Discuss whether or not a developing country will benefit from the removal of trade restrictions. (8)

Identify two macroeconomic aims, other than balance of payments stability, that the Indonesian government could achieve. (2)

Define foreign exchange rate. (2)

Explain two benefits of an increase in world output. (4)

Analyse why children from low-income families may have low incomes as adults. (6)

Discuss whether or not a national minimum wage will reduce poverty. (8)

Explain why an increase in the global demand for palm oil could reduce a deficit in Indonesia’s current account of its balance of payment. (2)

Analyse how a recession may reduce a country’s imports. (6)

Define import tariff. (2)

Define depreciation of a currency. (2)

Analyse how a reduction of its import tariffs could increase a country’s output. (6)

Explain two reasons why the value of a country’s exports may be greater than the value of its imports. (4)

Discuss whether or not subsidies to farmers could help the Indonesian economy. (6)