#1
Which of the following is an example of fiscal policy intervention?
Increasing government spending
ExplanationFiscal policy involves government actions, like spending increases, to influence economic conditions.
#2
What is the primary objective of market regulation?
To ensure fair competition and protect consumers
ExplanationMarket regulation aims to maintain fair competition and safeguard consumer interests.
#3
In monetary policy, what is the central bank's tool to influence the economy?
Interest rates
ExplanationThe central bank uses interest rates as a tool in monetary policy to influence economic conditions.
#4
Which of the following is a consequence of price ceilings?
Shortages
ExplanationPrice ceilings can lead to shortages by preventing prices from adjusting to market equilibrium.
#5
Which economic theory suggests that government intervention in markets is often counterproductive?
Classical economics
ExplanationClassical economics asserts that government interference in markets can be counterproductive.
#6
What is an example of a regulatory body responsible for overseeing financial markets in the United States?
Securities and Exchange Commission (SEC)
ExplanationThe SEC oversees and regulates financial markets in the United States.
#7
What is the purpose of antitrust laws?
To prevent unfair business practices and promote competition
ExplanationAntitrust laws aim to ensure fair competition and prevent unfair business practices.
#8
Which of the following is an example of a trade barrier?
Tariffs
ExplanationTariffs are trade barriers imposed on imported goods, affecting international trade.
#9
What is the main purpose of deregulation?
To reduce government control and encourage competition
ExplanationDeregulation aims to reduce government control, promoting competition and market efficiency.
#10
Which market intervention aims to limit the market power of dominant firms?
Anti-trust regulations
ExplanationAnti-trust regulations aim to prevent monopolies and limit the market power of dominant firms.