#1
Which of the following is an example of a price ceiling?
Rent control
ExplanationPrice control set below the market equilibrium to limit prices.
#2
Which of the following is a form of fiscal policy?
Lowering taxes
ExplanationGovernment's use of taxation and spending to influence the economy.
#3
Which government agency is responsible for regulating the stock market in the United States?
Securities and Exchange Commission (SEC)
ExplanationRegulatory body overseeing securities industry.
#4
In a market economy, prices are primarily determined by:
Supply and demand
ExplanationInterplay of market forces of supply and demand.
#5
Which of the following is NOT a function of money?
Unit of labor
ExplanationMoney's functions include medium of exchange, store of value, and unit of account.
#6
Which of the following is an example of a capital resource?
Machinery
ExplanationResources used to produce goods and services, such as machinery, equipment, and buildings.
#7
What is the main goal of antitrust laws?
To prevent unfair business practices
ExplanationLegislation aimed at promoting competition and preventing monopolistic behavior.
#8
What is the 'invisible hand' in economics?
The guiding force of self-interest and competition
ExplanationConcept describing how self-interested actions can lead to overall societal benefits.
#9
What is the purpose of a tariff in international trade?
To restrict imports
ExplanationTax imposed on imported goods to protect domestic industries.
#10
What is the main purpose of a subsidy?
To encourage production or consumption of a good
ExplanationFinancial aid given by the government to support certain activities.
#11
What is the primary goal of monetary policy?
To control inflation
ExplanationManagement of money supply and interest rates to achieve economic objectives.
#12
Which of the following is an example of a command economy?
China
ExplanationEconomic system where production, investment, prices, and incomes are determined by the government.
#13
Which of the following is an example of a public good?
A public park
ExplanationGoods provided by the government with no rivalry and non-excludability.
#14
Which of the following is an example of a regressive tax?
Sales tax
ExplanationTax that takes a higher percentage from low-income earners.
#15
What is the 'Laffer Curve' used to illustrate?
The relationship between tax rates and tax revenue
ExplanationGraphical representation showing the potential effects of tax rate changes on government revenue.