Pearson Edexcel IAL Economics 2.3.1.4b distinction between deficits & su

Practise calculating trade balances from export and import data and distinguishing goods and services deficits from surpluses.

Exam points

calculate a trade balance from exports and imports shown in a table in context
interpret trade balance charts to identify changes in deficit or surplus over time

[Maximum number: 4]

The table shows the value of exports and imports of goods and services, $ billion, for Thailand in 2020 and 2021.

Table for Question 2.3.1.4b - distinction between deficits and surpluses in the trade in goods and services balance question 1 — Edexcel A-Level Economics AS

Calculate the change in Thailand's balance of trade between 2020 and 2021. Show your workings.

Knowledge 1, Application 3

Quantitative Skill assessed

QS2: Calculate, use and understand percentages, percentage changes and percentage point changes

QS9: Interpret, apply and analyse information in written, graphical and tabular forms

Knowledge

1 mark for correct formula/implicit understanding, e.g.:

- Net trade balance =(X-M) /

- Value of exports - value of imports (1)

Application

Up to 3 marks for use of data in calculation from the following, e.g.:

- $2020 \rightarrow \$ 208 \mathrm{bn}-\$ 187 \mathrm{bn}=\$ 21 \mathrm{bn}(\mathbf{1})$

- $2021 \rightarrow \$ 257 \mathrm{bn}-\$ 230 \mathrm{bn}=\$ 27 \mathrm{bn}(1)$

- Change $\rightarrow \$ 27 \mathrm{bn}-\$ 21 \mathrm{bn}=\$ 6 \mathrm{bn}(\mathbf{1})$

NB: if correct answer ($6 billion/percentage change of 28.6\%) is given, award full marks regardless of working.

NB: award only 3 marks if billion or \% is not included in the final answer or if answer is written as - $6 billion

(4)

Question

With reference to the chart, explain one likely effect of this trend in
the rate of inflation.

Mark

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2.3.1.4b - distinction between deficits and surpluses in the trade in goods and services balance question 1