WJEC A Level Economics
WJEC A Level Economics Government Policy Objectives Exam Questions
Free WJEC A Level Economics revision for Government Policy Objectives: what you need to know, common mistakes and exam-style questions with answers. Covers the main macroeconomic objectives of government, how they are measured and the conflicts and trade-offs between them.
Practise Government Policy Objectives with past papers
Once you have learnt this topic, find the Government Policy Objectives questions in real WJEC A Level Economics past papers and mark them with the mark scheme. Doing lots of real questions is the quickest way to learn how examiners ask about each idea.
About WJEC A Level Economics Government Policy Objectives
Government policy objectives is the AS introduction to macroeconomic performance in WJEC Economics. You need to know the main objectives of UK macroeconomic policy and how each is measured: economic growth, low unemployment, low and stable inflation, a sustainable current account and controlling public sector debt, along with wider goals such as reducing inequality and protecting the environment. The key skill is analysing conflicts and trade-offs between objectives and recognising that priorities change with the state of the economy. This AS topic is examined in Units 1 and 2 and leads into the detailed A2 study of growth, unemployment, inflation and the balance of payments.
What you need to know
- The main objectives Strong, sustainable growth in real GDP; low unemployment; low and stable inflation measured by the CPI against the government's target; a sustainable current account position; and keeping public sector debt under control.
- Other objectives A fairer distribution of income and wealth, environmental sustainability and balanced growth across regions and nations, including Wales.
- Measuring performance Growth uses the percentage change in real GDP; unemployment uses the Labour Force Survey and claimant count; inflation uses the CPI; the current account is usually shown as a percentage of GDP.
- Conflicts Fast growth may lead to demand-pull inflation and a larger current account deficit. Policies to reduce inflation may increase unemployment in the short run. Reducing debt through spending cuts can slow growth.
- Trade-offs and priorities The weight placed on each objective depends on current conditions: in a recession unemployment is the priority, while in a boom controlling inflation matters more.
- Using data Unit 2 data questions may give real GDP, unemployment, CPI and current account figures. Identify trends, compare with targets and link movements between indicators.
Common mistakes in Government Policy Objectives
- Assuming all objectives can always be achieved together. Explain at least one conflict and why it happens.
- Quoting a target without context. Explain why the target matters, for example how stable inflation helps planning and investment.
- Describing data without interpreting it. Say what the trend shows about performance against the objective.
- Ignoring distribution and the environment. These wider objectives can be used in evaluation.
Try three Government Policy Objectives exam-style questions
1. State two indicators used to measure macroeconomic performance. (2 marks)
Show the mark scheme answer
Any two from: real GDP growth; unemployment rate; CPI inflation; current account balance as a percentage of GDP; public sector net debt.
2. Explain the possible conflict between reducing unemployment and keeping inflation low. (4 marks)
Show the mark scheme answer
Reducing unemployment usually involves increasing AD; as the economy approaches full capacity, firms compete for scarce labour; wages and costs rise and demand-pull pressure increases; so inflation rises (short run Phillips curve trade-off).
3. Explain why controlling inflation might be given priority over economic growth. (3 marks)
Show the mark scheme answer
High inflation creates uncertainty that discourages investment; it reduces international competitiveness and harms those on fixed incomes; stable low inflation supports sustainable growth in the long run.
Government Policy Objectives FAQs
What does WJEC A Level Economics Government Policy Objectives cover?
It covers the main macroeconomic objectives of government, how they are measured, and the conflicts and trade-offs between them.
Which unit is Government Policy Objectives examined in?
It is AS content, so it is examined in AS Unit 1 (Introduction to Economic Principles) and AS Unit 2 (Economics in Action). A2 Unit 4 assesses all A level content, so it can be drawn on again there.
How do I write about conflicts between objectives?
Pick two objectives, explain the economic chain that links them, and evaluate by saying when the conflict is strongest, for example near full capacity, and which policies might reduce it.
