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