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Phần I: Khái niệm cơ bản và Cung Cầu (Câu 1-28)

Total questions: 125

Worksheet time: 1hrs 3mins

Name
Class
Date
1.

Scarcity forces societies to make which fundamental decision?

a)

Which wants to satisfy

b)

How to print more money

c)

Who should set market prices

d)

How to remove all needs

2.

On a production possibility frontier, points outside the curve represent

a)

Inefficient combinations

b)

Currently unattainable output

c)

Fully efficient production

d)

Underutilized resources

3.

Moving along a PPF illustrates

a)

Opportunity cost between goods

b)

Constant money supply

c)

Zero trade-offs needed

d)

Falling opportunity cost

4.

Opportunity cost is best described as

a)

Price paid in currency

b)

Sum of all alternatives

c)

Historical sunk expense

d)

Best alternative forgone

5.

Which event would shift a nation’s PPF outward?

a)

Decrease in labor skills

b)

Destruction of capital

c)

Technological improvement

d)

Higher unemployment rate

6.

The law of demand states that, ceteris paribus, when price rises,

a)

Demand becomes perfectly elastic

b)

Quantity demanded falls

c)

Demand curve shifts right

d)

Quantity demanded rises

7.

A change in which factor causes a movement along the demand curve, not a shift?

a)

Prices of substitutes

b)

Income of buyers

c)

Tastes and trends

d)

Price of the good

8.

Which would shift the demand curve for tea to the right?

a)

Fewer consumers in market

b)

Higher consumer incomes

c)

Higher tea prices

d)

Lower coffee prices

9.

If two goods are complements, an increase in the price of one will

a)

Raise demand for the other

b)

Shift supply of the other

c)

Not affect the other

d)

Lower demand for the other

10.

The law of supply states that, ceteris paribus, when price increases,

a)

Quantity supplied increases

b)

Supply curve shifts left

c)

Market clears immediately

d)

Quantity demanded increases

11.

Which change shifts the supply curve of laptops to the right?

a)

Higher taxes on firms

b)

Technological advances

c)

Lower number of sellers

d)

Higher input costs

12.

Market equilibrium occurs at the price where

a)

Demand equals supply

b)

Prices are regulated

c)

Demand exceeds supply

d)

Supply exceeds demand

13.

If demand increases while supply is unchanged, equilibrium price will

a)

Stay constant for both

b)

Rise and quantity falls

c)

Rise and quantity rises

d)

Fall and quantity falls

14.

A simultaneous decrease in demand and decrease in supply causes equilibrium price to

a)

Definitely rise

b)

Definitely fall

c)

Be indeterminate

d)

Stay unchanged

15.

Which scenario reflects increasing marginal opportunity cost along a bowed-out PPF?

a)

Giving up more of one good as more of the other is produced

b)

Giving up constant amounts for constant gains

c)

Facing no trade-off between goods

d)

Giving up small amounts to gain small amounts

16.

Which factor would not shift the demand curve for apples?

a)

Change in price of pears

b)

Change in tastes

c)

Change in income

d)

Change in apple price

17.

A price ceiling set below equilibrium leads to

a)

Market shortage of the good

b)

Market surplus of the good

c)

More sellers entering market

d)

No change in market outcome

18.

Khi hai hàng hóa là thay thế nhau thì:

a)

Co giãn theo giá của một trong các hàng hóa là âm

b)

Co giãn theo thu nhập của một trong các hàng hóa là âm

c)

Co giãn chéo của cầu là dương

d)

Co giãn chéo của cầu là âm

19.

Theo lí thuyết cầu và cung, mức giá cân bằng trên thị trường hình thành do:

a)

Do Chính phủ quy định

b)

Chủ quan một số người bán

c)

Chủ quan một số người mua

d)

Khách quan do toàn bộ người mua và người bán

20.

Mức giá trần được Chính phủ qui định nhằm bảo vệ lợi ích cho:

a)

Người tiêu dùng

b)

Cả người tiêu dùng và người sản xuất

c)

Người nước ngoài

d)

Người sản xuất

21.

Hàng hóa thay thế là những hàng hóa:

a)

Đắt tiền

b)

Có cùng giá trị sử dụng thay thỏa mãn nhu cầu

c)

Khác biệt nhau hoàn toàn

d)

Khi tiêu dùng hàng hóa này thì phải tiêu dùng hàng hóa khác

22.

Hàm số cầu tuyến tính có dạng:

a)

Q = f(I,N) trong đó, I: thu nhập của người tiêu dùng, N: số lượng người tiêu dùng

b)

P = a + b.Q với b>0

c)

Q = a +b.P với b<0

d)

Q = a +b.P với b>0

23.

Hàm số cung tuyến tính có dạng:

a)

Q = a +b.P với b>0

b)

Q = f(I,N) trong đó, I: thu nhập của người tiêu dùng, N: số lượng người sản xuất

c)

Q = a +b.P với b<0

d)

P = a + b.Q với b<0

24.

Mức giá sàn được Chính phủ qui định nhằm bảo vệ lợi ích cho:

a)

Người sản xuất

b)

Người tiêu dùng

c)

Người nước ngoài

d)

Cả người tiêu dùng và người sản xuất

25.

Trong kinh tế học, lợi ích khi tiêu dùng hàng hóa là:

a)

Lợi nhuận đạt được sau khi bán lại hàng hóa đó

b)

Số tiền phải bỏ ra để mua hàng hóa đó

c)

Lợi ích sức khoẻ mà hàng hóa đó mang lại

d)

Sự hài lòng, thỏa mãn đạt được khi tiêu dùng hàng hóa đó

26.

Lợi ích cận biên của một hàng hóa chỉ ra:

a)

Rằng tính hữu ích của hàng hóa là có hạn

b)

Không câu nào đúng

c)

Sự sẵn sàng thanh toán cho một đơn vị bổ sung

d)

Rằng hàng hóa đó là khan hiếm

27.

Các điểm nằm trên đường bàng quan biểu thị:

a)

Tập hợp các hàng hóa khác nhau, độ thỏa dụng giống nhau

b)

Tập hợp các hàng hóa giống nhau, độ thỏa dụng giống nhau

c)

Tập hợp các hàng hóa khác nhau, độ thỏa dụng khác nhau

d)

Tập hợp các hàng hóa giống nhau, có độ thỏa dụng khác nhau

28.

Đường ngân sách biểu diễn:

a)

Các tập hợp hàng hóa được lựa chọn của một người tiêu dùng

b)

Các tập hợp hàng hóa khiến người tiêu dùng chi hết ngân sách của mình

c)

Số lượng của mỗi hàng hóa một người tiêu dùng có thể mua

d)

Mức tiêu dùng mong muốn đối với một người tiêu dùng

29.

Độ dốc của đường ngân sách phụ thuộc vào:

a)

Các hàng hóa có bổ sung hay thay thế cho nhau không

b)

Hàng hóa đó là hàng hóa thông thường hay cấp thấp

c)

Thu nhập của người tiêu dùng

d)

Giá cả của các hàng hóa

30.

Quy tắc tối đa hóa lợi ích của người tiêu dùng khi tiêu dùng nhiều loại hàng hóa là:

a)

Lợi ích cận biên thu được từ mỗi hàng hóa nhân với giá của nó phải bằng nhau

b)

Lợi ích cận biên thu được từ mỗi hàng hóa bằng không

c)

Lợi ích cận biên thu được trên giá phải trả cho mỗi loại hàng hóa phải bằng nhau

d)

Lợi ích cận biên thu được từ mỗi hàng hóa phải bằng nhau

31.

Điều kiện tiêu dùng tối ưu của người tiêu dùng là:

a)

Lợi ích cận biên của các hàng hóa bằng nhau

b)

Đường ngân sách là tiếp tuyến của đường bàng quan

c)

Chi tiêu vào các hàng hóa bằng nhau

d)

Lợi ích cận biên của mỗi hàng hóa bằng giá của nó

32.

Mối quan hệ giữa MU và TU nào đúng:

a)

MU > 0 thì TU đạt cực đại

b)

MU = 0 thì TU đạt cực đại

c)

MU = 0 thì TU tăng

d)

MU > 0 thì TU giảm

33.

Khi tiêu dùng một loại hàng hóa, người tiêu dùng tối đa hóa lợi ích khi:

a)

MU < 0

b)

MU > 0

c)

MU = 0

d)

MU/P > 0

34.

Nếu thay đổi giá các hàng hóa và thu nhập cùng một tỉ lệ % thì:

a)

Làm lợi ích người tiêu dùng giảm xuống nhỏ nhất

b)

Làm lợi ích người tiêu dùng đạt lớn nhất

c)

Làm thay đổi giá và lượng hàng hóa tối ưu

d)

Làm cho số lượng hàng hóa tối đa hóa lợi ích không đổi

35.

Quy luật lợi ích cận biên giảm dần có thể giải thích cho:

a)

Đường giới hạn khả năng sản xuất

b)

Quy luật chi phí cơ hội tăng dần

c)

Đường cầu dốc xuống

d)

Đường cung dốc lên

36.

Đường ngân sách là:

a)

Tập hợp các mối quan hệ về giá và lợi ích

b)

Tập hợp những hàng hóa mang lại lợi ích như nhau đối với người tiêu dùng

c)

Tập hợp các lô hàng mà người tiêu dùng tối đa hóa lợi ích

d)

Tập hợp các lô hàng mà người tiêu dùng có thể mua được với ngân sách đã cho

37.

Thặng dư tiêu dùng khi tiêu dùng thêm 01 đơn vị hàng hóa là:

a)

Chênh lệch giữa lợi ích cận biên và giá hàng hóa

b)

Chênh lệch giữa lợi ích cận biên và chi phí cận biên

c)

Hiệu số giữa lợi ích cận biên và tổng lợi ích

d)

Hiệu số giữa lượng tiền thực trả và lượng tiền vay

38.

Đường cầu dốc xuống dưới về phía phải vì:

a)

Người tiêu dùng mua nhiều hàng hóa hơn khi giá tăng

b)

Lợi ích cận biên tăng dần theo lượng

c)

Chi phí cơ hội giảm dần theo giá

d)

Hiệu ứng thay thế và hiệu ứng thu nhập

39.

Which statement best defines fixed cost in short-run production?

a)

Cost that does not change with output level

b)

Cost per unit averaged over output

c)

Cost of the last unit produced

d)

Cost that rises proportionally with output

40.

Average fixed cost (AFC) is computed as:

a)

Marginal cost divided by quantity

b)

Fixed cost divided by quantity

c)

Total cost minus total variable cost

d)

Total variable cost divided by quantity

41.

Total cost (TC) equals:

a)

Variable cost minus fixed cost

b)

Price times quantity

c)

Average cost plus marginal cost

d)

Fixed cost plus variable cost

42.

Marginal cost (MC) is defined as:

a)

Change in total cost per extra unit

b)

Total cost divided by quantity

c)

Average variable cost minus AFC

d)

Change in fixed cost per unit

43.

In profit maximization for a price-taking firm, the optimal output satisfies:

a)

ATC equals AVC

b)

MR equals MC

c)

TR equals TC

d)

P equals ATC

44.

For a competitive firm, marginal revenue (MR) equals:

a)

Change in TR over change in Q

b)

Total revenue divided by cost

c)

Price minus marginal cost

d)

Average revenue plus price

45.

If P is constant for a competitive firm, the firm’s demand curve is:

a)

Downward sloping and elastic

b)

Horizontal at market price

c)

Vertical at chosen output

d)

Upward sloping with capacity

46.

Which relation is correct for average total cost (ATC)?

a)

ATC equals AVC minus MC

b)

ATC equals MC plus AFC

c)

ATC equals TR minus TC

d)

ATC equals AVC plus AFC

47.

A firm maximizes revenue when:

a)

TR equals TC at shutdown

b)

ATC minimal and AVC falling

c)

TR' equals zero and TR'' less than zero

d)

MR equals MC and MC rising

48.

Given TC = Q2+2Q+100Q^2 + 2Q + 100 , fixed cost (FC) equals:

a)

100 divided by Q

b)

2Q + 100

c)

Q2+2QQ^2 + 2Q

d)

100

49.

Given TC = Q2+2Q+100Q^2 + 2Q + 100 , variable cost (VC) equals:

a)

Q2+2QQ^2 + 2Q

b)

2Q + 100

c)

Q2+100Q^2 + 100

d)

100 divided by Q

50.

For TC = Q2+2Q+100Q^2 + 2Q + 100 , marginal cost (MC) equals:

a)

100 divided by Q

b)

2Q + 2

c)

Q + 2

d)

2Q + 100

51.

In perfect competition, free entry and exit imply that in the long run:

a)

Demand for each firm slopes down

b)

Firms earn positive economic profit

c)

Price equals minimum ATC

d)

MR exceeds MC at optimum

52.

A price taker charging above market price will:

a)

Sell the same quantity

b)

Gain customers from rivals

c)

Lose all customers immediately

d)

Lose some customers slowly

53.

Profit equals:

a)

Marginal revenue minus MC

b)

Price minus average cost

c)

Total revenue minus total cost

d)

Total cost minus total revenue

54.

At the profit-maximizing quantity for a competitive firm with P > ATC, the firm:

a)

Earns positive economic profit

b)

Breaks even with zero profit

c)

Operates at a loss but continues

d)

Shuts down immediately

55.

Short-run shutdown occurs when:

a)

Price is below AVC at all outputs

b)

Price equals MC at rising part

c)

Price falls below ATC but above AVC

d)

MR exceeds MC at optimum

56.

With demand P = 100 − 0.01Q, marginal revenue (MR) equals:

a)

100Q−0.02Q2100Q - 0.02Q^2

b)

100Q−0.01Q2100Q - 0.01Q^2

c)

100 − 0.01Q

d)

100 − 0.02Q

57.

In perfect competition, the shutdown point occurs where:

a)

ATC equals MC

b)

P equals AVCmin

c)

AFC equals MC

d)

P equals MC

58.

In a perfectly competitive market:

a)

Firms are price takers

b)

Firm demand curve is horizontal

c)

All of the above are correct

d)

Marginal revenue equals price

59.

If one firm supplies the entire market, the market structure is:

a)

Monopoly

b)

Oligopoly

c)

Monopolistic competition

d)

Perfect competition

60.

If several firms dominate an industry, the market structure is:

a)

Oligopoly

b)

Monopsony

c)

Monopoly

d)

Perfect competition

61.

When competition is imperfect, a firm's demand curve is:

a)

Upward sloping

b)

Horizontal line

c)

Downward sloping

d)

Vertical line

62.

A perfectly competitive firm breaks even where:

a)

MR equals MC

b)

P equals AVCmin

c)

P equals MC

d)

P equals ATCmin

63.

In perfect competition, at prices with AVC < P < ATC, the firm:

a)

Covers variable costs and part of fixed costs

b)

Covers only fixed costs fully

c)

Covers none of fixed costs

d)

Covers all costs already incurred

64.

A monopolist maximizes profit at the quantity where:

a)

P equals MR

b)

ATC equals P

c)

MR equals MC

d)

P equals MC

65.

A factor leading to monopoly power is:

a)

Small firm scale economies

b)

Public goods production

c)

Patent protection grants

d)

Many buyers of the product

66.

To classify market structure, consider:

a)

Entry and exit barriers

b)

All of the above together

c)

Types of products offered

d)

Number of buyers and sellers

67.

Products in perfect competition are considered:

a)

Unique to each firm

b)

Perfect substitutes

c)

Inferior goods mainly

d)

Differentiated strongly

68.

A current monopoly in Vietnam railways exists mainly due to:

a)

Excess consumer demand growth

b)

Strong economies of scale

c)

Explicit government regulation

d)

Patent-based dominance

69.

A monopolist’s market power implies:

a)

Faces horizontal demand

b)

Sells at given market price

c)

Lacks market power

d)

Has market power

70.

In perfect competition with P > ATC, the firm:

a)

Shuts down immediately

b)

Incurs a loss

c)

Breaks even

d)

Maximizes profit

71.

In perfect competition with P < AVC, the firm:

a)

Profits and covers sunk costs

b)

Loses but covers variable costs

c)

Loses but covers fixed costs

d)

Loses and shuts down production

72.

In perfect competition, information about prices and products is:

a)

Perfectly known

b)

Completely unknown

c)

Hidden by sellers often

d)

Partially known to most

73.

A monopolist is characterized by:

a)

Accepting the given price

b)

Setting product price rules

c)

Horizontal firm demand

d)

No market power at all

74.

In the labor market, labor demand equals:

a)

Number of workers available

b)

Total labor demand by firms

c)

Output supply of the industry

d)

Marginal product of labor

75.

A wage increase can raise labor supply through:

a)

Government policy alone

b)

The income effect mainly

c)

The substitution effect mainly

d)

Only leisure preference shifts

76.

The substitution effect of higher wages tends to:

a)

Reduce hours of labor supplied

b)

Increase hours of labor supplied

c)

Only reduce rest periods

d)

Both B and C together

77.

An individual labor supply curve can:

a)

Always slope upward only

b)

Be perfectly vertical always

c)

Always slope downward only

d)

Slope either way depending on effects

78.

During a lifetime, hours worked change partly due to:

a)

Early retirement via substitution effect

b)

Late retirement via substitution effect

c)

Early quitting via income effect

d)

Late quitting via income effect

79.

Which factor does not increase inequality:

a)

Inherited wealth channels

b)

Progressive income taxation

c)

Risk acceptance rewards

d)

Skill differentials widening

80.

In land markets, the long-run supply of land is:

a)

Always negative slope

b)

Perfectly elastic

c)

Perfectly inelastic

d)

Always variable widely

81.

For a firm, choice of land area depends on:

a)

Only government dictates

b)

Only fixed legal allocations

c)

Firm production decisions

d)

Both A and C jointly

82.

Inputs to production include:

a)

Capital only

b)

All of these together

c)

Labor only

d)

Land only

83.

A firm can raise profit by:

a)

Raising product prices only

b)

Selling more output units

c)

Cutting production costs

d)

All of these approaches

84.

Tax on income sources is:

a)

Entirely voluntary choice

b)

Set by local property owners

c)

Based on government rights

d)

Controlled by government

85.

A key advantage of corporations is:

a)

Unlimited liability for owners

b)

High ability to raise capital

c)

Highest information secrecy

d)

Low flexibility of ownership

86.

Public goods are:

a)

Goods everyone can enjoy once provided

b)

Goods that can exclude nonpayers easily

c)

The most common form of positive externality

d)

None of the above statements

87.

Market failure in economic terms refers to:

a)

Monopoly markets always setting low prices

b)

Government failure to regulate markets

c)

Perfectly competitive markets working well

d)

Markets not achieving efficient allocation

88.

Vaccination against flu is an example of:

a)

Positive externality

b)

Fair income distribution policy

c)

Negative externality

d)

Public good type good

89.

Products sold in monopoly markets are:

a)

Unique

b)

Identical

c)

Expensive

d)

Easy to substitute

90.

Education or health care can be seen as:

a)

A type of negative externality

b)

A type of public good

c)

A private consumption product

d)

A way to ensure equal income distribution

91.

When a resource is jointly owned by many users:

a)

It cannot be overexploited

b)

No incentive to overuse exists

c)

Users hold exclusive rights to the asset

d)

There are incentives to overuse and deplete

92.

Government roles in the economy include:

a)

Both A and B are correct

b)

Creating legal framework for transactions

c)

Intervening when markets are inefficient

d)

Producing most goods and services

93.

Basic economic decisions include:

a)

What to produce

b)

How to produce goods

c)

For whom to produce

d)

All of the above

94.

Giving up an hour to shop and buying a shirt for 300,000 VND. The opportunity cost is:

a)

The best use of the hour and 300,000 VND

b)

One hour and 300,000 VND

c)

300,000 VND only

d)

One hour of time

95.

In economics, distribution refers to:

a)

Who receives goods

b)

How to ask questions

c)

What to ask for

d)

Retailing and shipping

96.

Choices by individuals and firms are constrained by:

a)

Only production capacity

b)

All of these constraints

c)

Only time limits

d)

Only budget limits

97.

Vietnam currently operates under which mechanism?

a)

Market mechanism

b)

Command mechanism

c)

Mixed mechanism

d)

Social mechanism

98.

National income rises from 3.75 to 4.25 trillion, car sales rise from 3 to 5 million. The income elasticity of car demand is:

a)

0.5

b)

2.0

c)

3.0

d)

4.0

99.

A planned increase in special consumption tax on cars will cause:

a)

Future car supply to rise

b)

Current car demand to rise

c)

Current car demand to fall

d)

Both demand and supply to fall

100.

Why are farm incomes high in years of bad weather with low output?

a)

Demand is perfectly elastic

b)

Demand is inelastic so price and revenue rise

c)

Supply is inelastic so revenue falls

d)

Supply is elastic

101.

Price elasticity of demand is -1/3. If price rises 30%, quantity demanded changes by:

a)

Quantity rises 10%

b)

Quantity falls 10%

c)

Quantity falls 90%

d)

Quantity rises 90%

102.

When rice supply curve shifts right:

a)

Supply curve moves rightward

b)

Supply curve pivots rightward

c)

Supply curve pivots leftward

d)

Supply curve moves leftward

103.

The marginal utility decreasing means what?

a)

Utility from each unit is limited

b)

None of the statements are correct

c)

Willingness to pay for extra unit declines

d)

Goods in question are scarce items

104.

If a person is willing to pay 100 USD for a coffee maker and 120 USD for a blender, the marginal benefit of the coffee maker is:

a)

60 USD

b)

100 USD

c)

120 USD

d)

20 USD

105.

A consumer has monthly income 400,000 VND to spend on goods X and Y. Prices are Px = 5,000 VND and Py = 10,000 VND. The budget constraint is:

a)

400000 = X.10000 + Y.5000

b)

X/5000 = Y/10000

c)

X + Y = 100000

d)

400000 = X.5000 + Y.10000

106.

With income 400,000 VND, Px = 5,000 VND and Py = 10,000 VND, the slope of the budget line (dY/dX) is:

a)

1/80

b)

1/2

c)

1/40

d)

-1/2

107.

A market is a place where:

a)

Buyers and sellers interact to trade

b)

Producers sell their own outputs

c)

People buy for personal gain

d)

Government sells its goods

108.

A joint-stock company must have at least how many shareholders?

a)

02

b)

03

c)

04

d)

05

109.

Given demand P = 100 – 0.01Q, total revenue TR as a function of Q is:

a)

TR = 100 – 0.01Q

b)

TR = 100Q

c)

TR = 100Q – 0.01Q2

d)

TR = 100 – 0.02Q

110.

For total cost TC = Q2 + 2Q + 100, the average fixed cost AFC equals:

a)

AFC = 2Q + 2

b)

AFC = 100/Q

c)

AFC = 2Q + 100

d)

AFC = Q2 + 2Q

111.

In a limited liability company, the maximum number of members is not more than:

a)

30

b)

40

c)

50

d)

60

112.

If goods A and B are complements, when price of A rises, the demand for B:

a)

Shifts leftward

b)

Shifts rightward

c)

Moves along rightward

d)

Moves along leftward

113.

When firms in an oligopoly collude successfully, the outcome resembles:

a)

Administered pricing

b)

Monopoly

c)

Perfect competition

d)

Monopolistic competition

114.

Which economic system primarily uses government to resolve basic economic problems?

a)

Centrally planned economy

b)

Traditional economy

c)

Mixed economy

d)

Market economy

115.

Price elasticity of demand equals:

a)

Quantity share over price share change

b)

Percent change in demand share over price change

c)

Revenue share change over price change percent

d)

Percent change in quantity over price change percent

116.

A simple economy typically includes which sectors?

a)

Households, firms

b)

Households, firms, government

c)

Firms, government

d)

Households, government, foreigners

117.

A firm controls 9/10 of world nickel output; this is an example of:

a)

Natural monopoly

b)

Control of key inputs

c)

Government regulation

d)

Patent monopoly

118.

A government breaking up monopolies aims primarily to:

a)

Avoid not reducing firm sizes

b)

Stop growth of large firms

c)

Ensure market competition

d)

Open public services

119.

Firms can cut production costs by:

a)

Reducing sale prices

b)

Cutting labor in production

c)

Selling more output

d)

No feasible options exist

120.

A person borrows present value at 10% annually and repays 332.102 after 5 years. The principal lent was:

a)

120 units of money

b)

100 units of money

c)

200 units of money

d)

150 units of money

121.

The attractiveness (price) of a bond increases when:

a)

Coupon rate rises above market

b)

Market interest rates rise

c)

Bond liquidity becomes worse

d)

Issuer default risk rises

122.

In a standard supply–demand model, what happens when supply decreases while demand stays constant?

a)

Equilibrium price rises, equilibrium quantity falls

b)

Both price and quantity fall together

c)

Equilibrium price falls, quantity rises

d)

Both price and quantity rise together

123.

Rationing scarce goods by queues, lotteries, or coupons attempts to address what issue when prices cannot clear the market?

a)

Consumer preference measurement

b)

Maximizing producer revenues only

c)

Eliminating all deadweight loss

d)

Allocative efficiency under shortages

124.

Which is a direct regulatory method a government can use to correct market outcomes?

a)

Issuing legal standards and rules

b)

Encouraging private charity drives

c)

Waiting for prices to self-adjust

d)

Posting public service announcements

125.

Which rationale best explains market intervention to handle negative externalities like pollution?

a)

Supporting only state-owned enterprises

b)

Ensuring firms face no compliance costs

c)

Raising government employment levels

d)

Protecting natural resource sustainability

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