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Fiscal policy

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Question 37

The government of an economy implements a series of fiscal policy measures as part of its annual budget:

I. A grant to local authorities to construct new regional waste-recycling plants. II. Monthly child benefit payments distributed to eligible households. III. Bulk procurement of medicines and vaccines for public health clinics. IV. Cash transfers paid directly to low-income households to subsidise energy bills.

Which of these measures are classified as transfer payments?

A

I and III only

B

II and IV only

C

I, II and IV only

D

II, III and IV only

Markscheme

Fiscal policy Questions

  1. A Level
  2. /Economics
  3. /Fiscal policy

68 exam-style questions on OCR A Level Economics Fiscal policy. Each one has a worked solution and a mark scheme showing where the marks go.

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