Exercises C1 : use Economic vocabulary in English (answers)

These exercises will help you master essential economic vocabulary in English at C1 level. From GDP to interest rates, practise the key terms used in professional and academic contexts.

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Exercice 1 — Economic Vocabulary: Definitions

Choose the option that best defines each economic term as used in professional and academic English.

1. What does GDP measure?
2. Which statement best describes inflation?
3. What do interest rates primarily influence?
4. What does market share indicate?

Correction

1. A) The total value of goods and services produced in a country over a specific period.
2. B) A general and sustained rise in the price level of goods and services in an economy.
3. C) The cost of borrowing and the return on savings, thereby affecting spending and investment.
4. B) The percentage of total industry sales captured by a particular company or product.

Exercice 2 — Match the Economic Terms to Their Contexts

Match each economic term on the left with the sentence on the right that correctly illustrates its meaning.

1. GDP
2. Inflation
3. Interest rates
4. Market share

Correction

1. Analysts revised their forecasts after GDP growth slowed to 1.2% in the third quarter, signalling a potential economic slowdown.
2. Rising inflation eroded consumers' purchasing power, prompting the central bank to consider tightening its monetary policy.
3. The central bank raised interest rates by 50 basis points in an attempt to curb excessive borrowing and cool down the overheating economy.
4. After launching its new product line, the company increased its market share from 18% to 24%, overtaking its main rival.

Exercice 3 — Economic Vocabulary in Context

Fill in each blank with the correct economic term to complete the sentence accurately.

1. A country's ___ is often used as the primary indicator of its economic size and overall performance, as it captures the total monetary value of all finished goods and services produced within its borders.
2. When ___ rises sharply, central banks typically respond by increasing interest rates to reduce the amount of money circulating in the economy and stabilise prices.
3. Lower ___ tend to encourage businesses to invest and consumers to spend, since the cost of borrowing decreases and credit becomes more accessible across the economy.
4. A firm with a dominant ___ in its sector can leverage economies of scale, influence pricing trends, and create significant barriers to entry for potential competitors.

Correction

1. A country's GDP is often used as the primary indicator of its economic size and overall performance, as it captures the total monetary value of all finished goods and services produced within its borders.
2. When inflation rises sharply, central banks typically respond by increasing interest rates to reduce the amount of money circulating in the economy and stabilise prices.
3. Lower interest rates tend to encourage businesses to invest and consumers to spend, since the cost of borrowing decreases and credit becomes more accessible across the economy.
4. A firm with a dominant market share in its sector can leverage economies of scale, influence pricing trends, and create significant barriers to entry for potential competitors.