1
1 mark
1 markWhat is a common role of local government?
Monitoring international trade
National defense and security
Provision of public goods like refuse collection
Monetary policy
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The Role of Government (Cambridge (CIE) IGCSE Economics)
Exam Questions
54 mins26 questions21 mark
1 markWhat are the three levels of government intervention in a mixed economy?
A | Local | Supply Side | International |
B | Local | National | Monetary |
C | International | Exchange rates | Local |
D | International | Local | National |
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31 mark
1 markWhat is the aim of protectionism?
To promote free trade
To encourage good international relations
To restrict foreign competition
To reduce government intervention in trade
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41 mark
1 markWhat is the main purpose of fiscal policy?
Regulating the money supply and interest rates
Influencing economic activity through government spending and taxation
Managing the exchange rate of the national currency
Allocating resources to local projects
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51 mark
1 markWhich of the following is not an example of a macroeconomic aim from a national government?
Economic growth
Low and stable inflation rate
Better international trade with other countries
Low unemployment
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11 mark
What is most likely to be the responsibility of a central government?
the provision of immigration officials at an airport
the provision of security cameras in a shopping centre
the provision of security staff at a bank
the provision of ticket inspectors on a train
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21 mark
In a city, what is most unlikely to be provided by the private market system?
a museum
a school
a sports field
street lights
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31 mark
1 markWhat is a characteristic of a mixed economy?
Government has complete control over all economic activities
Private ownership and government intervention exist together
All production is carried out by foreign companies
Government sets prices for all goods and services
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41 mark
1 markWhich term below does not describe a local government branch?
State
National
Council
Federal
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51 mark
1 markWhat is the role of local government in promoting economic development?
Setting national tax rates
Implementing international trade agreements
Providing incentives for local businesses
Managing the national budget
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11 mark
1 markWhat is an exchange rate intervention by the government?
A government policy that promotes trade barriers
A decision to adopt a fixed exchange rate system
A deliberate action to influence the value of the national currency
A measure to stop all foreign exchange transactions
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21 mark
1 markWhy does the government provide public goods and services in a mixed economy?
To stop private ownership of key industries
To ensure that all goods are provided for free
To solve market failures and provide essential services
To discourage private individuals from participating in the economy
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31 mark
1 markWhat is the main source of government revenue in a mixed economy?
Private investments in all industries
Subsidies provided to domestic businesses
Taxes collected from individuals and businesses
Export earnings from international trade
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41 mark
1 markWhat is a common method of protecting domestic firms?
Removing all trade barriers and tariffs
Encouraging foreign investment without any restrictions
Providing financial assistance to foreign competitors
Imposing tariffs and quotas on imported goods
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51 mark
1 markWhat is the purpose of government regulation in a mixed economy?
To eliminate all competition
To ensure equal distribution of income
To protect consumers, workers, and maintain fair competition
To control all aspects of production and pricing
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