GOVERNMENT TOLES 1

Imposing a maximum price for a good is an example of which type of government policy?fiscalfiscalfiscal

• fiscal

• monetary

• regulation

• supply-side

What is an example of a macroeconomic indicator?

• agricultural prices

• average earnings in the secondary sector

• total costs of German pharmaceutical firms

• real Gross Domestic Product (real GDP)

Which combination of characteristics describes a public good?

• excludable and rival in consumption

• non-excludable and non-rival in consumption

• A excludable and non-rival in consumption

• non-excludable and rival in consumption

What is a macroeconomic aim of a government?

• balance of payments stability

• deflation

• income inequality

• unemployment

A government wishes to stimulate economic recovery. Which action will assist this?

• decreasing government investment

• decreasing income tax

• increasing indirect taxation

• increasing interest rates