A Level Economics (9708)•9708/13/M/J/22
Explanation
Calculating Change in Transfer Payments
Steps:
- Identify transfer payments value in period 1 from the provided data.
- Identify transfer payments value in period 2 from the provided data.
- Subtract period 2 value from period 1 value to find the change.
- Not enough information: Actual values for periods 1 and 2 are missing, preventing calculation.
Why B is correct:
- Not enough information to confirm, but if period 1 was 200 and period 2 was 100, change is -100 per subtraction formula (change = new - old).
Why the others are wrong:
- A assumes no change, ignoring any potential difference.
- C suggests an increase, opposite of a decrease.
- D implies a larger drop, not matching a -100 change.
Final answer: B
Topic: Introduction to the circular flow of income
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