Efficiency

Discuss how dependable the indicators used to measure the standard of living are, and also assess what policies a government might use to try to raise the standard of living in its country.

Feb/March 2016

‘Economic growth ought to be the most important macroeconomic aim.’ Discuss this view.

Feb/March 2021

The table presents GDP indices for a country across a three-year span. Inflation and economic growth are two macroeconomic policy objectives. Which row gives a correct judgement of the country’s success in meeting these two objectives over the period?

Feb/March 2023

A government raises its budget deficit in order to fund spending on infrastructure development. It pays for this by creating money. How is this policy likely to influence the government’s principal macroeconomic policy objectives?

Feb/March 2024

Discuss whether governments should give up their traditional macroeconomic aims in favour of the alternatives mentioned in the statement above.

May/June 2009

The table presents some indicators of macro-economic performance in the US economy across five decades. During which decades did the US government record an overall rise in performance without any trade-off among separate policy goals?

May/June 2011

The table presents several measures of macro-economic performance in the US economy across five decades. Between which decades did the US government record an overall improvement in performance without any trade-off between individual policy aims?

May/June 2011

Explain, with the help of a diagram, how a government can maintain a stable foreign exchange rate.

May/June 2012

A newspaper reported that ‘unemployment had increased for the third month in a row.’ What could be the reason for the rise in unemployment?

May/June 2013

A newspaper stated that ‘unemployment had increased for the third month in a row.’ What could have caused the rise in unemployment?

May/June 2013

Explain how a profit-maximising firm decides the amount of labour to hire.

May/June 2014

What is the purpose of stabilisation policy?

May/June 2016

The US Federal Reserve has a stable price (2% inflation) target and a full employment (5 to 5.2% unemployment) target. The diagram presents the inflation rate and unemployment rate recorded between 2007 and 2014. What can be inferred about the success of Federal Reserve economic policy, 2007 to 2014?

May/June 2017

Governments may pursue several macroeconomic aims besides economic growth. Explain the other main macroeconomic aims that a government might have apart from economic growth.

May/June 2017

Explain how monetary policy may be able to lower the rate of inflation in an economy and assess how likely this policy is to succeed.

May/June 2023

At what point is a policy regarded as macroeconomic?

May/June 2024

In an open economy with a fixed exchange rate, the currency’s value is well below its purchasing power parity level. If the economy were to switch to a floating exchange rate, which macroeconomic policy aim would be most likely to gain?

May/June 2025

Government economic policy ought to be directed at citizens' needs – employment, health, education and a good environment. It should not focus on the balance of payments or gross domestic product. Discuss whether there is any truth in this statement.

Oct/Nov 2006

Explain how pursuing economic growth could conflict with the government's other macroeconomic aims.

Oct/Nov 2010

In 2012, after a period of weak demand in an economy, private consumption and investment rose and economic growth occurred. This was not completely beneficial because the rise in economic growth can clash with other government objectives. Explain why an increase in private consumption and investment might have led to an increase in economic growth and consider whether you agree that this may conflict with other government objectives.

Oct/Nov 2014

Explain three major government macroeconomic policy aims and describe why trying to achieve them simultaneously may lead to conflict.

Oct/Nov 2016

The table shows some economic indicators for four countries. Which country is nearest to meeting the main objectives of government economic policy?

Oct/Nov 2019

Evaluate how the relative size of injections into and leakages from the circular flow of income can affect the ability of a government to achieve its macroeconomic aims.

Oct/Nov 2019

A government in an open economy that has an overvalued currency chooses to give up its fixed exchange rate and switch to a floating exchange rate. Which macroeconomic policy aim is least likely to be achieved as a result of this change?

Oct/Nov 2020

Which option shows the correct result for the policy choice?

Oct/Nov 2023

What is most likely to result in a Pareto-optimal outcome?

Oct/Nov 2025

What could help to achieve allocative efficiency?

Oct/Nov 2025

For what reason would an economy want to attain economic efficiency?

Oct/Nov 2025

If there are no externalities, at what level of output would a nationalised firm choose to produce so as to maximise social welfare?

Oct/Nov 2025

Which piece of evidence is most likely to show that an economy has attained Pareto optimality?

Oct/Nov 2025