Mon. May 23rd, 2022

This article, selected by a teacher with suggested questions, is part of the Financial Times Free School Access Program. Details / registration here.


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

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

China’s record trade gap is a symptom of struggles 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 the gross domestic product. . . therefore, they also consume a lower share. ‘ Explain this statement with reference to the Keynesian consumption function

  • “Rising exports are usually a good thing.” Use a diagram and analyze the benefits of rising exports

  • “These 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

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