Government Objectives and Policies: three questions to try now
Real past-paper questions, the answer key from the mark scheme, and the explanation that goes with it. No account needed to answer them.
Question 1
Which one of the following terms refers to a tax on imported goods?
Answer: B.
The other options are incorrect for the following reasons: A subsidy is a government payment to domestic producers to lower their costs and make their goods more competitive, not a tax on imports. A fine is a financial penalty imposed for breaking the law, which is unrelated to trade policy. Lastly, a pollution permit is a tradable licence that allows a firm to produce a specific amount of pollution; it is an environmental policy tool used to manage externalities, rather than a measure to restrict international trade.
Question 2
Which supply-side policy involves the removal of government controls?
Answer: C.
Question 3
Fiscal policy would involve a change in which one of the following?
Answer: D.
What this practice covers
These questions are drawn from past Edexcel IGCSE papers. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Keep going multiple-choice questions →
What examiners see students get wrong here
These are the errors that cost marks on government objectives and policies, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Confusing fiscal (government spending and tax) with monetary (interest rates) policy.
- Confusing direct taxes (on income) with indirect taxes (on spending).
- Saying expansionary policy always creates jobs, ignoring the risk of inflation.
- Suggesting supply-side policy as a quick fix for a recession; it is the slowest of the three.
- Forgetting that objectives conflict with one another.
- Saying the government sets interest rates; in most countries the central bank does.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Government Objectives and Policies revision notes.