Economic policy

Question 1

What was the main economic challenge Thatcher’s government faced when they took office in 1979?

Answer 1

Inflation

Question 2

Thatcher’s economic policy was known as?

Answer 2

Monetarism

Question 3

What was the monetarist economic philosophy?

Answer 3

Inflation could be controlled by reducing the physical supply of money in circulation i.e by cutting government spending, or raising taxes

Question 4

Who was Thatcher’s Chancellor in the years 1979-1983?

Answer 4

Geoffrey Howe

Question 5

How many people were unemployed in 1983?

Answer 5

3 million

Question 6

What industry was re-privatised in 1979?

Answer 6

British Petroleum (BP)

Question 7

Geoffrey Howe described his 1981 budget as …

Answer 7

“the most unpopular in History”

Question 8

Inflation fell to what % in 1983?

Answer 8

4.5%

Question 9

Which Japanese car manufacturer created a factory in the north-east?

Answer 9

Nissan

Question 10

What raw material was discovered in the north sea in the early 1980s?

Answer 10

Oil

Question 11

What year was the “Big Bang” or the Financial Services Act, which deregulated the banking sector?

Answer 11

1986

Question 12

Who was Thatcher’s Chancellor in the years 1983-1989?

Answer 12

Nigel Lawson