Deck 11: Analysing the Macroeconomic Environment

Question 1

GDP measures:

A) inflation
B) The cost of living
C) The standard of living
D) National income

Answer 1

d

Question 2

CPI measures:

A) inflation
B) The cost of living
C) The standard of living
D) National income

Answer 2

a

Question 3

GDP per person measures:

A) inflation
B) The cost of living
C) The standard of living
D) National income

Answer 3

c

Question 4

If demand is income elastic it means:

A) the percentage change in quantity demanded is less than the percentage change in income
B) the percentage change in quantity demanded is equal to the percentage change in income
C) the percentage change in quantity demanded is more than the percentage change in income
D) the percentage change in income is less than the percentage change in price

Question 5

If inflation was 3% and the following year is 2%, prices have fallen

Question 6

Inflation is measured with a weighted index.

Question 7

A high interest rate is likely to discourage borrowing.

Question 8

A low interest rate is likely to reduce aggregate demand.

Question 9

Gearing measures the profitability of a business:

Question 10

Anyone without a job is part of the unemployment rate in the UK

Question 11

An increase in the value of a currency is likely to:

A) Make exports abroad cheaper in the foreign currency
B) Make imports abroad more expensive in the foreign currency
C) Reduce export sales
D) Reduce imports

Question 12

An increase in the value of a currency may be caused by:

A) An increase in supply of the currency
B) An decrease in demand of the currency
C) An increase in demand of the currency
D) The government selling its currency