WorksheetsChapter 27 -Economic Objectives
Total questions: 8
Worksheet time: 4mins
Name
Class
Date
1.
Which of these is not a major macroeconomic objective of governments?
a)
Low and stable inflation
b)
Increasing pofitability of companies
c)
Full employment
d)
High and sustainable growth
2.
The four government objectives are low inflation, low unemployment, balance of payments and
a)
Safe defence spending
b)
Economic growth
c)
High interest rates
d)
Low tax revenue
3.
Which one of the following is not part of the business cycle?
a)
Growth
b)
Slump
c)
Recession
d)
Maturity
4.
What type of policy is the use of interest rates to control the economy?
a)
demand side policy
b)
fiscal policy
c)
insurance policy
d)
monetary policy
5.
Which of the following would be an expansionary fiscal policy (increasing economic growth)?
a)
lowering income tax
b)
raising the value of £
c)
printing money
d)
lowering government expenditure (spending)
6.
Which of the following would be an expansionary monetary policy (increase in economic growth)?
a)
raising wages of prison staff
b)
raising interest rates
c)
lowering interest rates
d)
lowering government spending
7.
Income tax is a
a)
direct tax
b)
voluntary tax
c)
indirect tax
d)
sales tax
8.
Which of the following products will be most likely affected by an increase in income tax?
a)
Petrol
b)
Salt
c)
Jewellery
d)
Bread
100 %
