0455.4.3.7 — definition of fiscal policy.: past paper questions
Real questions on 0455.4.3.7 — definition of fiscal policy.
The newest 7 of 7 written questions. Open one to see it on the real paper.
- 0455/11 · May/June 2024 · Q17[1]
Which macroeconomic aim, if achieved, is most likely to increase a government budget surplus?
See it on the paper → - 0455/22 · February/March 2022 · Q4d[8]
Discuss whether or not a government should encourage an increase in saving.
See it on the paper → - 0455/12 · May/June 2021 · Q16[1]
What is a fiscal policy measure?
See it on the paper → - 0455/11 · October/November 2019 · Q18[1]
Which actions would be likely to increase government expenditure and reduce revenues from taxation?
See it on the paper → - 0455/11 · October/November 2019 · Q19[1]
What is the total tax revenue gained by the government?
See it on the paper → - 0455/22 · February/March 2019 · Q3a[2]
Identify two ways a government could encourage people to spend more.
See it on the paper → - 0455/22 · February/March 2019 · Q4d[8]
Discuss whether or not a cut in the tax on firms’ profits will increase employment.
See it on the paper →
What examiners said
There were some strong answers which explored both the macro and micro effects of an increase in saving. These examined how an increase in saving could affect total demand and economic activity as well as how it could promote security for households. Some candidates, however, turned the question into one on the effects of a higher interest rate. These concentrated on a how a higher interest rate...
— Examiner report, February/March 2022, 0455/22 Q4(d) (Cambridge)
Question 19 was answered correctly by 32% of candidates who chose option A. 10% chose option B, 48% chose option C and 10% chose option D. The new price would be $60, and the new quantity sold would be 80, therefore option A was the correct answer. Option C gives the total revenue from the sale of the product, but not all of that goes to the government in the form of tax receipts.
— Examiner report, October/November 2019, 0455/11 Q19 (Cambridge)
Most candidates clearly identified two relevant ways, with the three most common being reduce taxes, lower interest rates and increase government subsidies. Some candidates provided answers that were too vague. For instance, some wrote ‘reduce prices’ without making clear what prices they were referring to or how lower prices could be achieved. There was some confusion about the nature of contrac...
— Examiner report, February/March 2019, 0455/22 Q3(a) (Cambridge)
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