#1
Which of the following is an example of a price ceiling?
Minimum wage law
Rent control
Subsidies to farmers
Sales tax
#2
Which term refers to a tax system where the tax rate decreases as the taxpayer's income increases?
Progressive tax
Proportional tax
Regressive tax
Flat tax
#3
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and many sellers
One seller dominating the market
High barriers to entry
Complete control over prices by individual sellers
#4
In economics, what does 'elasticity' refer to?
The measure of how easily a good can be produced
The responsiveness of quantity demanded to a change in price
The government's ability to intervene in the market
The stability of a market over time
#5
What is the primary goal of fiscal policy?
To control inflation
To stabilize the economy
To regulate international trade
To influence interest rates
#6
Which of the following is NOT a function of money?
Medium of exchange
Store of value
Barter facilitator
Unit of account
#7
What is the main objective of antitrust laws?
To increase government intervention in the economy
To regulate the market to ensure fair competition
To encourage monopolies
To limit consumer choices
#8
Which of the following is an example of an external cost?
A factory paying for raw materials
A car emitting pollution
A consumer buying a product
A government subsidy to a company
#9
What is the primary tool used by the Federal Reserve to control the money supply?
Fiscal policy
Interest rates
Tariffs
Subsidies
#10
What does 'rent-seeking behavior' refer to in economics?
The act of seeking to increase one's income through productive means
The pursuit of profit through entrepreneurial activities
Attempts to gain economic rent by manipulating the political or social environment
The process of renting out goods or services
#11
What does 'opportunity cost' represent in economics?
The cost of producing one additional unit of a good
The cost of forgoing the next best alternative when making a decision
The total cost of production
The cost of labor
#12
Which of the following is a characteristic of a monopolistic competition market structure?
Many buyers and few sellers
Identical products sold by different firms
Perfect substitutes for each other
High barriers to entry
#13
What is the 'tragedy of the commons'?
A situation where individuals overuse shared resources, leading to depletion
A market failure due to excessive government regulation
A scenario where monopolies control all market resources
A condition where all resources are privately owned
#14
What is 'deadweight loss' in economics?
The loss in consumer surplus due to a tax or market distortion
The loss in producer surplus due to government intervention
The excess profit earned by monopolies
The loss in government revenue due to tax evasion
#15
What is 'consumer surplus'?
The total amount consumers are willing to pay for a good
The difference between the price consumers are willing to pay and the price they actually pay
The amount of profit earned by consumers
The additional utility gained from consuming an extra unit of a good
#16
What is 'monetary policy'?
Government policies aimed at regulating the money supply and interest rates
Policies aimed at regulating trade between nations
Government intervention in setting prices in markets
Policies aimed at redistributing income and wealth
#17
What is 'comparative advantage' in international trade?
The ability of a nation to produce a good more efficiently than other nations
The ability of a nation to produce all goods more efficiently than other nations
The ability of a nation to produce goods using fewer resources than other nations
The ability of a nation to produce a good at a lower opportunity cost than other nations