Which statement is an example of economics as a policy tool

Which statement is an example of economics as a policy tool? A. Most children have a pet. O B. Luxury yachts are getting bigger. O C. You should vote Democrat O D. Some people are too thin. O E. More people are buying used cars.

Solution

Policy tools include things such as regulations, sanctions, subsidies etc in order to motivate or demotivate the public from using them all in all. In the given question, the cars statement is concerned with people buying cars or used cars and this is because there can be a mismatch of quantity of cars and people and proper policies are there for used cars purchase.

Therefore (e)Most people are buying used cars is the answer