Lesson M2.6.1

M2.6.1 UK macroeconomic performance and international comparison Quiz: OCR Economics, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson M2.6.1, UK macroeconomic performance and international comparison: 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. What is the Bank of England's official annual CPI inflation target?

    • 4%
    • 3%
    • 1%
    • 2%

  2. What is the typical estimated long-run trend rate of UK annual GDP growth?

    • 5.0% to 5.5%
    • 0.5% to 1.0%
    • 2.0% to 2.5%
    • 4.0% to 4.5%

  3. Which account records the UK's trade balance in goods, services, income, and transfers?

    • Monetary account
    • Current account
    • Capital account
    • Financial account

  4. Which coefficient measures income inequality on a scale from zero to one?

    • Herfindahl index
    • Gini coefficient
    • Lorenz curve
    • Marshall index

  5. What is the unemployment rate if 3 million people are unemployed out of 30 million labour force?

    • 30%
    • 10%
    • 3%
    • 9%

  6. If nominal GDP grows by 5% and inflation is 2%, what is real GDP growth?

    • 7%
    • 2.5%
    • 3%
    • 10%

  7. Which trade-off is illustrated by the short-run Phillips curve?

    • Inflation and unemployment
    • Growth and debt
    • Inflation and exports
    • Tax and savings

  8. Which price index includes housing costs like mortgage interest payments?

    • Consumer Prices Index
    • Export Price Index
    • Producer Price Index
    • Retail Prices Index

  9. How is labour productivity in the UK economy primarily measured?

    • Output per hour
    • Output per firm
    • Profit per worker
    • Investment per head

  10. Which measure counts the number of people receiving unemployment-related benefits in the UK?

    • Claimant Count
    • LFS survey
    • Active Registry
    • ILO measure

  11. If real GDP is £2 trillion and population is 50 million, what is GDP per capita?

    • £40,000
    • £25,000
    • £100,000
    • £10,000

  12. What is the UK's traditional balance of trade performance in goods?

    • Balanced trade
    • Zero trade
    • Trade surplus
    • Trade deficit

  13. What structural position does the UK usually hold in its balance of trade for services?

    • Zero trade
    • Trade deficit
    • Balanced trade
    • Trade surplus

  14. Which mechanism automatically reduces economic fluctuations without explicit government policy changes?

    • Automatic stabilisers
    • Discretionary policy
    • Monetary easing
    • Supply-side shocks

  15. What term describes annual government spending exceeding annual tax revenues?

    • National debt
    • Current account deficit
    • Budget deficit
    • Trade deficit

  16. Which exchange rate adjustment allows international comparison of GDP by standardising purchasing power?

    • Real interest rate
    • Effective exchange rate
    • Nominal exchange rate
    • Purchasing power parity

  17. Which UN metric combines income, education, and life expectancy to assess macroeconomic development?

    • Misery index
    • Genuine Progress Indicator
    • Gini coefficient
    • Human Development Index

  18. If a GDP index rises from 100 to 108, what is the percentage growth in real GDP?

    • 0.8%
    • 18%
    • 8%
    • 108%

  19. What negative externality is often increased by rapid short-term macroeconomic growth?

    • Structural unemployment
    • Carbon emissions
    • Foreign direct investment
    • Labour productivity

  20. What term describes a fall in the rate of inflation while prices still rise?

    • Stagflation
    • Hyperinflation
    • Disinflation
    • Deflation

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