Year 10 Economics Test Revision 2

What does GDP (Gross Domestic Product) measure?

• The total market value of goods and services produced in a country

• The total number of jobs in a country

• The value of imports only

• The amount of money each person earns weekly

What is Real GDP?

• GDP measured before inflation changes

• GDP adjusted to remove the effect of inflation

• GDP including only government spending

• GDP based only on exports

What is Nominal GDP?

• GDP after subtracting imports

• GDP based only on the service sector

• GDP measured without removing inflation

• GDP that measures only large companies

What is inflation?

• An increase in GDP

• A decrease in unemployment

• A rise in wages for all workers

• An increase in the general level of prices

What does the CPI (Consumer Price Index) measure?

• The value of all goods made in a year

• The cost of a fixed “basket” of goods and services over time

• The total number of goods a country exports

• The unemployment rate

What does the unemployment rate show?

• The number of people in school

• The total number of jobs in the economy

• The percentage of people who want a job but can’t find one

• The percentage of people working part-time

Which is an example of cyclical unemployment?

• A fruit picker loses work after harvest ends

• A cashier changes jobs for higher pay

• A typist replaced by a computer

• A factory worker loses their job during an economic downturn

Which is an example of structural unemployment?

• A worker’s job is replaced by new technology

• A teacher on holiday

• A waiter between jobs

• A builder out of work during winter

Which is an example of seasonal unemployment?

• A mechanic laid off during a recession

• A fruit picker not working outside harvest season

• A retail worker replaced by self-checkouts

• A nurse moving to a new job

Which is an example of frictional unemployment?

• A farmer can’t work due to drought

• A worker loses their job because the company closes

• A person leaves one job and spends a month finding another

• A worker replaced by automation