Which of the following is a regulatory policy instrument?
a) Tax incentives
b) Environmental laws
c) Public awareness campaigns
d) Government subsidies
A government uses subsidies as a policy tool to:
a) Discourage economic growth
b) Reduce the cost of goods and services for the public
c) Increase production costs
d) Eliminate competition
Which of the following is a market-based policy tool?
a) Carbon pricing
b) Mandatory health checkups
c) Direct regulation
d) Criminal penalties
Which policy tool is used to influence behavior through information and education?
a) Taxation
b) Awareness campaigns
c) Licensing requirements
d) Import quotas
A government sets limits on pollution levels for industries. This is an example of:
a) Command-and-control regulation
b) Market deregulation
c) Economic incentives
d) Public-private partnerships
Which of the following is an example of a fiscal policy tool?
a) Interest rate adjustments
b) Public service announcements
c) Inflation control
d) Tax cuts
What is the primary purpose of government regulations?
a) To impose restrictions without reason
b) To ensure compliance with legal standards
c) To reduce government influence
d) To encourage monopolies
A carbon tax is an example of which type of policy instrument?
a) Regulatory
b) Market-based
c) Voluntary compliance
d) Legal sanction
Which policy instrument is best suited for addressing public health issues?
a) Direct regulations
b) Deregulation
c) Privatization
d) Ignoring externalities
What type of policy tool is used when a government provides direct funding for research?
a) Market-based tool
b) Subsidy
c) Public-private partnership
d) Tariff
Which policy tool is commonly used to promote renewable energy?
a) Energy consumption penalties
b) Feed-in tariffs
c) Interest rate hikes
d) Border control policies
Which of the following is NOT a policy instrument?
a) Laws and regulations
b) Tax incentives
c) Interest groups
d) Government grants
Public-private partnerships (PPPs) are a policy tool used to:
a) Eliminate private sector involvement
b) Strengthen collaboration between government and businesses
c) Decrease infrastructure development
d) Increase government spending without accountability
Which tool is used by governments to influence consumer behavior?
a) Price controls
b) Open market operations
c) Private property rights
d) Deregulation
A ban on single-use plastics is an example of which policy instrument?
a) Direct regulation
b) Market-based approach
c) Tax exemption
d) Trade liberalization
Why do governments use tariffs as a policy instrument?
a) To encourage free trade
b) To protect domestic industries
c) To reduce government revenue
d) To eliminate international trade
Which policy tool is used to reduce unemployment?
a) Minimum wage laws
b) Increasing taxes
c) Reducing government expenditure
d) Privatization
Which policy instrument helps reduce income inequality?
a) Progressive taxation
b) Reduction in welfare programs
c) Market deregulation
d) Elimination of social security
What type of policy instrument is used when the government restricts imports through quotas?
a) Trade policy
b) Environmental policy
c) Public health policy
d) Education policy
Which tool is used to prevent financial crises?
a) Banking regulations
b) Deregulation of stock markets
c) Reduction in interest rates only
d) Complete removal of government intervention
What is the main advantage of voluntary compliance policies?
a) They encourage stakeholder participation
b) They impose heavy penalties
c) They restrict business growth
d) They eliminate the need for regulations
Why do governments impose price ceilings?
a) To make essential goods affordable
b) To increase government revenue
c) To discourage production
d) To allow monopolies to dominate
Which type of policy tool helps manage inflation?
a) Monetary policy
b) Immigration policy
c) Agricultural policy
d) Housing policy
Which of the following is an example of a behavioral policy tool?
a) Public service messages
b) Industrial regulations
c) Import tariffs
d) Exchange rate controls
What is the main function of fiscal policy tools?
a) Managing government revenue and spending
b) Controlling private sector wages
c) Eliminating economic fluctuations
d) Reducing political opposition
Which policy tool is used to prevent monopolies?
a) Antitrust laws
b) Trade agreements
c) Deregulation policies
d) Currency devaluation
Which instrument is commonly used to encourage foreign investment?
a) Tax holidays
b) Strict labor laws
c) High import tariffs
d) Restrictive immigration policies
Which policy instrument is used to control alcohol and tobacco consumption?
a) Excise taxes
b) Free distribution
c) Agricultural subsidies
d) Deregulation
What is the purpose of environmental impact assessments (EIA)?
a) To evaluate the effects of policies on the environment
b) To increase taxation
c) To reduce business opportunities
d) To privatize public resources
Which policy tool is often used to reduce the national debt?
a) Spending cuts
b) Increasing public sector employment
c) Expanding social welfare programs
d) Deregulating financial institutions
