Chap 2 Economic Performance and Living Standards

What are the three main indicators of economic performance?

• Economic growth, Unemployment, Inflation

• GDP, Inflation, Trade

• Employment, Inflation, Trade

• Economic growth, GDP, Trade

Fill in the blank: Australia is a ________, open economy.

• medium-sized

• large

• small

• developing

What is the most important indicator of economic performance according to the textbook?

• Inflation

• Unemployment

• Gross Domestic Product (GDP)

• Trade Balance

GDP measures ______ in an economy.

• the total value of goods and services produced

• the unemployment rate

• the inflation rate

• the interest rate

The significance of growth in GDP is:

• It indicates economic health and expansion.

• It shows a decrease in national productivity.

• It reflects a reduction in consumer spending.

• It signifies a decline in employment rates.

What is the limitation to economic growth if the economy grows too fast (above 4%)?

• Inflation may rise

• Unemployment may increase

• Interest rates may fall

• Government debt may decrease

_____ is considered sustainable economic growth in terms of percentage per year.

Fill in the blank: In the 2010s, Australia’s annual GDP was between ___ to 3.9%.

• 1.7%

• 2.0%

• 2.2%

• 3.0%

What does GDP per capita represent?

• The total economic output of a country

• The average economic output per person

• The total population of a country

• The average income of a country's citizens

Based on the table, what is the GDP per capita of Australia?

• $55,000

• $25 million

• $2100

• $1.3 billion