1. What is a definition of transfer earnings?
A the amount of earnings above that needed to keep a worker in their current job
B the minimum earnings needed to keep a worker in their current job
C the social security benefits paid to workers whose earnings are below the poverty line
D the amount of earnings needed to cause a worker to change to a different job

2. The chart gives information about the average daily wage rate for all industries in India.

What could have caused this trend in wage rates?
A an increase in capital-intensive production
B an increase in the number of industrial workers
C an increase in the number of people unemployed
D an increase in the productivity of labour

3. The table shows the annual percentage economic growth rates of three countries from 2012
to 2018.

What can be concluded from the table?
A Brazil was in the downturn of its trade cycle in 2015.
B Japan’s real GDP was at its smallest in 2014.
C Spain experienced the worst recession of the period.
D Spain was in the downturn of its trade cycle in 2014.

4. What could cause the official statistics for the national income per head of a developing country
to overstate the true level of economic well-being of its inhabitants?
A if there is dependence on barter in internal trade
B if subsistence agriculture dominates total economic activity
C if services are an important component of exports
D if there is extreme income inequality

5. What is shown by the Kuznets curve?
A the rise and then fall in the balance of trade deficit following a devaluation
B the rise and then fall in the economic growth rate as the GDP increases
C the rise and then fall in inequality as the level of income per head rises
D the rise and then fall in tax revenue as the tax rate is increased

Answers