The role of the state in the economy; Review of Chapter II
Answers are for parents and teachers.
1
If the Central Bank raises its key rate, write the effect on three people: a depositor, an entrepreneur borrower, a worker.
Depositor: deposit interest may rise. Borrower: credit becomes dearer. Worker: if production slows, fewer new jobs may appear, but price growth slows.
2
The reserve ratio is 8% and deposits are 250 mln so‘m. How many mln so‘m remain for lending?
230
3
Write five expenditure items financed from the budget and one example of each.
Education — a school; health — a polyclinic; defence — the army; social support — a pension; environment — afforestation.
4
A local entrepreneur took a 90 mln so‘m loan for 1 year at 16% annual simple interest. How many so‘m is the yearly interest?
14400000
5
Choose one of the views “the state’s role should be reduced” or “increased” and justify it in 4–5 sentences, also stating one counter-argument.
Free answer; what matters is clear arguments (monopoly, external effects, public goods, or freedom and initiative) and a reply to the counter-argument.