WorksheetsUNIT 3.4e - MCQs on macroeconomic objectives PART 1
Total questions: 10
Worksheet time: 20mins
Which of the following government objectives is the most likely to be achieved in the short-run?
Significantly more equitable distribution of income
Reducing regional differences
Price stability
Full transition to renewable energy sources
Which pair of macroeconomic objectives may conflict with each other?
Improve international competitiveness & increase in real GDP
Price stability & higher standards of living
Improved access to public services & reducing national debt
Increased government revenues & reducing regional differences
Which of the following objectives are the least likely to be achieved during a period of strong economic growth?
Increase in real GDP
Price stability
Falling unemployment
Improved work-life balance
Why may some people oppose pursuing the objective of environmental sustainability?
May reduce economic growth
May reduce international competitiveness
May reduce air pollution
May reduce the rate of inflation
Which statements are true?
I. Higher incomes per capita can result in greater income inequality.
II. Price stability always results in cheaper prices.
III. Improving well-being must conflict with increasing real GDP per capita.
I.
II. and III.
III.
I., II. and III.
What can make it difficult for a government to improve people's access to public services?
A small national debt
Many rural areas
Strong economic growth
High unemployment
Which one is an argument against the reduction in income inequality?
Reduces the differences between cities and the countryside
Reduces the unemployment rate in the country
Reduces government spending on the poor
Reduces the incentives to take risk and innovate
Why may a country focus on improving its global competitiveness rather than on reducing unemployment?
The country has high cost of living.
The country is a large trading hub.
The country has strong a welfare system.
A large part of the population lives in poverty.
A government is attempting to reduce regional differences in the country by infrastructure spending. Which negative consequences may the country face?
Increased budget deficit.
Improved regional employment.
Increased price level.
Reduced income inequality across regions.
Which ones can be considered negative consequences of a reduction in the unemployment rate?
Increased in the price level due to higher spending
Greater use of government services paid through the higher tax revenues
Sustained economic growth due to higher consumer spending
Increased in the numbers of working hours by single parents.
