objectives of government economic policy

Question 1

What is the primary objective of government economic policy?

Answer 1

To promote economic stability and growth.

Question 2

True or False: One objective of government economic policy is to reduce unemployment.

Answer 2

True

Question 3

Fill in the blank: Government economic policy aims to control ________.

Answer 3

inflation

Question 4

Which term describes the government’s effort to redistribute wealth?

Answer 4

Income redistribution

Question 5

What is meant by ‘economic stability’ in the context of government policy?

Answer 5

A situation where the economy experiences minimal fluctuations in growth and inflation.

Question 6

Multiple Choice: Which of the following is NOT an objective of government economic policy? A) Economic growth B) Price stability C) Increasing taxes D) Employment generation

Answer 6

C) Increasing taxes

Question 7

What role does fiscal policy play in government economic objectives?

Answer 7

Fiscal policy is used to influence economic activity through government spending and taxation.

Question 8

True or False: Government economic policy can influence interest rates.

Answer 8

True

Question 9

What is the goal of monetary policy within government economic policy?

Answer 9

To control the money supply and regulate interest rates.

Question 10

Fill in the blank: Government policies often aim to achieve ________ balance in trade.

Answer 10

a favorable

Question 11

Multiple Choice: Which objective focuses on ensuring that all citizens have access to basic needs? A) Economic efficiency B) Social welfare C) Economic freedom D) Price stability

Answer 11

B) Social welfare

Question 12

What is ‘economic growth’ in the context of government objectives?

Answer 12

An increase in the production of goods and services over time.

Question 13

True or False: Reducing income inequality is a common goal of government economic policy.

Answer 13

True

Question 14

What is the significance of ‘price stability’ in economic policy?

Answer 14

It helps maintain consumer confidence and encourages investment.

Question 15

Multiple Choice: Which of the following is a tool of monetary policy? A) Taxation B) Government spending C) Open market operations D) Subsidies

Answer 15

C) Open market operations

Question 16

What is the relationship between government economic policy and employment rates?

Answer 16

Government economic policy aims to create conditions that promote job creation and reduce unemployment.

Question 17

True or False: Economic policies are static and do not change over time.

Answer 17

False

Question 18

What is ‘inflation targeting’ in government economic policy?

Answer 18

A monetary policy strategy aimed at keeping inflation within a specified range.

Question 19

Multiple Choice: Which of the following is a direct objective of government economic policy? A) National security B) Environmental protection C) Sustainable development D) All of the above

Answer 19

D) All of the above

Question 20

What does ‘economic efficiency’ refer to in government policy objectives?

Answer 20

The optimal allocation of resources to maximize output and minimize waste.

Question 21

True or False: Government economic policy does not impact international trade.

Answer 21

False

Question 22

What is a ‘budget deficit’ in relation to government economic policy?

Answer 22

When government expenditures exceed revenues.

Question 23

Fill in the blank: Government economic policy often includes measures to improve ________ competitiveness.

Answer 23

global

Question 24

Multiple Choice: Which of the following is a long-term objective of economic policy? A) Immediate job creation B) Sustainable economic growth C) Short-term tax cuts D) Price fluctuations

Answer 24

B) Sustainable economic growth

Question 25

What is the purpose of government intervention in the economy?

Answer 25

To correct market failures and promote social welfare.

Question 26

what are the four main macroeconomic objectives

Answer 26

Economic Growth, Minimising unemployment, price stability, balanced balance of payments on current account.

Question 27

what is the long run trend of economic growth in the uk

Answer 27

About 2.5%.

Question 28

why would governments aim to increase economic development before economic growth

Answer 28

governments might aim to increase economic development before economic growth, which will improve living standards, increase life expectancy and improve literacy rates.

Question 29

what is the government inflation target and how is it measured

Answer 29

2%, measured with CPI

Question 30

What is the primary conflict between economic growth and environmental sustainability?

Answer 30

Economic growth often leads to increased resource consumption and environmental degradation, while environmental sustainability requires the careful management of resources.

Question 31

True or False: Economic growth is always beneficial for the environment.

Answer 31

False

Question 32

Which of the following is a potential negative impact of economic growth on the environment? A) Job creation B) Pollution C) Technological advancement

Answer 32

B) Pollution

Question 33

What is a common measure used to assess the environmental impact of economic activities?

Answer 33

Ecological footprint

Question 34

What is the relationship between unemployment and inflation as described by the Phillips Curve?

Answer 34

The Phillips Curve illustrates an inverse relationship between unemployment and inflation, suggesting that lower unemployment leads to higher inflation and vice versa.

Question 35

True or False: According to the Phillips Curve, increasing inflation will always lead to a decrease in unemployment.

Answer 35

False

Question 36

Fill in the blank: The trade-off between inflation and unemployment represented by the Phillips Curve is typically observed in the short _____ period.

Answer 36

run

Question 37

What happens to the Phillips Curve in the long run according to economists?

Answer 37

In the long run, the Phillips Curve becomes vertical, indicating that there is no trade-off between inflation and unemployment.

Question 38

Multiple Choice: Which of the following factors can shift the Phillips Curve? A) Changes in expectations of inflation B) Changes in fiscal policy C) Both A and B D) None of the above

Answer 38

C) Both A and B