June P2 Med

Play an AI-generated podcast conversation about this lesson

What is a key characteristic of a market?

The fixed prices of goods and services
The presence of a single buyer
The interaction between buyers and sellers (correct)
The absence of competition

What is the primary function of prices in a market economy?

To limit the amount of goods and services produced
To allocate resources efficiently (correct)
To determine the value of a good or service
To create a sense of competition among sellers

What is the Law of Demand?

There is a direct relationship between price and the quantity demanded
There is an inverse relationship between price and the quantity demanded (correct)
The quantity demanded is always equal to the quantity supplied
The price of a good or service is always fixed

What type of market involves the trade of resources necessary for production?

Factor market (D) Signup and view all the answers

What is a characteristic of a perfect market?

A large number of buyers and sellers, no barriers to entry, and full information availability (D) Signup and view all the answers

What is the relationship between price and the quantity supplied?

There is a direct relationship between price and the quantity supplied (C) Signup and view all the answers

What is the primary role of the exchange mechanism in a market?

To facilitate the exchange of goods and services at agreed prices (D) Signup and view all the answers

What is the term for the measure of the satisfaction a consumer derives from a good or service?

Utility (D) Signup and view all the answers

What is the main purpose of setting minimum and maximum price levels?

To ensure producers receive a fair price and consumers can afford essential goods (A) Signup and view all the answers

What is a social safety net?

A system that provides financial support to individuals in need, such as the elderly, disabled, or unemployed (B) Signup and view all the answers

Why does the state engage in the production of certain goods and services?

To provide goods and services that are not adequately provided by the private sector (C) Signup and view all the answers

What is the Production Possibility Curve (PPC) based on?

Fixed resources and technology (D) Signup and view all the answers

What does the shape of the PPC reflect?

The economy's efficiency and trade-offs between different choices (D) Signup and view all the answers

What happens to the PPC when there is an improvement in technology?

It shifts outward (B) Signup and view all the answers

What do indifference curves show?

Different combinations of two goods that provide the same level of satisfaction to a consumer (C) Signup and view all the answers

What is a consequence of minimum wage laws being set too high?

Negatively impacting employment (C) Signup and view all the answers

What is the role of the public sector in addressing market imperfections?

To intervene and address market imperfections (B) Signup and view all the answers

What is a trade-off in the context of the PPC?

Giving up one good to produce more of the other (B) Signup and view all the answers

What is the primary goal of market forces in a market economy?

To achieve a balance between supply and demand (B) Signup and view all the answers

What is the main reason for public sector intervention in the economy?

To promote social welfare and ensure fair pricing (D) Signup and view all the answers

What is the primary function of prices in a market economy?

To reflect the value of goods and services to consumers (A) Signup and view all the answers

What is the term for goods and services that are non-excludable and non-rivalrous?

Public goods (B) Signup and view all the answers

What is the primary goal of taxation in the public sector?

To fund public services and goods (A) Signup and view all the answers

What is the term for a price set above the market equilibrium price to guarantee a minimum income for producers?

Price floor (C) Signup and view all the answers

What is the primary reason for the public sector to provide subsidies to consumers?

To make essential goods more affordable (B) Signup and view all the answers

What is the term for goods and services that provide significant societal benefits and are often subsidized or provided free at the point of use?

Merit goods (B) Signup and view all the answers

What is the primary goal of market allocation of resources?

To allocate resources based on collective consumer preferences (A) Signup and view all the answers

What is the term for taxes levied on specific goods or services, such as alcohol and tobacco, to discourage consumption and raise revenue?

Excise taxes (C) Signup and view all the answers

What is a primary function of indifference curves in economics?

To understand consumer preferences and the effects of changes in income or prices on consumption choices (B) Signup and view all the answers

Which of the following is NOT a cause of market failures?

Full employment (D) Signup and view all the answers

What is the primary goal of government intervention in markets?

To correct market failures and promote equitable distribution of resources (A) Signup and view all the answers

What is a potential consequence of inefficiencies in resource allocation?

An economy operating at a point inside the PPC (B) Signup and view all the answers

Which of the following government interventions aims to address income disparities?

Income redistribution (C) Signup and view all the answers

What is the PPC an essential conceptual tool for?

Providing insights into the trade-offs and choices facing economies due to scarce resources (C) Signup and view all the answers

What is a potential effect of high inflation rates?

Erosion of purchasing power (D) Signup and view all the answers

What is the primary objective of government policies aimed at correcting market failures?

To move the economy towards the PPC, representing efficient utilization of resources (C) Signup and view all the answers

What is the primary function of markets in allocating resources?

Determining what goods and services are produced and consumed based on collective consumer preferences (B) Signup and view all the answers

What is a key characteristic of market equilibrium?

The quantity demanded equals the quantity supplied (C) Signup and view all the answers

What is the primary role of public sector intervention in the economy?

To promote social welfare and address market failures (A) Signup and view all the answers

What is an example of an indirect tax?

Value-Added Tax (VAT) (D) Signup and view all the answers

What is the purpose of price controls in the public sector?

To make essential goods more affordable to consumers (A) Signup and view all the answers

What is a merit good?

A good or service that provides significant societal benefits and is often subsidized or provided free at the point of use (B) Signup and view all the answers

What is the primary goal of government regulation in the economy?

To regulate economic activity and prevent exploitation (A) Signup and view all the answers

What is the primary function of taxation in the public sector?

To fund public services and provide public goods (C) Signup and view all the answers

What is a potential consequence of market dynamics and external influences?

All of the above (D) Signup and view all the answers

What is the primary goal of market allocation of resources?

To allocate resources based on collective consumer preferences (A) Signup and view all the answers

What is the main purpose of setting minimum and maximum price levels in an economy?

To protect workers from exploitation and ensure fair prices for producers and consumers (A) Signup and view all the answers

What is the primary goal of social safety nets, such as pensions and disability allowances?

To support individuals who are unable to participate fully in the economy (C) Signup and view all the answers

Why does the state engage in the production of certain goods and services?

To influence vital sectors like energy and transportation (B) Signup and view all the answers

What is the shape of the PPC affected by?

The trade-offs between different choices (B) Signup and view all the answers

What happens to the PPC when there is an improvement in technology?

It shifts outward, indicating increased economic growth (C) Signup and view all the answers

What do indifference curves show?

Different combinations of two goods that provide the same level of satisfaction or utility (D) Signup and view all the answers

What is a consequence of minimum wage laws being set too high?

Negative impact on employment, as businesses may be unable to afford the higher wages (D) Signup and view all the answers

What is the role of the public sector in addressing market imperfections?

To identify and address specific market imperfections, such as externalities and information asymmetry (C) Signup and view all the answers

What is a trade-off in the context of the PPC?

A situation where the production of one good increases, while the production of another good decreases (B) Signup and view all the answers

What is the primary goal of public sector intervention in the economy?

To address market imperfections, redistribute income, and ensure economic stability (C) Signup and view all the answers

What is the primary role of prices in a market economy?

To allocate resources efficiently (D) Signup and view all the answers

Which of the following markets involves the exchange of finished products?

Consumer markets (A) Signup and view all the answers

What is the relationship between price and the quantity demanded, according to the Law of Demand?

Inverse and negative (A) Signup and view all the answers

What is the primary characteristic of a perfect market?

A large number of buyers and sellers, with full information availability (A) Signup and view all the answers

What is the term for the measure of the worth of a good or service in terms of what it can be exchanged for?

Value (C) Signup and view all the answers

Which of the following is a characteristic of imperfect markets?

One or more conditions of perfect markets are not met (A) Signup and view all the answers

What is the primary role of the exchange mechanism in a market?

To transfer goods or services from sellers to buyers at agreed prices (B) Signup and view all the answers

What is the primary function of prices in a market economy, in terms of resource allocation?

To allocate resources based on consumer preferences (A) Signup and view all the answers

What is a major consequence of uneven income distribution?

Social and economic inequalities (C) Signup and view all the answers

What is the primary goal of environmental regulations?

To prevent environmental damage (D) Signup and view all the answers

What happens to the economy when there are inefficiencies in resource allocation?

The economy operates at a point inside the PPC (A) Signup and view all the answers

What is the role of government intervention in markets?

To correct inefficiencies and promote equitable distribution of resources (B) Signup and view all the answers

What is a potential effect of high inflation rates?

Eroded purchasing power and destabilized economy (C) Signup and view all the answers

What is the primary objective of regulating monopolies?

To prevent monopolistic practices and promote competition (B) Signup and view all the answers

What is the role of the PPC in economics?

To provide insights into the trade-offs and choices facing economies (A) Signup and view all the answers

What is the primary goal of income redistribution policies?

To reduce income disparities (A) Signup and view all the answers

What is the primary function of markets in allocating resources?

To allocate resources based on collective consumer preferences (C) Signup and view all the answers

What is the primary goal of market forces in a market economy?

To maintain balance and efficiency without external interventions (D) Signup and view all the answers

What is the primary reason for public sector intervention in the economy?

All of the above (D) Signup and view all the answers

What is the term for goods and services that are non-excludable and non-rivalrous?

Public goods (B) Signup and view all the answers

What is the primary function of price controls in the public sector?

To make essential goods more affordable (B) Signup and view all the answers

What is the primary goal of taxation in the public sector?

To fund public services (B) Signup and view all the answers

What is the primary goal of government regulation in the economy?

To address market failures (C) Signup and view all the answers

What is the term for taxes levied on specific goods or services, such as alcohol and tobacco, to discourage consumption and raise revenue?

Excise taxes (B) Signup and view all the answers

What is the primary function of subsidies in the public sector?

To support industries crucial for economic stability (A) Signup and view all the answers

What is the primary goal of market allocation of resources?

To allocate resources based on collective consumer preferences (A) Signup and view all the answers

What is the primary role of competition in a market?

To drive down prices and increase quality (A) Signup and view all the answers

What is the primary difference between consumer markets and factor markets?

The type of goods and services traded (D) Signup and view all the answers

What is the purpose of prices in a market economy?

To allocate resources efficiently (D) Signup and view all the answers

What is the relationship between the price of a good and the quantity supplied?

There is a direct relationship (A) Signup and view all the answers

What is a characteristic of imperfect markets?

One or more conditions of perfect markets are not met (B) Signup and view all the answers

What is the term for the measure of the worth of a good or service in terms of what it can be exchanged for?

Value (D) Signup and view all the answers

What is the primary role of the exchange mechanism in a market?

To facilitate the transfer of goods or services (C) Signup and view all the answers

What is the term for the satisfaction a consumer derives from a good or service?

Utility (D) Signup and view all the answers

What is a consequence of uneven income distribution in a market?

Social and economic inequalities (B) Signup and view all the answers

What is the primary goal of government intervention in markets?

To correct inefficiencies and promote equitable distribution of resources (B) Signup and view all the answers

What is the primary purpose of setting minimum price levels in an economy?

To ensure producers receive a fair price (C) Signup and view all the answers

What is the main goal of social safety nets, such as pensions and disability allowances?

To provide support for the elderly and disabled (B) Signup and view all the answers

What is the effect of inefficiencies in resource allocation?

Suboptimal position on the PPC (D) Signup and view all the answers

What is the effect of price floors and ceilings on the natural balance of demand and supply?

They lead to surpluses and shortages (A) Signup and view all the answers

What is the primary role of environmental regulations?

To prevent businesses from causing irreversible environmental damage (C) Signup and view all the answers

What is the purpose of income redistribution policies?

To help reduce income disparities (A) Signup and view all the answers

Why does the state engage in the production of certain goods and services?

To provide public goods (C) Signup and view all the answers

What is the impact of high inflation rates on the economy?

Erosion of purchasing power (B) Signup and view all the answers

What is the primary goal of the public sector's interventions in the economy?

To address market imperfections (A) Signup and view all the answers

What is the primary goal of government policies aimed at correcting market failures?

To move the economy towards the PPC (B) Signup and view all the answers

What is the shape of the PPC affected by?

All of the above (D) Signup and view all the answers

What does the PPC demonstrate?

The maximum potential output of two goods (C) Signup and view all the answers

What is the significance of the PPC in economics?

It provides insights into the trade-offs and choices facing economies due to scarce resources (C) Signup and view all the answers

What is the consequence of a leftward shift in the PPC?

A reduction in resources (A) Signup and view all the answers

What is the purpose of basic income grants?

To alleviate poverty and stimulate economic activity (B) Signup and view all the answers

What is the primary goal of privatization?

To increase efficiency and reduce public sector burdens (A) Signup and view all the answers

What is the primary purpose of prices in a market economy?

To allocate resources efficiently (D) Signup and view all the answers

What type of market is characterized by a large number of buyers and sellers, no barriers to entry, and full information availability?

Perfect Market (C) Signup and view all the answers

What is the relationship between price and the quantity demanded, according to the Law of Demand?

Inverse (D) Signup and view all the answers

What is the primary function of the exchange mechanism in a market?

To facilitate the transfer of goods or services from sellers to buyers (B) Signup and view all the answers

What is the term for the worth of a good or service in terms of what it can be exchanged for?

Value (D) Signup and view all the answers

What is the primary function of consumer markets?

To facilitate the exchange of finished products (A) Signup and view all the answers

What is the primary characteristic of imperfect markets?

One or more conditions of perfect markets are not met (B) Signup and view all the answers

What is the term for the measure of the satisfaction a consumer derives from a good or service?

Utility (D) Signup and view all the answers

What is a consequence of uneven income distribution in a market economy?

Social and economic inequalities (C) Signup and view all the answers

What is the primary goal of government intervention in markets?

To correct market inefficiencies and promote equitable distribution of resources (B) Signup and view all the answers

What is a potential effect of high inflation rates on the economy?

Erosion of purchasing power (C) Signup and view all the answers

What is the primary goal of regulating monopolies in a market economy?

To promote competition (C) Signup and view all the answers

What is the role of environmental regulations in a market economy?

To prevent businesses from causing irreversible environmental damage (B) Signup and view all the answers

What is the primary goal of income redistribution policies in a market economy?

To reduce income disparities (D) Signup and view all the answers

What is the consequence of inefficiencies in resource allocation in a market economy?

The economy operates inside the PPC curve (C) Signup and view all the answers

What is the primary function of the PPC in economics?

To provide insights into the trade-offs and choices facing economies due to scarce resources (A) Signup and view all the answers

What is the main purpose of minimum and maximum price levels?

To ensure producers receive a fair price and consumers can afford essential goods (D) Signup and view all the answers

What is the primary goal of social safety nets, such as pensions and disability allowances?

To support individuals who are unable to participate fully in the economy (B) Signup and view all the answers

What is the primary reason for the state to engage in the production of certain goods and services?

To maintain influence in vital sectors like energy and transportation (D) Signup and view all the answers

What does the shape of the PPC reflect?

The economy's efficiency and the trade-offs between different choices (A) Signup and view all the answers

What is the primary goal of government interventions in the economy?

To address market imperfections and provide public goods (C) Signup and view all the answers

What is the consequence of setting minimum wage laws too high?

Negatively impacted employment (C) Signup and view all the answers

What is the primary function of the public sector in the economy?

To address market imperfections and provide public goods (A) Signup and view all the answers

What is the primary goal of privatization?

To reduce public sector burdens and increase privatization (A) Signup and view all the answers

What is the primary function of the Production Possibility Curve (PPC)?

To illustrate the trade-offs and opportunity costs associated with the allocation of limited resources (D) Signup and view all the answers

What is the effect of an improvement in technology on the PPC?

An outward shift of the PPC, indicating economic growth (C) Signup and view all the answers

What is the outcome of market equilibrium?

The quantity demanded equals the quantity supplied. (A) Signup and view all the answers

What is the primary function of markets in an economy?

To allocate resources based on consumer preferences and prices. (C) Signup and view all the answers

What is the main reason for public sector intervention in the economy?

To address market failures and redistribute income. (B) Signup and view all the answers

What is the purpose of indirect taxes, such as Value-Added Tax (VAT)?

To discourage consumption and raise revenue. (C) Signup and view all the answers

What is the outcome of a maximum price (price ceiling) set too low?

A shortage of goods and services. (B) Signup and view all the answers

What is the primary goal of government regulation in the economy?

To ensure fair pricing and economic equity. (D) Signup and view all the answers

What is the purpose of subsidies to producers?

To support industries crucial for economic stability. (B) Signup and view all the answers

What is the primary goal of public sector intervention in addressing market failures?

To address market failures and correct externalities. (A) Signup and view all the answers

What is the primary goal of taxation in the public sector?

To fund public services and implement fiscal policies. (A) Signup and view all the answers

What is the primary function of prices in a market economy?

To reflect the cost of production and the value to consumers. (B) Signup and view all the answers

What is a primary consequence of uneven income distribution in a market?

Social and economic inequalities (C) Signup and view all the answers

What is the purpose of environmental regulations in government intervention?

To prevent businesses from causing environmental damage (C) Signup and view all the answers

What happens to the economy when there are inefficiencies in resource allocation?

The economy operates inside the PPC curve (D) Signup and view all the answers

What is the primary goal of government policies aimed at correcting market failures?

To move the economy towards the PPC curve (A) Signup and view all the answers

What do indifference curves help in understanding?

Consumer preferences and the trade-offs between different goods and services (D) Signup and view all the answers

What is a potential effect of high inflation rates?

Erosion of purchasing power (B) Signup and view all the answers

What is the primary role of government intervention in markets?

To correct inefficiencies and promote equitable distribution of resources (B) Signup and view all the answers

What is the PPC an essential tool for in economics?

Providing insights into trade-offs and choices facing economies due to scarce resources (B) Signup and view all the answers

What is the main reason for setting minimum and maximum price levels in an economy?

To provide a fair price for producers and consumers (B) Signup and view all the answers

What is the primary function of social safety nets, such as pensions and disability allowances?

To redistribute income and reduce poverty (B) Signup and view all the answers

What happens to the Production Possibility Curve (PPC) when there is an improvement in technology?

It shifts outward, indicating increased economic growth (D) Signup and view all the answers

What is the primary goal of government intervention in markets?

To promote economic growth and stability (C) Signup and view all the answers

What is a characteristic of a concave Production Possibility Curve (PPC)?

Increasing opportunity costs (D) Signup and view all the answers

What is the primary reason for the state to engage in the production of certain goods and services?

To provide goods and services that are not adequately provided by the private sector (B) Signup and view all the answers

What is the term for goods and services that provide significant societal benefits and are often subsidized or provided free at the point of use?

Merit goods (C) Signup and view all the answers

What is the primary goal of market allocation of resources?

To allocate resources efficiently (D) Signup and view all the answers

What is the primary role of the public sector in addressing market imperfections?

To correct market failures and provide public goods (D) Signup and view all the answers

What is the term for the measure of the satisfaction a consumer derives from a good or service?

Utility (C) Signup and view all the answers

What is the primary purpose of the exchange mechanism in a market?

To transfer goods or services from sellers to buyers at agreed prices (B) Signup and view all the answers

Which of the following is a characteristic of imperfect markets?

One or more conditions of perfect markets are not met (D) Signup and view all the answers

What is the primary function of prices in guiding resource allocation?

To provide signals for producers and consumers (B) Signup and view all the answers

What is the relationship between price and the quantity demanded, according to the Law of Demand?

Inverse and negative (A) Signup and view all the answers

Which type of market involves the exchange of finished products?

Consumer Markets (C) Signup and view all the answers

What is the primary role of utility in a market economy?

To measure the satisfaction a consumer derives from a good or service (B) Signup and view all the answers

What is the primary characteristic of a perfect market?

All of the above (D) Signup and view all the answers

What is the primary function of prices in a market economy?

To serve as signals for producers and consumers (C) Signup and view all the answers

What is the primary function of markets in terms of resource allocation?

To allocate resources based on collective consumer preferences reflected through prices (C) Signup and view all the answers

What is the primary goal of public sector intervention in the economy?

To address market failures and redistribute income (A) Signup and view all the answers

What is the term for taxes levied on specific goods or services, such as alcohol and tobacco, to discourage consumption and raise revenue?

Indirect taxes (B) Signup and view all the answers

What is the primary goal of government regulation in the economy?

To regulate economic activity and ensure fair competition (C) Signup and view all the answers

What is the term for goods and services that are non-excludable and non-rivalrous?

Public goods (A) Signup and view all the answers

What is the primary goal of taxation in the public sector?

To fund public services and goods (B) Signup and view all the answers

What is the primary goal of government intervention in markets?

To address market failures and redistribute income (C) Signup and view all the answers

What is the term for a price set above the market equilibrium price to guarantee a minimum income for producers?

Price floor (A) Signup and view all the answers

What is the primary goal of subsidies to producers?

To support industries crucial for economic stability (B) Signup and view all the answers

What is the primary goal of market allocation of resources?

To allocate resources based on collective consumer preferences reflected through prices (D) Signup and view all the answers

What is the primary function of prices in a market economy, according to the dynamics of markets?

To allocate resources efficiently (C) Signup and view all the answers

What is the defining characteristic of consumer markets?

They involve the trade of finished products (C) Signup and view all the answers

What is the relationship between price and the quantity demanded, according to the law of demand?

There is an inverse relationship between price and the quantity demanded (C) Signup and view all the answers

What is the primary function of the exchange mechanism in a market?

To facilitate the transfer of goods or services from sellers to buyers (C) Signup and view all the answers

What is the term for the worth of a good or service in terms of what it can be exchanged for?

Value (D) Signup and view all the answers

What is the characteristic of imperfect markets?

One or more conditions of perfect markets are not met (A) Signup and view all the answers

What is the primary function of signals in a market economy?

To guide the decisions of producers and consumers (B) Signup and view all the answers

What is the term for the measure of the satisfaction a consumer derives from a good or service?

Utility (A) Signup and view all the answers

What is the primary function of markets in allocating resources?

To determine what goods and services are produced and consumed (B) Signup and view all the answers

What is the primary reason for public sector intervention in the economy?

To address market failures and redistribute income (A) Signup and view all the answers

What is the effect of a maximum price (price ceiling) set too low?

A shortage of goods and services (C) Signup and view all the answers

What is the primary goal of taxation in the public sector?

To fund public services and implement policies (B) Signup and view all the answers

What is the term for goods and services that are non-excludable and non-rivalrous?

Public goods (B) Signup and view all the answers

What is the primary goal of government regulation in the economy?

To protect the environment and public health (B) Signup and view all the answers

What is the effect of a minimum price (price floor) set above the market equilibrium price?

A surplus of goods and services (D) Signup and view all the answers

What is the primary goal of subsidies to producers?

To support industries crucial for economic stability (A) Signup and view all the answers

What is the primary goal of government intervention in markets?

To address market failures and redistribute income (D) Signup and view all the answers

What is the primary goal of market dynamics and external influences?

To adjust prices to new equilibria as required by economic shifts (A) Signup and view all the answers

What is a consequence of uneven income distribution in a market economy?

Social and economic inequalities (B) Signup and view all the answers

What is the primary goal of government intervention in markets with monopolies?

To prevent monopolistic practices and promote competition (C) Signup and view all the answers

What is a potential consequence of high inflation rates in an economy?

Erosion of purchasing power (B) Signup and view all the answers

What is the primary goal of environmental regulations in a market economy?

To prevent businesses from causing irreversible environmental damage (B) Signup and view all the answers

What is a potential consequence of inefficiencies in resource allocation?

A suboptimal position on the PPC, where not all resources are used efficiently (C) Signup and view all the answers

What is the primary goal of government policies aimed at addressing income disparities?

To reduce income inequality through welfare programs, taxes, and subsidies (C) Signup and view all the answers

What is the primary function of the Production Possibility Curve (PPC) in economics?

To provide insights into the trade-offs and choices facing economies due to scarce resources (D) Signup and view all the answers

What is the primary objective of government intervention in markets with inefficiencies?

To move the economy towards the PPC, representing efficient utilization of resources (C) Signup and view all the answers

What is the primary purpose of setting minimum and maximum price levels in an economy?

To ensure producers receive a fair price and consumers can afford essential goods (D) Signup and view all the answers

What is the primary goal of social safety nets, such as pensions and disability allowances?

To support individuals who are unable to participate fully in the economy (D) Signup and view all the answers

Why does the state engage in the production of certain goods and services?

To ensure national security and economic stability (D) Signup and view all the answers

What is the primary role of the public sector in addressing market imperfections?

To provide public goods and correct market failures (B) Signup and view all the answers

What is the primary goal of the Production Possibility Curve (PPC)?

To illustrate the trade-offs and opportunity costs associated with resource allocation (B) Signup and view all the answers

What is the effect of an improvement in technology on the PPC?

An outward shift of the PPC (D) Signup and view all the answers

What is the primary function of indifference curves?

To show different combinations of two goods that provide the same level of satisfaction (D) Signup and view all the answers

What is the primary goal of privatization?

To increase efficiency and reduce public sector burdens (B) Signup and view all the answers

What is the primary consequence of setting minimum wage laws too high?

Negatively impacted employment (C) Signup and view all the answers

What is the primary goal of government intervention in markets?

To correct market failures and provide public goods (D) Signup and view all the answers

June P2 Med

Choose a study mode

Podcast

Questions and Answers

What is a key characteristic of a market?

What is the primary function of prices in a market economy?

What is the Law of Demand?

What type of market involves the trade of resources necessary for production?

What is a characteristic of a perfect market?

What is the relationship between price and the quantity supplied?

What is the primary role of the exchange mechanism in a market?

What is the term for the measure of the satisfaction a consumer derives from a good or service?

What is the main purpose of setting minimum and maximum price levels?

What is a social safety net?

Why does the state engage in the production of certain goods and services?

What is the Production Possibility Curve (PPC) based on?

What does the shape of the PPC reflect?

What happens to the PPC when there is an improvement in technology?

What do indifference curves show?

What is a consequence of minimum wage laws being set too high?

What is the role of the public sector in addressing market imperfections?

What is a trade-off in the context of the PPC?

What is the primary goal of market forces in a market economy?

What is the main reason for public sector intervention in the economy?

What is the primary function of prices in a market economy?

What is the term for goods and services that are non-excludable and non-rivalrous?

What is the primary goal of taxation in the public sector?

What is the term for a price set above the market equilibrium price to guarantee a minimum income for producers?

What is the primary reason for the public sector to provide subsidies to consumers?

What is the term for goods and services that provide significant societal benefits and are often subsidized or provided free at the point of use?

What is the primary goal of market allocation of resources?

What is the term for taxes levied on specific goods or services, such as alcohol and tobacco, to discourage consumption and raise revenue?

What is a primary function of indifference curves in economics?

Which of the following is NOT a cause of market failures?

What is the primary goal of government intervention in markets?

What is a potential consequence of inefficiencies in resource allocation?

Which of the following government interventions aims to address income disparities?

What is the PPC an essential conceptual tool for?

What is a potential effect of high inflation rates?

What is the primary objective of government policies aimed at correcting market failures?

What is the primary function of markets in allocating resources?

What is a key characteristic of market equilibrium?

What is the primary role of public sector intervention in the economy?

What is an example of an indirect tax?

What is the purpose of price controls in the public sector?

What is a merit good?

What is the primary goal of government regulation in the economy?

What is the primary function of taxation in the public sector?

What is a potential consequence of market dynamics and external influences?

What is the primary goal of market allocation of resources?

What is the main purpose of setting minimum and maximum price levels in an economy?

What is the primary goal of social safety nets, such as pensions and disability allowances?

Why does the state engage in the production of certain goods and services?

What is the shape of the PPC affected by?

What happens to the PPC when there is an improvement in technology?

What do indifference curves show?

What is a consequence of minimum wage laws being set too high?

What is the role of the public sector in addressing market imperfections?

What is a trade-off in the context of the PPC?

What is the primary goal of public sector intervention in the economy?

What is the primary role of prices in a market economy?

Which of the following markets involves the exchange of finished products?

What is the relationship between price and the quantity demanded, according to the Law of Demand?

What is the primary characteristic of a perfect market?

What is the term for the measure of the worth of a good or service in terms of what it can be exchanged for?

Which of the following is a characteristic of imperfect markets?

What is the primary role of the exchange mechanism in a market?

What is the primary function of prices in a market economy, in terms of resource allocation?

What is a major consequence of uneven income distribution?

What is the primary goal of environmental regulations?

What happens to the economy when there are inefficiencies in resource allocation?

What is the role of government intervention in markets?

What is a potential effect of high inflation rates?

What is the primary objective of regulating monopolies?

What is the role of the PPC in economics?

What is the primary goal of income redistribution policies?

What is the primary function of markets in allocating resources?

What is the primary goal of market forces in a market economy?

What is the primary reason for public sector intervention in the economy?

What is the term for goods and services that are non-excludable and non-rivalrous?