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1.1 Nature of economics

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Question 43

Consider the following two statements regarding monetary policy in the United Kingdom:

Statement 1: The Monetary Policy Committee of the Bank of England ought to reduce the bank rate to 3.5% in order to support households facing high mortgage payments.

Statement 2: In May 2024, the Bank of England maintained its benchmark interest rate at 5.25%.

Which one of the following best classifies these two statements?

A

Statement 1: Positive; Statement 2: Positive

B

Statement 1: Normative; Statement 2: Normative

C

Statement 1: Normative; Statement 2: Positive

D

Statement 1: Positive; Statement 2: Normative

Markscheme

1.1 Nature of economics Questions

  1. A Level
  2. /Economics
  3. /1.1 Nature of economics

85 exam-style questions on Edexcel A A Level Economics 1.1 Nature of economics, covering 1.1.1 Economics as a social science, 1.1.2 Positive and normative economic statements, 1.1.3 The economic problem, 1.1.4 Production possibility frontiers, 1.1.5 Specialisation and the division of labour, and 1.1.6 Free market economies, mixed economy and command economy. Each one has a worked solution and a mark scheme showing where the marks go.

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