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- 1. Multiple Choice
What is a Market??
a place where we buy medicines
a place to popularise products
a place where goods and services are exchanged for a price
a place where we buy Cars
- 2. Multiple Choice
Why are bus drivers paid less than pilots?
they are less qualified
they work for longer hours
their training takes longer periods of time
they travel shorter distances
- 3. Multiple Choice
If the demand for McDonald's hamburgers rose, which of the following diagrams would display the likely impact on the demand for McDonald's workers
- 4. Multiple Choice
All of the following are likely to increase the supply of labour EXCEPT:
an increase in migration
an increase in the retirement age
an increase in the school leaving age
an increase in the female working population
- 5. Multiple Choice
What could explain why some entertainers earn high wages?
some enjoy the job more than others
there is a high demand for their skills
there is a high number of people wanting to be entertainers
there is not much training required to be an entertainer
- 6. Multiple Choice
A Market Economy is based on?
Goods and Services
Goods and Products
Supply and Demand
Service
- 7. Multiple ChoiceWhat is unemployment?Getting a new job.Not being able to find a job.JobsBeing mean to your boss.
- 8. Multiple Choice
Who makes the decision in a Market Economy?
Government makes all the decisions
Consumers and Producers
People trade goods one for another.
- 9. Multiple Choice
Market failure results in a misallocation of resources. In some cases, this can be corrected by the government
restricting the manufacture of goods that generate positive externalities
Providing public goods
subsidising all loss-making firms
placing a tax on merit goods
- 10. Multiple Choice
A government might tax a good that creates negative externalities (eg pollution) in order to try to:
Increase price and consumption of the good to provide firms with extra revenue
Make the information avaliable more asymmetric
Decrease demand for the good and thus increase the consumer surplus
Decrease consumption of the good and thus reduce the environmental impact
- 11. Multiple ChoiceA market failure is best described asThe idea that market forces of supply and demand always provide the maximum benefit for societyThe idea that market forces of supply and demand do not always provide the maximum benefit for societyThe concept that a decision made by one party can have negative effects on another partyThe concept that a decision made by one party can have positive effects on another party
- 12. Multiple ChoiceThe role of government in a market systemdoes not existis restricted to establishing property rightsincludes improving situations that would otherwise result in a market failureincludes improving on situations that would otherwise result in a government failure?
- 13. Multiple ChoiceUsing resources in such a way that we continue living in a developed world, but at the same time we protect the environment. This is the definition of:SuspensabilityEcologySustainabilityEcological precautions
- 14. Multiple Choice
Government regulation (eg ensuring good workplace safety measures are in place) may negatively affect businesses in the following ways by
Increasing business costs
Increasing profits
Lowering consumer prices
All of the above
- 15. Multiple ChoiceWhen the government creates a law used to protect individuals this is know as:DeregulationRegulationPositive ExternalityPreventing a market failure
- 16. Multiple Choice"Assistance by the government to individuals or groups or individuals, such as firms, consumers, industries or sectors of an economy" Is the definition forExcise TaxesAd Valorem TaxesIndirect TaxesSubsidies
- 17. Multiple Choice
From an economic standpoint, government intervention is justified
When the private sector is larger than public sector.
Because the government will encourage the production of private goods.
Because the government can increase the level of market power of private businesses.
When the market mechanism fails to achieve the optimal mix of output.
- 18. Multiple Choice
The federal government's role in providing aid to the poor and the aged is justified because of concerns about
Market power.
Macro failure.
Inequity.
Restricted supply.
- 19. Multiple Choice
Which is not an example of a government safety net?
Pension
Unemployment Benefits
Laws
Medicare
- 20. Multiple ChoiceSafety nets, in the context of market failure, areGoods that are not safe, equitable, and profitable in the marketDesigned to minimize external costs and shift the costs back to the producersPayments given by the government to private companies as an incentive for them to produce a certain goodPrograms that help people who are struggling
- 21. Multiple ChoiceGovernment regulations exist toIncrease economic freedomProtect consumers from negative externalitiesPunish people who intervene in the free marketProvide incentives to privatize
- 22. Multiple Choice
The ups and downs of the economy, which the government must sometimes step in to stabilize due is known as the
Regulatory cycle
Business cycle
Fiscal Policy
Monetary Policy
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