 1 shows data on the UK’s balance of trade. Figure 1 – UK’s balance of trade January 2013 to January 2015 £ billion, seasonally adjusted …
Which one of the following can be inferred from Figure 1 in the period shown?
AThe total UK trade deficit was the largest in June 2013
BThe trade in goods was always in surplus between January 2013 and January 2015
CThe total UK trade deficit was the smallest in January 2014
DThe trade in goods deficit was the smallest in June 2013
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