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WorksheetsRole of government
Total questions: 13
Worksheet time: 8mins
Name
Class
Date
1.
Monetary policy is laid down by
a)
the government
b)
the central bank
c)
the state
d)
local governments
2.
If interest rates are set higher
a)
inflation will probably decrease
b)
inflation increases
c)
more credit is available
d)
prices will increase
3.
People are more willing to save if interest rates are...
a)
low
b)
stable
c)
high
d)
under 2 percent
4.
Economic growth is measured by the
a)
GDP
b)
inflation
c)
unemployment rate
d)
interest rates
5.
Voluntary unemployment means that
a)
people are not willing to work because the salaries are too low.
b)
people are not willing to work because they are rich.
c)
people can't find job
d)
people get unemployment assistance.
6.
Frictional unemployment occurs when
a)
people are not trained to use new inventions.
b)
employers look for people with different educational background.
c)
there is a recession in the country and many people are laid off.
d)
change jobs or move to another city.
7.
In the labour market model we use the following factors to determine the equilibrium:
a)
nominal wages and number of people
b)
real wages and number of people
c)
real wages and quantity
d)
price and number of people
8.
In the long term financial market you can trade with
a)
shares and bonds
b)
cash
c)
checks
d)
financial instruments within a year
9.
One of the government's tasks is
a)
to set the interest rates
b)
to maintain public institutions
c)
to ensure sustainable development
d)
to keep taxes low so that foreign firms invest in Hungary
10.
Some of the tools of the government to protect the economy are
a)
customs and restrictions
b)
interest rates and inflation
c)
unemployment and customs
d)
favorable taxes and low interest rates
11.
Public goods and services are provided by the government because
a)
it is cheaper this way
b)
noone else is willing to provide them
c)
the government is better at it
d)
they are not profitable enough
12.
Personal income tax is paid by
a)
everyone
b)
corporations
c)
workers
d)
noone
13.
Redistribution of income means
a)
an attempt to compensate inequalities in society
b)
everyone gets a part of the budget
c)
some people don't need to pay tax
d)
Robin Hood is coming to take money from the rich to give it to the poor
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