Data from the UK Society of Motor Manufacturers Shows That

question 17

Multiple Choice

Data from the UK Society of Motor Manufacturers shows that, compared to 2013, new car registrations increased 9.3 per cent to 2.4 million units in the UK in 2014. Compared to 2013, the production and export of cars has kept stable in 2014 to 1.50 million units of which 1.2 million units exported. Given this information, which of the following are most likely to be true?

• A) The UK has a comparative advantage in the production of cars.
• B) Domestic production accounts for a large proportion of the supply of cars in the UK.
• C) Out of the cars produced in the UK, 0.3 million cars were sold in the domestic market.
• D) The demand for domestic cars exceeds supply in the UK.

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Definitions:

Discouraged Workers

Individuals who are not actively looking for employment because they believe no jobs are available for them.

Unemployment Insurance

is a government program that provides temporary financial assistance to eligible workers who are unemployed through no fault of their own.

Misery Index

The misery index is an economic indicator created by adding the unemployment rate to the inflation rate, designed to measure the health of an economy.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a reference rate for various types of loans.