Question

1. Which of the following is not typically a government objective? a. Low unemployment b. Fast...

1. Which of the following is not typically a government objective?

a. Low unemployment

b. Fast economic growth

c. Stable prices

d. Greater regional income inequality

2. Which of the following is not an example of fiscal policy?

a. Higher interest rates

b. Lower income tax

c. Higher corporation tax

d. Greater government spending

3. The government's budget position measures the difference between:

a. Export spending and import spending

b. Government spending and income

c. Government consumption and investment

d. Consumption and savings

4. Monetary policy does not include:

a. Changes to the interest rate

b. Changes to bank lending

c. Changes to bank borrowing

d. Changes to taxation rates

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Answer #1

Answer 1. Which of the following is not typically a government objective?

-d.Greater regional income inequality

Explanation- government will usually seek greater regional income equality.

Answer 2.Which of the following is not an example of fiscal policy?

- a. Higher interest rates

Explanation- high interest rates are example of monetary policy.

Answer 3. The government's budget position measures the difference between:

-b. Government spending and income

Explanation- the budget position measures the difference between government spending and income.

Answer 4. Monetary policy does not include:

- d. Changes to the taxation rates

Explanation- monetary policy affects interest rates and money supply , taxation rates are part of fiscal policy.

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