Economic Growth and Unemployment Quiz

What is the most common way to measure economic growth?

• Inflation rate

• Gross Domestic Product (GDP)

• Unemployment rate

• Balance of trade

If a country’s real GDP increases but its population grows faster, what happens to GDP per capita?

• It stays the same

• It increases

• It decreases

• It becomes negative

One potential negative consequence of rapid economic growth is:

• Increased imports

• Higher levels of inflation

• Better infrastructure

• Greater employment opportunities

Which of the following would directly increase a country's productive capacity?

• More holidays for workers

• Higher consumption taxes

• Investment in new capital machinery

• A rise in food prices

A country experiences strong economic growth, but income inequality also rises. This suggests:

• Growth has been evenly shared

• Inflation is falling

• Benefits of growth are not equally distributed

• Employment has decreased

What type of unemployment is caused by a mismatch between skills and available jobs?

• Frictional

• Structural

• Seasonal

• Cyclical

A factory worker is laid off during a recession. This is an example of:

• Seasonal unemployment

• Cyclical unemployment

• Voluntary unemployment

• Structural unemployment

Frictional unemployment refers to people who:

• Are unwilling to work

• Are between jobs

• Lack the skills needed

• Are unemployed for seasonal reasons

What type of unemployment is common in industries like tourism or agriculture?

• Frictional

• Cyclical

• Seasonal

• Structural

High unemployment can lead to which of the following consequences?

• Decrease in government spending

• Increase in tax revenue

• Increase in social costs like crime and poverty

• Rise in GDP