Economic Objectives

Question 1

what are the 4 roles of government

Answer 1

1. provision of public goods and services
2. provision of welfare services
3. regulation of buisness enterprises
4. macroeconomic management

Question 2

what are the 5 economic objectives with their relevant targets

Answer 2

1. economic growth (3%)
2. price stability (2-3%)
3. Full employment (4.5%)
4. equitable distribution of income
5. efficient resource use

Question 3

what is meant by compatible economic objectives

Answer 3

policies applied to achieve one objective also help to achieve other objectives at the same time

Question 4

what are the 4 relationships of compatible objectives

Answer 4

1. econ growth and full employment
2. full employment and econ growth
3. price stability and econ growth
4. efficient resource allocation and econ growth

Question 5

what is meant by conflicting econ objectives

Answer 5

cannot be achieved simultaneously

Question 6

what are the 4 conflicting econ objectives

Answer 6

1. price stability and full employment
2. econ growth and price stability
3. econ growth and structural UE
4. econ growth and equitable income distribution