Question A:

Rising energy prices suggest that the European Central Bank and the Federal Reserve will have to increase interest rates faster than they intended to before the invasion.

Question B: Increased public spending by European countries to accommodate larger defense budgets, migration inflows and accelerated investment in alternative energy sources would be better financed mostly through taxes, rather than debt.

Question C: Economic damage from the shock to global commodity markets will fall disproportionately hard on low- and middle-income countries.

Question A:

The fallout from the Russian invasion of Ukraine will be stagflationary in that it will noticeably reduce global growth and raise global inflation over the next year.

Question B: The economic and financial sanctions already implemented will lead to a deep recession in Russia.

Question C: Targeting the Russian economy through a total ban on oil and gas imports carries a high risk of recession in European economies.

Question D: Weaponizing dollar finance is likely to lead to a significant shift away from the dollar as the dominant international currency.

Question A:

High volatility in the prices of crypto assets such as Bitcoin, Dogecoin, and Ethereum largely reflects movements in investor sentiment rather than news about potential sources of fundamental value (such as possible applications, or use in illicit transactions).

Question B: Given existing regulation of the financial system, as crypto assets grow in value and become more connected to the rest of the system, the fluctuations in their valuations will pose a serious risk to financial stability in advanced economies.

Question C: Private unbacked crypto assets serve no important economic purpose.

Question A:

Firms’ incentives to reduce costs by sourcing inputs and products abroad have caused many European industries to become more vulnerable to supply chain disruptions.

Question B: Private firms have inadequate incentives to make investments to reduce the risk that disruptions in the supply of imports will cause shortages and raise domestic prices.

Question C: Prioritisation of efficiency over resilience in global supply chains makes current disruptions likely to continue beyond 2022.

Question A:

Given the centrality of semiconductors to the manufacturing of many products, securing reliable supplies should be a key strategic objective of EU and national policy.

Question B: Europe’s small role in global semiconductor production is a direct result of insufficient private investment in high-tech innovation.

Question C: Public support at EU and national level for investment along the value chain for semiconductors, including production, would be the most effective way to ensure security of supply.

Question A:

Even without renewed Covid-19 restrictions, uncertainty about the health threat from the Omicron variant is likely to deliver a significant hit to economic activity from now through the first half of 2022.

Question B: If world vaccine supply continues to be limited, global social welfare would rise by more if those vaccines were made widely available across Africa (with support for effective delivery) rather than accelerating booster vaccinations in rich countries.

Question C: Imposing travel bans on countries where new Covid-19 variants are discovered will make it less likely that countries will reveal new variants to the rest of the world.

Question A: Voluntary national targets are unlikely to be an effective mechanism for achieving sharp reductions in greenhouse gas emissions.

Question B: Agreement on a significant global price floor for all carbon emissions would be an effective step towards achieving sharp reductions in emissions.

Question C: Green innovation in the private sector would be strongly stimulated by a substantial increase in public spending on R&D for climate change mitigation and adaptation.

Question A: The introduction of natural experiments to economic analysis of the labor market and related areas has led to a more precise understanding of cause and effect.

Question B: The ‘credibility revolution’ in empirical economics has improved our understanding of a number of public policy issues, including education, immigration and the minimum wage.

Question C: In pursuit of credible research designs, researchers often seek good answers instead of good questions.

Question A: A mandate for public companies to provide climate-related disclosures (such as their greenhouse gas emissions and carbon footprint) would provide financially material information that enables investors to make better decisions.

Question B: A mandate for public companies to provide climate-related disclosures would induce them to reduce their climate impact significantly.

Question A: The current combination of US fiscal and monetary policy poses a serious risk of prolonged higher inflation.

Question B: Current EU and national fiscal policy plans are likely to leave European output below potential a year from now.

Question A:

The introduction of even small trade frictions between neighboring countries can result in significant economic damage, particularly to smaller exporting firms.

Question B: A national economic boom based on natural resources is likely to harm other sectors of the economy, particularly manufacturing firms.

Question A: A global minimum corporate tax rate would limit the benefits to companies of shifting profits to low-tax jurisdictions without biasing where they invest.

Question B: An international tax system in which the major advanced economies set a minimum rate on corporate income is achievable.

Question C: A global corporate tax system that is based on the location of final consumers would be more efficient than one based on the location of corporate headquarters and production facilities.

Question A: Under a fixed exchange rate and fully liberalized capital flows, a country loses domestic control of monetary policy.

Question B: For emerging and developing economies open to the world capital market, a flexible exchange rate confers little advantage over a pegged exchange rate in terms of economic stability.

Question C: The key feature making the US a more natural optimum currency area than the euro area is higher labor mobility.

Question A: Reliable Covid-19 vaccines will reach developing countries more quickly if the rich countries pay the pharmaceutical companies at prevailing prices to manufacture and distribute the vaccines (or to license production and support licensees), rather than waiving patent protection.

Question B: The benefits to the US, Canada, Europe, Japan and other rich countries of paying for 12 billion doses of Covid vaccines at prevailing prices and providing them for free to the rest of the world exceed the costs that the rich countries would incur.

Question A: The Bank for International Settlements defines a central bank digital currency as follows: ‘In simple terms, a central bank digital currency (CBDC) would be a digital banknote. It could be used by individuals to pay businesses, shops or each other (a 'retail CBDC'), or between financial institutions to settle trades in financial markets (a ‘wholesale CBDC').

For developed countries, a central bank digital currency that is available to the public at large would offer social benefits that exceed the associated costs or risks.

Question B: Central banks that do not introduce their own digital money risk losing the ability to conduct effective monetary policy.

Question C: The introduction of a central bank digital currency is unlikely to have major effects on the economy.

Question A: Removing intellectual property protections on Covid-19 vaccines would substantially improve availability of the vaccines in developing countries.

Question B: Removing intellectual property protections on Covid-19 vaccines would have a negative impact on vaccine development efforts for future variants of SARS-CoV-2 or for the next pandemic.

Question C: Without an international agreement that facilitates vaccine trade, countries’ incentives to limit exports of vaccines and/or key production inputs are likely to prolong the adverse effects of the pandemic in advanced countries.

Question A: Allowing short selling of financial securities, such as stocks and government bonds, leads to prices that, on average, are closer to their fundamental values.

Question B: Requiring investors to disclose short positions in a stock at the equivalent threshold as they are required to do for long positions would result in significantly less short selling.

Question C: Regulatory restrictions on short selling - such as no naked shorts, temporary bans in times of crisis - make it difficult for optimists and pessimists to have equal influence on asset prices.

Question A: EU Covid-19 vaccination efforts are significantly behind those of Israel, Serbia, the UK and the US.

Offering substantially higher prices per dose would have resulted in larger capacity investments by vaccine makers and accelerated distribution in Europe significantly.

Question B: In the current situation, paying for more production capacity would be better than offering higher prices for vaccines.

Question C: If the EU started paying prices above 100 euros per dose, it would on net reduce the cost of the pandemic to the EU via more lives saved and shorter lockdowns.

Question A: Policies that aim to reduce obesity by increasing incentives for physical activity would be more welfare-improving than policies that increase the financial costs of consuming calories.

Question B: A ban on advertising junk foods (those that are high in sugar, salt and fat) would be an effective policy to reduce child obesity.

Question C: Setting targets for schools to reduce obesity (e.g. by diverting financial resources to improve school meals or add cookery to the curriculum) would reduce social welfare because schools in deprived areas, where obesity is higher, are already struggling to deliver the core curriculum.

Question A: The current US federal minimum wage is $7.25 per hour. States can choose whether to have a higher minimum - and many do.

A federal minimum wage of $15 per hour would lower employment for low-wage workers in many states.

Question B: A federal minimum wage that is pegged to state and/or local conditions such as the cost of living would be preferable to the current arrangements that give states a role in setting the policy.

Question A: The UK economy is likely to be at least several percentage points smaller in 2030 than it would have been if the country had remained in the European Union.

Question B: The aggregate economy of the 27 countries still in the EU is likely to be at least several percentage points smaller in 2030 than if the UK had not left.

Requiring Facebook to divest WhatsApp and Instagram is likely to make society better off.

Question A: Our understanding of labor productivity has been much enhanced by accounting for monetary and promotion-based incentives within firms and related selection effects.

Question B: Large salaries for senior business executives are less a reflection of an individual’s current contribution to a firm’s overall performance than a ‘prize’ for those who put in the effort to achieve one of the top positions.

Question A: A wealth tax would be an effective way to reduce inequality.

Question B: A wealth tax in a form discussed in the UK (where individuals could be taxed a percentage of their net worth over £750,000, excluding any personal pension savings and their main home) would be an effective way to improve public finances after the Covid-19 crisis.

Question C: A public policy goal that could be accomplished with a well-enforced wealth tax could be accomplished at lower cost with modifications to existing taxes, such as income tax, capital gains tax, inheritance tax and property tax.

Question A: Google's dominance of the market for internet search arose mainly from a combination of economies of scale and a quality algorithm.

Question B: In light of Google’s dominance, its current operating practices could have a substantial negative effect on social welfare in the long run.

Question C: The nature of the market dominance of technology giants in the digital economy warrants either the imposition of some kind of regulation or a fundamental change in antitrust policy.

The practical application of auction theory to the licensing of rights to use public assets like radiospectrum and other natural resources has generated substantially higher government revenues and better allocative efficiency worldwide than would have happened under previous arrangements.

Strong competition from foreign producers is likely to encourage greater private sector expenditure on research and development in the home market.