IGCSE Role of Government

What is the name of an industry where the most efficient number of firms is 1?

• A National Champion

• A Natural Monopoly

• A strategic indiustry

• A primary sector industry

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

• Market

• Mixed

• Planned

• Free Enterprise

A government decides to limit wage increases on government employees. What is it most likely trying to achieve?

• A reduction in employment

• A reduction in inflationary pressure

• An increase in wages paid to private sector employees

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

A move from a planned economy to a market economy is most likely to reduce

• Employment in the agricultural sector

• Employment in the public sector

• Flexible employment

• Self-employment

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

• Government expenditure

• 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