Study

Economics revision

  •   0%
  •  0     0     0

      Back   Restart
  • In the model of the circular flow of income, which of the following will cause national income to increase?
    An increase in government spending
    An increase in imports
    An increase in taxes
    An increase in savings
  • In which circumstance will structural unemployment arise?
    Automation results in factory workers being made redundan
    A bricklayer leaves his employment voluntarily
    A construction worker is laid off during a period of bad wea
    An increase in the base rate of interest reduces demand for
  • Which economic activity is found in the secondary sector?
    Producing cars
    Growing corn
    Banking
    Providing insurance
  • Frictional unemployment occurs when:
    farm workers do not have a job during the winter months
    cheap steel from abroad reduces demand for UK steelworkers
    workers are transferring between jobs
    the economy is in a period of recession
  • How would a fall in the price level be shown on an aggregate demand (AD) diagram?
    A movement up the AD curve
    A shift to the right of the AD curve
    A movement down the AD curve
    A shift to the left of the AD curve
  • In what economic climate would money be most at risk of not fulfilling its function as a medium of exchange?
    Disinflation
    Deflation
    Inflation
    Hyperinflation
  • Which of the following is a definition of hyperinflation?
    Prices are rising at a slower rate than previously
    Prices are falling
    Prices are rising excessively
    Prices are constant
  • Which of the following is a component of the Human Development Index?
    Life expectancy at birth
    Cost of crime
    Income inequality
    Air quality
  • An increase in long run aggregate supply may lead to:
    lower unemployment and a fall in real output
    lower inflation and an increase in real output
    A higher inflation and a fall in real output
    higher unemployment and lower inflation
  • If real GDP in 2019 was $482bn and $476bn in 2020, what was the rate of economic growth in 2020?
    -1.24%
    1.24%
    1.26%
    -1.26%
  • Which of the following is an injection into the circular flow of income?
    Consumer expenditure
    Taxation
    Exports
    Savings
  • What impact will a fall in investment have on the aggregate demand curve?
    Movement up the aggregate demand curve
    Shifts the aggregate demand curve to the left
    Movement down the aggregate demand curve
    Shifts the aggregate demand curve to the right
  • What is included in the calculation of RPI inflation but excluded from the calculation of CPI inflation?
    Children's clothes
    Council tax
    Petrol
    Medicines
  • Which factor would be most likely to lead to an increase in the size of the labour force?
    A reduction in the retirement age
    An increase in income tax levels
    An increase in unemployment benefits
    An increase in inward migration
  • For a country, the CPI was 108 in 2018 and 120 in 2019. What was the inflation rate, to the nearest whole number, as measured by CPI in 2019?
    - 12%
    +12%
    +10%
    +11%
  • Which of the following is a harm caused by a high rate of inflation?
    Imports become relatively more expensive
    Investment decreases
    The real value of debt increases
    Real wage flexibility occurs
    • Your experience on this site will be improved by allowing cookies.