QUESTION 10 Which of the following may be a reason for this sentiment? A. To increase government control and accountability B. To reduce private sector competition C. To enhance efficiency and reduced corruption D. To preserve national sovereignty and resources QUESTION 11 What could be a potential downside of the privatization of Eskom? A. Increased government control over electricity pricing B. Improved efficiency in electricity production and distribution C. Reduced access to affordable electricity for low-income households D. Enhanced competition leading to lower prices for consumers QUESTION 12 In response to rising unemployment rates during an economic downturn, a government considers implementing various intervention instruments. Which of the following would be most effective in stimulating job creation and economic activity? A. Increasing interest rates B. Implementing targeted subsidies for small businesses C. Reducing public spending D. Privatizing state-owned enterprises to reduce government involvement in the economy. QUESTION 13 If a country is experiencing a shortage of affordable housing, which approach would be most aligned with the principles of the free market school of thought? A. Implementing government subsidies for low-income housing B. Establishing rent control regulations to limit rental prices C. Nationalizing the housing industry to ensure equal access to housing D. Allowing market forces to determine housing prices and quantities
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What effects would each of the following have on aggregate demand or aggregate supply, other things equal? In each case, use a diagram to show the expected effects on the equilibrium price level and the level of real output, assuming that the price level is flexible both upward and downward. a. A widespread fear by consumers of an impending economic depression. b. A new national tax on producers based on the value added between the costs of the inputs and the revenue received from their output. c. A reduction in interest rates at each price level. d. A major increase in spending for health care by the federal government. e. The general expectation of coming rapid inflation. f. The complete disintegration of OPEC, causing oil prices to fall by one-half. g. A 10 percent across-the-board reduction in personal income tax rates. h. A sizable increase in labor productivity (with no change in nominal wages). i. $A 12$ percent increase in nominal wages (with no change in productivity). j. An increase in exports that exceeds an increase in imports (not due to tariffs).
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