Economics 0455: Role of government in economy Topical Past Paper Questions

Which supply-side policy measure is most likely to reduce the size of the public sector? A increased education and training B increased privatisation C infrastructure development D providing more subsidies to firms

Which supply-side policy measure would most likely cause the greatest increase in labour productivity in a country? A a decrease in the rate of corporation tax B a reduced top rate of income tax C improved education and training provision D privatisation of a state-owned industry

In a mixed economy, a government provides some goods that markets cannot. What is the name of these goods? A free goods B economic goods C merit goods D public goods