IGCSE Economics - Review

Front

A government decides to increase the wages paid to the employees of state-owned enterprises. What will increase immediately, as a result of this decision?

Back

Government expenditure

Front

What type of product is education?

Back

A merit good

Front

In what type of economy, are most workers employed by the government?

Back

Planned

Front

Which of the following is a macroeconomic aim of the government? A fall in national output, High unemployment, Imports exceeding exports, Price stability

Back

Price stability

Front

Which of the following could increase a country’s productive potential? An improvement in education, A reduction in the retirement age, Retention of worn out machinery by firms, Migration of workers to other countries

Back

An improvement in education

Front

which of the following is most likely to increase demand in the economy? A reduction in government expenditure, A reduction in the rate of interest, A rise in a budget surplus, A rise in income tax

Back

A reduction in the rate of interest

Front

When does a budget deficit occur?

Back

When government expenditure is greater than government revenue

Front

What is most likely to conflict with a government’s aim of full employment? Options: Lower income tax, Lower spending on imports, Higher government expenditure, Higher interest rate

Back

Higher interest rate

Front

What is most likely to happen due to economic growth?

Back

A rise in employment

Front

What combination of macroeconomic aims is most likely to benefit from a decrease in government spending? A fall in imports and price stability, Economic growth and full employment, Full employment and a fall in imports, Price stability and economic growth

Back

A fall in imports and price stability