Economic Growth: four questions to try now
Real past-paper questions, the answer key from the mark scheme, and the explanation that goes with it. No account needed to answer them.
Question 1
Which one of the following is likely to give the US a comparative advantage in steel production? An increase in:
Answer: C.
Question 2
Which one of the following is most likely to lead to an increase in potential economic growth? An increase in:
Answer: D.
Question 3
Which one of the following would be most likely to result from lower base interest rates? A fall in:
Answer: B.
Question 4
Which one of the following is most likely to decrease as a result of CETA?
Answer: D.
What this practice covers
These questions are drawn from past Edexcel A-Level papers. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Keep going multiple-choice questions →
What examiners see students get wrong here
These are the errors that cost marks on economic growth, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Using nominal GDP to discuss growth. Always specify real.
- Confusing actual growth (towards the PPF) with potential growth (shifting it).
- Saying one quarter of negative growth is a recession, it requires two consecutive quarters.
- Getting the output gap sign backwards. Negative = spare capacity; positive = overheating.
- Saying growth always raises living standards, ignoring population growth and distribution.
- Treating growth as automatically unsustainable, without distinguishing productivity-driven growth from resource depletion.
- Listing costs and benefits without a judgement on which dominates and for whom.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Economic Growth revision notes.