O Levels Economics (2281)•2281/11/M/J/25

Explanation
Government macroeconomic goals focus on economy-wide stability and growth
Steps:
- Recall that macroeconomics deals with national-level issues like employment, inflation, and growth, not micro-level details.
- Identify common government aims: full employment, price stability, economic growth, and balanced trade.
- Evaluate choices against these aims: look for options promoting broad economic health.
- Select the option aligning with full employment as a key macroeconomic target.
Why C is correct:
- Low unemployment is a core macroeconomic aim, defined as achieving full employment to maximize workforce participation and economic output.
Why the others are wrong:
- A: High sales tax is a fiscal tool, not an aim; it generates revenue but can hinder growth.
- B: High tax costs burden businesses and consumers, opposing aims like economic expansion.
- D: Low wages reduce consumer spending power, conflicting with goals of equitable growth and stability.
Final answer: C
Topic: The macroeconomic aims of government
Practice more O Levels Economics (2281) questions on mMCQ.me