Here is a varied list of many knowledge recall questions to aid your macroeconomics revision. your teacher may refer to this type of activity as retrieval practice.
- Define the term economic growth.
- Define Gross Domestic Product.
- Explain the difference between GDP and GNI.
- Why might we use GDP/capita as an economist?
- Why might we use Real GDP as an economist?
- Explain the term Purchasing Power Parities.
- How does the Big Mac Index also show PPP?
- What is the standard measurement for standard of living?
- Explain one problem using GDP to measure living standards.
- What is the Happiness Index?
- What is the Easterlin Paradox?
- Define inflation.
- Explain the difference between inflation, deflation and disinflation.
- What is the basket of goods when referring to CPI?
- What is a weighted index?
- Explain one impact of inflation on consumers, firms, the government and workers.
- Define the term unemployment.
- What is the claimant count?
- What is the Labour Fore Survey?
- Explain why employment and unemployment are not opposites.
- Explain each of the types of unemployment (cyclical, structural, seasonal and frictional).
- Define the term balance of payments
- List the four components of the current account.
- Write the aggregate demand formula.
- Draw a short run aggregate supply diagram and model an increase in the minimum wage.
- Draw a Keynesian LRAS diagram and model an increase in migration to the UK.
- Draw a classical LRAS diagram and model an improvement in the capital stock of the country.
- List three withdrawals from the circular flow
- List three injections into the circular flow.
- Write the multiplier formula.
- Draw a macroeconomic diagram to model the multiplier.
- Draw an economic cycle and label periods where unemployment is likely to be low.
- Define monetary policy.
- What two instruments do central banks use to target inflation?
- What is the target inflation rate?
- Define fiscal policy.
- What two instruments of fiscal policy does the government use?
- What is the aim of fiscal policy?
- What are supply side policies?
- List three types of supply side policy.
- Describe at least two macroeconomic trade offs that exist when managing the macro economy.
- Define the term globalisation.
- Explain two factors that have caused globalisation.
- Explain the impact of globalisation on consumers and firms.
- What is the formula for the terms of trade?
- What is the purpose of the World Trade Organisation (WTO)?
- Explain the difference between a free trade area, a customs union and a common market.
- What is protectionism?
- Explain two reasons the UK government may use protectionism against the EU.
- What is a tariff?
- What is a quota?
- What is an embargo?
- Draw and explain a J curve diagram.
- Explain and list some expenditure switching policies.
- Explain and list some expenditure reducing policies.
- What is the difference between a fixed exchange rate system and a floating exchange rate system?
- Appreciation and depreciation are associated with ..................................... exchange rate system.
- Revaluation and devaluation are associated with .................................... exchange rate system.
- Define poverty.
- Define absolute poverty.
- Define relative poverty.
- What is the difference between income and wealth?
- Draw and explain a Lorenz curve.
- What is the formula for the Gini coefficient.
- What are the two main likely causes of income inequality in the UK?
- Explain the view that inequality is inevitable.
- Define the Human Development Index.
- What three factors are included in HDI?
- What is added to HDI to make IHDI?
- Explain three reasons why a country may struggle to develop.
- Define primary product dependency.
- Explain the Harrod-Domar model.
- Explain capital flight.
- What is microfinance?
- Explain the term foreign direct investment (FDI).
- Define the term buffer stock scheme.
- Draw a Laffer curve and explain why it may not be useful to raise tax rates.