Economic objectives and the role of government

Which one of the following is a macroeconomic objective of the UK government?

Real GDP is GDP adjusted for:

The Consumer Prices Index measures:

Structural unemployment is caused by:

Which one of the following is a measure of income inequality?

Fiscal policy involves changes in:

Which one of the following is an indirect tax?

A budget deficit occurs when:

Who sets Bank Rate in the UK?

Which one of the following is a supply-side policy?

The national minimum wage is an example of:

Economic growth can be harmful when it causes:

Extract D (data are illustrative, written for this paper): Unemployment in the UK rose from 1.3 million to 1.5 million in one year, from a workforce of 33.5 million. Unemployment among 16–24-year-olds is about three times the national rate. The government plans to fund 50,000 extra apprenticeships. Calculate the percentage increase in the number of people unemployed.

Calculate the unemployment rate after the rise, to one decimal place.

Explain one cost of unemployment to individuals.

Explain how apprenticeships could reduce unemployment.

Evaluate whether supply-side policies are better than fiscal policy at reducing youth unemployment.

Extract E (data are illustrative, written for this paper): The richest 20% of UK households have average disposable incomes about 5 times those of the poorest 20%. The government uses progressive income tax and benefits to redistribute income. Some argue a higher minimum wage would reduce inequality. Define 'disposable income'.

Someone earns £40,000. The first £12,570 is tax-free and the rest is taxed at 20%. Calculate the income tax paid.

Explain how a progressive tax reduces income inequality.

Explain one possible disadvantage of raising the minimum wage.

Evaluate whether the government should do more to reduce income inequality.