Economics Quiz

Decide which statements below refer to the following descriptions and put them into the correct row in the table: • Low and steady inflation; • Lower interest rates; • Raise interest rates; • The Monetary Policy Committee of the Bank of England; • The manipulation of interest rates and the money supply achieve macroeconomic objectives; Statement Description A definition of monetary policy Responsible for setting interest rates An expansionary monetary policy A contractionary monetary policy What macroeconomic objectives monetarists regard as the most significant

What is the difference between product and labour markets?

Why does reducing rates of income tax increase the supply of labour?

The introduction of the ............... wage will encourage workers to take jobs they previously would not have taken.

The ............... of various large state run industries was designed to encourage competition.

A ............... labour market is one that can quickly clear surpluses or shortages.

............... rates of corporation tax will allow firms to keep more of their profits and also encourage higher levels of capital ................