Economic Interventions and Market Mechanisms Quiz

Government's use of taxation and spending to influence the economy.

To boost economic activity through government spending and taxation.

Market with only one seller, controlling prices and supply.

Policy aimed at shielding domestic industries from foreign competition.

Goods and services produced abroad, not domestically.

Indicator of a country's economic performance.

Statistic representing income distribution within a population.

Enforcing rules to ensure fair competition and consumer protection.

Central bank's strategy to stimulate the economy by buying securities.

Government-imposed limit on how high prices can rise.

Perfect competition entails easy entry and exit for firms.

Firms offer differentiated products, but entry and exit are relatively easy.

Central bank's action to increase money supply and lower borrowing costs.

Economic downturn marked by reduced economic activity.

To ensure fair competition and protect consumers from monopolistic practices.