Miscellaneous Economic MCQs

Which market structure is characterized by a large number of firms, differentiated products, and easy entry and exit?

A) Monopoly

B) Oligopoly

C) Monopolistic competition

D) Perfect competition

Economies of scale refer to:

A) Decreasing average costs as production increases

B) Increasing average costs as production increases

C) Constant average costs regardless of production levels

D) Average costs independent of firm size

Which of the following is a non-price competition strategy used by firms in monopolistic competition?

A) Advertising and product differentiation

B) Setting higher prices to limit competition

C) Colluding with other firms to set prices

D) Implementing price controls

The Herfindahl-Hirschman Index (HHI) is used to measure:

A) Consumer price index

B) Market concentration and competition

C) Economic growth rates

D) Inflation rates

Which market structure is characterized by a small number of interdependent firms?

A) Monopoly

B) Oligopoly

C) Monopolistic competition

D) Perfect competition

Public goods are characterized by:

A) Rivalry in consumption and excludability

B) Non-rivalry in consumption and excludability

C) Rivalry in consumption and non-excludability

D) Non-rivalry in consumption and non-excludability

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

A) Income tax

B) Sales tax

C) Property tax

D) Corporate tax

The Laffer curve illustrates the relationship between tax rates and:

A) Government spending

B) Inflation rates

C) Tax revenue

D) Public debt

What is the primary goal of fiscal policy?

A) Stabilize prices and control inflation

B) Promote economic growth and employment

C) Regulate money supply and interest rates

D) Maintain a balanced budget

Which of the following is a key feature of a progressive tax system?

A) Low-income earners pay a higher percentage of their income in taxes

B) High-income earners pay a higher percentage of their income in taxes

C) Everyone pays the same amount of tax regardless of income level

D) Tax rates decrease as income levels increase