ConceptConceptDocsDocuments

Edexcel IGCSE Economics 2.1.2 Government policies Question Bank

Practise applying fiscal, monetary, supply-side and control policies to data on taxes, spending, interest rates and regulation.

Syllabus
First assessment 2019
Course
Economics 4EC1

Exam points

  • identify whether a policy is fiscal, monetary, supply-side or a government control
  • explain interest rate changes, tax changes or spending changes using country data
  • evaluate policy trade-offs for unemployment, inflation, public finances or the environment

Covered syllabus points

2.1.2.a Fiscal policy – government revenue and government2.1.2.b Monetary policy – focused on interest rate changes2.1.2.c Supply-side policy2.1.2.d Government controls

2.1.2 Government policies question 1

[Maximum number: 5]

Question (a)

(a)

Describe one impact on consumers of an increase in interest rates.

[ 2 ]

Question (b)

(b)

In December 2023, Portugal reported a fiscal surplus of €6.2bn, which was €3.4bn higher than 12 months before.

Explain one possible benefit of a fiscal surplus for a country such as Portugal.

[ 3 ]

2.1.2 Government policies question 2

[Maximum number: 1]

Which one of the following is an example of a supply-side policy to increase output?

A

Increasing income tax

B

Increasing interest rates

C

Increasing the school-leaving age

D

Increasing business taxes

All question bank results loaded