Role of Government in the Economy

When government gives out unemployment benefits, it promotes ____

• Competition

• Efficiency

• Equity

• Economic Growth

A sub-function of government that expanded the number of oil producers from just Petron, Shell and Chevron/Caltex because it allowed the entry of smaller oil companies like Unioil, Total, Flying V, etc. This move is to promote ___

• Equity

• Competiton

• Better Information

• Economic Growth

An unregulated market (no government intervention) tends to produce ___ negative externalities.

• Too Many

• Too Little

• Not enough

• Enough

An unregulated market tends to produce ___ positive externalities.

• Too Many

• Too Little

• Economic Growth

To help consumers come up with better decisions when making purchases, i.e. canned goods, government promotes ___

• Positive Externalities

• Transfer Payments

• Better Information

• Public Goods

In cases where government has allowed monopolies, to limit the power of monopolies, it ___, just like with Meralco and Maynilad.

• Regulates Information

• Promotes Positive Externalities

• Controls Negative Externalities

• Controls Prices

One way to promote Equity is to

• Regulate Monopolies

• Control Competition

• Implement Progressive Taxation

• Implement the Antitrust Law

The problem with colluding firms in an oligopoly is that the firms become like a/an ___.

• Competition

• Monopolistic Competition

• Monopoly

• Public Good providers

Cellphones is an example of a

• Public Good

• Private Good

• Natural Monopoly

• Common Resource

One advantage of having greater competition is

• Prices go up

• Quality of goods/service go down

• Prices go down