Economic performance

Which of the following is NOT an economic objective of a government?

• Economic growth

• Low inflation

• Low employment

• Low unemployment

Economic growth can be indicated on the PPF model by a

• movement along the PPC.

• rightward shift of the PPC.

• leftward shift of the PPC.

• movement from a point inside the PPC to the PPC.

Economic growth is best defined as an increase in the

• capacity of the economy to satisfy more wants.

• capacity of the economy to produce resources.

• volume of goods produced in an economy.

• money supply in an economy.

Gareth has lost his sales job because of a fall in demand due to rising unemployment. He is considered to be

• structurally unemployed.

• cyclically unemployed.

Oobi Doobi has a population of 20 million, 10 million are employed and 1 million are unemployed. The unemployment rate is

• 10%

• 5%

• 1%

• 9%

Sophia has lost her factory job producing music CDs because people are downloading from the internet rather than buying CDs. She is considered to be

• structurally unemployed.

• cyclically unemployed.

Inflation means

• the economy is rising.

• the price of a good has increased.

• the general level of prices has increased.

• the economy is performing well.

A benefit of low inflation is that

• people on fixed incomes have a lower standard of living.

• the cost of living falls.

• Australia's international competitiveness improves.

• prices rise by only a small amount.