Economics 9708 · AS & A Level · Government macroeconomic policy objectives

Government macroeconomic policy objectives — practice question

(a)[4]

The article mentions macroeconomic policy aims. Identify and explain two of these aims.

(b)[4]

Does the article provide evidence that knowledge of behavioural economics can assist public policy?

(c)[5]

The article says that ‘efficiency is measured by relating inputs to outputs’. Does economic theory define efficiency in this way?

(d)[7]

The article is about an improvement in well-being. Discuss whether any economic indicators could be used to judge whether well-being has become better or worse.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Any two macroeconomic policy aims named correctly (identification of aims).

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