1.5 Economic Policies Quiz

What is one primary aim of government economic policies?

• Increase inflation

• Ensure economic growth

• Reduce employment

• Discourage international trade

Which policy tool is used to control the money supply in the economy?

• Fiscal policy

• Trade policy

• Monetary policy

• Industrial policy

Which of the following is a goal of controlling inflation?

• Increasing national debt

• Decreasing the value of money

• Stabilising prices

• Reducing exports

What is the role of the public sector in delivering services?

• Maximising profits

• Providing essential services

• Reducing competition

• Increasing unemployment

How does the government promote international trade?

• By raising tariffs

• By signing trade agreements

• By limiting imports

• By increasing taxes

Which of the following is an example of fiscal policy?

• Changing interest rates

• Regulating banks

• Adjusting government spending

• Modifying exchange rates

What is a common tool of monetary policy?

• Tax rates

• Government spending

• Interest rates

• Trade tariffs

What was a significant cause of the banking crisis?

• Monopoly power

• High inflation

• Excessive risk-taking by banks

Which entity is typically responsible for public accountability?

• Private corporations

• Non-governmental organisations

• Central and local government

• International bodies

What is one function of public administration?

• Maximising profits

• Providing public goods and services

• Reducing government spending

• Increasing trade barriers