GCSE Macroeconomics Exam Questions
with Complete Solutions
Factors of Production - ANSWER-resources comprising land (including natural
resources) Labour, Capital and Enterprise.
Economic Growth - ANSWER-Growth in output in the economy over time - a growth of
real GDP over time.
GDP - ANSWER-Total value of goods and services produced in the country in a year.
GDP per Capita - ANSWER-GDP divided by the total population therefore GDP per
head.
Full Employment - ANSWER-When all those able and willing to work are in paid
employment at the current wage rate.
Unemployment - ANSWER-When workers who are able and willing to work are unable
to find employment.
Inflation - ANSWER-A sustained rise in the general price level over time which results in
a decrease in spending power.
Rate Of Inflation - ANSWER-The rate at which the general price level rises over time.
Consumer Price Index - ANSWER-The official measure of rate of inflation.
Demand Pull Inflation - ANSWER-Inflation caused by excess demand in the economy.
Cost Push Inflation - ANSWER-Inflation caused by the rise in costs in the economy.
Hyper Inflation - ANSWER-The rate of inflation so high that it is close to worthless.
Tax - ANSWER-A compulsory payment to the government.
Direct Tax - ANSWER-A tax on income or wealth.
Indirect Tax - ANSWER-A tax on spending often defined as tax on goods and services.
Distribution of Income - ANSWER-How incomes are shared out among the people in a
country.
Redistribution of Income - ANSWER-A policy to reduce inequalities of income, so then
incomes are distributed more evenly.
with Complete Solutions
Factors of Production - ANSWER-resources comprising land (including natural
resources) Labour, Capital and Enterprise.
Economic Growth - ANSWER-Growth in output in the economy over time - a growth of
real GDP over time.
GDP - ANSWER-Total value of goods and services produced in the country in a year.
GDP per Capita - ANSWER-GDP divided by the total population therefore GDP per
head.
Full Employment - ANSWER-When all those able and willing to work are in paid
employment at the current wage rate.
Unemployment - ANSWER-When workers who are able and willing to work are unable
to find employment.
Inflation - ANSWER-A sustained rise in the general price level over time which results in
a decrease in spending power.
Rate Of Inflation - ANSWER-The rate at which the general price level rises over time.
Consumer Price Index - ANSWER-The official measure of rate of inflation.
Demand Pull Inflation - ANSWER-Inflation caused by excess demand in the economy.
Cost Push Inflation - ANSWER-Inflation caused by the rise in costs in the economy.
Hyper Inflation - ANSWER-The rate of inflation so high that it is close to worthless.
Tax - ANSWER-A compulsory payment to the government.
Direct Tax - ANSWER-A tax on income or wealth.
Indirect Tax - ANSWER-A tax on spending often defined as tax on goods and services.
Distribution of Income - ANSWER-How incomes are shared out among the people in a
country.
Redistribution of Income - ANSWER-A policy to reduce inequalities of income, so then
incomes are distributed more evenly.
