COST ACCOUNTING
PERFORMANCE MEASUREMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Safe defence spending
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Economic growth
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High interest rates
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Low tax revenue
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Detailed explanation-1: -the principal objectives of government policies (maintaining full employment, ensuring price stability, achieving economic growth and having a balance of payments) that policies used to achieve one objective can have a negative impact on achieving other objectives.
Detailed explanation-2: -Job creation. Economic growth. Price stability. Stability in the balance of payments.
Detailed explanation-3: -The hope is that by keeping inflation low, the economy will avoid ‘boom and bust’ economic cycles and provide a framework for economic stability and prosperity.
Detailed explanation-4: -The four major objectives are: Full employment. Price stability. A high, but sustainable, rate of economic growth. Keeping the balance of payments in equilibrium.