Unit 3.1: Economic activity review sheet

Review of terms for unit 3.1: Economic activity

I have included this page, which contains a PDF handout as a simple revision exercise.  I find that many IB students get a degree of comfort from these short summary handouts.

Unit 3.1: Economic activity review sheet

1. Complete the following sentences by filling in the missing blank spaces:

The         of income is a diagrammatic illustration of a simple economy diagram.

flow  AD / AS  national  circular 

 

 

2. Complete the following sentences by filling in the missing blank spaces:

Both     and businesses are inter-dependent.  Businesses require    to provide them with    , labour,    and entrepreneurship.  They also     the goods and services that businesses produce.

capital  consume  households  consumers  land  rent  households  wages 

 

 

3. Complete the following sentences by filling in the missing blank spaces:

Examples of     include taxes, savings and     from overseas.

 imports  exports  injections  withdrawals 

 

 

4. Complete the following sentences by filling in the missing blank spaces:

Examples of into the flow include spending, and exports.

circular  government  businesses  households  injections  investment 

 

 

5. Complete the following sentences by filling in the missing blank spaces:

Business sell goods and services in the market.

product  retail  resource 

 

 

6. Complete the following sentences by filling in the missing blank spaces:

Businesses purchase goods and services in the     market.

product  retail  resource 

 

 

7. Complete the following sentences by filling in the missing blank spaces:

GDP can be calculated by the   method.

income, expenditure and production  income, expenditure and output  income, sales and production 

 

 

8. Complete the following sentences by filling in the missing blank spaces:

  equals the total     of a nation or the total income of a country.

output  income  GNI  GDP 

 

 

9. Complete the following sentences by filling in the missing blank spaces:

  is equal to gross domestic product, plus receipts from abroad of wages and salaries and of property income, plus net taxes and subsidies receivable from abroad.

 net  total  GNI  GDP 

 

 

10. Complete the following sentences by filling in the missing blank spaces:

      / GNI: GDP or GNI adjusted for the effects of     i.e. the rise in general prices.

inflation  GDP  GNI  wages levels  real  taxes 

 

 

11. Complete the following sentences by filling in the missing blank spaces:

GDP / GNI        : GDP or GNI divided by the number of     in a nation.  This is a more accurate measure of        than the previous measurements because it considers not only the size of a nation's     but the number of people that it is shared between.

per  standards  living  people  households  real  income  capita 

 

 

12. Complete the following sentences by filling in the missing blank spaces:

The           measures how long it takes for the average worker to save sufficient money to purchase a         in their own country.

  index  big  mac  answer  big  production costs  mac  retail   price  wages 

 

 

13. Complete the following sentences by filling in the missing blank spaces:

Governments collect    statistics for a variety of reasons.  Some of these include that national income statistics are effectively a of the success of an economy, a prediction of     trends and also used as the basis of long term   .

income  record  planning  economic  output  sales  trends  national  future 

 

 

14. Complete the following sentences by filling in the missing blank spaces:

    is calculated by adding up the sum of all final goods and services produced in an economy, over a period of time at a given average price.

Aggregate  demand  answer  National  Derived 

 

 

15. Complete the following sentences by filling in the missing blank spaces:

     measures the total supply of all goods and services produced in a national economy, over a period of time at a given average price.

  Aggregate  supply  National  production  output 

 

 

16. Complete the following sentences by filling in the missing blank spaces:

A is a period when the level of real GDP falls over , 3 month periods in a row.

depression  financial crisis  recession  three  two  six

 

 

17. Complete the following sentences by filling in the missing blank spaces:

The missing labels from the diagram are 1 –    , 2 –    , 3 –     and 4 –    .

decline  growth  stability  trough  recession  peak 

 

 

Total Score:

The review sheet can be downloaded and printed as a PDF file at:  Review sheet

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