Effectiveness of policy options to meet all macroeconomic objectives
10.3What the syllabus asks of you
- effectiveness of different policies in relation to different macroeconomic objectives: fiscal policy including Laffer curve analysis
- effectiveness of different policies in relation to different macroeconomic objectives: monetary policy
- effectiveness of different policies in relation to different macroeconomic objectives: supply-side policy including market-based and interventionist policies
- effectiveness of different policies in relation to different macroeconomic objectives: exchange rate policy
- effectiveness of different policies in relation to different macroeconomic objectives: international trade policy
- problems and conflicts arising from the outcome of these policies
- existence of government failure in macroeconomic policies
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Every question on Effectiveness of policy options to meet all macroeconomic objectives, untimed, marked as you go.
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13 questions
1May / June 2026 · Paper 32 · Q20Show mark scheme →
Ahorizontal (x) axis: cumulative percentage of income; vertical (y) axis: cumulative percentage of tax revenue
Bhorizontal (x) axis: income inequality; vertical (y) axis: per capita income
Chorizontal (x) axis: tax rate; vertical (y) axis: tax revenue
Dhorizontal (x) axis: tax revenue as a percentage of GDP; vertical (y) axis: tax rate as a percentage of GDP
Mark scheme
2Oct / Nov 2025 · Paper 34 · Q25Show mark scheme →
Athe amount of tax revenue received at each tax rate
Bthe impact on the distribution of income after tax rates rise
Cthe rise in inflation following a fall in unemployment due to a cut in income tax
Dthe rise in poverty due to a rise in the basic rate of income tax
Mark scheme
3Feb / March 2024 · Paper 32 · Q24Show mark scheme →
AA tax rate cut from Y to Z will cause tax revenue to decrease.
BAt tax rates below Z a tax rate cut will cause tax revenue to increase.
CThe greater the rate of tax beyond Z, the smaller will be the tax revenue generated.
DTax revenue will always increase as the rate of income tax increases.
Mark scheme
4Oct / Nov 2023 · Paper 31 · Q24Show mark scheme →
Adecreased incentive for emigration
Bdecreased incentive for tax evasion
Cincreased incentive for people to work
Dincreased incentive for people to work fewer hours
Mark scheme
5Oct / Nov 2023 · Paper 32 · Q23Show mark scheme →
Acuts in direct taxes
Bexchange rate depreciation
Cinvestment subsidies
Dquantitative easing
Mark scheme
6Oct / Nov 2022 · Paper 32 · Q29Show mark scheme →
AFewer goods will be produced.
BPeople will work fewer hours to maintain incomes.
CPrices will rise.
DThere will be an increase in tax avoidance.
Mark scheme
7Oct / Nov 2022 · Paper 33 · Q28Show mark scheme →
AAs income increases, fewer hours will be worked.
BAs income increases, tax revenue will increase.
CAs the tax rate increases, tax revenue always increases.
DAs the tax rate increases, tax revenue will eventually fall.
Mark scheme
8May / June 2022 · Paper 31 · Q29Show mark scheme →
Aincome elasticity curve
BJ curve
CLorenz curve
DLaffer curve
Mark scheme
9May / June 2022 · Paper 32 · Q29Show mark scheme →
AKuznets curve
BLaffer curve
CLorenz curve
DPhillips curve
Mark scheme
10May / June 2022 · Paper 33 · Q29Show mark scheme →
Aincome elasticity curve
BJ curve
CLorenz curve
DLaffer curve
Mark scheme
11Feb / March 2022 · Paper 32 · Q29Show mark scheme →
Athe relationship between the rate of inflation and the rate of unemployment
Bthe relationship between the rate of interest and the speculative demand for money
Cthe relationship between tax rates and the amount of tax revenue collected by governments
Dthe relationship between how two goods can be produced in an economy with given resources
Mark scheme
12May / June 2021 · Paper 31 · Q29Show mark scheme →
Athe J curve
Bthe Laffer curve
Cthe Marshall-Lerner condition
Dthe Phillips curve
Mark scheme
13May / June 2021 · Paper 33 · Q29Show mark scheme →
Athe J curve
Bthe Laffer curve
Cthe Marshall-Lerner condition
Dthe Phillips curve
Mark scheme