#1
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and many sellers
Few sellers with significant market power
High barriers to entry
Product differentiation
#2
In economics, what is the law of demand?
As price increases, demand decreases
As price increases, demand increases
As price decreases, demand decreases
As price decreases, demand increases
#3
What is the primary function of prices in a market economy?
To allocate resources efficiently
To control government intervention
To maintain social equality
To enforce property rights
#4
What is the term used to describe a situation where a single buyer controls the market?
Oligopoly
Monopsony
Monopoly
Perfect competition
#5
What is the term used to describe a market where the price is determined by supply and demand with little or no government intervention?
Controlled market
Free market
Command market
Planned market
#6
Which of the following is a determinant of demand?
Price of related goods
Cost of production
Number of sellers in the market
Government regulations
#7
What does the term 'elasticity of demand' measure?
The responsiveness of quantity demanded to a change in price
The total amount of demand in the market
The proportion of income spent on a good
The willingness of consumers to buy more units of a good
#8
What is the formula for calculating price elasticity of demand?
Percentage change in quantity demanded divided by percentage change in income
Percentage change in quantity demanded divided by percentage change in price
Percentage change in price divided by percentage change in quantity demanded
Percentage change in income divided by percentage change in quantity demanded
#9
In economics, what is a 'market failure'?
When demand exceeds supply in a market
When there is government intervention in the market
When resources are not allocated efficiently by the market
When there is perfect competition in the market
#10
What is the term used to describe the situation where the quantity supplied equals the quantity demanded?
Market equilibrium
Market surplus
Market shortage
Market disequilibrium
#11
In a monopolistic competition market, firms compete primarily based on:
Price only
Product differentiation
Government regulations
Number of sellers
#12
What is a characteristic of a monopolistic market structure?
There is only one seller
There is perfect information available to buyers and sellers
There are many sellers producing identical products
There is product differentiation
#13
In the context of market forces, what does the term 'invisible hand' refer to?
The role of government in regulating markets
The self-regulating nature of markets guided by individual self-interest
The process of setting prices in the market
The influence of advertising on consumer behavior
#14
What concept describes the additional benefit gained from consuming one more unit of a good?
Total utility
Marginal utility
Diminishing returns
Elasticity
#15
What concept refers to a situation where one party in a transaction has more information than the other, leading to imbalanced outcomes?
Asymmetric information
Market equilibrium
Perfect competition
Pareto efficiency