What this practice covers
These questions are drawn from past IB Economics papers and filtered to measuring economic activity. 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.
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What examiners see students get wrong here
These are the errors that cost marks on measuring economic activity, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Treating nominal GDP growth as economic growth.
- Confusing GDP (territory) with GNI (residents), or getting the adjustment backwards.
- Including intermediate goods, double-counting output.
- Comparing countries at market exchange rates rather than PPP.
- Assuming higher GDP per capita means higher living standards for everyone.
- Forgetting population when interpreting a growth figure.
- Listing GDP's limitations without saying what would be a better measure.
- Describing HDI as covering the environment or inequality, it covers income, health and education.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Measuring Economic Activity revision notes.