Quiz on Positive Statements and Nudge Techniques

A positive statement

• does not take into account irrational behaviour.

• enables accurate forecasts to be made.

• includes a value judgement.

• may be true or false.

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

• Banning supermarkets from selling high-calorie energy drinks

• Increasing taxes on high-fat products to raise their price

• Moving products with a high sugar content away from supermarket checkouts

• Subsidising fruit and vegetables to reduce their prices

The opportunity cost of producing an additional unit of capital goods is:

• greater at X than Y.

• greater at Z than Y.

• the same at X, Y and Z.

• zero when 300 units of consumer goods are produced.

What was the percentage increase in the overall price index between April 2021 to April 2022?

• 1.1%

• 3%

• 3.3%

• 9%

Why are purchasing power parity (PPP) exchange rates more useful than market exchange rates for international comparisons of the standard of living?

• Distribution of income.

• Levels of taxation.

• Price levels.

• Rates of population growth.

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

• Demand for scarves is price elastic.

• Price elasticity of demand is –0.5.

• The firm’s total revenue falls.

• The firm’s total revenue increases.

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

• limit pricing.

• marginal cost pricing.

• price discrimination.

• price leadership.

Systemic risk is most likely to occur in financial systems when

• investment banks have low capital-output ratios.

• most banks carry out both commercial and investment banking activities.

• the central bank acts as lender of last resort to financial institutions.

• the commercial banks have high liquidity ratios.

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

• Some households have to pay more in income tax than other households.

• The Gini coefficient in some countries is low.

• The income of some households is significantly less than the median household income.

• The prices of items that are essential for life differ between countries.

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

• Government retraining schemes for structurally unemployed workers

• Increasing legal protection against unfair dismissal for employees

• Increasing the real value of the national minimum wage

• New government subsidies for developers of artificial intelligence