Government and the macroeconomy — IGCSE Economics (0455) questions by topic
Questions on government and the macroeconomy range from multiple-choice items on monetary policy and unemployment's effect on government revenue to calculating a country's budget deficit from given data, worth between 1 and 30 marks.
Identify, explain, discuss, analyse and calculate span recall through evaluation: analyse wants reasoned economic mechanisms, discuss wants both sides weighed. With 29 questions drawn from 2025 papers, this page's instant marking suits calculation items especially well, checking each line of a budget deficit or GDP-impact working so an arithmetic slip is caught immediately rather than compounding through a longer analytical answer.
May–June 2025, Paper 11
In 2020, to prevent the spread of a pandemic, many governments temporarily closed restaurants and cafes. What would be a macroeconomic impact of such a policy? A Demand for food…
Answer this question and get it marked →What is a macroeconomic aim of a government? A high external costs B high sales tax C low unemployment D low wages
Answer this question and get it marked →What is a principle of taxation? A equality between social cost and social benefit B fairness between taxpayers C profit maximisation by firms D tax revenue maximisation
Answer this question and get it marked →Monetary policy often involves a change in which variables? A government expenditure or taxes B interest rates or the money supply C labour market or trade union laws D tariffs or…
Answer this question and get it marked →Which supply-side policy measure is most likely to enable a government to achieve its aim of full employment? A decreasing government spending on school buildings B decreasing the…
Answer this question and get it marked →Which policy decision is most likely to cause economic growth? A an increase in corporation tax rates B an increase in interest rates C an increase in the amount workers can earn…
Answer this question and get it marked →A government uses the labour force survey method to calculate unemployment. What is required under this method for a person to be classified as unemployed? eligible for…
Answer this question and get it marked →What is most likely to rise when the level of employment falls in a high-income economy? A consumer confidence B government expenditure on state benefits C government revenue from…
Answer this question and get it marked →A Consumer Prices Index (CPI) consists of four items. The table shows the percentage price change for each item over a period of a year and the weight of each item. Which price…
Answer this question and get it marked →May–June 2025, Paper 12
Many central banks around the world decreased interest rates during a recession caused by a pandemic. What was the most likely macroeconomic aim of this policy? A economic growth…
Answer this question and get it marked →The diagram shows the percentage of income taken by a tax at different levels of income. The diagram (vertical axis '% paid in tax', horizontal axis 'income') shows a single…
Answer this question and get it marked →What is not a likely consequence of a rise in the budget deficit in a year? A a rise in government borrowing B a rise in the level of exports C a rise in the national debt D a…
Answer this question and get it marked →When a government aims to encourage economic growth, it may adopt supply-side policies. Which policy is a supply-side policy? A increasing the money supply B lowering interest…
Answer this question and get it marked →An economy that is fully employed is forecast to have an increase in total demand. What is most likely to increase? A the rate of absolute poverty B the government budget deficit…
Answer this question and get it marked →A government conducted a labour force survey. It only included people of working age in the survey. The results are shown in the table. number of people --- --- of working age 10…
Answer this question and get it marked →A school leaver is unable to find a job immediately after completing their education. Which type of unemployment is this? A cyclical B frictional C regional D structural
Answer this question and get it marked →Which changes are likely to lead to the biggest increase in inflation in country X? demand for goods and services in country X supply of goods and services in country X --- ---…
Answer this question and get it marked →May–June 2025, Paper 13
What is the most likely reason for a government to aim for price stability? A to improve international competitiveness B to increase workers' wage demands C to reduce consumer…
Answer this question and get it marked →A country's unemployment rate increased from 3.6% to 4.2% in one year. What might be the consequences for tax revenues and welfare payments? tax revenues welfare payments --- ---…
Answer this question and get it marked →In a country, some highly-paid workers reduce their working hours because of very high income tax rates at higher levels of income. What is a disadvantage of this income taxation?…
Answer this question and get it marked →What is most likely to be a reason for taxing oil? A to conserve oil resources B to create employment C to encourage economic growth D to reduce oil prices
Answer this question and get it marked →Brazil's real GDP fell by 3.8% in a year. What might have caused this? A a decrease in imports B a decrease in income tax C an increase in interest rates D an increase in output…
Answer this question and get it marked →Factory owners invest in technologically-advanced industrial production by building new large-scale, energy-efficient factories. What is a negative consequence of this for local…
Answer this question and get it marked →Country X measures unemployment by counting the number of people claiming unemployment benefit. Why might this method underestimate the level of unemployment? A Some benefit…
Answer this question and get it marked →What is likely to cause deflation? A higher employment B higher production costs C increased money supply D technological advances
Answer this question and get it marked →May–June 2025, Paper 21
Calculate the value of Gabon's oil production as a percentage of Gabon's GDP.
Answer this question and get it marked →Identify two macroeconomic aims of government that may conflict.
Answer this question and get it marked →May–June 2025, Paper 22
Calculate St. Kitts and Nevis's government budget deficit in 2022.
Answer this question and get it marked →