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Economic Concepts Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What does GNI (Gross National Income) measure?

a)

Spending inside South Africa

b)

Income earned by foreigners in South Africa

c)

Income earned by South Africans, no matter where they are

d)

Government spending on goods and services

2.

What does GDE (Gross Domestic Expenditure) show?

a)

All money sent out of South Africa

b)

Total savings by South African citizens

c)

All spending inside South Africa

d)

Government tax revenue

3.

What does 'full employment' mean?

a)

Every citizen is employed

b)

Everyone who wants a job has one

c)

No one is unemployed

d)

Only government employees are working

4.

Why is full employment hard to reach?

a)

The population is too small

b)

Everyone prefers self-employment

c)

There is always some level of unemployment

d)

Wages are too high

5.

What does purchasing power refer to?

a)

How much money people save

b)

How much money the government spends

c)

How much we can buy with our money

d)

How much businesses earn

6.

What does the Consumer Price Index (CPI) track?

a)

Salaries of government officials

b)

Price changes of everyday items over time

c)

Exchange rates

d)

Interest rates

7.

If the CPI increases, what is happening?

a)

Prices are falling

b)

Prices are rising

c)

Employment is rising

d)

The currency is strengthening

8.

What is inflation?

a)

When prices rise

b)

When prices fall

c)

When money loses all value

d)

When people earn more money

9.

What is deflation?

a)

When prices rise quickly

b)

When money is printed

c)

When prices are falling

d)

When employment decreases

10.

What does the Balance of Payments (BoP) measure?

a)

How much tax is collected

b)

The flow of money between South Africa and other countries

c)

The amount of money people borrow

d)

Local investments in businesses

11.

Why is the Balance of Payments important?

a)

It helps track population growth

b)

It shows changes in weather patterns

c)

It helps us see if the country is spending more than it earns

d)

It tracks the price of gold

12.

What can the Balance of Payments affect?

a)

The unemployment rate

b)

The inflation rate

c)

The exchange rate

d)

The literacy rate

13.

What does the Lorenz Curve show?

a)

Price trends

b)

Government spending

c)

How income is shared in a country

d)

Import and export levels

14.

What does the Gini Coefficient measure?

a)

Total national income

b)

Employment rates

c)

Income equality or inequality

d)

Average wage levels

15.

What is the quantile ratio used for?

a)

Comparing spending across industries

b)

Measuring government spending

c)

Comparing rich and poor income levels

d)

Tracking inflation