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Indicators of Economic Performance

Total questions: 15

Worksheet time: 10mins

Name
Class
Date
1.

GDP stands for

(a)  

2.

Gross Domestic Product is the total value of goods produced and services provided in a country during 6 months' period.

a)

True

b)

False

3.

What is the accepted target growth of GDP in Australia?

a)

3% - 4% per year

b)

4% - 5% per year

c)

5% - 6% per year

d)

6% - 7% per year

4.

Apart from GDP what are two other major indicators of economic performance?

a)

Unemployment

b)

Sustainability

c)

Inflation

d)

Literacy rate

5.

Economic growth is best defined as an increase in the

a)

capacity of the economy to satisfy more wants.

b)

capacity of the economy to produce resources.

c)

volume of goods produced in an economy.

d)

money supply in an economy.

6.

What kinds of things are hidden by GDP

a)

cost of living

b)

economic growth

c)

life expectancy

d)

pollution

7.

Inflation is

a)

an average decrease in the general prices of goods and services

b)

an increase in the purchasing power

c)

an average rise in the general level of prices of goods and services

d)

None of the above

8.

How does high inflation affect people's spending habits?

a)

They spend their money as quickly as possible

b)

They spend more money

c)

They spend the same amount

d)

They spend less money

9.

What is the Consumer Price Index (CPI)?

a)

It tracks the changes in prices of a selection of goods and services from year to year

b)

It is the average cost of all goods and services that are bought in a year

c)

It is the value of all goods and services produced in a country in one year.

d)

It tracks the changes in prices of all imports that are sold in a country in one year.

10.

What is the purpose of the Consumer Price Index (CPI)?

a)

To analyze stock market trends

b)

To measure changes in the price level of consumer goods and services

c)

To predict the weather patterns

d)

To calculate the unemployment rate

11.

Inflation is determined by

a)

comparing the economic growth between two different years

b)

taking prices from different years to calculate the rate of change

c)

adding up the value of all goods and services produced in a year

d)

subtracting the costs of items from the previous year

12.
1. _______________ is when there is an increase in the market value of goods and services produced by an economy over time
a)
Gross Domestic Product
b)
Economic Growth
c)
Unemployment
d)
Inflation
13.
2. _______________ is when there is a sustained increase in the general price level of goods and services in an economy over a period of time.
a)
Gross Domestic Product
b)
Economic Growth
c)
Unemployment
d)
Inflation
14.
3. _______________ is when People who do not have a job, have actively looked for work in the past four weeks, and are currently available for work. Also, people who were temporarily laid off and were waiting to be called back to that job are included.
a)
Gross Domestic Product
b)
Economic Growth
c)
Unemployment
d)
Inflation
15.

Define the Unemployment Rate.

a)

The Unemployment Rate is the percentage of the total labor force that is unemployed and actively seeking employment.

b)

The Unemployment Rate is the percentage of the total labor force that is studying and actively seeking employment.

c)

The Unemployment Rate is the percentage of the total labor force that is employed and actively seeking employment.

d)

The Unemployment Rate is the percentage of the total labor force that is retired and actively seeking employment.