Section 4 Revision Questions for Inclass Essay Test

Section 4 Review Questions

1. (a)     Explain three factors which might cause the value of a currency to appreciate.

(10)

(b)     Evaluate the possible effects of such an appreciation on an economy.

(15)

(Total 25 marks)

2. Discuss the possible causes and consequences of a persistent deficit balance in a country’s current account.

(Total 25 marks)

3. (a)     Explain why a country’s balance of payments on current account may at times be in deficit and at other times be in surplus.

(12)

(b)     To what extent does the existence of a current account deficit represent an economic problem?

(13)

(Total 25 marks)

4. (a)     Describe three possible economic consequences of a persistent current account deficit for a country.

(10)

(b)     Evaluate different methods of correcting a current account deficit.

(15)

(Total 25 marks)

Review Activity:

Activities:

In small group you will prepare a presentation of the essential information to be covered in each of the possible extended essay questions.

Suggested Outline:

Slide 1: The questions with the key words underlined

Slide 2 : An identification of what the demands of the questions are. What do they want from you. What will you have to do to get the best possible mark?

Slide 3-5 : Outline the definitions and main points to be covered of section (a)

Slide 6: What diagram/s will support your answer?

Slide 7: Which of the CRAMPSS will you use to evaluate in (b).

Slide 8-10 What are the key points to make

Causes and Consequences

Reliability and Validity of Data

Alternative Explanations

Macroeconomic goals

Pros and Cons

Short and Long Term

Stakeholders