Which of the following can the government not use directly to control the economy ?
Correct answer: A. Pay rates within the private sector
- A. Pay rates within the private sector
- B. pay rates in the public sector
- C. investment in education
- D. Benefits available for the unemployed and sick
Explanation
The government can directly set public-sector pay, provide benefits and fund education, but private-sector pay is normally determined by employers and workers through the labour market. It may influence private wages indirectly through laws or taxation, but cannot set them directly.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
An individual who is not working and who has given up looking for work is classfied as ?
Cyclical unemployment is the ?
Aggregate supply is the total amount ?
Which does the government not control directly ?
In the EMU a country's competitiveness can change because of ?
The Maastricht criteria for entry to the EMU are that applicants should have ?