Year 10 Economics - Wk 4

GDP per capita tells us nothing about a nation's:

• Standard of living

• Income distribution

• Rate of economic growth

• Level of economic development

Which of the following is NOT a characteristic of the Peak/Boom phase?

• Full Employment

• Inflationary Pressure

• High Demand

• High Unemployment

Relative poverty refers to a state where:

• People are facing extreme deprivation and do not have access to the basic necessities.

• People whose lifestyle has fallen considerably below the average lifestyle enjoyed by society.

• A lack of access to food, water and shelter.

• When GDP per capita is below $30 000

Which of the following are factors influencing the distribution of income and wealth:

(Select all that apply)

• Gender

• Winning the Lottery

• Migrants and Minority Groups

• Occupation

As education increases, average income increases:

• True

• False

Living standards are often measured by:

• The level of material comfort individuals, groups or nations enjoy.

• The material success of consumers, businesses and governments.

• The set of guidelines outlined by the United Nations for livability.

• The measurable indicators in an economy.

During the contraction phase of the business cycle, we would expect:

• Inflation to begin to moderate or fall.

• Inflationary pressures are combated by rising interest rates.

• Inflation rises sharply in response to cost and demand pressures.

• Inflation is unchanged by the business cycle.

During an expansion of the business cycle, we would expect living standards to:

• Increase

• Decrease

• Remain unchanged

• Living standards are not impacted by the business cycle.

If GDP per capita is a poor measure of living standards, what are two (2) better measures that could be used?

(Select all that apply)

• HDI

• GNI

• QoL

• IMF

In Australia, the gap between rich and poor is:

• Widening

• Shrinking

• Remaining the same

• It is not known.