Edexcel A-Level Economics AS 2.3.2 2c Definition of the Savings Ratio Topic Practice

Knowledge 2, Application 2

Quantitative Skills Assessed

QS1: Calculate, use and understand ratios and fractions

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

Up to 2 marks for defining savings ratio, e.g.:

- The savings ratio is the proportion or \% of total disposable income (1) that is saved/not spent (1)

- Total savings/Total disposable income (1) $\times 100$ (1)

- Savings represent that part of income which is not spent (1)

Application

1 mark for explicit reference to the data and 1 mark for identifying the direction of the overall trend, e.g.:

- Savings ratio in Latvia rose (1) from 5.78\% in 2017 to 8.89\% in 2020 (1)

- Savings ration in Latvia decreased ( 1 ) from 5.78% to 5.61% (1)

- Between 2016 and 2021 there was in increase in savings ratio (1) by 12.41 percentage points (1)

- Savings ratio was highest at 17% in 2021 (1) Savings ratio was lowest at 4.59\% in 2016 (1)

(4)

Question

Define the term 'seasonally adjusted' (Figure 1).

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