Theme 2

Question 1

What was the UK inflation rate in 1975?

Answer 1

24.24%

This rate reflects the economic conditions of the time.

Question 2

What was the peak inflation rate in the UK in 2022?

Answer 2

11.1%

This peak led to the highest cost of living in recent years.

Question 3

What was the percentage decline of UK real wages in 2022?

Answer 3

2.6%

This was the largest decline in over a decade.

Question 4

By what percentage did UK food producers face input cost increases in 2023?

Answer 4

Over 15%

This increase contributed to a decrease in UK investment.

Question 5

What was the percentage decrease in UK investment in Q3 2023?

Answer 5

0.7%

This was attributed to reduced animal spirits among firms.

Question 6

What is fiscal drag in the context of UK inflation?

Answer 6

An expected £40bn increase in tax revenue due to rising wages pushing people into higher tax brackets

This occurs as inflation affects wage levels.

Question 7

What was the decline in UK coal mining jobs from 1980 to 2000?

Answer 7

From 230,000 to less than 10,000

This decline was due to mine closures.

Question 8

How long does the average UK graduate take to secure a job after finishing university?

Answer 8

3-6 months

This reflects frictional unemployment rates.

Question 9

By how many jobs does U.S. agriculture employment drop every winter?

Answer 9

Over 250,000 jobs

This is an example of seasonal unemployment.

Question 10

What was the change in US unemployment from 2007 to 2009?

Answer 10

Doubled from 5% to 10%

This increase was due to the recession.

Question 11

What is the average life satisfaction score in the UK according to the ONS?

Answer 11

7.45/10

This score assesses national well-being.

Question 12

What is the predicted percentage increase in UK house prices from 2024 to 2025?

Answer 12

3.9%

This reflects the Wealth Effect in the housing market.

Question 13

What interventionist supply side policy is associated with Heathrow Airport?

Answer 13

Installation of a third runway to accommodate 100mn passengers yearly

This aims to enhance capacity and efficiency.

Question 14

What is the corporate tax rate in Ireland?

Answer 14

12.5%

This low rate is part of a market-based supply side policy.

Question 15

What demand side policy has the UK government suggested regarding tax-free savings accounts?

Answer 15

Reducing the limit from £20,000 to £4,000

This aims to encourage consumption and investment.

Question 16

What technological advancement influenced the Long Run Aggregate Supply (LRAS)?

Answer 16

Installation of 5G connectivity

This increased internet speeds significantly.

Question 17

How did the installation of the Elizabeth line affect productivity?

Answer 17

Reduced journey time and provided Wi-Fi

This is an example of changes in productivity influencing LRAS.

Question 18

What government initiative relates to changes in education and skills affecting LRAS?

Answer 18

Subsidisation of apprenticeships and provision of T-Levels for free

These initiatives aim to enhance workforce skills.

Question 19

What was the impact of Rishi Sunak’s skilled Visa programme?

Answer 19

Granted 88,000 visas to skilled migrants

This reflects changes in migration influencing LRAS.

Question 20

What is moral hazard in the context of the US financial bailout?

Answer 20

The US spent $500bn to bail out banks in 2008

This raises concerns about irresponsible risk-taking.

Question 21

How much did the UK government spend on servicing the national debt in 2023?

Answer 21

£102mn

This amount is used for paying interest on the national debt.

Question 22

What was the interest rate raised to by the Bank of England in August 2023?

Answer 22

5.25%

This interest rate increase occurred while inflation only fell significantly in mid-2024.

Question 23

What percentage of GDP has the UK government pledged to increase defense spending to by 2027?

Answer 23

2.5%

This pledge indicates a significant increase in defense-related expenditures.

Question 24

What was the percentage of Indians living in absolute poverty in 1993?

Answer 24

45%

This percentage fell to below 10% by 2021, showcasing significant economic growth.

Question 25

By what percentage did Amazon's revenue increase in 2020?

Answer 25

38% ## Footnote This reflects the impact of economic growth on firms.

Question 26

How much did US government tax revenue increase by in 2021 due to economic recovery?

Answer 26

19% ## Footnote This increase demonstrates the benefits of economic growth on government revenues.

Question 27

What was the investment plan proposed by the European Commission in 2020 to fund the European Green Deal?

Answer 27

€1tn ## Footnote This plan highlights the focus on environmental policies.

Question 28

In 2016, what percentage of tax revenue was generated by taxing the top 1% of earners?

Answer 28

27% ## Footnote This policy aimed to tackle income inequality.

Question 29

What was China's annual growth rate between 2000-2019?

Answer 29

9.1% ## Footnote Despite this growth, China contributed to 30% of global emissions by 2021, showcasing a policy conflict.

Question 30

What were some of the UK’s responses to the Great Depression?

Answer 30

* Tariffs * Abandoned gold standard * Depreciation of 25% ## Footnote These measures aimed to improve international competitiveness.

Question 31

What monetary policy did the UK implement in response to the 2008 Financial Crisis?

Answer 31

* £375bn QE * 2.5% cut in VAT * Cut base rate to 0.5% ## Footnote These actions were part of the government's strategy to stabilize the economy.