#1
Which of the following is an example of a price floor?
Minimum wage law
Subsidies for farmers
Rent control
Tax breaks for businesses
#2
What is the primary goal of imposing tariffs on imported goods?
To increase domestic production
To encourage international trade
To stabilize exchange rates
To decrease government revenue
#3
What is the primary objective of implementing a subsidy?
To increase consumer prices
To decrease production costs for producers
To discourage consumption
To reduce government spending
#4
Which of the following is NOT a tool of monetary policy?
Open market operations
Taxation
Reserve requirements
Discount rate
#5
Which of the following is an example of a demand-side intervention in the market?
Imposing import tariffs
Providing subsidies to producers
Implementing tax cuts for consumers
Regulating pollution emissions
#6
What is the term used to describe the situation where the government increases its spending and decreases taxes to boost economic activity?
Contractionary fiscal policy
Expansionary fiscal policy
Monetary tightening
Monetary easing
#7
What is the term for the situation where the government imposes restrictions on the quantity of a good that can be imported or exported?
Subsidy
Tariff
Quota
Price floor
#8
Which of the following is an example of a non-price intervention in the market?
Imposing a tax on cigarettes
Setting a minimum wage
Providing subsidies to farmers
Regulating pollution emissions
#9
In a free market, what is the main mechanism for allocating resources?
Government regulations
Price signals
Labor unions
Tariffs
#10
What is the likely effect of imposing a quota on imported goods?
Increase in domestic production
Decrease in domestic prices
Rise in consumer choices
Expansion of international trade
#11
Which of the following represents a fiscal policy measure to stimulate economic growth during a recession?
Increasing income tax rates
Decreasing government spending
Raising interest rates
Implementing infrastructure projects
#12
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and few sellers
Product differentiation
Barriers to entry
Price takers
#13
What is the term used to describe the maximum price that can be charged for a good or service set by the government?
Price ceiling
Price floor
Price equilibrium
Market equilibrium
#14
In which of the following market structures does a single seller control the market and dictate the prices?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#15
What is the 'invisible hand' concept in economics often associated with?
Keynesian economics
Market socialism
Classical economics
Monetarism
#16
What is the term for the situation where a single seller controls the entire market for a product?
Oligopoly
Monopoly
Perfect competition
Monopolistic competition
#17
Which of the following is NOT a goal of government intervention in the market?
Promoting economic efficiency
Achieving income equality
Maintaining price stability
Maximizing producer surplus
#18
Which of the following is a tool of expansionary monetary policy?
Decreasing government spending
Raising interest rates
Increasing reserve requirements
Lowering the discount rate
#19
What is the term used to describe the situation where a few large firms dominate the market?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition