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CIE Econs IGCSE Macroeconomics 1

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

The diagram shows the percentage of income taken by a tax at different levels of income


What term is used to describe the tax?

a)

indirect

b)

progressive

c)

proportional

d)

regressive

2.

Which statement about the meaning of government economic aims is correct?

a)

Economic growth means that a country’s real output must rise over time.

b)

Full employment means that no one must be unemployed.

c)

Price stability means that the price of all goods and services must remain unchanged.

d)

Redistribution of income means that everyone must have equal incomes.

3.

The diagram shows the imposition of a tax of UZ on a good.


Which area shows the government’s tax revenue?

a)

TUEV

b)

TUEZY

c)

TUWV

d)

TUZY

4.

A government decided to increase its spending on building schools and hospitals.


Which aim of government policy is most likely to be achieved by this increase?

a)

a balance of payments surplus

b)

a stronger exchange rate

c)

economic growth

d)

price stability

5.

To make Gross Domestic Product a better measure of comparative living standards it needs to be adjusted by

a)

deducting the effects of exports and inflation

b)

deducting the effects of imports and exports.

c)

deducting the effects of population change and exports.

d)

deducting the effects of population change and inflation.

6.

What is not involved in the construction of a retail price index?

a)

a base year

b)

a basket of goods

c)

the income tax rate

d)

the weighting of products

7.

What is likely to fall when the rate of unemployment in a country falls?

a)

business confidence

b)

consumer spending

c)

government budget deficit

d)

government revenue from taxes

8.

The table shows the percentage change in earnings and consumer prices for four countries for one year.


Which country will have experienced a constant level of real income during the year?

a)

A

b)

B

c)

C

d)

D

9.

How would the proportions of different age groups in the population compare between low-income developing countries and high-income developed countries?


Low-income developing countries would have a

a)

higher proportion of the elderly and higher proportion of young people.

b)

higher proportion of the elderly and lower proportion of young people.

c)

lower proportion of the elderly and higher proportion of young people.

d)

lower proportion of the elderly and lower proportion of young people.

10.

Which feature would be most helpful in identifying a typical developing country?

a)

the level of Gross Domestic Product

b)

the rate of rural to urban migration

c)

the size of geographical area

d)

the size of the population