#1
Which of the following is an example of a market failure?
Perfect competition
Monopoly
Externalities
Oligopoly
#2
Which of the following is an example of a negative externality?
Education
Pollution from a factory affecting nearby residents
Public parks
Research and development
#3
Which economic concept supports the idea that government intervention should be minimal, and markets should operate freely?
Market equilibrium
Laissez-faire
Public goods
Income redistribution
#4
Which economic concept supports the idea that market participants act in their self-interest and unintentionally contribute to the overall economic well-being?
Laissez-faire
Invisible hand
Externality
Market equilibrium
#5
Which economic concept supports the idea that market participants make decisions based on rational self-interest and complete information?
Free rider problem
Rational choice theory
Externality
Laissez-faire
#6
In the context of government intervention, what does 'Pigovian tax' refer to?
Tax on luxury goods
Tax to correct negative externalities
Tax on income
Tax on imports
#7
Which of the following is an example of a public good?
Bread
Cell phone
Street lighting
Clothing
#8
What is the Tragedy of the Commons?
A comedy play
A market success story
Overuse and depletion of shared resources
Government intervention failure
#9
Which market failure occurs when a single seller or producer dominates the market?
Monopoly
Oligopoly
Perfect competition
Externalities
#10
In the context of market failures, what is the 'free rider' problem?
A person who enjoys a good or service without paying for it
A type of public good
A government intervention success
A form of taxation
#11
What is the main purpose of antitrust laws?
To promote monopolies
To prevent unfair business practices and promote competition
To increase taxes
To regulate imports and exports
#12
Which economic concept supports the idea that the government should provide public goods?
Laissez-faire
Free rider problem
Supply and demand
Perfect competition
#13
What is the purpose of a price floor in government intervention?
To establish a maximum price for a good
To prevent the price from falling below a certain level
To regulate imports
To encourage competition
#14
What is the role of a subsidy in correcting market failures?
To increase the price of goods
To discourage production
To provide financial assistance and encourage production of certain goods
To regulate imports
#15
What does the term 'information asymmetry' refer to in the context of market failures?
Equal distribution of information
Unequal distribution of information between buyers and sellers
Government censorship
Perfect competition