Government Intervention in Market Economies Quiz

Government-imposed limit on the maximum price for rental housing.

Taxation system where the percentage of income paid in taxes increases as income rises.

Market structure with numerous buyers and sellers, homogeneous products, and ease of entry and exit.

Measure of how sensitive quantity demanded is to changes in price.

Government's use of taxation and spending to influence economic activity.

Money's role as a medium of exchange, unit of account, and store of value, excluding facilitating barter.

Laws designed to prevent monopolies and promote fair competition.

Negative impact imposed on third parties not involved in the economic activity.

Central bank's manipulation of interest rates to influence money supply and economic activity.

Efforts to obtain economic gain through activities like lobbying rather than through productive activities.

Value of the best alternative foregone when a decision is made.

Market structure with many firms, differentiated products, and some control over price.

Overexploitation of commonly held resources resulting in their degradation.

Reduction in total economic surplus due to market inefficiency or intervention.

Measure of consumer benefit, representing the difference between what consumers are willing to pay and what they actually pay.

Government's use of tools to control money supply and influence economic activity.

Country's ability to produce a good or service at a lower opportunity cost than other countries.