Edexcel A Level Economics B
Edexcel A Level Economics B 2.5 Measures of Economic Performance Exam Questions
Free Edexcel A Level Economics B exam questions on 2.5 Measures of Economic Performance, with mark schemes. Covers GDP, inflation, unemployment and the balance of payments.
2.5 Measures of Economic Performance exam questions
1 question pack of real past exam questions with its mark scheme. Answer every question without notes, then mark your answers line by line against the mark scheme.
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A Level Economics Flashcards
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Pick your exam board, then test yourself with the questions on this page.
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About Edexcel A Level Economics B 2.5 Measures of Economic Performance
This part of 2.5 covers how economic performance is measured. Data questions ask you to interpret growth, inflation and unemployment figures.
What you need to know
- Economic growth Real GDP adjusted for inflation, GDP per capita and limits of GDP as a measure of living standards.
- Inflation CPI measures changes in the price of a weighted basket. Know causes and effects of inflation and deflation.
- Unemployment Claimant count and Labour Force Survey measures, types and costs of unemployment.
- Balance of payments The current account and the significance of deficits and surpluses.
Common mistakes in 2.5 Measures of Economic Performance
- Using nominal GDP to measure real growth.
- Saying falling inflation means falling prices.
- Confusing the claimant count with the ILO measure.
Try three 2.5 Measures of Economic Performance exam-style questions
1. Explain the difference between real and nominal GDP. (2 marks)
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Nominal GDP is at current prices (1); real GDP removes the effect of inflation (1).
2. Explain one cost of high inflation for firms. (2 marks)
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Uncertainty about future costs and prices (1) makes firms less willing to invest (1).
3. State two types of unemployment. (2 marks)
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Any two: cyclical, structural, frictional, seasonal (1 each).
2.5 Measures of Economic Performance FAQs
What does this 2.5 page cover?
The four main measures of economic performance: growth, inflation, unemployment and the balance of payments.
How do I calculate a percentage change from an index?
(New minus old) divided by old, multiplied by 100.
Why might GDP not reflect living standards?
It ignores inequality, the informal economy, leisure, quality of life and environmental damage.
Revise this topic with flashcards: A Level Economics Flashcards, with mark scheme answers for Anki and Quizlet.
