Practise 82 real questions on Government and the macroeconomy from 2021 to 2026. See the answer and explanation as soon as you answer.
Government and the macroeconomy is one of the 8 main topics in our O Level Economics (Cambridge (CAIE) 2281) question bank, and about 21% of its real questions come from it. Tayyari Karo has 82 real questions on this topic from 2021 to 2026, from Paper 1, Paper 2; 72 are multiple choice and marked instantly, and the rest are structured questions with a model answer. By difficulty: 57 medium, 22 easy, 3 hard.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
These are real past-paper questions. Think of your answer first, then open the explanation.
What is most likely to be provided by a government at a national level?
Answer: A. armed forces
Defence is a public good provided nationally; the others are usually local.
Which supply-side policy measure is most likely to enable a government to achieve its aim of full employment?
Answer: D. increasing the provision of enterprise skills in schools
Teaching enterprise skills creates entrepreneurs who set up firms and employ workers.
What is the definition of a supply-side policy?
Answer: D. any policy designed to increase productivity
Supply-side policies aim to raise productivity and productive capacity.
What is an example of government macroeconomic policy?
Answer: A. increasing the money supply
Changing the money supply is monetary policy, which affects the whole economy; the others act on individual markets.
What is a likely cause of economic growth?
Answer: D. decreased taxation
Lower taxes raise disposable income, spending and investment, so output grows.
What will deflation most likely lead to?
Answer: D. an increase in the real purchasing power of money
Falling prices mean each unit of money buys more, raising real purchasing power.
| Session | Paper 1 | Paper 2 |
|---|---|---|
| May/June 2026 | 7 | 3 |
| May/June 2025 | 7 | 1 |
| Oct/Nov 2025 | 6 | 1 |
| May/June 2024 | 6 | – |
| Oct/Nov 2024 | 5 | – |
| May/June 2023 | 5 | 1 |
| Oct/Nov 2023 | 5 | – |
| May/June 2022 | 8 | 1 |
| Oct/Nov 2022 | 7 | – |
| May/June 2021 | 7 | 1 |
| Oct/Nov 2021 | 9 | 2 |
82 real O Level Economics (2281) questions on Government and the macroeconomy from 2021 to 2026, from Paper 1, Paper 2. Each one shows the year, session and paper it came from.
Yes. Every question shows the correct answer and a short explanation the moment you answer.
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