Question A: Fiscal rules on budget deficits and public debt levels are an essential part of a sound fiscal framework.

Question B: Since the inception of the Stability and Growth Pact, budget deficits in Europe have been measurably lower, on average, than would have been the case without common budget rules.

Question C: Since the inception of the Stability and Growth Pact, the path of GDP growth in Europe has been measurably more stable than would have been the case without common budget rules.

Question A: Non-bank financial intermediaries pose a substantial threat to financial stability.

Question B: Regulating the leverage and liquidity of non-bank financial intermediaries would substantially improve financial stability.

Question C: Given current regulations, non-bank financial intermediaries should not have access to central bank support.

Question A: An $8 cap on late fees for credit cards, as proposed by the Consumer Financial Protection Bureau, would lead to a substantial reduction in overall costs for consumers.

Question B: Requiring that all credit card fees and interest rates be transparent, prominently displayed, and easily searchable online would lead to a substantial reduction in overall costs for consumers.

Question C: Consumers would be measurably better off if efforts to reduce the impact of so-called ‘junk fees’ across the economy concentrated on making fees more transparent than on capping specific types of fees.

Question A: When evaluating the consequences of any shifts in economic policy regimes, it is essential to consider potential changes in the behavior of economic agents due to revised expectations.

Question B: The empirical evidence on how monetary policy affects the economy in the short run is most consistent with the assumption that economic agents form rational expectations.

Question C: Economic research has established that the welfare consequences of differences in countries’ growth and level of development are substantially higher than the welfare costs of business cycles.

Question A: If enacted and technologically effective, a national ban on the use of TikTok would have a measurably negative impact on US innovation.

Question B: If enacted and technologically effective, a national ban on the use of TikTok would have a measurably positive impact on the profits of the big US tech companies.

Question A: Use of artificial intelligence over the next ten years will lead to a substantial increase in the growth rates of real per capita income in the US and Western Europe over the subsequent two decades.

Question B: Use of artificial intelligence over the next ten years will have a substantially bigger impact on the growth rates of real per capita income in the US and Western Europe over the subsequent two decades than the internet has had over the past two decades.

Question A: Use of the renminbi in world trade, as a reserve currency, and/or for foreign bond denomination is likely to increase substantially relative to the dollar over the next ten years.

Question B: Ceteris paribus, a shift to a more multi-polar international monetary system would have substantial negative implications for the US economy.

Question A: Financial regulators in the US and Europe lack the tools and authority to deter runs on banks by uninsured depositors.

Question B: Not guaranteeing uninsured deposits at Silicon Valley Bank in full would have created substantial damage to the US economy.

Question C: Fully guaranteeing uninsured deposits at Silicon Valley Bank substantially increases banks’ incentives to engage in excessive risk-taking.

Question A: If it is implemented, the proposed increase in the tax rate on earned and business income above $400,000 in the Biden budget, along with other proposed changes to Medicare, would extend the solvency of the Medicare program for the next 25 years.

Question B: If it is implemented, the proposed reform of Medicare drug negotiations in the Biden budget is likely to lead to a substantial reduction in drug prices for beneficiaries.

Question C: If it is implemented, the proposed reform of Medicare drug negotiations in the Biden budget is likely to lead to a substantial reduction in the development of beneficial new drugs.

Question A: Imposing stronger legal liability on online platforms for content posted by users would substantially reduce the amount of user-generated content available on those platforms.

Question B: Imposing stronger legal liability on online platforms for content posted by users would substantially damage those platforms’ advertising businesses.

Question C: Imposing stronger legal liability on online platforms for content posted by users would substantially reduce the amount of misinformation and disinformation present on those platforms.

Question A: Adam Smith’s metaphor of the invisible hand has been foundational to the development of modern economic theory.

Question B: Adam Smith’s metaphor of the invisible hand has been commonly misinterpreted as advocacy for pure laissez-faire capitalism.

Question A: A combination of the US federal government having to defer some invoice, benefit, and salary payments, and miss payments on Treasury securities for several weeks would do substantial damage to financial markets.

Question B: A combination of the US federal government having to defer some invoice, benefit, and salary payments, and miss payments on Treasury securities for several weeks would lead to substantially lower employment within six months.

Question C: The requirement to periodically increase the debt ceiling measurably reduces the long-run size of the debt.

Question A: Prohibiting firms from imposing employment contract provisions that prevent workers from moving to a competitor or starting a competing business would lead to a substantial increase in wages in the affected industries.

Question B: A ban on non-compete clauses would lead to a measurable increase in innovation.

Question C: A ban on non-compete clauses would lead to a measurable reduction in firms’ investment in staff training.

Question A: The market power of ticket-selling intermediaries leads to consumers who ultimately attend the music events paying substantially more and producers receiving substantially less than they would if the intermediary sector were more competitive.

Question B: The present system of initial ticket selling and reselling through secondary ticket intermediaries often leads to large transfers between different groups of ticket buyers that could be partially captured by artists through higher initial ticket prices.

Question C: Artists set prices at less than market-clearing levels in an effort to provide access for fans with modest incomes.

Question A: Network externalities give Twitter an incumbent advantage that will slow substantially the migration of users who would prefer alternative platforms.

Question B: As of now, there needs to be more government regulation around Twitter’s content moderation and personal data protection.

Question A: When economic policy-makers are unable to commit credibly in advance to a specific decision rule, they will often follow a poor policy trajectory.

Question B: Rules-based fiscal policies deliver substantially better outcomes than purely discretionary, on the spot, policy choices.

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

Question B: Restrictions on exports of semiconductors and related high-tech equipment to China will substantially improve US technological leadership.

Question A: Research on the nature and impact of bank runs has made it possible to limit substantially the wider economic damage from financial crises.

Question B: Reforms of financial regulation since 2008 (and macroprudential policies in some countries) will not substantially reduce the probability of financial crises.

Question A: In the aftermath of Hurricane Ian, the level of Florida’s GDP in five years will be substantially lower than it otherwise would.

Question B: The prospect of further costly extreme weather events means that there is a substantial chance that some private property insurance markets will no longer exist in ten years in states such as Florida.

Question C: Without large government subsidies, mandated flood insurance requirements would substantially reduce losses from subsequent natural disasters by encouraging economic activity to migrate from the most flood-prone areas.

Question A: The administration’s loan relief plan will not have a substantial impact on inflation in either direction.

Question B: A longer-term impact of the administration’s loan relief plan is likely to be substantially higher tuition fees at some universities.

Question C: A longer-term impact of the administration’s loan relief plan is likely to be measurably higher student debt burdens in anticipation of future forgiveness.

Question A: A price cap imposed by the G7/EU countries on purchases of Russian oil and oil-related products (and which applies to all importers of Russian oil using Western trade infrastructure, shipping, and insurance) would be an effective measure to reduce the flow of revenues to Russia.

Question B: The oil price cap imposed by the G7/EU countries will not have a substantial effect on the world oil price (such as the Brent crude benchmark).

Question A: The current $7,500 tax credit for purchasing electric vehicles is regressive.

Question B: To encourage greater take-up of electric vehicles, public expenditure on infrastructure to support them (such as charging stations) is likely to be more cost-effective than providing equivalent amounts as tax credits/purchase rebates for buyers.

Question A: Laws restricting access to abortion are likely to have a negative impact on women's educational attainment, labor market participation, and earnings, particularly those in households of lower socio-economic status.

Question B: States that ban abortion are likely to suffer significant economic losses.

Question A: Increased unionization of the American workforce would give a noticeable boost to the earnings of current workers who become eligible to be members.

Question B: Increased unionization of the American workforce would give a noticeable boost to wages for the median household.

Question C: Increased unionization of the American workforce would have a net positive effect on employment.

Question A: It would serve the US economy well to make it unlawful for companies with revenues over $1 billion to offer goods or services for sale at an “unconscionably excessive price” during an exceptional market shock.

Question B: It would serve the US economy well if companies making quarterly SEC filings were obliged to include a tabulation of all price changes of goods or services sold, together with the associated cost changes.

Stablecoins that are not fully backed by either central bank reserves or government securities with minimal price volatility are inherently vulnerable to runs.

High tariffs imposed by the European Union on imports of Russian natural gas would be an effective measure to reduce the flow of revenues to Russia while limiting disruption to supplies to Europe.

Question A: A windfall tax on the profits of large oil companies – with the revenue rebated to households – would provide an efficient means to protect the average US household from rising energy costs.

Question B: Temporary suspension of state and federal gas taxes would lead to a meaningful and immediate reduction in consumer prices at the pump.

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 regulations, as crypto assets grow in value and become more connected to the rest of the financial system, the fluctuations in their valuations pose a serious risk to financial stability in advanced economies.

Question A: A permanent version of the 2021 expansion of the child tax credit would reduce child poverty substantially.

Question B: The costs of increasing resources for low-income families via the expanded child tax credit would be substantially offset over the longer term by the fiscal benefits of improving life outcomes for children no longer growing up in poverty.

Question C: Parental labor supply would be unlikely to fall significantly following reintroduction of the expanded child tax credit.

Question A: Firms’ incentives to reduce costs by sourcing inputs and products abroad have caused many American 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: Global supply chain disruptions are the main driver of elevated US inflation over the past year.

Question A: A significant factor behind today’s higher US inflation is dominant corporations in uncompetitive markets taking advantage of their market power to raise prices in order to increase their profit margins.

Question B: Antitrust interventions could successfully reduce US inflation over the next 12 months.

Question C: Price controls as deployed in the 1970s could successfully reduce US inflation over the next 12 months.

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: The supply bottlenecks that are currently contributing to rising prices can be reasonably expected to abate without causing inflation over the longer term to be above the Fed’s target.

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

Question A: Efforts to achieve the goal of reaching net-zero emissions of greenhouse gases by 2050 will be a major drag on global economic growth.

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

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

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.

Mandating staff vaccinations and/or regular testing at big employers would promote a faster and stronger economic recovery.

Question A: The use of non-compete clauses in US employment contracts reduces workers' mobility and wages by more than is justified by the protection of employers' intellectual property and trade secrets.

Question B: Occupational licensing reduces mobility and wages for workers in many sectors where they could safely deliver services that consumers would prefer to those offered by licensed workers.

Question A: Industry consolidation and weaker competition in the United States meaningfully constrain innovation and wage growth.

Question B: Americans pay too much for broadband, cable television, and telecommunications services, in part because of a lack of adequate competition.

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: A stable international tax system in which the major advanced economies collect 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.

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

Question A: The $300 supplement to weekly unemployment benefits available from now through September 6 constitutes a major disincentive to work for lower-wage workers.

Question B: The $300 supplement to weekly unemployment benefits available from now through September 6 is likely to lead to re-employment wages for currently unemployed workers that are higher by an economically meaningful amount.

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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: In an economy open to capital flows, monetary policy can only be effective with a floating exchange rate.

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: 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: Policies that aim to reduce obesity by increasing incentives for physical activity would improve social welfare more 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.

Sound policy would involve increasing significantly the currently near-zero price of emissions of carbon dioxide and other greenhouse gases.

Question A: Bans on the short selling of financial securities, such as stocks and government bonds, would lead to prices that are further, on average, from their fundamental values.