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AQA GCSE · Question 23 · How the economy works
Using Table 5, calculate the size of the UK's total trade balance in 2019 with both EU and non-EU economies in £ billions.
Using Table 5, calculate the size of the UK's total trade balance in 2019 with both EU and non-EU economies in £ billions.
How to approach this question
1. From Table 5, find the export and import figures for 2019 for both EU and non-EU trade. 2. Calculate total exports by adding the EU and non-EU export figures. 3. Calculate total imports by adding the EU and non-EU import figures. 4. Calculate the total trade balance by subtracting total imports from total exports.
Full Answer
Total Exports (2019) = EU Exports + non-EU Exports = 294.3 + 396.5 = £690.8 bn
Total Imports (2019) = EU Imports + non-EU Imports = 373.5 + 347.8 = £721.3 bn
Total Trade Balance = Total Exports - Total Imports = 690.8 - 721.3 = -£30.5 bn
The trade balance is a deficit of £30.5 billion.
The steps for the calculation are:
1. **Find Total Exports for 2019:** From Table 5, UK exports to the EU were £294.3 bn and to non-EU countries were £396.5 bn. Total Exports = 294.3 + 396.5 = £690.8 bn.
2. **Find Total Imports for 2019:** From Table 5, UK imports from the EU were £373.5 bn and from non-EU countries were £347.8 bn. Total Imports = 373.5 + 347.8 = £721.3 bn.
3. **Calculate the Trade Balance:** Trade Balance = Total Exports - Total Imports = £690.8 bn - £721.3 bn = -£30.5 bn.
This represents a trade deficit of £30.5 billion.
Common mistakes
Calculating the balance for EU and non-EU separately and not combining them. Subtracting imports from exports for one group but doing the reverse for the other. Simple addition or subtraction errors.
Practice the full AQA GCSE Economics Paper 2
29 questions · hints · full answers · grading
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