Element 1 Revision (1.5 &1.6) The role of the government & Quiz

What is the primary objective of government fiscal policy?

• Control inflation

• Economic growth

• Employment

• Promotion of international trade

Which policy involves government spending and taxation?

• Monetary policy

• Fiscal policy

• Trade policy

• Regulatory policy

How can governments control inflation?

• Increasing interest rates

• Increasing government spending

• Reducing taxes

• Increasing money supply

What is the role of the public sector in delivering services?

• Profit maximisation

• Public accountability

• Financial management

• Market competition

Which body is responsible for monetary policy in the UK?

• The Treasury

• The Bank of England

• The European Central Bank

• The World Bank

What is a key feature of the rational decision model?

• Making decisions based on instinct

• Identifying alternatives

• Limited information

• Short-term focus

What is public accountability?

• Ensuring public services are profitable

• Holding the government responsible for its actions

• Increasing taxes

• Reducing inflation

Which of the following is an example of a strategic decision?

• Increasing staff wages

• Launching a new product

• Daily operational adjustments

What is the primary goal of the triple-bottom line decision-making model?

• Maximising profits

• Reducing costs

• Considering financial, environmental, and social impacts

• Increasing market share

What is a common tool used in fiscal policy?

• Interest rates

• Government spending

• Money supply

• Exchange rates