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IB term 1 revision

Total questions: 10

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following would cause an increase in national income?

a)

Fall in exports

b)

Increase in government spending

c)

Fall in interest rates

d)

Increase in interest rates

2.

Explain the difference between GDP and GNI

4 lines
3.

Which of the following would increase the Multiplier?

a)

Fall in interest rates

b)

Increase in highest rate of income tax

c)

A fall in the value of the pound

d)

An increase in consumer confidence

4.

Which of the following would increase AD?

a)

A fall in government spending

b)

An increase in the interest rate

c)

An increase in consumer confidence

d)

An increase in tax revenue

5.

Which of the following is a limitation of CPI as a measure of inflation?

a)

The basket of goods is never representative of all households

b)

An index is inevitably inaccurate

c)

Surveys are likely to be filled in inaccurately

d)

There is a timelag between the data collection and release of CPI figures

6.

Someone looking for a job having been made redundant during a recession would count as

a)

structural unemployment

b)

cyclical unemployment

c)

frictional unemployment

d)

seasonal unemployment

7.

Someone looking for a job having just left university

a)

structural unemployment

b)

cyclical unemployment

c)

frictional unemployment

d)

seasonal unemployment

8.

Someone just been laid off from an iron foundry closed down in the UK counts as

a)

structural unemployment

b)

cyclical unemployment

c)

frictional unemployment

d)

seasonal unemployment

9.

Which is the following is not a cost of economic growth

a)

environment damage

b)

rising inequality

c)

higher standards of living

d)

causes savings to be worth less

e)

unsustainable use of resources

10.

Why do we study Economics?

a)

To change the world

b)

To make tonnes of money

c)

To become politicians

d)

To tackle poverty and inequality