DP Economics Questionbank

Define the term economic growth indicated in bold in the text (paragraph 2).

Define the term economic growth indicated in bold in the text (paragraph [2]).

Using the information in Table 2 for Country B, calculate the rate of economic growth between 2014 and 2015.

Using data from Table 2, state the reason why there is a difference between the real GDP growth rate and the real GDP per capita growth rate between 2015 and 2019.

An economist forecasts that the real GDP growth rate in 2020 will be 3.41 %. Using the data in Table 2, calculate the forecast for real GDP ($ million) in 2020.

Define the term economic growth indicated in bold in the text (paragraph [1]).

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Using a production possibilities curve (PPC) diagram, explain how “billions of US dollars worth of infrastructure investment from China” may affect potential economic output (paragraph 1).

Using a production possibilities curve (PPC) diagram, explain how “the government’s record US$22 billion investment in infrastructure projects” will affect Indonesia’s production possibilities (paragraph 2).

Explain the causes of economic growth in terms of an increase in actual output and an increase in potential output.

Explain how an increase in investment might lead to economic growth.

The following diagram illustrates the long-run aggregate supply curve (LRAS), short-run aggregate supply curve (SRAS) and aggregate demand curve (AD) for Country Beta before the increase in investment.

The increase in investment results in both short-run and long-run effects on the economy. On the diagram above, draw and label the two curves that illustrate these effects.

In Country Beta, investment by firms increases in the first quarter of 2019.

The following diagram illustrates the long-run aggregate supply curve (LRAS), short-run aggregate supply curve (SRAS) and aggregate demand curve (AD) for Country Beta before the increase in investment.

The increase in investment results in both short-run and long-run effects on the economy. On the diagram above, draw and label the two curves that illustrate these effects.

Explain the potential effects on the economic growth rate from a substantial increase in the number of skilled people of working age entering a country.

Using a production possibilities curve (PPC) diagram, explain the effect on economic growth of the “destruction of much of the country’s physical, social and human capital” (paragraph [1]).

Explain the role of improved productivity in achieving economic growth.

Using a production possibilities curve (PPC) diagram, explain how rising numbers of university graduates will affect Bhutan’s potential output (paragraph [5]).

Define the term productivity indicated in bold in the text (paragraph [5]).

Explain, using a production possibilities curve (PPC) diagram, an increase in the actual output of an economy.

Gardia is aiming to increase its economic growth rate. Explain two sources of economic growth for economically less developed countries.

Using an AD/AS diagram, explain the desired impact of China’s “eased monetary policy” on its economic growth (paragraph [5]).

Using a production possibility curve (PPC) diagram, explain how damage to Fiji’s infrastructure has affected its production possibilities (paragraph [1]).

Using a production possibilities curve (PPC) diagram, explain how the production possibilities (potential output) of the DRC might be affected if there were greater access to electricity (paragraph [4]).

Define the term investment indicated in bold in the text (paragraph [5]).

State one reason why the production possibility curve (frontier) for Country H might shift outwards.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Discuss the view that the consequences of economic growth are always beneficial.

Discuss the possible consequences of economic growth on living standards, unemployment and inflation.

Discuss the view that economic growth can only be achieved at the expense of other macroeconomic objectives such as a low and stable rate of inflation and equity in the distribution of income.

Discuss the view that economic growth always leads to a rise in living standards.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.