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Economics Exam Revision Questions & 100% Correct Answers- Latest Test | Graded A+ | Passed

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Circular flow of income ֎ -:- A model of the economy which shows the flow of goods, services and factors and their payments around the economy. Gross Domestic Product (GDP) ֎ -:- A measurement of the total goods and services produced within a country. GDP measures economic growth but how is...

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  • 27 de agosto de 2024
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Economics Exam Revision Questions &
100% Correct Answers- Latest Test |
Graded A+ | Passed
Circular flow of income


֎ -:- A model of the economy which shows the flow of goods, services and

factors and their payments around the economy.




Gross Domestic Product (GDP)


֎ -:- A measurement of the total goods and services produced within a country.




GDP measures economic growth but how is it limited?


֎ -:- GDP measures economic growth by quantifying the total value of goods

and services produced, but it overlooks important factors like income

inequality and environmental degradation. Additionally, GDP does not

account for the informal economy or the unpaid labor that significantly

contributes to societal well-being.




business cycle


֎ -:- (aka Boom + Bust) Alternating periods of economic expansion and

economic recession




26/08/2024 | © Copyright- This work may not be copied for profit.

, Excellence is key | 2024/2025 ~Page |2


Inflation


֎ -:- A continuous rise in the price of goods and services




Why do prices rise in inflation?


֎ -:- Prices rise during inflation because there is an increase in the overall

demand for goods and services that outpaces supply, leading to higher costs.

Additionally, inflation can be driven by rising production costs, such as higher

wages or increased prices for raw materials, which businesses pass on to

consumers.




winners and losers in inflation


֎ -:- Winners: high-income earners, borrowers and importers




Losers: Low-to-middle-income earners, bank savers and exporters




CPI (Consumer Price Index)


֎ -:- a measure of the overall cost of the goods and services bought by a typical

consumer




How does the CPI measure inflation?




26/08/2024 | © Copyright- This work may not be copied for profit.

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