OCR Eco: Chap 1 Macro objectives

What does environmental sustainability refer to?

• Responsible use of natural resources and protection of the environment

• Unlimited use of natural resources

• Ignoring the impact of economic activities on the environment

• Reducing the use of renewable energy sources

Why is a favourable balance of payments important?

• For economic stability and maintaining the value of the country's currency.

• To increase inflation rates.

• To reduce the overall output of goods and services.

• To decrease the value of the country's currency.

What is the state in which all individuals who are willing and able to work can find employment?

• Unemployment

• Full Employment

• Income Distribution

• Economic Stability

Why is a balanced and comprehensive approach necessary in achieving macroeconomic objectives?

• To ensure sustainable economic growth and societal well-being

• To increase income inequality

• To reduce unemployment rates

• To promote environmental sustainability

What does preserving purchasing power and economic certainty help to achieve?

• It increases inflation

• It reduces employment

• It decreases GDP

• It preserves purchasing power and economic certainty

How is economic growth measured?

• By the inflation rate

• By the unemployment rate

• By the Gross Domestic Product (GDP)

• By the balance of payments

Why is price stability important for the economy?

• It encourages saving

• It reduces unemployment

• It promotes investment and economic planning

• It increases government revenue

What does full employment mean?

• All individuals who are willing and able to work can find employment

• All individuals are employed by the government

• All individuals are employed in the private sector

• All individuals are employed part-time

What is the balance of payments?

• A record of all economic transactions between a country and the rest of the world

• A record of all government expenditures

• A record of all domestic transactions

• A record of all tax collections

What is the primary goal of monetary policy?

• To control inflation and stabilize the currency

• To increase government spending

• To reduce the national debt

• To promote international trade