4
practice testMultiple Choice

Practice Test

Question 4 • Economics

The government of Country C has passed a law protecting the physical safety of factory workers. This is an example of

Answer
A
monetary policy.
B
regulatory policy.
C
supply and demand.
D
fiscal policy.

Explanation

A law that sets safety requirements for factory workers is a government rule governing how businesses operate. Such rules are regulatory policy. Fiscal policy concerns government spending and taxes, while monetary policy concerns the money supply and interest rates.

AI-written and checked against the verified answer.

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