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CAIE IGCSE Economics 4.2.2 Reasons for Government Spending Questions

Practise Cambridge IGCSE Economics by explaining how government spending affects GDP and living standards, then evaluating spending decisions in context.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Identify government spending roles such as benefits, subsidies, public services and environmental investment.
  • Explain how government spending can affect GDP, employment, living standards, health or environmental outcomes.
  • Evaluate whether additional public spending benefits an economy, weighing opportunity cost, financing and likely outcomes in context.

CAIE IGCSE Economics 4.2.2 Reasons for Government Spending Questions question 1

[Maximum number: 1]

Which role is not performed by a government?

A

paying dividends to shareholders

B

promoting international trade agreements

C

providing state benefits

D

subsidising merit goods

All question bank results loaded