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5.3 (a) The following are steps that governments can take to influence certain areas.
A Tax incentives for investment
B Equal opportunities legislation
C Forbid takeovers
D Product safety standards
For each of the following areas, which government action will positively influence that area?
(i) Output capacity
(ii) Competition
(iii) Employment
(iv) Consumer protection
(b) For each of the following government policy tools, indicate whether they relate to
A Fiscal policy
B Monetary policy
(i) Borrowing
(ii) Taxation
(iii) Interest rates
(iv) Money supply
答案:
5.3 (a) (i) A Tax incentives will encourage investment which will increase output capacity
(ii) C Forbidding takeover will mean more competitors in an industry and encourages
competition
(iii) B Equal opportunities will positively influence employment
(iv) D Product safety standards will ensure a minimum safety level for consumers
(b) (i) A
(ii) A
(iii) B
(iv) B
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