4a.

The Government and the Macro-economy - Government Policies

4.2 The macroeconomic aims of government
1. Identify two macroeconomic aims apart from full employment. (2) TB

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2. Explain two reasons why governments redistribute income. [4]

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3. Discuss whether or not all governments will have the same economic aims. (8) TB

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4. Discuss whether or not governments should aim for a high rate of economic growth. [8]

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5. Analyse how the development of eSports in Malta can help the government achieve its
macroeconomic aims. [4]

6. Discuss whether or not a government subsidy on the export of sugar will help it achieve its
macroeconomic aims. [8]

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7. Discuss whether or not an increase in exports of clean and green products will help the New
Zealand government achieve its macroeconomic aims. [6]

8. Discuss whether or not high government spending can help a government achieve its
macroeconomic aims. [8]

9. Discuss whether or not an increase in government spending will lead to economic growth. (8) TB

10. Analyse how an increase in meat consumption could benefit African economies. [5]

11. Discuss whether or not an economy will benefit from an increase in consumer expenditure.[8]

12. Discuss whether or not a reduction in income tax will end a recession. [8]

13. Discuss whether or not a cut in income tax rates will increase living standards. [6]

14. Analyse how an increase in government spending could increase life expectancy. [6]

15. Discuss whether or not lower taxes on firms will be beneficial for an economy. [8]

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16. Discuss whether or not an increase in Nigeria’s import tariff on rice would increase the output
of Nigerian rice. [6]

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17. Discuss whether or not a reduction in trade protection by other African countries would be
beneficial for Morocco. [6]

18. Analyse how a fall in confidence in the economic prospects of a country could cause that
country to experience a recession. (6) TB

19. Discuss whether or not an increase in the rate of income tax will reduce a budget deficit. (6)
TB

20. Discuss whether or not an increase in income tax rates will improve economic performance.
(8) TB

21. Analyse the economic effects of a reduction in a country’s export of services. [6]

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22. Analyse how economic growth conflicts with balance of payments stability. [6]

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23. Analyse why a fall in unemployment may be accompanied by a rise in inflation. (6) TB

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24. Analyse how a cut in interest rates might create conflicts between macroeconomic aims. [6]

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