#1
Which of the following is an example of a market regulation?
Minimum wage laws
ExplanationRegulation ensuring a minimum income level for workers.
#2
What is the primary goal of market regulation?
To promote fairness and efficiency in markets
ExplanationMaintaining equitable and effective market operations.
#3
Which tax system is characterized by a higher tax rate for higher incomes?
Progressive tax
ExplanationTaxation increasing proportionately with income.
#4
What is the purpose of an excise tax?
To discourage consumption of certain goods
ExplanationTax levied on specific goods to reduce their usage.
#5
What is the purpose of antitrust laws?
To prevent anti-competitive behavior
ExplanationLegislation to maintain fair competition and prevent monopolies.
#6
Which of the following is an example of a regressive tax?
Sales tax
ExplanationTax that takes a larger percentage of income from low earners.
#7
What is the purpose of price ceilings?
To set a maximum price for goods or services
ExplanationGovernment-imposed limit on prices.
#8
Which of the following is NOT a characteristic of a perfectly competitive market?
Limited market information
ExplanationPerfect competition implies complete market information.
#9
What is the Laffer curve used to illustrate?
The relationship between tax rates and government revenue
ExplanationGraphical representation of optimal tax rates.
#10
Which of the following is NOT a tool of fiscal policy?
Monetary policy
ExplanationFiscal policy concerns government spending and taxation.
#11
Which of the following is a characteristic of a monopolistic competition market structure?
Product differentiation
ExplanationDiverse product offerings with slight differentiation.
#12
Which of the following is a characteristic of a command economy?
Centralized decision-making
ExplanationGovernment control over resource allocation and production.