.20..objective

Question 1 Economic growth can be measured by: a) The CPI b) The CBI c) GDP d) MPC Question 2 In a boom: a) Unemployment is likely to fall b) Prices are likely to fall c) Demand is likely to fall d) Imports are likely to fall Question 3 In a recession, GDP: a) Grows negatively b) Grows slowly c) Grows by 0% d) Grows rapidly Question 4 The economic cycle is measured by a) CPT b) RPI c) GDP d) MEC Question 5 A government is most likely to use a reflationary policy a) In a recession b) In a boom c) When there is fast GDP growth d) When prices are increasing fast Question 6 Potential growth measures: a) The growth of the fastest economy in the world b) The fastest growth an economy has ever achieved c) The present rate of growth of an economy d) The rate of growth that could be achieved if resources were fully employed Question 7 Economic growth can be seen by an outward shift of: a) The Production Possibility Frontier b) The Gross Domestic Barrier c) The Marginal Consumption Frontier d) The Minimum Efficient Scale Question 8 The socially optimal rate of growth is: a) Zero b) Negative c) Where the marginal social benefit = the marginal social cost d) Total social costs are minimized Question 9 To anticipate what the economy is going to do next the government will look at: a) Lagging indicators b) Flashing indicators c) Coincidental indicators d) Leading indicators Question 10 The output gap is a) The difference between this year's and last year's output b) The difference between this year's and next year's output c) The difference between actual and potential output d) The difference between actual and expected outputs