Understanding Economic Growth and Government Intervention

What is the primary goal of government intervention in the economy?

• To limit employment opportunities

• To reduce productivity

• To increase taxes

• To promote economic growth

Which unemployment rate range is considered indicative of full employment?

• 8-9%

• 6-7%

• 4-5%

• 1-2%

What is a derivative in financial markets?

• A type of stock

• A bond with high interest

• An asset based on the value of another asset

• A fixed deposit

How do governments typically secure financial markets?

• By restricting international investments

• By increasing taxes on trades

• By limiting stock trades

• By ensuring fair treatment for all participants

Why do governments regulate industries?

• To protect consumer rights and worker safety

• To increase production costs

• To encourage monopolies

• To decrease economic growth

What is the purpose of copyright laws?

• To increase government control

• To reduce economic growth

• To limit creativity

• To protect the rights of creators

What role does infrastructure play in economic growth?

• It supports economic growth by improving physical systems

• It increases the cost of doing business

• It decreases the efficiency of transportation

• It has no impact on economic growth

How do governments support economic growth through education?

• By limiting access to education

• By decreasing funding for schools

• By investing in public schools and programs

• By privatizing all educational institutions

What is the main way governments have attempted to ease poverty in the last 100 years?

• By redistributing wealth from richer to poorer citizens

• By increasing taxes on the poor

• By reducing public spending

• By eliminating welfare programs

What can be a negative consequence of government intervention in the economy?

• Unintended negative consequences

• Increased economic growth

• Higher educational standards

• Reduced unemployment rates