#1
Which of the following is an example of a market failure?
Perfect competition
Monopoly
Negative externality
Government subsidy
#2
What does government intervention aim to do in the case of market failures?
Maintain monopolies
Increase market competition
Correct inefficiencies
Ignore externalities
#3
What is market equilibrium?
A situation where demand exceeds supply
A situation where supply exceeds demand
A state where quantity demanded equals quantity supplied
A state where quantity demanded and quantity supplied are not equal
#4
Which of the following is a common reason for market failure?
Perfect competition
Monopolies
Price floors
Government subsidies
#5
Which of the following is NOT a reason for market failure?
Information asymmetry
Public goods
Externalities
Perfect competition
#6
What is an example of a positive externality?
Pollution
Education
Traffic congestion
Cigarette smoking
#7
What is the tragedy of the commons?
A situation where common resources are overused or depleted
A type of government intervention
A form of market equilibrium
A theory in perfect competition
#8
Which of the following is NOT a type of market failure?
Monopoly power
Perfect competition
Externalities
Information asymmetry
#9
What is the main goal of antitrust laws?
To promote monopolies
To prevent market failures
To encourage collusion among firms
To maintain perfect competition
#10
Which of the following is NOT a characteristic of public goods?
Non-excludability
Non-rivalry
Excludability
Rivalry
#11
Which policy tool can the government use to address negative externalities?
Taxes
Subsidies
Price ceilings
Deregulation
#12
Which of the following is NOT an example of a public good?
National defense
Street lighting
Public parks
Private healthcare
#13
What is the Coase theorem?
A theorem about market equilibrium
A theorem about government intervention
A theorem about externalities and property rights
A theorem about monopoly power
#14
What is the tragedy of the anti-commons?
A situation where common resources are underused or unused due to excessive regulation
A type of market equilibrium
A form of perfect competition
A theory in monopoly power
#15
What is the primary concern addressed by environmental regulations?
Ensuring perfect competition
Addressing negative externalities related to pollution
Promoting monopolies
Encouraging information asymmetry
#16
Which of the following is a potential drawback of government intervention in markets?
Increased market efficiency
Distortion of resource allocation
Reduction of negative externalities
Promotion of perfect competition