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economics theme 1

What is the primary goal of a market economy?

Minimizing government intervention

Which of the following is a characteristic of a command economy?

Central planning by the government

What is the main purpose of fiscal policy?

Managing government spending and taxation

What is the concept of opportunity cost?

The value of the next best alternative forgone when making a choice

Which of the following is an example of a regressive tax?

Sales tax

What is the main role of the World Trade Organization (WTO)?

Ensuring fair competition among countries

What is the function of a central bank in an economy?

Controlling the money supply and interest rates

What is the purpose of a trade barrier?

Ensuring fair competition among domestic industries

Which of the following is a characteristic of a monopoly market?

A single seller with significant control over the market

What is the main objective of a price floor?

Protecting producers by setting a minimum price

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