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    PracticeAQA GCSEAQA GCSE Economics Paper 2Question 05
    Easy1 markMultiple Choice
    How the economy worksEconomic GrowthData HandlingGDP

    AQA GCSE · Question 05 · How the economy works

    Table 1 shows economic growth between 2017 and 2021.

    Table 1

    Economic growth% change in GDP
    20171.3
    20180.4
    2019-0.6
    20202.1
    20212.7

    Using Table 1, the average annual rate of economic growth for this period to one decimal place is

    Answer options:

    A.

    1.0

    B.

    1.2

    C.

    1.4

    D.

    1.6

    How to approach this question

    1. Sum all the percentage changes in GDP from the table, being careful to subtract the negative value. 2. Count the number of years (which is 5). 3. Divide the sum by the number of years to find the average. 4. Round your answer to one decimal place.

    Full Answer

    B.1.2✓ Correct
    The correct answer is B. The sum of the growth rates is 1.3 + 0.4 - 0.6 + 2.1 + 2.7 = 5.9. The average is 5.9 / 5 = 1.18. Rounded to one decimal place, this is 1.2.
    The calculation is as follows: Sum of growth rates = 1.3 + 0.4 - 0.6 + 2.1 + 2.7 = 5.9 Number of years = 5 (2017, 2018, 2019, 2020, 2021) Average annual rate = 5.9 / 5 = 1.18% Rounding to one decimal place gives 1.2%.

    Common mistakes

    Forgetting to include the negative value for 2019, or adding it instead of subtracting. Another common error is incorrect rounding.
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