Y11 iGCSE Econ Exam Prep - Sec 3 Quiz 1

When is the budget described as balanced?

• when direct taxes and indirect taxes are equal

• when exports and imports are equa

• when government spending and government revenue are equal

• when the demand for money and the supply of money are equal

The government wishes to increase economic growth in its economy. What would not be likely to achieve this aim?

• The central bank encourages bank lending.

• The central bank lowers interest rates.

• The government increases sales tax (VAT).

• The government subsidises new industries.

The government redistributes income more evenly.

What is most likely to increase?

• the incentive to work

• the level of savings

• the need for welfare payments

• the rate of inflation

The table shows selected indicators for the labour market of an economy in 2014 and 2018.

According to the table, what is the most likely type of unemployment in 2018?

• cyclical

• frictional

• seasonal

• structural

What may directly cause economic growth?

• higher imports

• higher levels of resources

• higher taxation

• higher unemployment

What would not be required in the construction of an index of consumer prices?

• the selection of a base year

• the selection of a representative range of items

• the calculation of average wage levels

• the weighting of each item in the index

Information about job vacancies on a government website has led to a decrease in short-term unemployment.

What is the term for this type of unemployment?

• cyclical unemployment

• frictional unemployment

• structural unemployment

• technological unemployment

The table shows figures for the real GDP of a country. A quarter is three months.

During which quarters was the country experiencing a recession?

• quarters 1 and 2

• quarters 2 and 3

• quarters 3 and 4

• the entire period