a positive statement

which one of the following is a nudge technique that could be used to encourage healthy eating

the opportunity cost of producing an additional unit of a capital good is

what was the percentage increase in the overall price index between april 2021 to april 2022

when using data to make international comparisons of the standard of living purchasing power parity exchange rates are more useful than market exchange rates. this is because PPP exchange rates take into account differences in countries

Which one of the following is the government most likely to increase if it wishes to use fiscal policy to reduce national output from Y1 to Y2?

Which one of the following is a reason why the extension of property rights is likely to reduce market failure?

Which one of the following statements is true when the price of scarves is reduced from £30 to £25?

A firm charging different customers different prices for the same product is practising

In an economy, an index showing the change in the money supply multiplied by the velocity of circulation increases from 100 to 115.5. At the same time, the final output produced by the economy increases from 100 to 110. According to Fisher’s equation of exchange, the price level will increase by

Systemic risk is most likely to occur in financial systems when

All other things being equal, which one of the following is most likely to move the economy from point M to point N?

Which one of the following is a role of the World Trade Organisation?

Which one of the following is a reason why the supply of cars is likely to be price elastic in the short run when the price of cars increases?

Which one of the following diagrams, A, B, C or D, shows the most likely short-run impact on an economy of an improvement in technology in the production process?

Which one of the following best explains the existence of relative poverty?

this tax is an example of

Which one of the following is a supply-side policy aimed at reducing the natural rate of unemployment?

Which of the following areas shows the total deadweight loss of consumer and producer surplus resulting from the structure of the industry changing from perfect competition to monopoly?

There is a reduction in the market demand for the product supplied by firms operating in a perfectly competitive industry. All other things being equal, which one of the following will happen to firms’ average and marginal revenue as a result of this change?

When 7 apples per day are consumed

Which one of the combinations, A, B, C or D, is most likely to indicate an economy experiencing an economic boom?

What was the value of real GDP in 2019, to the nearest £ billion, expressed in 2015 prices

At the profit maximising price and output the firm will

The price of a government bond was £10 000 when it was issued. The bond does not have a maturity date and the government is not intending to buy back the bond. The bond pays £200 per year to the bond holder and has a market price of £8 000. Which one of the following fractions represents the yield on the bond?

What is the value of this bank’s total liquid assets?

Changing patterns of consumption have meant that summer holidays at UK seaside towns have become less popular. As a result, UK seaside holiday towns are affected by seasonal unemployment and increasing structural unemployment. Which one of the following is the most likely consequence of this change in the pattern of consumption?

Following a series of mergers between firms in this industry, a single large firm remains as a monopsony employer. Which one of the following is the most likely to result from a competitive labour market being replaced by a monopsony employer?

All other things being equal, which one of the following is most likely to explain the trend shown in Table 6?

Unemployed workers in the south of a country are unable to take up jobs in the north of the country due to higher housing costs. This is an example of

The average university graduate can expect to earn more over their working life than the average school leaver. This is most likely to be explained by

Which one of the following statements regarding supply-side policies is correct? Supply-side policies

The diagram represents a good with

Which one of the following changes in macroeconomic performance is most likely to involve a trade-off, at least in the short-run, between the objectives of government macroeconomic policy?

Which one of the following statements is most consistent with the data?

The opportunity cost of increasing the output of capital goods from G1 to G2 is shown by

From the balance sheet it can be concluded that this bank is

The free-rider problem in economics means that government intervention is necessary to prevent market failure in the supply of

To reduce pollution, the city council pays bus companies to provide bus travel free of charge. As a result of this policy, consumer surplus will increase by the area

At the end of the previous financial year, a country had a national debt of £20 000 billion. The government’s planned expenditure for the current year exceeds its projected income by £100 billion. All other things being equal, which one of the following is most likely to enable the government to complete its planned expenditure and reduce the national debt? Increasing its

A person is considering buying a used motorbike from a dealer on the internet. The motorbike is described as being in perfect condition and is being offered at a correspondingly high price. In this situation, asymmetric information is most likely to lead the person to

All other things being equal, which one of the following is the most likely explanation for the movement of the economy from E1 to E2?

A feature of the UK government’s workplace pension scheme is that employers are required to enrol their employees in the scheme unless the employees make a conscious decision to opt out and join another scheme. An individual choosing to remain in their workplace pension scheme is an example of a person

The Bank of England’s Monetary Policy Committee increases Bank Rate to reduce the risk of an increase in inflationary pressure in the economy. All other things being equal, which one of the following is most likely to result from the policy change?

An increase in the national minimum wage may be used to make the distribution of income more equal. Such a policy is most likely to be effective when the elasticity of demand for labour in low-paid work is

The firm is in equilibrium at the initial market price of £1.25 for a box of 6 eggs. If the market price increases to £1.50 for a box of eggs the firm will

Which one of the following, calculated in accordance with international guidelines, represents the UK’s unemployment rate in 2019?

According to Figure 6, which one of the following combinations: A, B, C, or D, is correct?

According to the accelerator process, a slowdown in the rate of growth of national income will lead to a fall in the

A monopolistically competitive firm’s demand curve for good X has a price elasticity of demand of minus 1.0 throughout its entire range. All other things being equal, which one of the following is most likely to result in an increase in the firm’s profits?

From the diagram it can be inferred that the

Which one of the following combinations of possible shocks: A, B, C, or D, is most likely to move an economy from a negative output gap to a positive output gap? An unexpected increase in

All other things being equal, which one of the following is the most likely consequence of technological innovation in the production process by the firms within an industry?

Tea and coffee are substitutes. All other things being equal, which one of the following is the most likely explanation of the move from E1 to E2 in the market for tea?

In 2019, an economy operating at full capacity on its long-run aggregate supply curve grew at its trend growth rate of 5% per annum. It had a national income of £200 billion. In 2020, the economy experienced 2% actual growth. It follows that in 2020 there was

The money market is the financial market in which

All other things being equal, the shift of the supply of labour curve from S1 to S2 is most likely to be explained by a reduction in

The index of real GDP for an economy was 100 in 2017, its base year, and 105 in 2020. In 2017, real GDP was £500 billion. The monetary value of real GDP for this economy in 2020 must therefore have been

Which one of the following is an expenditure switching policy that would help to reduce a deficit on the balance of payments on current account? An increase in

All other things being equal, which one of the following is the most likely explanation for the movement of the economy from E1 to E2?

Economics is a social science because

All other things being equal, the demand for labour is more likely to be wage elastic if

Which one of the following combinations, A, B, C or D, shows the correct relationship between the three variables?

In Figure 1, when

In an economy, over the last decade, each of the top five decile groups has experienced a fall in their share of total income. In contrast, the bottom five decile groups have experienced a substantial increase in their share of total income. It can be concluded that, over this period, the distribution of income is most likely to have become

In an economy, the marginal propensity to consume is 0.6. All other things being equal, which one of the following statements is correct?

Which one of the following combinations, A, B, C or D, shows the essential characteristics of a customs union?

All other things being equal, which one of the following applies to the firm’s equilibrium at point E? The firm is

A long-dated £100 government bond with a coupon rate of 5% has a current market value of £125. This implies that the

All other things being equal, in which one of the following circumstances is the Bank of England most likely to raise Bank Rate to maintain financial stability?

Which one of the following combinations, A, B, C or D, describes how the firm’s average revenue and marginal revenue will change as the firm expands its output?

According to the hypothesis of diminishing marginal utility, when marginal utility is zero

From the data in Table 2 it may be concluded that, all other things being equal, there was

Increased output results from specialisation and the division of labour because they enable

If the firm increases its price by 10%

Which one of the following distinguishes a private good from a pure public good?

After the rise in incomes:

Which one of the following government policies is most likely to reduce market failure and to improve the allocation of resources?

The long-run Phillips curve shows that

From Figure 5, it can be concluded that, in the absence of a trade union or a minimum wage, the firm will employ

All other things being equal, which one of the following is most likely to increase the national debt?

The data in Table 4 indicate that between 2008 and 2018 the

To correct the market failure, the government introduces a subsidy to domestic manufacturers of solar panels of £200 per unit produced. Which one of the following represents the total amount of subsidy payments made by the government in the first year of the scheme?

Moral hazard results when individuals and organisations make investment decisions

An economy is estimated to be experiencing a 2% rate of frictional unemployment plus a 3% rate of structural and real wage unemployment. If it is also experiencing cyclical unemployment of 4%, its natural rate of unemployment is most likely to be

An increase in the

Which one of the following is correct for a proportional tax on income?

If the market price is £10 per shirt, at which one of the following outputs per day, A, B, C or D, will the firm maximise its profit?

An increase in eurozone

The behaviour of a consumer buying a 75-inch large screen TV is biased due to bounded rationality and the anchoring effect. This implies that the choice of which TV to buy is based on the price of

A monopolistically competitive firm’s demand curve is

All other things being equal, which one of the following, A, B, C or D, can be inferred from the above data?

Which one of the following is most likely to result in complete market failure?

The most likely explanation for the move of the economy from its initial equilibrium at E1 to a new short-run equilibrium at E2 is a decrease in the

Which one of the following policies is most likely to improve the supply side of the economy? A policy which

If the price elasticity of demand for the drink is –2.0, the price must have increased by

The hypothesis of diminishing marginal utility

Based on the above information, which one of the following is the most likely explanation for the customer’s purchase of Car 2? She

All other things being equal, if the velocity of circulation is constant, the quantity theory of money based on Fisher’s equation of exchange, MV=PQ, predicts that an x% increase in the money supply will always cause an x%

The government wants to achieve economic growth without conflicting with its long-run objective of price stability. All other things being equal, which one of the following policy combinations is most likely to enable the economy to achieve a new long-run equilibrium at E2?