CHAPTER 24: Government Economic Objectives

The difference between the value of export and import of goods and services of a country over a year is called ....

• balance of payment

• interest rate

• exchange rate

• inflation

The price increase of goods and services over time

• inflation

• balance of payment

• gross domestic product

• level of unemployment

Due to the pandemic, the amount of people that became jobless in the USA has reached 16.6 million people. Describe this condition with economics term.

• increase in the unemployment rate

• decrease in the unemployment rate

• the balance of payment has become negative

• the GDP is decreasing

Which of the following is NOT the main economic objectives of a government in a country?

• Negative balance of payment

• Low level of unemployment

• Low inflation

• Increased GDP

During the pandemic, many businesses, especially those who gather people such as fine dining restaurants, must be close to stop the spread of the disease. What would happen to the GDP if this continues for several months?

• the GDP will increase

• the GDP will remain the same as it will not be affected by the business

• the GDP will fall

• none of the options here is correct

Which of the followings are the correct stages in Business Cycle?

• Boom, Saturation, Growth, Decline

• Recession, Maturity, Saturation, Slump

• Boom, Recession, Slump, Growth

• Introduction, Growth, Maturity, Saturation, Decline

1. There are high level of demands

2. The unemployment rate is at its lowest

3. The businesses earn profit at their highest level

The 3 characteristics above are characteristics for which stage of a Business Life Cycle?

• Boom

• Growth

• Maturity

• Recession

Cost of borrowing money is called ...

• tax

• interest rate

• debt

• disposable income

Choose 2 from the following that are sources of income for the government.

• income tax

• Public service

• VAT

• Welfare benefits

the amount of income after tax is called ....

• disposable income

• income tax

• direct tax

• corporation tax