#1
Which of the following is an example of a fiscal policy tool?
Increasing interest rates
Decreasing government spending
Open market operations
Quantitative easing
#2
What is the main goal of monetary policy?
Stabilizing employment and controlling inflation
Increasing government revenue
Reducing trade deficits
Controlling fiscal deficits
#3
Which of the following is an example of expansionary fiscal policy?
Decreasing government spending
Increasing taxes
Decreasing interest rates
Increasing government spending
#4
What effect does inflation typically have on purchasing power?
Increases purchasing power
Decreases purchasing power
No effect on purchasing power
Varies depending on the inflation rate
#5
Which of the following is a characteristic of a perfectly competitive market?
High barriers to entry
Many buyers and sellers
Product differentiation
Control over prices by individual firms
#6
What is the primary function of a central bank?
To regulate commercial banks
To conduct monetary policy
To provide fiscal stimulus
To control inflation
#7
What is the term for the situation where a market fails to allocate resources efficiently?
Market equilibrium
Market failure
Market saturation
Market intervention
#8
In economics, what does the term 'invisible hand' refer to?
Government regulation in markets
Market forces guiding self-interested individuals to promote the social interest
The concept of opportunity cost
The price mechanism in centrally planned economies
#9
Which economic theory advocates for minimal government intervention in markets?
Keynesian economics
Monetarism
Classical economics
Neo-Keynesian economics
#10
Which of the following is an example of a supply-side policy?
Increasing government spending on infrastructure
Implementing tax cuts to incentivize investment
Reducing interest rates to stimulate borrowing
Increasing welfare benefits
#11
What is the primary objective of trade protectionism?
To promote free trade agreements
To reduce government intervention in international trade
To protect domestic industries from foreign competition
To encourage currency appreciation
#12
Which economic concept is measured by the Gini coefficient?
Income inequality
Inflation rate
Gross domestic product
Unemployment rate
#13
What is the main purpose of antitrust laws?
To regulate international trade
To prevent monopolies and promote competition
To control fiscal deficits
To regulate environmental pollution
#14
What is the term for the total market value of all final goods and services produced in a country in a given period?
Gross national product (GNP)
Gross domestic product (GDP)
Net national product (NNP)
Net domestic product (NDP)
#15
What is the primary tool used by central banks to conduct monetary policy?
Fiscal stimulus
Quantitative easing
Open market operations
Foreign exchange intervention
#16
What is the 'Phillips Curve' used to illustrate in economics?
The relationship between inflation and unemployment
The relationship between interest rates and investment
The impact of government spending on aggregate demand
The theory of comparative advantage
#17
Which of the following is a tool used by central banks to influence the money supply?
Fiscal policy
Foreign exchange intervention
Reserve requirements
Trade protectionism
#18
What economic theory suggests that governments should use discretionary fiscal policy to stabilize the economy?
Classical economics
Monetarism
Keynesian economics
Supply-side economics
#19
According to the theory of comparative advantage, which countries should specialize in producing?
Those goods in which they have the highest absolute advantage
Those goods in which they have the highest comparative advantage
Those goods in which they have the lowest opportunity cost
Those goods in which they have the highest opportunity cost