Question

What was the average annual growth rate in production for all four sectors combined between 1989 and 1998?

• A. 1.2%
• B. 6%
• C. 56.6%
• D. 104%

Answer 1

The correct option is B 6%

You may note that apart from a few years for manufacturing and mining and quarrying, the annual growth rates in most years have been positive and near the 5% - 6% mark for all the sectors. The other options (a), (c), and (d) are too far away to be considered, Alternatively, for ease of calculation take the 1989 values for Manufacturing as 400, Mining and Quarrying and Electricity as 300 each and Chemicals as 200. Then, the final value for manufacturing would be nearly 580; for Mining and Quarrying would be about 390; for Electricity would be around 550; and for chemicals would be around 335.
$\Rightarrow$ Initial value of production = 400 + 300+ 300 + 200 = 1200
Final value of production = 580 + 390 + 550 + 335 = 1855
$\Rightarrow$ Overall % increase = 54.6%
$\Rightarrow$ Average annual growth = 54.6/9 = 6%