AQA GCSE Economics Paper 2 - Macroeconomics Test

Which of the following is a principal economic objective of government policies?

• Growth of inflation

• Increased current account deficit

• Low employment

• Steady economic growth

A budget surplus is best described as which of the following?

• Where government revenue is greater than government expenditure

• Where government revenue is less than government expenditure

• Where the value of exports is less than the value of imports

• Where the value of imports is less than the value of exports

Which of the following pairs of policy changes is the most appropriate response to the problem of high inflation?

• Increase, Increase

• Decrease, Decrease

• Increase, Decrease

• Decrease, Increase

What is the approximate exchange rate at the end of the period shown in Figure 1?

• 1.20

• 1.25

• 1.40

• 1.45

What is the significance of the exchange rate shown in Figure 1 for UK producers?

• It affects the cost of imports.

• It affects the cost of exports.

• It has no impact on UK producers.

• It only affects consumers.

One reason why the UK government aims for a low inflation rate is to:

• increase unemployment

• stabilize the economy

• decrease exports

• reduce government spending

By the end of which year had UK unemployment fallen to a low level?

• 2011

• 2013

• 2015

• 2017

What is one reason why unemployment surprised many people by falling?

• Increased government spending

• Expected rise after financial crisis

• High consumer confidence

• Stable economic conditions

What was India's population in 2018?

• 1.0 billion

• 1.1 billion

• 1.2 billion

• 1.3 billion

What is one negative impact of MNCs in India mentioned in the text?

• Increased employment

• Depletion of local water supplies

• Improved infrastructure

• Enhanced local agriculture