Economic Challenges and Government Responses Quiz
Test your knowledge of macroeconomics with questions on economic systems, fiscal & monetary policy, inflation, GDP, and more.
#1
Which of the following is not a type of economic system?
Capitalism
Socialism
Communism
Democracy
#2
What is the main goal of fiscal policy?
To control inflation
To stabilize the economy
To regulate international trade
To promote economic growth
#3
What is the term for the total value of all goods and services produced in a country in a given period of time?
Gross National Product (GNP)
Gross Domestic Product (GDP)
Net National Product (NNP)
Net Domestic Product (NDP)
#4
What is the term for a period of economic decline characterized by a decrease in GDP for two consecutive quarters?
Recession
Depression
Stagnation
Expansion
#5
Which of the following is a characteristic of a market economy?
Government control of production
Private ownership of property
Equal distribution of income
Central planning of the economy
#6
What is a budget deficit?
When government spending exceeds revenue
When government spending is less than revenue
When the economy grows too quickly
When inflation is too high
#7
What is the term for a sustained increase in the general price level of goods and services in an economy?
Deflation
Recession
Inflation
Stagflation
#8
Which of the following is a measure of income inequality within a population?
Gini coefficient
Consumer Price Index
Gross Domestic Product
Unemployment rate
#9
In economics, what does the term 'opportunity cost' refer to?
The cost of producing one more unit of a good
The value of the next best alternative foregone
The cost of inputs in the production process
The total cost of production
#10
Which of the following is a tool of monetary policy?
Taxation
Government spending
Interest rates
Regulation
#11
What is the term for a situation in which the economy experiences both high inflation and high unemployment?
Hyperinflation
Stagflation
Deflation
Recession
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