ExpertMedium2 marksStructured
AQA GCSE · Question 14.1 · How the economy works
Table 2 shows data for an economy for the year 2022.
Table 2
Value Value of exports £74 billion Value of imports £56 billion Value of GDP £990 billion
Calculate the balance of trade expressed as a percentage of GDP for 2022 to one decimal place.
Tick (✔) one box to indicate whether it is a surplus or deficit.
Show your working.
Table 2 shows data for an economy for the year 2022.
Table 2
| Value | |
|---|---|
| Value of exports | £74 billion |
| Value of imports | £56 billion |
| Value of GDP | £990 billion |
Calculate the balance of trade expressed as a percentage of GDP for 2022 to one decimal place.
Tick (✔) one box to indicate whether it is a surplus or deficit.
Show your working.
How to approach this question
1. Calculate the balance of trade by subtracting the value of imports from the value of exports. 2. Determine if this is a surplus (positive value) or a deficit (negative value). 3. Divide the balance of trade figure by the GDP figure. 4. Multiply the result by 100 to express it as a percentage. 5. Round your final answer to one decimal place. 6. Tick the correct box for surplus or deficit.
Full Answer
Working:
Balance of trade = Exports - Imports = £74bn - £56bn = £18bn
As a % of GDP = (Balance of trade / GDP) * 100 = (18 / 990) * 100 = 1.818...%
Answer: 1.8%
Balance of trade is in: Surplus [✔]
The balance of trade is the value of exports minus the value of imports.
Balance of trade = £74 billion - £56 billion = +£18 billion.
Since the result is positive, it is a trade surplus.
To express this as a percentage of GDP:
Percentage = (Balance of trade / GDP) × 100
Percentage = (£18 billion / £990 billion) × 100
Percentage = 0.01818... × 100
Percentage = 1.818...%
Rounded to one decimal place, the answer is 1.8%.
Common mistakes
Calculating imports minus exports instead of exports minus imports. Forgetting to divide by GDP or to multiply by 100. Incorrect rounding.
Practice the full AQA GCSE Economics Paper 2
29 questions · hints · full answers · grading
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