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Year 10 Economics Quiz 2024

Total questions: 37

Worksheet time: 22mins

Name
Class
Date
1.
Seth is laid off from work because he is a life guard at the local water park. He is experiencing what kind of unemployment?
a)
Structural
b)
Seasonal
c)
Frictional
d)
Cyclical
2.
Unemployment caused by a fall in demand for goods and services across the economy.
a)
frictional unemployment
b)
seasonal unemployment
c)
structural unemployment
d)
cyclical unemployment
3.
Unemployment caused when a person resigns from their job to start looking for a higher paying job that better suits their skills.
a)
Structural
b)
Seasonal
c)
Frictional
d)
Cyclical
4.
How many people are NOT in the Labor Force?
Unemployed (Looking for job) = 20
Retired = 5          Prison = 2
School = 10         Employed = 180
Unemployed (not looking for job) = 20
a)
20
b)
40
c)
37
d)
140
5.
The Unemployment rate is calculated as the number of
a)
unemployed persons divided by number of employed persons
b)
persons in the labour force divided by the number of unemployed
c)
unemployed persons divided by the size of the labour force
d)
employed persons divided by number of unemployed persons
6.
Someone who works part-time but wants a full-time job is considered 
a)
a discouraged worker
b)
unhappy
c)
underemployed
d)
overemployed
7.
The unemployment rate does not account for which two types of people?
a)
discouraged workers (hidden unemployed) and those employed
b)
full time carers and those in school
c)
retirees and those in prison
d)
discouraged workers (hidden unemployed)  and underemployed
8.
What is the term for the lowest possible level of unemployment?
a)
full employment
b)
cyclical employment
c)
perfect employment
d)
peak employment
9.
Use the following data to determine the unemployment rate: 
Total population 1000
Full time workers 500
Part time workers 200
Discouraged workers 10
Unemployed  70
What is the unemployment rate?
a)
8%
b)
9%
c)
10%
d)
11%
10.
If CPI goes from 100 to 300 and your salary goes from $100,000 to $200,000, what happened to your purchasing power?
a)
Increase
b)
Decrease
c)
No change
11.
Inflation is usually higher during what part of the Business Cycle?
a)
upswing 
b)
recession
c)
trough
d)
boom
12.
What causes demand pull inflation?
a)
rise in price due to a decrease in supply
b)
a rise in price level due to an increase in demand
c)
a rise in price due to an increase in the cost of production
d)
a decrease in price due to a decrease in supply
13.
If CPI last year was 177 and the CPI this year is 186, what is the rate of inflation?
a)
8%
b)
7%
c)
6%
d)
5%
14.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)

the federal government

15.
Which of the following groups suffer from high inflation
a)
Borrowers
b)
Lenders
c)
Taxpayers
d)
Property Investors
16.
What causes cost push inflation
a)
An increase in demand for goods and services
b)
An increase in supply
c)
A rise in production costs passed on to consumers
d)
A fall in the price of imports
17.
what is the ideal rate of inflation?
a)
0-1%
b)
1-2%
c)
2-3%
d)
3-4%
18.
Economists consider inflation to be negative because 
a)
inflation encourages consumers to buy goods made in Australia rather than imports
b)
It increases the rate of savings
c)
It means a recession is around the corner
d)

It leads to uncertainty and makes investment more risky

19.
What is the current inflation rate in Australia
a)
1.4%
b)
1.6%
c)
1.8%
d)
2.2%
20.

What does GDP measure?

a)

The total value of services produced in a country

b)

The total value of goods produced in a country

c)

The total value of goods and services produced in a country

d)

The total amount of goods and services produced in an economy

21.

How is GDP per capita different to GDP?

a)

GDP per capita takes into account inflation

b)

GDP per capita takes into account the value of output

c)

GDP per capita takes into account the population of a country

d)

GDP per capita takes into account demographics

22.

What is our preferred rate of economic growth in Australia?

a)

2-3%

b)

3-4%

c)

4-5%

d)

5-6%

23.

Which cause of economic growth would involve the least cost for present and future generations of a country’s population?

a)

increased exploitation of a country’s mineral resources

b)

investment financed by borrowing from abroad

c)

investment financed by high rates of domestic savings

d)

technological innovations in productive processes

24.

Possible side effects of rapid economic growth are

a)

increased underemployment and reduced investment

b)

increased inflation and increased environmental damage

c)

reduced inflation and increased environmental damage

d)

increased inflation and reduced consumption of material goods

25.

When a company buys new equipment for their business, this is an example of

a)

Consumption

b)

Investment

c)

Imports

d)

Exports

26.
The unemployment rate does not account for which two types of people?
a)
discouraged workers (hidden unemployed) and those employed
b)
full time carers and those in school
c)
retirees and those in prison
d)
discouraged workers (hidden unemployed)  and underemployed
27.

TRUE OR FALSE: High productivity is a cause of economic growth.

a)

True

b)

False

28.

Which of the following represents an investment in capital resources used to produce other goods?

a)

providing free healthcare

b)

modernising machinery

c)

providing skills training

d)

subsidising the cost of attending university

29.
Which activity is an example of investing in physical capital by a company?
a)
constructing a new factory
b)
throwing away old delivery trucks
c)
giving workers more time off to rest
d)
training workers to do their jobs better
30.

Saving is best defined as...

a)

that part of current income which is not spent on consumer goods and services

b)

undertaken by those who make investment decisions

c)

that part of current income which is spent on goods to be used immediately

d)

the difference between income and taxation

31.

The Government decides to reduce the income tax rate by 10% due to COVID-19. What effect will this have on the economy?

a)

Cause the leakage of taxation to increase therefore a contraction

b)

Cause the leakage of taxation to decrease therefore an expansion

c)

Cause an injection of government expenditure to increase therefore an expansion

d)

Cause an injection of government expenditure to decrease therefore a contraction

32.

Which of the following is an injection in the circular flow of income?

a)

An increase in the level of household savings

b)

An increase in the level of investment

c)

A reduction in government expenditure on infrastructure

d)

An increase in taxes (with government expenditure held constant)

33.

The injection for the Overseas sector is:

a)

Investment

b)

Exports

c)

Imports

d)

Government Expenditure

34.

The leakage for the Government Sector is:

a)

Savings

b)

Imports

c)

Government Expenditure

d)

Taxation

35.

300 Chinese students enrol at the University of Western Australia. What effect will this have on the economy?

a)

Cause the leakage of imports to increase, leading to a contraction

b)

Cause the injection of exports to increase, leading to an expansion

c)

Cause the injection of exports to decrease, leading to an expansion

d)

Cause the leakage of imports to decrease, leading to an expansion

36.

What are governments MOST LIKELY attempting to do when they increase unemployment benefits, implement more welfare programs, and rearrange tax brackets?

a)

resolve market failures

b)

redistribute income

c)

invest in technology

d)

protect property rights

37.

Opportunity Cost is best defined as

a)

the real cost of the next best alternative foregone

b)

The price you pay to purchase something

c)

What you give up by making a decision

d)

The cost of making a decision