macro indicators

Question 1

what are macro indicators

Answer 1

statistics used to assess the health and performance of an economy

Question 2

list 6 macro indicators

Answer 2

• GDP growth
• inflation
• unemployment
• balance of payments
• interest rates
• exchange rates

Question 3

GDP

Answer 3

key measure of national insurance, total market value of all goods and services produced over a period of time, including indirect tax

Question 4

inflation

Answer 4

The sustained increase in the general price level of goods and services in an economy.

Question 5

unemplyment

Answer 5

The percentage of the labor force that is unemployed but actively seeking employment

Question 6

interest rates

Answer 6

refer to the cost of borrowing money or the return on savings

They are set by central banks (e.g., the Bank of England in the UK) and influence economic activity

Question 7

balance of payments

Answer 7

a record of all economic transactions between a country and the rest of the world, including trade, income, and capital transfers, over a specific period

Question 8

exchange rates

Answer 8

a relative price of one currency expressed in terms of another currency (or group of currencies)

Question 9

what does a cut in income tax do

Answer 9

stimulus to increase consumption

Question 10

what is mini budget

Answer 10

is a small-scale financial statement or fiscal update issued by a gov, typically outside of the regular annual budget cycle.

It is usually introduced to address urgent economic issues, make policy adjustments, or respond to unexpected financial circumstances

Question 11

features of mini budget

Answer 11

• targeted changes
• short term focus
• government response
• without parliamentary approval

Question 12

3 targeted changes in mini budget

Answer 12

Focus on specific areas like
- taxation
- public spending
- economic stimulus

Question 13

Short-Term Focus of mini budget means

Answer 13

Unlike a full budget, it does not cover an entire fiscal year (fiscal year is between UK1st April - 31st March)

Question 14

Government Response in mini budget is

Answer 14

Often introduced in response to economic crises, inflation, recession, or political needs.

Question 15

without parliamentary approval of mini budget

Answer 15

Depending on the country, some mini-budgets can be implemented quickly without extensive legislative processes.

Question 16

GVA

Answer 16

gross valued added at basic prices minus indirect taxes and subsidies on goods

Question 17

What is ‘the basic’
-when calculating (GDP) at factor cost from GDP at market prices

Answer 17

indirect taxes minus subsidies

Question 18

GDP at market price

Answer 18

is main headline figure for national insurance because the data is quickly available

rate of growth of the GDP is the main indicator of the growth of the economy

Question 19

GNP

Answer 19

gross national product at market prices which are measures of the domestic output of the country, measured minus how much they have used from their savings

Question 21

What are transfer payments?

Answer 21

Transfer payments are payments made by the government to individuals without any exchange of goods or services.

Question 22

True or False: Transfer payments are a form of government spending.

Answer 22

True

Question 23

Fill in the blank: Transfer payments include social security, unemployment benefits, and _______.

Answer 23

welfare payments

Question 24

What is the primary purpose of transfer payments?

Answer 24

The primary purpose of transfer payments is to provide financial assistance to individuals in need.

Question 25

Multiple Choice: Which of the following is NOT a type of transfer payment? A) Social Security B) Unemployment Benefits C) Public Education Funding

Answer 25

C) Public Education Funding

Question 26

How do transfer payments impact the economy?

Answer 26

Transfer payments can stimulate economic activity by increasing consumer spending among recipients.

Question 27

True or False: Transfer payments are typically funded through taxation.

Answer 27

True

Question 28

Short Answer: Name one example of a transfer payment program.

Answer 28

Medicaid

Question 29

What is the difference between transfer payments and government purchases?

Answer 29

Transfer payments do not involve the purchase of goods or services, while government purchases do.

Question 30

Multiple Choice: Which demographic is most likely to benefit from transfer payments? A) High-income individuals B) Low-income individuals C) Corporations

Answer 30

B) Low-income individuals

Question 31

True or False: Social Security benefits are considered transfer payments.

Answer 31

True

Question 32

Fill in the blank: _________ payments are made to individuals who are unemployed and seeking work.

Answer 32

Unemployment

Question 33

Which of the following is NOT an example of a transfer payment? A) Welfare B) Subsidies C) Public Education

Answer 33

C) Public Education

Question 34

List one example of a transfer payment aimed at supporting low-income families.

Answer 34

Supplemental Nutrition Assistance Program (SNAP)

Question 35

What is national income a measure of?

Answer 35

National income is a measure of the total economic output of a country.

Question 36

what is National income is used to do

Answer 36

is used to compare the economic performance of different countries

Question 37

Which of the following is NOT a reason for measuring national income? A) Economic planning B) Assessing living standards C) Determining tax rates D) Predicting weather patterns

Answer 37

D) Predicting weather patterns

Question 38

Why is it important to measure national income over time?

Answer 38

Measuring national income over time helps in analyzing economic growth and cycles.

Question 39

What is the definition of purchasing power parity (PPP)?

Answer 39

Purchasing power parity (PPP) is an economic theory that compares different countries' currencies through a market 'basket of goods' approach.

Question 40

True or False: Purchasing power parity suggests that in the long run, exchange rates should equalize the price of identical goods in different countries.

Answer 40

True

Question 41

Fill in the blank: The concept of purchasing power parity is often used to compare the ________ between countries.

Answer 41

standard of living

Question 42

Which of the following is a key assumption of purchasing power parity? A) Markets are perfectly competitive B) There are no transportation costs C) Goods are identical across countries D) All of the above

Answer 42

D) All of the above

Question 43

How does purchasing power parity help in economic analysis?

Answer 43

Purchasing power parity helps in economic analysis by providing a method to compare economic productivity and standards of living between countries.

Question 44

why can national insurance be accurate

Answer 44

due to secret economy such as tax evasion the stats are inaccurate

Question 45

big max index

Answer 45

the market is not equal and needs comparative figures so take a big mac which is sold globally, then calculate average value

Question 46

3 ways to calculate national income

Answer 46

- national output (0) - national expenditure (E) - national income (Y) O=E=Y