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CXC CAPE · · Economics

Fiscal policy
Practice Questions

40 CXC CAPE Economics questions on Fiscal policy, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for Fiscal policy.

Try 2 sample questions on Fiscal policy

Question 1 · 1 mark · Difficulty 1/3

What is fiscal policy?

  1. Government control of the exchange rate
  2. The use of interest rates to influence economic activity
  3. The use of government spending and taxation to influence economic activity
  4. Regulation of the banking system
Show answer & explanation
✓ Answer: CThe use of government spending and taxation to influence economic activity
Award 1 mark. Spending is an injection into the circular flow and taxation a withdrawal.
Question 2 · 1 mark · Difficulty 1/3

What is a budget deficit?

  1. Government spending exceeding revenue in a period
  2. Imports exceeding exports in a period
  3. Interest owed on government debt
  4. The accumulated stock of past government borrowing
Show answer & explanation
✓ Answer: AGovernment spending exceeding revenue in a period
Award 1 mark. The deficit is a flow; the national debt is the stock that flows accumulate into.
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20 questions · 25 min · free

CXC CAPE Economics: Fiscal policy FAQ

Is Kramizo free for CXC CAPE students preparing for Economics?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Fiscal policy practice with other Economics topics or even switch to a totally different CXC CAPE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Fiscal policy questions aligned to the official CXC CAPE Economics syllabus?
Every question is written against the published CXC CAPE Economics specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CXC CAPE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CXC CAPE.
How is Fiscal policy typically tested on CXC CAPE Economics papers?
Fiscal policy appears across multiple question types on real CXC CAPE Economics papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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