WHSS Economics: Growth

What is not a main economic government objective?

A a balance of payments deficit

B economic growth

C full employment

D price stability

• A

• B

• C

• D

When is the budget described as balanced?

A when direct taxes and indirect taxes are equal

B when exports and imports are equal

C when government spending and government revenue are equal

D when the demand for money and the supply of money are equal

• A

• B

• C

• D

What is most likely to happen as unemployment falls?

A Economic growth falls.

B Inflation falls.

C Spending on welfare benefits rises.

D Tax revenue rises.

• A

• B

• C

• D

The US trades with Uruguay. In 2002 the US approved a loan of US$ 1.5 billion to Uruguay to help boost Uruguay's economy. What would be the most likely effect of this loan?

A It would encourage Uruguay to import from the US.

B It would make Uruguay less competitive.

C It would result in imported inflation.

D It would stop US citizens investing in Uruguay.

• A

• B

• C

• D

Which aim of government policy is most likely to be achieved by a decrease in government spending?

A economic growth

B equality of income

C full employment

D price stability

• A

• B

• C

• D

The graph shows government revenue and spending in a country between 1994 and 2001. What can be concluded from the graph?

A The balance of payments position improved.

B The borrowing of the government increased.

C The economy went into recession.

D The government budget moved from deficit to surplus.

• A

• B

• C

• D

A survey of employment in a particular economy shows that the primary sector was diminishing in importance and more people were being employed in the tertiary sector. What does this mean?

A Fewer people were employed by central government.

B Fewer people were employed in manufacturing industries.

C More people were employed in the service industries.

D More people were employed in agriculture.

• A

• B

• C

• D

A newspaper reports that there has been economic growth in an economy. What does this mean to an economist?

A Population has increased.

B Production has increased.

C Saving has increased.

D Taxation has increased.

• A

• B

• C

• D

What is usually found in a developed country?

A a high GDP per head with a low level of employment

B a high level of labour skills with a low level of car ownership

C a high rate of adult literacy with a low level of poverty

D a high rate of population growth with a low level of labour productivity

• A

• B

• C

• D

Which policy would be most likely to increase the number of people in employment?

A introducing a minimum wage

B introducing a sales tax

C reducing income tax

D reducing tariffs on imports

• A

• B

• C

• D