Question:

4 Tajikistan is one of Asia’s low-income countries. Its currency, the somoni, has the key characteristics of money. More than one million Tajik people work abroad, mostly in Russia. In 2020, the Tajik
government was concerned that the country’s economy might experience a recession which could
cause a fall in tax revenue.

Despite this possibility, some Tajik firms bought new capital equipment.
(a) Identify two reasons why tax revenue is likely to fall during a recession. [2]
(b) Explain two characteristics of money. [4]
(c) Analyse the advantages an economy may gain from having some of its people working in
other countries. [6]
(d) Discuss whether or not consumers would benefit from firms buying new capital equipment.
[8]

Sample Answers: