Economic Policies

Multiple Choice

What type of market structure is characterized by a single seller with complete control over the market?

• Oligopoly
• Monopoly
• Free market
• Imperfect competition

Multiple Choice

In which market structure do a few large firms dominate the market and have the ability to set prices?

• Oligopoly
• Monopolistic competition
• Perfect monopoly
• Monopsony

Multiple Choice

Which market structure is characterized by many firms selling similar but not identical products?

• Oligopoly
• Perfect monopoly
• Monopolistic competition
• Monopoly

Multiple Choice

What type of market structure is characterized by two firms dominating the market?

answer choices

• Duopoly
• Oligopoly
• Perfect competition
• Monopoly

Multiple Choice

What are some barriers to entry in a monopoly?

• High competition
• Low start-up costs, control of essential resources, and legal barriers
• No barriers to entry
• High start-up costs, control of essential resources, legal barriers, and economies of scale

Multiple Choice

How does monopolistic competition differ from perfect competition?

• Monopolistic competition has a single price for all products, while perfect competition has varying prices.
• Monopolistic competition involves government regulation, while perfect competition does not.
• Monopolistic competition has only one seller, while perfect competition has multiple sellers.
• Monopolistic competition involves differentiated products, while perfect competition involves identical products.

Multiple Choice

What is an example of a duopoly in the real world?

• Coca-Cola and PepsiCo in the soft drink industry
• Toyota and Honda in the automotive industry
• Nike and Adidas in the sportswear industry
• Amazon and Apple in the technology industry

Multiple Choice

What is the primary goal of fiscal policy?

• C. Controlling inflation and unemployment
• D. Boosting inflation and unemployment
• B. Reducing the money supply
• A. Increasing interest rates

Multiple Choice

What is the aim of expansionary fiscal policy during an economic downturn?

• Increase government spending and increase taxes
• Reduce government spending and increase taxes
• Decrease government spending and decrease taxes
• Increase government spending and decrease taxes

Multiple Choice

How does expansionary monetary policy aim to stimulate economic activity?

• Printing more money
• Lowering interest rates and increasing the money supply
• Reducing taxes
• Increasing interest rates

Multiple Choice

In fiscal policy, what is contractionary fiscal policy designed to achieve?

• A. Stimulate economic growth
• C. Reduce government spending
• D. Lower interest rates
• B. Control inflation

Multiple Choice

What is the main tool used in monetary policy to control the money supply?

• Government spending

• Taxation

• Interest rates

• Exchange rates

• Interest rates

• Stock market performance

• Increasing government debt

• Printing more money

Multiple Choice

How does the Central Bank of Nigeria influence the money supply during contractionary monetary policy?

• Raises taxes
• Increases interest rates
• Increases government spending
• Decreases interest rates