1. A government wants to introduce a policy that will reduce the pollution caused by the production of goods. Which policy would not make use of market forces?
B
15
2. If an economy is currently at point X on each diagram, what is the most likely conclusion that can be made based on this evidence?
C
15
3. Which combination of policies would be most likely to bring a country out of recession?
A
15
4. Which government policy to counter the effects of income inequality is correctly matched with one of its advantages and one of its disadvantages?
A
15
5. Under which circumstances will a subsidy from the government be most beneficial if there are externalities from producing good X?
D
15
6. What might decrease if a closed economy with a government sector decides to allow international trade?
D
15
7. Which combination of fiscal policy measures would be most effective in reducing income inequality?
B
15
8. What is likely to happen when the productive capacity of a free enterprise economy increases over a long period of time?
C
15
9. A government wishes to support growth in the economy’s fishing industry. Which policy is likely to achieve sustainable growth in the fishing industry?
D
15
10. Which policy by Middle Eastern countries would be least likely to achieve this economic growth in low-income countries?