Which one of the following is an example of fiscal policy?

An increase in the top rate of income tax

Deregulation is the...

Process of removing government controls from the market?

The MPC sets the interest rates in the UK. How often does it meet?

Once a month plus more if there is an economic emergency

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Demand-side and Supply-side policies.

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Answers

1
Which one of the following is an example of fiscal policy?
An increase in the top rate of income tax
A cut in interest rates
Measures to boost productivity
An addition £30bn of quantitative easing
2
Deregulation is the...
Process of increasing government controls in the market
Process of removing government controls from the market?
Sale of government organisations or assets to private sector
Process of reducing monopoly powers in the market
3
Cuts in Corporation tax are designed to do the following except
Reduce the budget deficit
Boost employment
Encourage investment
Encourage Foreign Direct Investment
4
When the firm is able to adjust the working hours of a worker it is called...
Functional Flexibility
Geographical Flexibility
Internal numerical flexibility
External numerical flexibility
5
The MPC sets the interest rates in the UK. How often does it meet?
Once a month with fewer meetings in the school holidays
When the Chamcellor allows them to hold a meeting
Once a month plus more if there is an economic emergency
Once a year after the budget is introduced
6
Which of these has the largest area of government spending in the UK?
Social security
Education
The NHS
Defence
7
Bonus question-Which one would shift SRAS to the right?
Reduction in money wages
Rise in interest rates
8
Which one of these is not a market-based method?
Increasing competition
Increasing price flexibility
Improved infrastructure
Increased incentives
9
Which of the following policies may reduce the rate of inflation and a positive output gap?
A rise in government spending
A rise in the value of the pound
A rise in interest rates
A rise in amount of Quantitative Easing done by Central Bank
10
What effects does spending on training schemes have on the UK government?
Decreased tax revenue
Increased costs
Productive workforce
11
Which of these methods not increase incentives to work?
Increased welfare benefits
Reduced income tax
Increased income tax credits

Demand-side and Supply-side policies. Flashcards | StudBud