Economic Indicators

What is economic growth?

• Decrease in the volume of goods and services produced over time.

• Increase in the volume of goods and services produced over time.

• Decrease in the market value of goods and services.

• Increase in the market value of goods and services.

Why is it important for an economy to grow each year?

• To decrease the population.

• To replace consumed goods and services.

• To reduce the production of goods.

• To lower inflation rates.

Which of the following is a common measure of economic growth?

• Unemployment Rate.

• Inflation Rate.

• Real Gross Domestic Product (GDP).

• Consumer Price Index (CPI).

Economic growth can lead to which of the following for businesses?

• Lower consumer demand.

• Decreased investment opportunities.

• Higher unemployment.

• Increased consumer demand.

What is unemployment?

• A situation where people who are willing and able to work cannot find employment.

• A situation where everyone has a job.

• A situation where people choose not to work.

• A measure of inflation.

Which of the following is an effect of high unemployment on businesses?

• Decreased availability of workers.

• Lower wage pressure.

• Higher production costs.

• Increased consumer demand.

• If unemployment is high, businesses are likely to experience:

• Decreased employee retention.

• Increased pressure to raise wages.

• Decreased bargaining power.

• Larger labor pools.

How is inflation traditionally measured in Australia?

• By calculating GDP.

• By using the Consumer Price Index (CPI).

• By measuring the unemployment rate.

• By calculating business profits.

How can inflation affect pricing strategies for businesses?

• Businesses may need to lower prices to maintain profit margins.

• Businesses may need to raise prices, risking the loss of price-sensitive customers.

• Businesses will experience no change in pricing strategies.

• Inflation leads to higher consumer demand, so prices can remain stable.

Which of the following is an effect of inflation on businesses?

• Lower production costs.

• Decreased wage demands.

• Increased employee retention.

• Increased production costs.