#1
Which of the following is an example of a market intervention by the government?
Setting maximum prices
Encouraging competition
Reducing taxes
Removing trade barriers
#2
What is the effect of imposing tariffs on imported goods?
Increases domestic production
Lowers consumer prices
Promotes international trade
Reduces government revenue
#3
What is the purpose of quantitative easing as a monetary policy tool?
To decrease money supply
To increase interest rates
To stimulate lending and spending
To stabilize exchange rates
#4
Which of the following is a potential consequence of implementing rent control policies in urban areas?
Increased housing affordability
Decreased housing quality
Reduced housing supply
Encouraged property development
#5
Which of the following is a consequence of a contractionary monetary policy?
Increased money supply
Lower interest rates
Reduced inflation
Stimulated economic growth
#6
What is the economic effect of imposing a price floor in a market?
Increased consumer surplus
Decreased producer surplus
Increased equilibrium price
Increased quantity supplied
#7
Which of the following is NOT a tool of monetary policy intervention?
Open market operations
Fiscal stimulus
Reserve requirements
Discount rate
#8
What is the primary goal of antitrust laws in the context of market intervention?
To promote market efficiency
To maintain barriers to entry
To prevent monopolistic practices
To stabilize market prices
#9
Which of the following is a potential consequence of government subsidies to producers?
Decreased supply
Increased consumer surplus
Market equilibrium
Increased competition
#10
What is the primary objective of expansionary monetary policy?
Decrease money supply
Reduce inflation
Stimulate economic growth
Stabilize exchange rates
#11
Which of the following is an example of an automatic stabilizer in fiscal policy?
Unemployment benefits
Corporate tax cuts
Infrastructure spending
Direct cash transfers
#12
In the context of market interventions, what does 'lender of last resort' refer to?
A financial institution that provides loans to high-risk borrowers
A central bank that provides emergency loans to financial institutions
A government agency that guarantees loans to small businesses
An investment bank that specializes in distressed assets
#13
In the context of fiscal policy, what does 'crowding out effect' refer to?
Decrease in government spending due to increased private investment
Increase in government borrowing leading to higher interest rates
Increase in consumer spending due to government subsidies
Decrease in consumer confidence due to government regulations
#14
In the context of market interventions, what is the primary purpose of imposing trade sanctions?
Promote international cooperation
Ensure fair trade practices
Punish countries for violating human rights or international law
Reduce tariffs
#15
In the context of fiscal policy, what is the goal of automatic stabilizers?
To increase government revenue during economic downturns
To decrease government spending during economic expansions
To automatically adjust fiscal policy in response to economic fluctuations
To stabilize consumer prices