This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

  • Consumption, income, balance of payments, distribution of income

Click to read the article below and then answer the questions:

China’s record trade gap a symptom of struggle to rebalance its economy

  • ‘China reported the largest monthly trade surplus in its history last Friday.’ Explain what is meant by a trade surplus

  • ‘Households receive a lower share of gross domestic product . . . which is why they also consume a lower share.’ Explain this statement with reference to the Keynesian consumption function

  • ‘Rising exports are usually a good thing.’ Using a diagram, analyse the benefits associated with rising exports

  • ‘They are symptoms of deep and persistent imbalances in the domestic distribution of income.’ Draw and explain the Lorenz curve

  • ‘Rising exports are usually a good thing, but for countries like China, rising trade surpluses are not.’ Explain this statement

Gavin Clarke, Emmanuel College

Get alerts on FT Schools when a new story is published

Copyright The Financial Times Limited 2022. All rights reserved.
Reuse this content (opens in new window) CommentsJump to comments section

Comments have not been enabled for this article.

Follow the topics in this article