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