Year 10 Economics Test Revision 1

What does GDP measure?

• The total market value of goods and services produced in a country

• The number of people in work

• The total exports of a country

• The amount of money people earn in a week

What is inflation?

• An increase in the general level of prices

• A decrease in the value of exports

• An increase in wages

• A fall in the number of jobs

What does the CPI measure?

• The number of new businesses each year

• The cost of a set “basket” of goods and services over time (inflation)

• The value of imports

• The amount of goods a factory makes

Which is an example of structural unemployment?

• A fruit picker out of work after the season ends

• A shop assistant between jobs

• A worker replaced by a machine

• A builder unemployed during a recession

Which is a problem with using GDP to measure living standards?

• GDP includes inflation rates

• GDP does not show inequality or environmental damage

• GDP always changes each year

• GDP measures imports and exports separately

If prices go up but wages stay the same, what happens to the amount of goods you can buy?

• They increase

• They decrease

• They stay the same

• They become unpredictable

Which three factors are included in the HDI?

• Life expectancy, education, income

• Life expectancy, inflation, imports

• GDP, exports, imports

• Education, inflation, unemployment

What is Australia’s target inflation rate?

• 0–1%

• 1–2%

• 2–3%

• 3–4%

If GDP growth is above 3%, what does this usually mean?

• The economy is growing faster than average

• The economy is shrinking

• Prices are falling

• Unemployment is always high

Which event could make GDP drop?

• A natural disaster

• A rise in exports

• A new factory opening

• More people getting jobs