Pearson Edexcel International A Level · Economics (YEC11)

Economic growth: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Economic growth.

9 questions22 marksFree, no account

Question 1

1 mark

An economy is said to be in a recession when it experiences which of the following?

Question 2

1 mark

The Purchasing Power Parity (PPP) exchange rate is used when comparing GDP between countries primarily to account for differences in:

Question 3

1 mark

Which of the following scenarios would most likely lead to export-led growth for an economy?

Question 4

1 mark

Potential economic growth is best defined as an increase in which of the following?

Question 5

1 mark

An economy is currently experiencing a negative output gap. Which of the following is most likely to be a characteristic of this economic state?

Question 6

2 marks

Identify two limitations of using Gross Domestic Product (GDP) as the sole measure to compare living standards between different countries.

Write your answer out first, then check it against the worked solution.

Question 7

3 marks

Explain how net migration into an economy can lead to potential economic growth.

Write your answer out first, then check it against the worked solution.

Question 8

4 marks

Define the term output gap and distinguish between a positive and negative output gap.

Write your answer out first, then check it against the worked solution.

Question 9

8 marks

An economy is currently experiencing rapid actual growth, but economists have identified the emergence of a significant positive output gap.

(a) Distinguish between actual economic growth and potential economic growth. (2)
(b) Explain one possible cost of a sustained positive output gap. (2)
(c) Evaluate why measuring the size of an output gap is often difficult for government policymakers. (4)

Write your answer out first, then check it against the worked solution.

* The content provided by thinka is generated by AI and may not always be accurate or up-to-date. Please use it as a supplementary resource and verify with official materials.

You've seen the model answer. Now get yours marked.

This page can show you how a good answer looks. It cannot tell you what your answer was missing. thinka marks your written work against the real mark scheme in about 15 seconds.

Get My Answers Marked Back to the notes

Want more questions like these? Get a fresh set on this topic, marked as you go.

Practise More