Economic Performance and Living Standards

What is one of the main economic goals set by the government?

• High inflation levels

• Low inflation levels

• High unemployment rate

• High trade deficit

What is the desired range for annual economic growth?

• 1% to 2%

• 2% to 3%

• 3% to 4%

• 4% to 5%

What is the ideal unemployment rate?

• 1% to 2%

• 2% to 3%

• 3% to 4%

• 4% to 5%

What does equity in the distribution of income and wealth mean?

• Equal distribution of income and wealth

• Unequal distribution of income and wealth

• No distribution of income and wealth

• Random distribution of income and wealth

What is external stability in terms of the economy?

• Ability to meet international financial obligations

• Ability to meet domestic financial obligations

• Ability to reduce trade deficit

• Ability to increase foreign debt

How does long-term unemployment affect living standards?

• Increases income and spending power

• Decreases income and spending power

• Has no impact on income and spending power

• Increases savings and investment opportunities

What are the adverse effects of high inflation on living standards?

• Increased business expansion and profits

• Decreased competition and unemployment

• Decreased purchasing power and confidence

• Increased investment in plant and equipment

How does inflation affect fixed income earners?

• Increases their income and spending power

• Decreases their income and spending power

• Has no impact on their income and spending power

• Increases their savings and investment opportunities

What happens to variable home loan repayments during high inflation?

• They decrease

• They stay the same

• They increase

• They become unpredictable

What is one of the negative impacts of inflation on businesses?

• Increased competitiveness

• Decreased profits

• Increased consumer confidence

• Decreased interest rates