Y10 Economics - C24 The Role of Government

What is the general role of government?

• To collect taxes only

• To improve the general welfare of its people

• To control the economy completely

• To provide free services to everyone

Which of the following is NOT a level at which government operates?

• Regional

• International

• Local

• National

What is one service funded by local government taxes?

• Monetary policy

• National defense

• Rubbish collection

• International trade

What does fiscal policy involve?

• Deciding on interest rates

• Raising money through taxation

• Protecting the environment

• Promoting free trade

What is the role of the government in monetary policy?

• To manage local services

• To influence economic activity through interest rates

• To collect taxes

• To provide public goods

Which policy is aimed at promoting economic growth?

• Environmental policies

• Public service policies

• Supply-side policies

• Tariff policies

What is a tariff?

• A type of tax on imports

• A government service

• A local government policy

• A form of public good

What is a trading bloc?

• A national security measure

• A type of tax policy

• A free trade area promoting free movement of production factors

• A local government initiative

Which of the following is an example of a merit good provided by local government?

• International trade agreements

• Military services

• Public libraries

• National parks

What is one responsibility of the national government?

• Providing street lighting

• Maintaining local parks

• Setting interest rates

• Collecting rubbish