Chapter 3

Question

Read the following text and then type the missing words (numbering your answers as appropriate) using the words in the table below the text.

The Beveridge Report of (1) ______ was a (2) ______ commission chaired by Lord Beveridge which recommended (3) ______ and (4) ______ for citizens. Its recommendations provided the basis for the (5) ______ and the (6) ______ consensus of 1945-79.

1832

1922

1942

1952
Labour Party
private
welfare services
higher investment
government
better education
military service
higher incomes
welfare state
war effort
income support
neo-liberal
social democratic consensus
EU
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The correct answers are as follows (see page 50):
  1. 1942
  2. government
  3. welfare services
  4. income support
  5. welfare state
  6. social democratic

Question

Read the following text and then type the missing words (numbering your answers as appropriate) using the words in the table below the text.

Keynes demonstrated that it was possible for the economy to reach equilibrium (that is, when (1) ______) at a level far below capacity with resulting high levels of (2) ______. The government therefore needed to (3) ______ demand by (4) ______, the (5) ______ of what governments actually did for most of the 1930s.

income equalled expenditure

supply matched demand

inflation

investment

unemployment

reduce

stimulate
increasing unemployment
increasing expenditure
reducing expenditure
precise opposite
confirmation
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The correct answers are as follows (see page 51):
  1. supply matched demand
  2. unemployment
  3. stimulate
  4. increasing expenditure
  5. precise opposite

Question

Read the following text and then type the missing words (numbering your answers as appropriate) using the words in the table below the text.

During much of the post-war period British economic management was characterised by periodic rounds of (1) ______ followed by government-induced deflation to stem the (2) ______ effects of (3) ______. This was termed the (4) ______ cycle. It lead to a vicious cycle of (5) ______ in British industry because as soon as the conditions for sustained (6) ______ appeared they were undermined by the government's need to protect the (7) ______.

economic growth

social unrest

political volatility

inflationary
deflationary
falling government popularity
growth
Keysian demand management
‘Stop-Go’
under-investment
investment
dollar
pound
over-investment
stagnation
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The correct answers are as follows (see page 54):
  1. economic growth
  2. deflationary
  3. growth
  4. ‘Stop-Go’
  5. under-investment
  6. investment
  7. pound

Question

Read the following text and then type the missing words (numbering your answers as appropriate) using the words in the table below the text.

The social democratic consensus of (1) ______ was an implicit agreement between all political parties that the fundamental reforms of the post-war Labour government should (2) ______. Both Conservative and (3) ______ governments of this period increased (4) ______, accepted (5) ______ of some industry, and believed in (6) ______ management of the economy to reduce unemployment.

1931 − 1945

1945 − 1979

1979 − 2000

be over-turned
remain unchanged
Liberal
Labour
privatisation
unemployment
social benefits and health provisions
Keynsian
state ownership
Beveridge-style
 
 
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The correct answers are as follows (see page 59):
  1. (1) 1945 – 1979
  2. (2) remain unchanged
  3. (3) Labour
  4. (4) social benefits and health provisions
  5. (5) state ownership
  6. (6) Keynsian

Question

Read the following text and then type the missing words (numbering your answers as appropriate) using the words in the table below the text.

Since the 1990s, New Labour and Conservatives agree in the (1) ______ that the economy is best left to run itself with a (2) ______ of government regulation. What regulation there is will be undertaken on (3) ______ grounds, favouring (4) ______, and aimed at reducing (5) ______. Public services will be run on (6) ______ as far as possible with bigger incentives for (7) ______ and penalties for the (8) ______.

Neo-liberal

Neo-conservative

minimum

maximum
financial
the City of London
inflation
unemployment
a 'market model'
efficient providers
inefficient
Europe
time
private firms
public sector
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The correct answers are as follows (see page 66):
  1. Neo-liberal
  2. minimum
  3. financial
  4. the City of London
  5. inflation
  6. a 'market model'
  7. efficient providers
  8. inefficient