#1
Which of the following is an example of fiscal policy?
Central bank adjusting interest rates
Government increasing taxes
Commercial banks lending money to businesses
Consumers purchasing goods and services
#2
What is the primary objective of monetary policy?
To control inflation
To encourage spending
To reduce government spending
To increase unemployment
#3
Which of the following is a characteristic of a market economy?
Government ownership of most resources
Centralized decision-making by the government
Limited government intervention in economic activities
Equal distribution of wealth among citizens
#4
Which of the following is an example of a trade barrier?
Free trade agreement
Tariff
Trade surplus
Foreign direct investment
#5
In a command economy, who typically makes decisions about resource allocation?
Consumers
Government authorities
Market forces
Private businesses
#6
Which of the following is an example of a public good?
Electricity
Clothing
Fast food
Luxury cars
#7
What is the role of antitrust laws in market regulation?
To promote monopoly power
To regulate trade with other countries
To prevent anti-competitive behavior
To increase barriers to entry
#8
Which of the following is a tool of expansionary fiscal policy?
Increasing government spending
Decreasing the money supply
Raising interest rates
Reducing government budget deficit
#9
What is the function of a central bank in a country's economy?
To maximize government revenue
To regulate the stock market
To control the money supply and interest rates
To oversee corporate mergers
#10
What is the purpose of regulatory agencies in market economies?
To restrict international trade
To eliminate competition
To ensure fair and efficient markets
To increase corporate taxes
#11
What is the primary objective of a price ceiling?
To prevent inflation
To encourage surplus production
To set a maximum price for a good or service
To increase consumer demand
#12
What is the purpose of a trade embargo?
To promote free trade
To encourage economic cooperation
To restrict or prohibit trade with a particular country
To stabilize currency exchange rates
#13
What is the purpose of price controls in a market economy?
To encourage market competition
To maintain market equilibrium
To create artificial scarcity
To eliminate consumer surplus
#14
What is the purpose of deposit insurance provided by governments?
To encourage risky investments
To protect depositors' savings in case of bank failure
To regulate interest rates
To promote inflation
#15
Which of the following is an example of a regressive tax?
Sales tax
Income tax
Property tax
Corporate tax
#16
Which of the following is an example of a progressive tax?
Value-added tax (VAT)
Property tax
Sales tax
Income tax