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Question (11)

QN0024552

What is the main aim of government regulation in markets?

(A) Increase monopoly power
(B) Ensure fair trade and consumer protection
(C) Reduce production completely
(D) Remove certification systems

Correct Answer: B

Explanation:

To ensure fair trade and protect consumers

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Question (12)

QN0024553

Which situation best describes market failure requiring government intervention?

(A) Equal demand and supply
(B) Pollution caused by production
(C) Bargaining between buyer and seller
(D) Increase in shopping malls

Correct Answer: B

Explanation:

Pollution is a negative externality causing market failure

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Question (13)

QN0024554

Single-use plastic regulation is mainly introduced to control:

(A) Inflation
(B) Environmental damage
(C) Export trade
(D) Stock prices

Correct Answer: B

Explanation:

To reduce environmental pollution

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Question (14)

QN0024555

What is the effect of too high a government-fixed price ceiling?

(A) Producers stop selling
(B) Consumers buy more easily
(C) Market surplus increases
(D) No effect on demand

Correct Answer: A

Explanation:

Producers may stop selling due to low price

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Question (15)

QN0024556

What does “net quantity” regulation ensure?

(A) Product branding
(B) Correct amount of product is given to consumers
(C) Export quality only
(D) Price reduction

Correct Answer: B

Explanation:

Ensures correct measured quantity is provided

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Question (16)

QN0024557

Which authority ensures quality testing of medicines?

(A) Municipal corporation
(B) Government regulatory agencies
(C) Private wholesalers
(D) Retail shops

Correct Answer: B

Explanation:

Government regulatory bodies test medicines

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Question (17)

QN0024558

Public goods are those that:

(A) Are privately owned
(B) Are available only to rich people
(C) Are available to all and not reduced by use
(D) Are exported only

Correct Answer: C

Explanation:

Public goods are non-excludable and available to all

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Question (18)

QN0024559

Which of the following is a public good?

(A) Mobile phone
(B) Private car
(C) Public park
(D) Luxury watch

Correct Answer: C

Explanation:

Public park is accessible to all

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Question (19)

QN0024560

Why are certification marks important for consumers?

(A) They increase advertisements
(B) They guarantee minimum quality standards
(C) They reduce production cost
(D) They increase imports

Correct Answer: B

Explanation:

They assure minimum quality standards

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Question (20)

QN0024561

If onion supply decreases in the market, price usually:

(A) Decreases
(B) Remains constant
(C) Increases
(D) Becomes zero

Correct Answer: C

Explanation:

Scarcity leads to price increase

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Question (11)

What is the main aim of government regulation in markets?

Explanation:

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Question (12)

Which situation best describes market failure requiring government intervention?

Explanation:

Link:

Question (13)

Single-use plastic regulation is mainly introduced to control:

Explanation:

Link:

Question (14)

What is the effect of too high a government-fixed price ceiling?

Explanation:

Link:

Question (15)

What does “net quantity” regulation ensure?

Explanation:

Link:

Question (16)

Which authority ensures quality testing of medicines?

Explanation:

Link:

Question (17)

Public goods are those that:

Explanation:

Link:

Question (18)

Which of the following is a public good?

Explanation:

Link:

Question (19)

Why are certification marks important for consumers?

Explanation:

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Question (20)

If onion supply decreases in the market, price usually:

Explanation:

Link:

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