IGCSE Economics G10 I Pretest 1 Chapter 24 & 25

What is the general role of a government ?

• To allocate scarce resource

• To improve the general welfare of its people

• To provide infrastructure such as roads

• To provide welfare benefits to low income households

What does the national government not make decisions on ?

• Fiscal policy measures

• Funding of libraries leisure (health) centres

• Monetary policy procedures

• Level of infrastructure

Which level of government makes decisions about how best to achieve its macroeconomic aims ?

• Local

• International

• Multinational

• National

Which option is most applicable to the role of international governments ?

• Financial support for local libraries and health centres

• The formation of a regional trading bloc

• The funding of national defence programmes

• The imposition of tariffs and quotas

It is a Free Trade Area which promotes the free movement of factors of production between member countries, called?

• Trading Bloc

• International Cooperation

• Trade Centres

• European Unions (EU)

Which is not included in the macroeconomic aims ?

• Economic Growth

• Low Unemployment

• High Inflation

• Stable Balance of Payments

What is inflation ?

• A fall in the general price level, over a given period of time

• A sustained increase in the general price level, over a given period of time

• A sustained increase in the level of national income

• An increase in the rate of interest

Which option is the least likely economic consequence of high unemployment ?

• A fall in the level of consumption due to lower earnings

• A fall in the level of national income

• Higher government expenditure on welfare benefits

• An increase in the rate of inflation

Which option is least likely to cause economic growth ?

• An increase in wages

• Greater investment expenditure

• Higher general price level

• Higher level of consumption

How many macroeconomic aims ?

• 2

• 3

• 4

• 5