Question 1
Macroeconomic objectives include:
A.
Only micro efficiency B.
Only import quotas C.
Growth and low unemployment D.
Only firm profit
Question 2
A fiscal deficit means:
A.
Exports exceed imports B.
Unemployment is zero C.
Government spending exceeds tax revenue D.
Inflation is zero
Question 3
What is meant by lorenz curve?
A.
Shows income distribution inequality. B.
Sustainable current account. C.
Manage deficit/debt sustainably. D.
2% CPI target.
Question 4
What is meant by equity objective?
A.
High employment / NAIRU. B.
Goals government seeks for the whole economy. C.
Reduce income inequality. D.
Shows income distribution inequality.
Question 5
What is meant by macro objectives?
A.
2% CPI target. B.
Goals government seeks for the whole economy. C.
Sustainability and emissions targets. D.
Sustainable rise in real GDP (~2% UK trend).
Question 6
What is meant by policy trade-offs?
A.
2% CPI target. B.
Sustainable rise in real GDP (~2% UK trend). C.
Objectives may conflict — e.g. Phillips curve. D.
Shows income distribution inequality.
Question 7
What is meant by low inflation?
A.
Sustainable rise in real GDP (~2% UK trend). B.
Reduce income inequality. C.
2% CPI target. D.
Objectives may conflict — e.g. Phillips curve.
Question 8
The Bank of England's inflation target is:
A.
5% GDP growth B.
10% RPI C.
2% CPI D.
0%
Question 9
The Lorenz curve relates to:
A.
Exchange rates B.
PED only C.
PES only D.
Income inequality
Question 10
What is meant by bop equilibrium?
A.
Manage deficit/debt sustainably. B.
Sustainable current account. C.
Goals government seeks for the whole economy. D.
High employment / NAIRU.
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