A-Level CAIE Business A2 6.1.2—Economic Question Bank

• Economic

- how government might intervene to help businesses and encourage enterprise

- how government might intervene to constrain business activity

- how government might deal with market failure

- the key macroeconomic objectives of governments: low unemployment, low inflation, economic growth

- how macroeconomic objectives and performance of an economy can have an impact on business activity

- government policies used to achieve macroeconomic objectives: monetary, fiscal, supply-side and exchange rate policies

- the impact of changes in these government policies on business and business decisions