ACCA Financial Management (F9) Certification Practice Exam

Which of the following is NOT one of the economic objectives?

1. Economic growth

2. Job creation

3. Full employment

4. Balance of payments stability

The correct answer is: Job creation

The correct answer identifies the economic objective that is not traditionally recognized as one of the core economic objectives. Economic growth, full employment, and balance of payments stability are fundamental goals for most economies. Economic growth refers to an increase in the production of goods and services, measured by the rise in Gross Domestic Product (GDP). It indicates the economy's overall strength and the potential to improve living standards. Full employment is the state where all individuals who are able and willing to work can find employment. This is a crucial economic objective as it reflects a healthy economy and minimizes unemployment, which can lead to societal issues. Balance of payments stability is focused on maintaining a consistent balance between a country's imports and exports, ensuring that it does not accumulate too much debt or experience trade deficits. While job creation is a vital aspect of economic health, it is often seen as a means to achieve the larger objectives like full employment and economic growth, rather than being classified as an objective on its own. Thus, it is the choice that does not fit with the established economic objectives typically recognized in economic theory.