#1
Which of the following is an example of a price floor?
Minimum wage
Subsidies to producers
Sales tax
Rent control
#2
What is the main purpose of imposing tariffs?
To decrease government revenue
To encourage imports
To protect domestic industries
To promote free trade
#3
Which of the following is NOT a fiscal policy tool that governments can use to influence the economy?
Taxation
Government spending
Open market operations
Transfer payments
#4
What is the term for a situation where the government spends more money than it collects in revenue in a given fiscal year?
Fiscal surplus
Fiscal deficit
Budget equilibrium
Monetary policy
#5
Which of the following is a tool of monetary policy?
Government spending
Setting reserve requirements
Imposing tariffs
Taxation
#6
Which of the following is a form of direct government intervention in the market?
Tax breaks for corporations
Imposing import quotas
Issuing government bonds
Setting price ceilings
#7
What is the primary goal of antitrust laws?
To promote competition and prevent monopolies
To encourage collusion among firms
To increase barriers to entry for new firms
To decrease consumer choice
#8
Which of the following is an example of a negative externality?
A subsidy provided to farmers
A flu vaccination program
Air pollution from a factory
Public education funding
#9
What is the economic term for a situation where a single seller dominates the market and controls the supply of a product or service?
Oligopoly
Monopoly
Perfect competition
Monopsony
#10
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and sellers
Barriers to entry for new firms
Control over prices by individual firms
Homogeneous products
#11
Which economic concept refers to the total value of all goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Inflation rate
Unemployment rate
#12
Which of the following is an example of a regressive tax?
Income tax
Sales tax
Corporate tax
Property tax
#13
Which of the following is an example of a public good?
Electricity
Fast food
Movie tickets
National defense
#14
What is the primary goal of expansionary monetary policy?
To decrease the money supply
To reduce inflation
To stimulate economic growth
To decrease consumer spending
#15
Which of the following is a function of the Federal Reserve in the United States?
Regulating international trade
Managing fiscal policy
Controlling the money supply
Setting tax rates