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The correct term is quantitative data because the examples given are numerical measurements."},{"text":"economic policy","correct":false,"explanation":"Economic policy is a course of action rather than numerical evidence. The correct term is quantitative data because prices, unemployment rates and GDP figures are numbers."},{"text":"economic assumptions","correct":false,"explanation":"Economic assumptions are beliefs about how the economy works, not numerical information. 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The correct answer is a reasoned link explaining why the figure matters."}]},{"id":"046967fb-fe62-41b3-b862-507f4744f302","cardType":"basic","points":1,"front":"On a graph, what does the unit tell you?","back":"What the numbers are measured in.","mcqOptions":[{"text":"What the numbers are measured in.","correct":true,"explanation":"The unit identifies what the numerical values represent, such as pounds, people or percentages, so the figures can be interpreted correctly."},{"text":"How quickly the numbers change.","correct":false,"explanation":"The scale shows how values increase along an axis, but the unit identifies what they represent. The correct answer is what the numbers are measured in."},{"text":"Which variable is being compared.","correct":false,"explanation":"The axis label often identifies the variable being shown, whereas the unit specifies its measurement. The correct answer is what the numbers are measured in."},{"text":"Where the data was collected.","correct":false,"explanation":"The data source indicates where information came from, not the measurement used. The correct answer is what the numbers are measured in."}]},{"id":"3bcdacfa-0d4e-4df8-a6e7-3be28b59c08d","cardType":"cloze","points":null,"front":"A graph's [ ] shows how the numbers increase along an axis.","back":"A graph's scale shows how the numbers increase along an axis.","mcqOptions":[{"text":"scale","correct":true,"explanation":"A graph’s scale shows the intervals and progression of numbers along an axis, allowing the size of changes between plotted values to be read accurately."},{"text":"axis label","correct":false,"explanation":"The axis label names the variable being displayed, but the scale shows how numbers increase along the axis. The correct term is scale."},{"text":"unit","correct":false,"explanation":"The unit states what the numbers are measured in, such as millions or percentages. The correct term for how they increase along an axis is scale."},{"text":"trend","correct":false,"explanation":"The trend describes the general direction of the data, not the numerical intervals on an axis. The correct term showing how numbers increase is scale."}]},{"id":"5d50a597-0c97-4144-9231-38af466b1977","cardType":"basic","points":1,"front":"When data generally rises, falls, stays stable or fluctuates, what are you identifying?","back":"The data's trend.","mcqOptions":[{"text":"The data's trend.","correct":true,"explanation":"A trend is the general pattern or direction in data, such as rising, falling, remaining stable or fluctuating over time."},{"text":"The data's range.","correct":false,"explanation":"The range is the difference between the highest and lowest values, not the overall pattern of movement. The correct answer is the data’s trend."},{"text":"The data's mean.","correct":false,"explanation":"The mean is the average value calculated from the data, not whether it rises, falls, stays stable or fluctuates. The correct answer is the data’s trend."},{"text":"The data's scale.","correct":false,"explanation":"The scale describes the numerical intervals on a graph’s axis, not the pattern shown by the data. The correct answer is the data’s trend."}]},{"id":"5b90070c-1a41-4560-9f19-f8c408eab0c0","cardType":"basic","points":1,"front":"Unemployment falls from 5.2% to 4.3%; what is the correct percentage-point change?","back":"A fall of 0.9 percentage points.","mcqOptions":[{"text":"A fall of 0.9 percentage points.","correct":true,"explanation":"Subtracting the original rate from the new rate gives 4.3% - 5.2% = -0.9 percentage points, so unemployment fell by 0.9 percentage points."},{"text":"A fall of 1.1 percentage points.","correct":false,"explanation":"The value 1.1 comes from adding or incorrectly comparing the two rates. Percentage-point change requires subtraction: 4.3% - 5.2% = -0.9, a fall of 0.9 percentage points."},{"text":"A fall of 4.3 percentage points.","correct":false,"explanation":"Using the final rate alone ignores the starting value. Percentage-point change compares both rates: 5.2% - 4.3% = 0.9 percentage points."},{"text":"A fall of 9 percentage points.","correct":false,"explanation":"A fall of 9 percentage points incorrectly removes the percentage sign’s scale and treats 5.2 and 4.3 as much larger whole-number values. The correct change is 0.9 percentage points."}]},{"id":"29a7752b-ccbd-4972-a2cd-8d4801541195","cardType":"basic","points":2,"front":"Unemployment falls from 5.2% to 4.3%; what is the percentage change from the original level?","back":"About -17.3%.","mcqOptions":[{"text":"About -17.3%.","correct":true,"explanation":"Percentage change is calculated from the original level: ((4.3 - 5.2) / 5.2) × 100 = about -17.3%, indicating a 17.3% fall."},{"text":"About -0.9%","correct":false,"explanation":"This is the percentage-point fall, not the percentage change relative to the original level. Dividing the 0.9-point fall by 5.2 and multiplying by 100 gives about -17.3%."},{"text":"About +17.3%","correct":false,"explanation":"The positive sign reverses the direction of change. Since unemployment falls from 5.2% to 4.3%, the percentage change is negative: about -17.3%."},{"text":"About -13.5%","correct":false,"explanation":"This compares the rates incorrectly and does not divide the change by the original 5.2% level. The correct relative change is ((4.3 - 5.2) / 5.2) × 100, about -17.3%."}]},{"id":"063943cd-dba0-4403-9d12-a4e087b59bfd","cardType":"cloze","points":null,"front":"A [ ] shows the quantity consumers are willing and able to buy at different prices.","back":"A demand curve shows the quantity consumers are willing and able to buy at different prices.","mcqOptions":[{"text":"demand curve","correct":true,"explanation":"A demand curve shows the quantity consumers are willing and able to buy at different prices, illustrating the relationship between price and quantity demanded."},{"text":"supply curve","correct":false,"explanation":"A supply curve shows the quantity producers are willing and able to offer at different prices. The correct term is demand curve because the question concerns consumers buying."},{"text":"quantity demanded","correct":false,"explanation":"Quantity demanded is the amount consumers buy at a particular price, not the graph showing this relationship across different prices. The correct term is demand curve."},{"text":"market equilibrium","correct":false,"explanation":"Market equilibrium identifies the price and quantity where demand equals supply, rather than consumers’ willingness and ability to buy at different prices. The correct term is demand curve."}]},{"id":"da887f20-b3c6-4fee-a748-0c848cc503d2","cardType":"cloze","points":null,"front":"Equilibrium is where [ ] and [ ] are equal.","back":"Equilibrium is where demand and supply are equal.","mcqOptions":[{"text":"Equilibrium is where demand and supply are equal.","correct":true,"explanation":"Equilibrium occurs at the market price and quantity where the amount consumers want to buy equals the amount producers want to sell."},{"text":"Equilibrium is where price and quantity are equal.","correct":false,"explanation":"Price and quantity are measured differently and are not normally equal. Equilibrium is reached when demand equals supply, so there is no shortage or surplus."},{"text":"Equilibrium is where cost and revenue are equal.","correct":false,"explanation":"Equal cost and revenue describes a break-even point for a firm, not market equilibrium. Market equilibrium is where demand and supply are equal."},{"text":"Equilibrium is where income and expenditure are equal.","correct":false,"explanation":"Income equalling expenditure concerns household or national accounts. In a market, equilibrium instead occurs when demand and supply are equal."}]},{"id":"e7ac65d8-c3d4-48fc-a040-ae1ad43ac0c9","cardType":"basic","points":2,"front":"At £2, quantity demanded is 800 and quantity supplied is 400. What imbalance is there?","back":"A 400-unit shortage or excess demand.","mcqOptions":[{"text":"A 400-unit shortage or excess demand.","correct":true,"explanation":"Quantity demanded exceeds quantity supplied by 800 - 400 = 400 units. This creates a shortage, also called excess demand, which puts upward pressure on price."},{"text":"A 400-unit surplus or excess supply.","correct":false,"explanation":"A surplus occurs when quantity supplied exceeds quantity demanded. Here demand is 800 and supply is 400, creating a 400-unit shortage or excess demand."},{"text":"A 200-unit shortage or excess demand.","correct":false,"explanation":"The difference must be calculated as 800 - 400, not divided by two. Therefore, the correct imbalance is a 400-unit shortage or excess demand."},{"text":"A 800-unit shortage or excess demand.","correct":false,"explanation":"The shortage is the gap between demand and supply, not the full quantity demanded. Subtracting 400 from 800 gives a 400-unit shortage or excess demand."}]},{"id":"426121fe-d990-43dc-9e20-5274fd80ce56","cardType":"basic","points":2,"front":"At £4, quantity supplied is 800 and quantity demanded is 400. What imbalance is there?","back":"A 400-unit surplus or excess supply.","mcqOptions":[{"text":"A 400-unit surplus or excess supply.","correct":true,"explanation":"Quantity supplied exceeds quantity demanded by 800 - 400 = 400 units. This creates a surplus, also called excess supply, which puts downward pressure on price."},{"text":"A 400-unit shortage or excess demand.","correct":false,"explanation":"A shortage occurs when quantity demanded exceeds quantity supplied. Here supply is 800 and demand is 400, so the market has a 400-unit surplus or excess supply."},{"text":"A 200-unit surplus or excess supply.","correct":false,"explanation":"The imbalance is the full difference between supply and demand. Calculating 800 - 400 gives 400 units, not 200, so the correct answer is a 400-unit surplus."},{"text":"A 800-unit surplus or excess supply.","correct":false,"explanation":"The surplus is the excess supply after meeting demand, rather than the total amount supplied. Subtracting demand from supply gives 800 - 400 = 400 units."}]},{"id":"15efefb9-db01-4b59-98ef-f8207e1acad3","cardType":"basic","points":3,"front":"Compare the price pressure caused by shortages and surpluses.","back":"

Shortage: upward pressure on price.
Surplus: downward pressure on price.

","mcqOptions":[{"text":"

Shortage: upward pressure on price.
Surplus: downward pressure on price.

","correct":true,"explanation":"A shortage means demand exceeds supply, so buyers compete and push prices upwards. A surplus means supply exceeds demand, encouraging sellers to reduce prices."},{"text":"

Shortage: downward pressure on price.
Surplus: upward pressure on price.

","correct":false,"explanation":"The pressures are reversed here. Scarcity makes buyers compete, creating upward pressure during a shortage, while unsold goods create downward pressure during a surplus."},{"text":"

Shortage: no pressure on price.
Surplus: no pressure on price.

","correct":false,"explanation":"Both imbalances affect prices because markets tend to move towards equilibrium. Shortages push prices up, whereas surpluses push prices down."},{"text":"

Shortage: upward pressure on supply.
Surplus: downward pressure on demand.

","correct":false,"explanation":"Shortages and surpluses create pressure mainly on the market price, not directly on supply or demand. A shortage raises price and a surplus lowers price."}]},{"id":"6c730fe6-9311-472d-ad25-e7f2337590a7","cardType":"basic","points":1,"front":"How is the unemployment rate calculated?","back":"Number unemployed ÷ labour force × 100.","mcqOptions":[{"text":"Number unemployed ÷ labour force × 100.","correct":true,"explanation":"The unemployment rate measures unemployed people as a percentage of the labour force. Dividing the number unemployed by the labour force and multiplying by 100 gives this percentage."},{"text":"Number unemployed ÷ total population × 100.","correct":false,"explanation":"The total population includes children, retirees and others outside the labour market. The correct denominator is the labour force, so the rate is number unemployed ÷ labour force × 100."},{"text":"Number employed ÷ labour force × 100.","correct":false,"explanation":"This calculates the proportion of the labour force who are employed, not unemployed. The unemployment rate uses the number unemployed divided by the labour force, multiplied by 100."},{"text":"Labour force ÷ number unemployed × 100.","correct":false,"explanation":"This reverses the fraction and would usually produce a much larger, misleading percentage. The number unemployed must be divided by the labour force before multiplying by 100."}]},{"id":"51c9e8cf-9e66-4e06-82aa-4362e5b84443","cardType":"basic","points":2,"front":"If 1.5 million people are unemployed and the labour force is 34.0 million, what is the unemployment rate?","back":"About 4.4%.","mcqOptions":[{"text":"About 4.4%.","correct":true,"explanation":"Using number unemployed ÷ labour force × 100 gives 1.5 ÷ 34.0 × 100 = 4.41%, which rounds to about 4.4%."},{"text":"About 4.1%.","correct":false,"explanation":"This is a plausible rounding or denominator error, but 1.5 ÷ 34.0 × 100 equals approximately 4.41%. Rounded to one decimal place, the correct rate is about 4.4%."},{"text":"About 3.9%.","correct":false,"explanation":"This understates the rate, probably because the unemployment figure was divided by a slightly larger population. The required calculation is 1.5 ÷ 34.0 × 100, giving about 4.4%."},{"text":"About 44%.","correct":false,"explanation":"The decimal point has effectively been shifted by one place. The calculation produces 0.0441 before conversion to a percentage, so the unemployment rate is about 4.4%, not 44%."}]},{"id":"4f6ab9c6-b90a-4126-8189-e4779e95becf","cardType":"basic","points":2,"front":"Why might the Claimant Count understate unemployment?","back":"Some unemployed people do not claim benefits.","mcqOptions":[{"text":"Some unemployed people do not claim benefits.","correct":true,"explanation":"The Claimant Count records people claiming particular unemployment-related benefits. Anyone unemployed but not claiming benefits is excluded, so the measure can understate total unemployment."},{"text":"Some unemployed people claim benefits more than once.","correct":false,"explanation":"Duplicate claims are not the main reason for understatement and would risk overcounting instead. The Claimant Count misses unemployed people who do not claim the relevant benefits."},{"text":"Some employed people do not pay income tax.","correct":false,"explanation":"Tax payments do not determine whether an unemployed person appears in the Claimant Count. Understatement occurs because some unemployed people do not claim benefits."},{"text":"Some retired people claim unemployment benefits.","correct":false,"explanation":"People claiming unemployment-related benefits are generally counted as claimants, but retirees do not explain why unemployment is understated. The key omission is unemployed non-claimants."}]},{"id":"b74953f7-6463-46f1-91fa-6528482a7a1f","cardType":"cloze","points":null,"front":"Goods and services sold to other countries are [ ]; goods and services bought from other countries are [ ].","back":"Goods and services sold to other countries are exports; goods and services bought from other countries are imports.","mcqOptions":[{"text":"Goods and services sold to other countries are exports; goods and services bought from other countries are imports.","correct":true,"explanation":"Exports are goods and services sold abroad, bringing income into the domestic economy. Imports are goods and services purchased from abroad, creating spending on foreign production."},{"text":"Goods and services sold to other countries are imports; goods and services bought from other countries are exports.","correct":false,"explanation":"These terms have been reversed. Sales to other countries are exports, while purchases from other countries are imports."},{"text":"Goods and services sold to other countries are trade; goods and services bought from other countries are tariffs.","correct":false,"explanation":"Trade is the general activity of buying and selling internationally, while tariffs are taxes on imports. The specific terms are exports for sales abroad and imports for purchases abroad."},{"text":"Goods and services sold to other countries are quotas; goods and services bought from other countries are subsidies.","correct":false,"explanation":"Quotas limit the quantity imported and subsidies provide financial support; neither describes international sales or purchases. The correct terms are exports and imports."}]},{"id":"d136d7ae-c9da-4e67-8567-d2e9be9e8339","cardType":"basic","points":1,"front":"In simple export/import data, what does imports being greater than exports indicate?","back":"A current-account deficit.","mcqOptions":[{"text":"A current-account deficit.","correct":true,"explanation":"When imports exceed exports, more money is spent on foreign goods and services than is earned from exports, producing a current-account deficit."},{"text":"A current-account surplus.","correct":false,"explanation":"A current-account surplus occurs when exports exceed imports. When imports are greater than exports, the economy instead has a current-account deficit."},{"text":"A balanced current account.","correct":false,"explanation":"A balanced current account requires exports and imports to be equal. Imports exceeding exports indicates a current-account deficit rather than balance."},{"text":"A government-budget deficit.","correct":false,"explanation":"A budget deficit concerns government spending and tax revenue, not international trade. Imports exceeding exports indicates a current-account deficit."}]},{"id":"cad01185-9d11-49e7-a91b-ddc34f33a12b","cardType":"basic","points":2,"front":"Exports are £670 billion and imports are £700 billion. What current-account result is shown?","back":"A £30 billion deficit.","mcqOptions":[{"text":"A £30 billion deficit.","correct":true,"explanation":"Subtracting imports from exports gives £670 billion - £700 billion = -£30 billion. The negative result means there is a £30 billion deficit."},{"text":"A £30 billion surplus.","correct":false,"explanation":"The £30 billion difference has been given the wrong sign. Because imports exceed exports by £30 billion, the result is a £30 billion deficit, not a surplus."},{"text":"A £1,370 billion deficit.","correct":false,"explanation":"This adds exports and imports instead of finding their difference. Subtracting £700 billion of imports from £670 billion of exports gives a £30 billion deficit."},{"text":"A £370 billion deficit.","correct":false,"explanation":"This results from an incorrect subtraction of the two trade figures. Imports exceed exports by only £30 billion, so the current account shows a £30 billion deficit."}]},{"id":"09e8e851-3491-4cb6-a0c8-38aa7874d797","cardType":"basic","points":2,"front":"If a deficit falls from £70 billion to £30 billion, what judgement does the data support?","back":"The position has improved, but remains in deficit.","mcqOptions":[{"text":"The position has improved, but remains in deficit.","correct":true,"explanation":"The deficit has narrowed by £40 billion, so the position has improved. However, the remaining £30 billion deficit means the account has not reached balance or surplus."},{"text":"The position has deteriorated, but remains in deficit.","correct":false,"explanation":"A fall in the deficit from £70 billion to £30 billion is an improvement, not a deterioration. The position nevertheless remains in deficit because the figure is still £30 billion."},{"text":"The position has improved, and moved into surplus.","correct":false,"explanation":"The position has improved because the deficit is £40 billion smaller, but it has not moved into surplus. A positive surplus would require exports to exceed imports."},{"text":"The position is unchanged, and remains in deficit.","correct":false,"explanation":"The position is not unchanged because the deficit has fallen by £40 billion. The supported judgement is that it has improved while still remaining in deficit."}]},{"id":"9639522c-1783-443f-a835-8ccc405936d9","cardType":"cloze","points":null,"front":"[ ] is the total value of goods and services produced in an economy over time.","back":"GDP is the total value of goods and services produced in an economy over time.","mcqOptions":[{"text":"GDP","correct":true,"explanation":"GDP measures the total value of goods and services produced within an economy over a specified period, making it a standard measure of economic output."},{"text":"GNP","correct":false,"explanation":"GNP measures output associated with a country’s residents or nationals, including relevant overseas income. The value produced within an economy is measured by GDP."},{"text":"CPI","correct":false,"explanation":"CPI measures changes in the price of a representative household basket, not the economy’s total production. GDP is the measure of total economic output over time."},{"text":"GDP per capita","correct":false,"explanation":"GDP per capita divides GDP by the population to estimate average output per person. The unadjusted total value produced in the economy is GDP."}]},{"id":"4dfc5702-735a-4bdc-904d-999fb9223467","cardType":"cloze","points":null,"front":"The [ ] measures the average price level of a typical household basket and is used to calculate inflation.","back":"The Consumer Price Index (CPI) measures the average price level of a typical household basket and is used to calculate inflation.","mcqOptions":[{"text":"Consumer Price Index (CPI)","correct":true,"explanation":"The Consumer Price Index tracks changes in the average price of a representative household basket. Its percentage change over time is used to calculate consumer price inflation."},{"text":"Producer Price Index (PPI)","correct":false,"explanation":"The Producer Price Index tracks prices faced or charged by producers rather than a typical household basket. Consumer price inflation is calculated using the Consumer Price Index."},{"text":"GDP deflator","correct":false,"explanation":"The GDP deflator measures price changes across domestically produced final goods and services, not a typical household basket. The basket-based measure is the Consumer Price Index."},{"text":"Retail Sales Index (RSI)","correct":false,"explanation":"The Retail Sales Index measures changes in retail sales activity rather than the average price of a household basket. The Consumer Price Index is used to calculate inflation."}]},{"id":"7ecb4e6b-e6fd-4f2b-927a-58e3bfe45c2b","cardType":"basic","points":2,"front":"A food basket rises from £100 to £108 while income rises to £104. What happens to real purchasing power?","back":"It falls because prices rose faster than income.","mcqOptions":[{"text":"It falls because prices rose faster than income.","correct":true,"explanation":"The basket’s price rises by 8%, while income rises by only 4%. Income therefore buys less of the basket, so real purchasing power falls."},{"text":"It rises because income rose faster than prices.","correct":false,"explanation":"Real purchasing power would rise only if income increased faster than prices. Here prices rise by 8% while income rises by 4%, so purchasing power falls."},{"text":"It stays unchanged because both rose by £8.","correct":false,"explanation":"Equal cash increases do not mean equal percentage increases: the basket rises by 8% but income by only 4%. Real purchasing power therefore falls rather than remaining unchanged."},{"text":"It rises because prices and income both increased.","correct":false,"explanation":"An increase in both figures does not automatically improve purchasing power. Because the basket’s price rises proportionally faster than income, real purchasing power falls."}]},{"id":"0f3129a4-4811-4666-b19f-9d7173ba639d","cardType":"basic","points":3,"front":"Contrast nominal and real data when judging living standards.","back":"

Nominal: current prices; can rise with inflation.
Real: adjusts for inflation; shows actual changes.

","mcqOptions":[{"text":"

Nominal: current prices; can rise with inflation.
Real: adjusts for inflation; shows actual changes.

","correct":true,"explanation":"Nominal data are measured at current prices and may increase solely because of inflation. Real data remove inflation’s effect, making them more useful for judging living standards."},{"text":"

Nominal: adjusts for inflation; shows actual changes.
Real: current prices; can rise with inflation.

","correct":false,"explanation":"The definitions have been reversed. Nominal data use current prices and may reflect inflation, while real data adjust for inflation to reveal changes in purchasing power or output."},{"text":"

Nominal: current prices; shows actual changes.
Real: adjusts for inflation; can rise with inflation.

","correct":false,"explanation":"Nominal data do not automatically show actual changes because inflation can raise money values. Real data adjust for inflation and therefore provide the clearer measure of living standards."},{"text":"

Nominal: constant prices; excludes inflation.
Real: current prices; includes inflation.

","correct":false,"explanation":"Constant-price data are real, not nominal, because inflation has been removed. Current-price data are nominal, while real data are used to identify actual changes."}]},{"id":"35aab094-1def-48f7-9b75-f9780c946460","cardType":"basic","points":1,"front":"If two data series move together, what is needed before claiming one caused the other?","back":"An economic mechanism linking cause and effect.","mcqOptions":[{"text":"An economic mechanism linking cause and effect.","correct":true,"explanation":"Moving together establishes correlation but not causation. A credible economic mechanism must explain how changes in one variable produce changes in the other before causation is claimed."},{"text":"A statistical correlation linking cause and effect.","correct":false,"explanation":"The variables moving together already indicates statistical correlation, but correlation alone cannot establish causation. An economic mechanism is needed to explain the cause-and-effect link."},{"text":"A shared upward trend linking cause and effect.","correct":false,"explanation":"A shared trend can result from coincidence or a third variable and does not prove causation. A credible economic mechanism must connect the proposed cause to the effect."},{"text":"A single observation linking cause and effect.","correct":false,"explanation":"One observation provides especially weak evidence and cannot demonstrate causation between two series. The claim requires an economic mechanism explaining how one variable affects the other."}]}]}],"examCountdown":{"examDate":"2027-05-13","paperLabel":"Paper 1"},"heading":"Interpretation and use of quantitative data to support and justify economic decisions","title":"Interpretation and use of quantitative data to support and justify economic decisions Flashcards","topbar":{"backHref":"/gcse/economics/ocr/flashcards"},"topicSidebar":"$L38"}]}],"topicId":"b97c3297-93e9-500f-9411-11975f0d6f2f","walled":"$L39"}],"$L3a","$L3b"]