18. Which of the following policies is not classed as a stabilization policy? a) A policy aimed at reducing unemployment. b) A policy aimed at reducing the number of people in poverty. c) A policy aimed at reducing the rate of inflation. d) A policy aimed at shifting the production possibility frontier outwards. 19. Which of the following statements is a positive statement? a) Bankers' bonuses should be taxed. ) The eurozone ought to allow member countries in difficulty to stop using the euro and use currencies of their own instead. c) One of the largest industries in the UK is the financial services industry. d) The UK government ought to split up some of the largest UK banks to promote more competition in the banking industry. 20. Suppose you buy Economics book by Abigail Padi. What is the opportunity cost of your purchase? a) The money you paid for the book. b) Whatever you would have spent the money on if you had not bought the book. c) The cost of producing the book. d) The time you spend studying the book. 21. The supply and demand model applies when three of the following four conditions are met. Which condition is not required? a) There must be many buyers. b) There must be many sellers. c) The buyers and sellers must trade an identical item. d) The item traded must be a product. Which of the following predictions is not made by the supply and demand model? 22. a) If there is excess demand, the price will rise. 4
18. Which of the following policies is not classed as a stabilization policy? a) A policy aimed at reducing unemployment. b) A policy aimed at reducing the number of people in poverty. c) A policy aimed at reducing the rate of inflation. d) A policy aimed at shifting the production possibility frontier outwards. 19. Which of the following statements is a positive statement? a) Bankers' bonuses should be taxed. ) The eurozone ought to allow member countries in difficulty to stop using the euro and use currencies of their own instead. c) One of the largest industries in the UK is the financial services industry. d) The UK government ought to split up some of the largest UK banks to promote more competition in the banking industry. 20. Suppose you buy Economics book by Abigail Padi. What is the opportunity cost of your purchase? a) The money you paid for the book. b) Whatever you would have spent the money on if you had not bought the book. c) The cost of producing the book. d) The time you spend studying the book. 21. The supply and demand model applies when three of the following four conditions are met. Which condition is not required? a) There must be many buyers. b) There must be many sellers. c) The buyers and sellers must trade an identical item. d) The item traded must be a product. Which of the following predictions is not made by the supply and demand model? 22. a) If there is excess demand, the price will rise. 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:18.
Which of the following policies is not classed as a stabilization policy?
4) A policy aimed at reducing unemployment.
b) A policy aimed at reducing the number of people in poverty.
C) A policy aimed at reducing the rate of inflation.
d) A policy aimed at shifting the production possibility frontier outwards.
19.
Which of the following statements is a positive statement?
a) Bankers' bonuses should be taxed.
D) The eurozone ought to allow member countries in difficulty to stop using the euro and use
currencies of their own instead.
c) One of the largest industries in the UK is the financial services industry.
d) The UK government ought to split up some of the largest UK banks to promote more
competition in the banking industry.
20.
Suppose you buy Economics book by Abigail Padi. What is the opportunity cost of your
purchase?
a) The money you paid for the book.
b) Whatever you would have spent the money on if you had not bought the book.
c) The cost of producing the book.
d) The time you spend studying the book.
21.
The supply and demand model applies when three of the following four conditions are
met. Which condition is not required?
a) There must be many buyers.
b) There must be many sellers.
c) The buyers and sellers must trade an identical item.
d) The item traded must be a product.
Which of the following predictions is not made by the supply and demand model?
22.
a) If there is excess demand, the price will rise,.
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