NEW
Font size
WorksheetsEconomic Growth and unemployment
Total questions: 41
Worksheet time: 31mins
The total value of all final goods and services produced in a country in a given year.
Gross Domestic Product
Consumer Price Index
Inflation
Unemployment
Economic growth measures the
a) Growth of productivity
b) Increase in nominal income
c) Increase in national output
d) None of the above
Type of unemployment that occurs as a result of harvest schedules, or lack of hotel bookings in winter.
Seasonal Unemployment
Structural Unemployment
Frictional Unemployment
Cyclical Unemployment
Type of unemployment that occurs when workers skills do not match those needed for the jobs available.
Seasonal Unemployment
Structural Unemployment
Frictional Unemployment
Cyclical Unemployment
Unemployment that rises during economic downturns and falls when the economy improves.
Seasonal Unemployment
Structural Unemployment
Frictional Unemployment
Cyclical Unemployment
A period of macroeconomic expansion or growth, followed by a period of contraction, or decline.
Economic Cycle
Circular Flow
Equilibrium
GDP
In a recession, GDP
a) Shrinks
b) Grows slowly
c) Grows by 0%
d) Grows rapidly
What are capital goods?
goods that are produced in the capital
the factories, machinery, and technology used to produce goods and services
goods that are produced without natural resources
goods that are produced by the government
The graphs show how consumer prices and real GDP changed in a country between 1995 and 2005. Which conclusion may be drawn from the graphs?
Living standards remained roughly constant between 1995 and 2005.
The level of GDP was lower in 2005 than in 2000.
The country experienced continuous economic growth between 1995 and 2005.
The price level fell between 2000 and 2003.
Which formula is the correct way to measure economic growth rate?
Original GDP / Change in GDP x 100
Original GDP - Change in GDP x 100
Change in GDP / Original GDP x 100
Change in GDP - Original GDP x 100
What is GDP per capita?
GDP x population
GDP / population
GDP + population
GDP - population
If GDP is £300 billion and the population is 30 million. What is GDP per capita?
£270 billion
£100,000
£10,000
£1,000
Which of the following DOESN’T cause economic growth?
Increased investment
Improved technology
Increased labour productivity
Less investment in education
Which of the following is a benefit of economic growth?
A rise in the standard of living
Increased pollution
Increased congestion
Inequalities in income and wealth
Which of the following is a cost of economic growth?
A fall in unemployment
A rise in employment
A reduction in poverty
Loss of non-renewable resources
Calculate the economic growth rate if GDP was £60 billion in Year 1 and £63 billion in Year 2.
1%
5%
10%
15%
Calculate the economic growth rate if GDP was £100 billion in Year 1 and £102 billion in Year 2.
1%
2%
10%
20%
Calculate GDP per capita if GDP is £200 billion and the population is 40 million.
£1,000
£2,000
£5,000
£10,000
The use of government spending and revenue collection to influence the economy.
Monetary Policy
Fiscal Policy
Congressional Policy
Executive Policy
Workers are seeking employment but cannot find employment because of widespread low economic activity. Which type of unemployment are these workers experiencing?
Cyclical
Structural
Frictional
Voluntary
Workers are seeking employment but cannot find employment because of widespread low economic activity. Which type of unemployment are these workers experiencing?
Cyclical
Structural
Frictional
Voluntary
Structural unemployment is most likely to occur because of
labour being temporarily unemployed when moving between jobs.
fluctuations in the level of aggregate demand.
the seasonal nature of certain occupations.
long-term changes in the pattern of demand for the products of particular industries.
‘Unemployment has begun to rise in the UK. What should policy makers do? Already the Bank of England has cut interest rates. Also, the government has begun to spend more without covering all of the increase by a rise in taxes.’It can be inferred from the data that in response to rising unemployment
both monetary policy and fiscal policy are expansionary.
monetary policy is expansionary whilst fiscal policy is contractionary.
monetary policy is contractionary whilst fiscal policy is expansionary.
both monetary policy and fiscal policy are contractionary.
Which one of the following types of unemployment is best defined as ‘unemployment for short lengths of time between jobs’?
Frictional
Seasonal
Cyclical
Structural
A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.
10%
8.5%
7.5%
6%
Discouraged workers in
the economy implies that the measurement of unemployment...
understates the true unemployment rate
overstates the true unemployment rate
correctly measures the true unemployment rate
doubles the unemployment rate
Which of these people is officially unemployed
A secretary who took 6 months off for maternity leave
An aspiring actress who waits tables but would rather act
Maid who got fired and will start a new job in 2 weeks
A student who only works 4 hours a week in the library
Which of these is NOT a characteristic of an unemployed person?
He/she does not work
He/she has made specific efforts to find a job
He/she is laid off from a job in the succeeding months
He/she is undergoing a career change
When individuals lose jobs due to a decline in the economy (aggregate demand), often during an economic recession.
Structural Unemployment
Cyclical Unemployment
Frictional Unemployment
Seasonal Unemployment
35 year old project manager who was let go because his employer went bankrupt. He's applied for several similar jobs but hasn't heard back as of yet.
Employed
Unemployed
Not in the Labor Force
Not Applicable / Not Counted
An increase in business confidence will cause what change?
Increase in AD
Decrease in AD
Increased AS
Decrease in AS
An increase in income tax will cause what change?
Increase in AD
Decrease in AD
Increased AS
Decrease in AS
An increase in worker productivity?
Increase in AD
Decrease in AD
Increased AS
Decrease in AS
Which is not the type of unemployment?
frictional
functional
cyclical
structural
In which type of unemployment workers find it hard to obtain new jobs without retraining, gaining additional education, or relocating??
cyclical
frictional
structural
all of them
Which of the following statements would be classified as “full employment’?
Everyone who wants to work has a job
Approximately 95% of people have a job
People who have been hunting for a job for a long time
Everyone who wants to work have full time jobs
