Role of Govt.

Question 1

Economic objectives of every govt. (5)

Answer 1

1) Low and stable inflation
2) Low unemployment
3) Economic growth
4) Redistribution of income
5) Stable balance of international trade (stable balance of payments)

Question 2

Govt is a producer of:

Answer 2

Essential, merit and public goods

Question 3

Govt is an employer:

Answer 3

Thousands of workers employed by govt institutes

Question 4

Govt is an institute that controls the economy via:

Answer 4

Laws and regulations
Taxes (raise revenue for govt. spending/influence consumption and production)

Question 5

Govt is a buyer/spender of goods from private firms:

Answer 5

Spending on infrastructure, subsidies and welfare payments