#1
Which of the following is a primary objective of price regulation?
To ensure fair competition
ExplanationPromoting fair competition and preventing market manipulation.
#2
What does the term 'minimum wage' refer to?
The lowest amount of money a company can legally pay its employees
ExplanationLegally mandated minimum payment to workers by employers.
#3
What is the purpose of a labor union?
To negotiate wages and working conditions on behalf of employees
ExplanationCollective organization to advocate for workers' rights and negotiate with employers.
#4
What is the primary goal of labor market regulations?
To promote job creation and protect workers' rights
ExplanationLegislative measures aimed at fostering employment opportunities and safeguarding worker entitlements.
#5
Which of the following is a potential consequence of price controls?
Black markets and shortages
ExplanationImposing price controls can lead to shortages and black markets.
#6
What is the main purpose of antitrust laws in relation to price regulation?
To prevent unfair business practices and promote competition
ExplanationAntitrust laws aim to ensure fair competition and prevent monopolies.
#7
What is price gouging?
An illegal practice of charging excessively high prices during emergencies
ExplanationExploitative pricing during crises, often illegal.
#8
Which of the following is NOT a factor that influences the minimum wage?
Company profits
ExplanationCompany profits typically aren't directly considered when setting minimum wage.
#9
What is the main goal of price stabilization policies?
To prevent sudden and large fluctuations in prices
ExplanationPolicies aiming to maintain stable prices and prevent wild fluctuations.
#10
What is the purpose of a price floor?
To prevent prices from falling below a certain level
ExplanationImposes a minimum price to prevent prices from dropping too low.
#11
What is a 'living wage'?
A wage that allows a person to maintain a comfortable standard of living
ExplanationWage sufficient to cover basic needs and maintain a decent living standard.
#12
What is the 'elasticity of labor supply'?
A measure of how responsive the quantity of labor demanded is to changes in wages
ExplanationMeasure of responsiveness of labor quantity to wage changes.
#13
Which of the following is an example of a price ceiling?
Rent control laws
ExplanationRegulation limiting maximum prices, often seen in rent control laws.
#14
What is the 'efficiency wage theory'?
A theory that suggests paying higher wages can increase worker productivity
ExplanationTheory proposing higher wages can lead to increased worker productivity and efficiency.
#15
What is the main purpose of the Fair Labor Standards Act?
To establish maximum working hours and overtime pay requirements
ExplanationLegislation setting standards for minimum wage, overtime pay, and child labor.
#16
What is the relationship between price elasticity of demand and the effectiveness of price regulations?
Higher elasticity makes price regulations less effective
ExplanationHigh elasticity means price changes have significant effects, making regulation more challenging.