Questions › Chapter 3: A long and illustrious history
In the late 1970s Britain faced difficulties with its 'balance of payments'. What did this mean?
- AWages rose faster than the price of goods
- BThe government spent more on the NHS than on defence
- CImports were worth more than the money earned from exportsRight answer
- DExports were worth more than the money spent on imports
Answer: Imports were worth more than the money earned from exports
As the post-war boom ended, prices rose sharply and the pound's exchange rate was unstable, so the value of goods bought in exceeded what exports brought in.
From chapter 3 of the handbook, "A long and illustrious history", section "Britain since 1945". Practice question 274 of 651, written in our own words.