The Macroeconomic Aims of Government

A country has a population of 200 million and a labour force of 80 million with 12 million being unemployed. What is the unemployment rate of the country?

• 40%

• 6%

• 15%

• 20.8%

Which of the following can improve a country's productive potential?

• An improvement in education and training for workers

• Emigration of workers

• Contractionary Monetary Policy

• Increase in the school leaving age

Which of the following is NOT a macroeconomic aim of the government?

• Economic Growth

• Balance of Payment

• Increased money supply

• Less unemployment

What is the formula to calculate the unemployment rate

• (Unemployment / Population of a country)

• (Unemployment / Labour force) * 100

• (Labour force / Population of a country) * 100

• (Unemployment / Labour force)

What is meant by potential economic growth?

• An increase in the productive capacity of an economy

• An increase in employment

• An increase in government spending

• Increase in the aggregate demand of a country

What is meant by full employment

• Complete 100% employment in a country

• The least amount of unemployment possible

Which of the following defines a local government

• A government organization with administrative rights over multiple areas

• A government organization with administrative rights over a particular area

What is being described here: "Industries that have the potential to be world leaders"

• National Champions

• International Champions

• Natural Monopolies

• Strategic Industries