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Theme 2 MACRO OBJ

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following is NOT an injection into the circular flow of income?

a)

Exports

b)

Investment

c)

Government expenditure

d)

Savings

2.

Which of the following is not a leakage or withdrawal from the circular flow of income?

a)

Savings

b)

Investment

c)

Imports

d)

Taxation

3.

Which of the following is NOT a UK macroeconomic objective?

a)

Low/mild inflation

b)

economic growth

c)

reduction in inequality

d)

low unemployment

e)

low taxation

4.

The main measure of economic growth is Gross Domestic Product. Which of the following is the most accurate definition of GDP?

a)

Total market value of a country's stock market

b)

Total market value of all goods/services produced in a country in a year

c)

Total market value of a country's housing market

d)

Total market value of all goods/services produced in a country in 6 months

e)

Total market value of all goods/services produced by a country including earnings from abroad in a year

5.

In the second quarter of 2020 how much did the UK economy shrink by?

a)

0.24%

b)

2.4%

c)

20.4%

d)

200.4%

e)

24.4%

6.

Old MacDonald had a farm e-i e-i e-i-o and on that farm he had a pig e-i-e-i-e-i-o with an oink oink there and an oink oink there.........What does e-i-o stand for?

a)

expenditure=interest rates=output

b)

exchange rate=income=output

c)

expenditure=income=outsourcing

d)

expenditure=income=output

7.

GDP per capita means GDP adjusted for........

a)

inflation

b)

population

c)

income inequality

d)

cost of living

e)

income earnings from abroad

8.

GDP at constant prices and real GDP means GDP adjusted for?

a)

inflation

b)

population

c)

income distribution

d)

unemployment

e)

environmental degradation

9.

One limitation of GDP per capita is that it does not account for........

a)

inequality

b)

output

c)

income

d)

expenditure

10.

The rate of inflation in the UK as recorded in Nov 2020 was........

a)

0.3%

b)

3%

c)

33%

d)

13%

e)

-0.3%

11.

Inflation can be defined as......

a)

A sustained rise in the general price level

b)

A sustained fall in the general price level

c)

A fall in the price of a weighted basket of goods

d)

A rise in GDP

12.

What is the name of the survey conducted in the UK to determine the annual 'weighted basket of goods'

a)

Food and expenditure survey

b)

Living costs and food survey

c)

Labour force survey

d)

commercial victimisation survey

13.

Which of the following goods was add to the UK's 'weighted basket of goods' in 2019?

a)

3 piece non-leather suites

b)

washing powder

c)

herbal tea

d)

dry dog food

e)

envelopes

14.

Which of the following is NOT a limitation of CPI as a measure of inflation?

a)

basket of goods not representative

b)

no account for improvements in product quality

c)

does not account for new products

d)

adjusts for proportion of household income spent on good/service

15.

Which one of the following people has the best dress sense?

a)

Alan

b)

Hugo

c)

Gleb

d)

Tom