Lesson M2.1.2

M2.1.2 Growth rates, GDP per capita and causes of growth Quiz: OCR Economics, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson M2.1.2, Growth rates, GDP per capita and causes of growth: 20 multiple choice questions for the OCR Economics (H460), Unit 7: Economic policy objectives, written with Revision Ninja.

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The 20 questions

  1. How is GDP per capita calculated for a country?

    • GDP multiplied by inflation
    • GDP divided by population
    • Population divided by GDP
    • GNI minus depreciation

  2. Which term describes an increase in the actual real output of an economy?

    • Short-run growth
    • Trend growth
    • Potential growth
    • Long-run growth

  3. Which term describes an expansion in the productive potential of an economy?

    • Actual growth
    • Short-run growth
    • Long-run growth
    • Cyclical growth

  4. If nominal GDP grows by 6% and inflation is 2%, what is real GDP growth?

    • 3%
    • 8%
    • 12%
    • 4%

  5. Which event directly causes short-run economic growth on an AD/AS diagram?

    • Leftward LRAS shift
    • Leftward AD shift
    • Rightward SRAS shift
    • Rightward AD shift

  6. Which shift on a diagram represents an increase in potential economic growth?

    • Leftward AD shift
    • Inward LRAS shift
    • Upward SRAS shift
    • Outward LRAS shift

  7. Which measure adjusts gross domestic product to remove the effects of inflation?

    • GDP per capita
    • Nominal GDP
    • Gross national income
    • Real GDP

  8. If GDP is £600 billion and population is 20 million, what is GDP per capita?

    • £300,000
    • £12,000
    • £30,000
    • £3,000

  9. What is the difference between actual GDP and potential GDP called?

    • Output gap
    • Growth gap
    • Inflation gap
    • Trade deficit

  10. How is a technical economic recession defined in the UK?

    • Three consecutive quarters
    • One single quarter
    • Two consecutive quarters
    • Four consecutive quarters

  11. Which factor is most likely to increase an economy's long-run aggregate supply?

    • Consumer spending
    • Decreased exports
    • Capital investment
    • Income tax cuts

  12. What happens to GDP per capita if total GDP grows slower than population?

    • It doubles
    • It falls
    • It rises
    • It stays constant

  13. If real GDP rises from £200 billion to £206 billion, what is the growth rate?

    • 2%
    • 3%
    • 1.5%
    • 6%

  14. Which movement on a production possibility frontier diagram shows long-run economic growth?

    • Inward PPF shift
    • Outward PPF shift
    • Movement towards origin
    • Movement along PPF

  15. Which term refers to the long-term smooth average growth rate of real GDP?

    • Nominal growth rate
    • Trend growth rate
    • Actual growth rate
    • Cyclical growth rate

  16. How does net inward migration of skilled labour affect an economy's productive capacity?

    • Reduces trend growth
    • Decreases productive capacity
    • Increases productive capacity
    • Has no effect

  17. Which measure is best for comparing average material living standards across countries?

    • Real GDP per capita
    • Nominal total GDP
    • Consumer price index
    • Total export volume

  18. What is economic growth that meets present needs without compromising future generations called?

    • Cyclical growth
    • Nominal growth
    • Sustainable growth
    • Potential growth

  19. Which expenditure component is usually the largest single contributor to UK aggregate demand?

    • Government spending
    • Capital investment
    • Consumer spending
    • Net exports

  20. If population growth is 1% and real GDP growth is 4%, what is per capita growth?

    • 3%
    • 0.25%
    • 4%
    • 5%

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