Economic Growth Quiz
Test your knowledge of Economic Growth with these A-Level Economics questions.
This quiz consists of 16 questions. Scroll down to start the quiz!
Questions
What does the economic cycle show?
Economic growth compared to long term trend rates.
What does GDP stand for?
Gross domestic product.
In the boom stage of the business cycle what is happening to economic growth?
It is a period of fast economic growth.
What would you expect to happen to incomes in the boom stage of the business cycle?
You would expect incomes to rise.
In the recession stage of the business cycle what happens to business profits?
They fall.
In the slump stage of the business cycle what is the level of investment?
Investment is low.
What happens to the level of unemployment in the recovery stage of the business cycle?
It starts to fall as more jobs are created.
State three causes of booms / dips in the business cycle.
Labour shortages, increase in aggregate demand, increase in demand for imports.
Which of the following is NOT a demand side shock that would impact the business cycle. 1. Changes in rates of economic growth with trading partners, 2. natural disasters, 3. a rise / fall in exchange rates, 4. changes in aggregate demand.
2. Natural disasters – this is a supply side shock
What is the trend rate of economic growth?
The average rate of economic growth over a period of time.
How do education and training influence economic growth?
They can increase the trend rate of growth of labour productivity which can drive up the level of economic growth.
What does sustainable economic growth mean?
That it can continue over a long period of time.
What is the name of the effect economic growth has on capital investment?
The accelerator effect.
What statistics can be used to compare incomes between countries?
GDP per capita in a common currency.
What is the impact of the underground economy on GDP figures?
In some countries the underground economy is larger than others so this can distort GDP figures.
Economists often use GDP figures to compare the levels of income between countries, to what extent is this method a valid reflection of the differences that exist? (20 marks)
Level 1 – candidate identifies few issues. Doesn’t apply economic concepts well. Lacks analysis and evaluation. Fails to link issues. Limited understanding of demand and supply for labour. 0-6 marks
Level 2 – candidate recognises a few issues and has a limited application of economic concepts. Basic links between issues. Uses basic demand and supply analysis. 7-12 marks
Level 3 – Identifies a few issues. Applies economic concepts and ideas to the question. Limited evaluation. Links issues and concepts. 13-20 marks
