FORMATIVE ASSESSMENT NAME: _______________________

GRADE 12 ECONOMICS MARKS SCORED: ____/ 20

DATE: 18.08.22

FIRST 3 QUESTIONS ARE COMMON QUESTIONS FOR HL & SL

1. Explain why governments aim for low and stable rates of inflation as a macro economic objective.
[10 marks]
2. If the CPI changes from 151 to 147, explain whether there has been deflation or disinflation [2
marks]
3. Use the data below to calculate the unemployment rate [2 marks]

Total population 100 million

Percentage population employed 74.8%
Population unemployed 15 million
Retired population 20%

HL only

4. Calculate the inflation rate using the following data for the year 2018-19 [6 marks]

Product Price in 2018 Quantity Price in 2019

Bicycle $220 10 $200
Pizza $30 5 $48
Petrol $45 120 $47

SL only

5. Explain what causes structural unemployment [6 marks]