Skip to main content

Self-test questions

S:\TripleA\Design\icons\small\question.gif

1

Progressive tax

A progressive tax is one which:

a)
b)
c)
d)
Yes, that's correct. Well done. This is the definition of a progressive tax.No, that's not right. The correct answer is B. A is the definition of a regressive tax (e.g. VAT) and C refers to a direct tax. D is what is known as an indirect tax.Your answer has been saved.
Check your answer

2

Reducing unemployment

Which of the following might be used by government to lower unemployment?

a)
b)
c)
d)
Yes, that's correct. Well done. This should boost spending and lead to a need to employ more people to meet the increase in demand.No, that's not right. The correct answer is D as this should boost spending and lead to a need to employ more people to meet the increase in demand. A would have the opposite affect and so would B. C, which is monetary policy would also be used to slow an economy and that might increase unemployment.Your answer has been saved.
Check your answer

3

Government policies

Match the examples of government policy given to the appropriate type.

a)
b)
c)
d)
e)
Yes, that's correct well done. Expansionary fiscal policy will boost the level of aggregate demand (e.g. tax cuts) while contractionary fiscal policy will have the opposite effect (e.g. tax increases). Expansionary monetary policy is a reduction in interest rates as this will boost aggregate demand. Contractionary monetary policy is the opposite. Supply-side policies are those that are aimed at boosting aggregate supply.No, that's not right. Try again. Expansionary fiscal policy will boost the level of aggregate demand (e.g. tax cuts) while contractionary fiscal policy will have the opposite effect (e.g. tax increases). Expansionary monetary policy is a reduction in interest rates as this will boost aggregate demand. Contractionary monetary policy is the opposite. Supply-side policies are those that are aimed at boosting aggregate supply.Your answer has been saved.
Check your answer

4

Government policies

Match the examples of government policy given to the appropriate type.

a)
b)
c)
d)
e)
Yes, that's correct well done. Expansionary fiscal policy will boost the level of aggregate demand (e.g. tax cuts) while contractionary fiscal policy will have the opposite effect (e.g. tax increases). Expansionary monetary policy is a reduction in interest rates as this will boost aggregate demand. Contractionary monetary policy is the opposite. Supply-side policies are those that are aimed at boosting aggregate supply.No, that's not right. Try again. Expansionary fiscal policy will boost the level of aggregate demand (e.g. tax cuts) while contractionary fiscal policy will have the opposite effect (e.g. tax increases). Expansionary monetary policy is a reduction in interest rates as this will boost aggregate demand. Contractionary monetary policy is the opposite. Supply-side policies are those that are aimed at boosting aggregate supply.Your answer has been saved.
Check your answer