#1
What is the primary function of a central bank?
Issuing currency
Regulating interest rates
Supervising commercial banks
Controlling inflation
#2
Which of the following is not a monetary policy tool?
Open market operations
Fiscal policy
Reserve requirements
Discount rate
#3
What is the role of a commercial bank in the economy?
Issuing currency
Regulating monetary policy
Providing loans and accepting deposits
Controlling fiscal policy
#4
Which of the following is a function of the Federal Reserve System in the United States?
Managing foreign exchange rates
Regulating stock markets
Supervising state governments' budgets
Conducting monetary policy
#5
What is the role of the World Bank in the global economy?
Providing financial assistance to developing countries
Regulating international trade agreements
Issuing global currency
Controlling global interest rates
#6
Which of the following is a characteristic of a command economy?
Private ownership of resources
Decentralized decision-making
Government control of production and distribution
Market-driven allocation of resources
#7
What does GDP stand for?
General Domestic Product
Gross Development Product
Gross Domestic Product
Global Domestic Product
#8
What is the 'liquidity trap' in economics?
A situation where interest rates are very high
A situation where monetary policy is ineffective
A situation where inflation is uncontrollable
A situation where there's excess liquidity in the market
#9
What does the term 'inflation' refer to in economics?
A decrease in the general price level of goods and services
An increase in the general price level of goods and services
A decrease in the quantity of money in circulation
An increase in the efficiency of production
#10
What is the 'Phillips Curve' used to illustrate?
The relationship between inflation and unemployment
The impact of government spending on aggregate demand
The effect of changes in interest rates on investment
The relationship between taxation and government revenue
#11
What is the 'tragedy of the commons' in economics?
A situation where public goods are underproduced
A situation where common resources are overused or depleted
A situation where government intervention leads to market inefficiency
A situation where monopolies dominate the market
#12
What is the difference between nominal GDP and real GDP?
Nominal GDP includes inflation, while real GDP does not
Real GDP includes inflation, while nominal GDP does not
Nominal GDP adjusts for inflation, while real GDP does not
Real GDP adjusts for inflation, while nominal GDP does not
#13
What is the 'Laffer Curve' used to illustrate?
The relationship between tax rates and government revenue
The relationship between inflation and unemployment
The impact of supply-side policies on economic growth
The effect of interest rate changes on investment
#14
What is the purpose of quantitative easing (QE) as a monetary policy tool?
To decrease the money supply and control inflation
To increase the money supply and stimulate economic activity
To stabilize exchange rates in the foreign exchange market
To regulate interest rates and stabilize financial markets
#15
What is the concept of 'comparative advantage' in international trade?
The ability of a country to produce all goods more efficiently than other countries
The ability of a country to produce a good at a lower opportunity cost than other countries
The ability of a country to produce a good using fewer resources than other countries
The ability of a country to produce a good with higher quality than other countries
#16
What is the difference between fiscal policy and monetary policy?
Fiscal policy involves government spending and taxation, while monetary policy involves changes in the money supply and interest rates
Fiscal policy involves changes in the money supply and interest rates, while monetary policy involves government spending and taxation
Fiscal policy is conducted by central banks, while monetary policy is conducted by governments
Fiscal policy affects the money supply, while monetary policy affects government spending
#17
What is the concept of 'commodity money'?
Money that has no intrinsic value but is accepted as a medium of exchange
Money that is backed by a commodity such as gold or silver
Money that is issued by governments and accepted as legal tender
Money that derives its value from government regulation