#1
Which of the following is an example of a price ceiling?
Minimum wage laws
Rent control
Subsidies for farmers
Sales tax
#2
What is the term for a situation where one firm dominates the market and controls prices and supply?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#3
Which of the following is an example of a public good?
Cable television service
Private healthcare
National defense
Fast food
#4
What is the term for a maximum price set by the government to prevent prices from rising above a certain level?
Price floor
Price ceiling
Market equilibrium
Supply curve
#5
Which of the following is a form of direct government intervention in markets?
Subsidies
Taxes
Price controls
Regulations
#6
Which of the following is an example of a negative externality?
Education
Pollution from a factory
Public transportation
Healthcare subsidies
#7
What is the term for a situation where a few large firms dominate an industry?
Oligopoly
Monopoly
Perfect competition
Monopolistic competition
#8
What is the main goal of government intervention in markets?
To maximize consumer surplus
To minimize producer surplus
To achieve allocative efficiency
To decrease total surplus
#9
Which of the following is a form of indirect taxation?
Sales tax
Income tax
Property tax
Value-added tax (VAT)
#10
What is the term for a tax that takes a larger percentage of income from high-income earners than from low-income earners?
Proportional tax
Regressive tax
Progressive tax
Flat tax
#11
What does 'deadweight loss' refer to in the context of government intervention?
Loss of consumer surplus
Loss of producer surplus
Loss of total surplus
All of the above
#12
Which of the following is a characteristic of monopolistic competition?
Many sellers
Identical products
Barriers to entry
Product differentiation
#13
What does the term 'externality' refer to in economics?
The production of goods without considering the environment
The unintended side effects of an economic activity on third parties
The practice of setting prices above the equilibrium level
The process of exchanging goods and services in the market
#14
Which of the following is NOT a tool of fiscal policy?
Government spending
Taxation
Monetary policy
Transfer payments
#15
In the context of externalities, what does a Pigouvian tax aim to do?
Encourage the production of goods with positive externalities
Discourage the production of goods with negative externalities
Minimize government intervention in markets
Maximize total surplus
#16
What is the term for a situation where a firm charges different prices to different customers for the same product or service?
Price discrimination
Price fixing
Predatory pricing
Collusion
#17
What is the term for a situation where the government allows prices to be determined by supply and demand with little to no interference?
Market economy
Command economy
Mixed economy
Planned economy
#18
Which of the following is an example of a regressive tax?
Sales tax
Income tax
Property tax
Value-added tax (VAT)
#19
What is the term for a situation where a firm's average cost decreases as it produces more?
Diseconomies of scale
Constant returns to scale
Economies of scale
Monopoly power