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Economic Growth, Inflation & Unemployment

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

The total value of all final goods and services produced in a country in a given year.

a)

Gross Domestic Product

b)

Consumer Price Index

c)

Inflation

d)

Unemployment

2.

Economic growth measures the

a)

a) Growth of productivity

b)

b) Increase in nominal income

c)

c) Increase in national output

d)

d) None of the above

3.
Economic growth can be measured by
a)
a)     The CPI
b)
b)     The CBI
c)
c)     GDP
d)
d)     MPC
4.

A price index determined by measuring the price of a standard group of goods meant to represent the market basket of a typical consumer.

a)

Customer Purchasing Index

b)

Consumer Price Index

c)

Consumer Policy Index

d)

Inflation

5.

A sustained general increase in prices across an economy.

a)

Disinflation

b)

Consumer Price Index

c)

Deflation

d)

Inflation

6.

The percentage of a nations labour force that is unemployed.

a)

Balance of Employment

b)

Balance of Payments

c)

Unemployment

d)

Employment

7.

Type of unemployment that occurs as a result of harvest schedules, or when industries make seasonal shifts in their production schedules.

a)

Seasonal Unemployment

b)

Structural Unemployment

c)

Frictional Unemployment

d)

Cyclical Unemployment

8.

Type of unemployment that occurs when workers skills do not match those needed for the jobs available.

a)

Seasonal Unemployment

b)

Structural Unemployment

c)

Frictional Unemployment

d)

Cyclical Unemployment

9.

Unemployment that rises during economic downturns and falls when the economy improves.

a)

Seasonal Unemployment

b)

Structural Unemployment

c)

Frictional Unemployment

d)

Cyclical Unemployment

10.

A period of macroeconomic expansion or growth, followed by a period of contraction, or decline.

a)

Business Cycle

b)

Circular Flow

c)

Equilibrium

d)

GDP

11.

The rate of growth of an economy mainly depends upon

a)

a) The rate of growth of the labour force

b)

b)The proportion of national income saved and invested

c)

c) The rate of technological improvements

d)

d) All of the above

12.
Economic growth can be seen by an outward shift of
a)
a)     The Production Possibility Frontier
b)
b)     The Gross Domestic Barrier
c)
c)     The Marginal Consumption Frontier
d)
d)     The Minimum Efficient Scale
13.
To boost economic growth the government is most likely to
a)
a)     Increase interest rates
b)
b)     Increase taxation rates
c)
c)     Provide incentives to invest
d)
d)     Provide incentives to save
14.

In a recession, GDP

a)

a) Shrinks

b)

b) Grows slowly

c)

c) Grows by 0%

d)

d) Grows rapidly

15.
In a boom
a)
a)     Unemployment is likely to fall
b)
b)     Prices are likely to fall
c)
c)     Demand is likely to fall
d)
d)     Imports are likely to fall
16.

Refers to an increase in the general price level associated with an increase in the cost of production.

a)

Supply Inflation

b)

Cost Push Inflation

c)

Imported Inflation

d)

Demand Pull Inflation

17.

Farm helpers are unemployed when the cropping season is over.

a)

frictional

b)

cyclical

c)

structural

d)

seasonal

18.

If the consumer price index (CPI) for year 2013 is equal to 180 and for year 2014 is equal to 198, calculate the inflation rate level in year 2014.

a)

10%

b)

18%

c)

80%

d)

98%