IGCSE Economics - Gr. 10 Social

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?

• Government expenditure

• A budget surplus

• Unemployment

• Unsold goods and services

What type of product is education?

• An inessential good

• An inferior good

• A merit good

• A public good

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

• Free enterprise

• Market

• Mixed

• Planned

A government decides to limit the wage increase of state employee. What is it most likely trying to achieve?

• A reduction in employment

• A reduction in inflationary pressure

• An increase in the wages paid to private sector employees

• An increase in the attractiveness of public sector employment relative to private sector employment

Which of the following is a macroeconomic aim of the government?

• A fall in national output

• High unemployment

• Imports exceeding exports

• Price stability

A country has a population of 120 Million and a labor force of 50 Million. 6 Million of its labor force are unemployed; what is the unemployment rate?

• 3.53%

• 5.00%

• 10.71%

• 12.00%

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

What is meant by potential economic growth?

• an increase in the total demand in the economy

• an increase in productive capacity of an economy

• the economy’s export revenue being greater than its import expenditure

• the economy operating at full employment

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

When does a budget deficit occur?

• When imports exceed exports

• When government expenditure is greater than government revenue

• When interest rates are falling

• When the money supply is rising