A government imposes a maximum price for electricity. Which statement justifying this measure might be considered valid on economic grounds? A It will encourage electricity suppliers to invest in additional capacity. B It will increase the incentive for consumers to conserve energy. C It will prevent the monopolistic exploitation of consumers. D It will prevent the rationing of electricity through power cuts.

As part of a privatisation policy, a government deregulates bus services and sells off its public sector bus services…

What is the most likely purpose of a government making transfer payments, such as social security benefits, to unempl…

Which circumstance is not likely to represent a strong case for an industry to be nationalised?

A country has a fixed exchange rate. What is likely to result in a deterioration in its balance of payments?

At present, one unit of a country's currency exchanges for US1.2. The country aims to set its exchange rate equal to …

The US President signed a trade agreement which allowed more duty-free access to the US market for Latin American and…