Free Market Policies Quiz

What is the primary objective of free market policies?

• To increase government intervention

• To reduce market competition

• To promote economic efficiency

• To raise tax revenues

Which of the following is an example of deregulation in product markets?

• Introducing minimum wages

• Removing restrictions on new market entrants

• Increasing government subsidies for firms

• Imposing tariffs on imported goods

Which policy is most likely to improve labour market flexibility?

• Introducing industry-level agreements

• Reducing trade union power

• Increasing corporate tax rates

• Imposing strict employment laws

Privatization involves:

• Government taking over private firms

• Selling state-owned enterprises to the private sector

• Increasing government spending on public goods

• Nationalizing key industries

Which of the following policies would reduce the cost of bureaucracy for firms?

• Lowering corporate tax rates

• Simplifying regulations

• Increasing welfare payments

• Strengthening competition policies

What is the main aim of competition policy?

• To prevent monopolies from forming

• To encourage the growth of large firms

• To promote trade union activity

• To increase government intervention in the market

Deregulation in the labour market refers to:

• Strengthening minimum wage laws

• Increasing the power of trade unions

• Reducing legal constraints on hiring & firing

• Expanding public sector employment

A reduction in income tax is most likely to:

• Decrease disposable income

• Increase work incentives

• Reduce labour supply

• Lower consumer spending

What is the effect of privatization on efficiency?

• It typically reduces efficiency in the short-term

• It increases efficiency by promoting competition

• It eliminates the need for government oversight (pengawasan pemerintah)

• It has no impact on efficiency

Which of the following is an argument against trade unions in free market policies?

• They reduce labour market flexibility

• They enhance (meningkatkan) productivity

• They promote wage flexibility

• They reduce income inequality