#1
Which of the following is an example of a fiscal policy tool?
Interest rate manipulation
Taxation
Open market operations
Printing currency
#2
What is the primary goal of economic policies aimed at social welfare?
Maximizing corporate profits
Minimizing government spending
Maximizing social equality and well-being
Promoting international trade
#3
What is the main purpose of a progressive tax system?
To tax everyone at the same rate
To tax higher-income individuals at a higher rate
To tax lower-income individuals at a higher rate
To tax only corporations
#4
Which of the following is a characteristic of a command economy?
Private ownership of production resources
Market-driven allocation of resources
Centralized government control of economic activities
Minimal government intervention in the economy
#5
What is the purpose of means-tested welfare programs?
To provide assistance based on an individual's income level
To provide assistance regardless of income level
To provide assistance only to the wealthy
To provide assistance only to the unemployed
#6
Which of the following is a characteristic of a market economy?
Central planning by the government
Private ownership of resources
Equal distribution of wealth
Limited role of supply and demand
#7
Which economic policy is focused on regulating the overall money supply in an economy?
Monetary policy
Fiscal policy
Trade policy
Industrial policy
#8
What does the term 'welfare state' refer to?
A state where the government provides a basic level of social and economic support for its citizens
A state with minimal government intervention in economic affairs
A state where private corporations control most social services
A state with no social safety net for its citizens
#9
What is the primary purpose of social safety net programs?
To encourage economic growth
To prevent inflation
To provide assistance and support to individuals facing financial hardship
To promote international trade
#10
What is the 'Laffer curve' used to illustrate?
The relationship between inflation and unemployment
The relationship between government spending and economic growth
The relationship between tax rates and government revenue
The relationship between interest rates and investment
#11
What is the primary objective of unemployment insurance?
To incentivize job creation
To provide financial assistance to workers who lose their jobs
To encourage early retirement
To decrease labor force participation
#12
What is a negative externality in economics?
An unintended benefit experienced by a third-party
An unintended cost experienced by a third-party
A subsidy provided by the government
An increase in productivity
#13
Which of the following is an example of a social welfare program?
Corporate tax cuts
Unemployment benefits
Subsidies for fossil fuel industries
Deregulation of financial markets
#14
Which economic policy tool is often used to stabilize the economy during recessions?
Supply-side economics
Austerity measures
Expansionary monetary policy
Deregulation
#15
Which of the following is an example of a demand-side economic policy?
Tax cuts for businesses
Reducing government spending
Increasing public spending on infrastructure projects
Privatization of public services
#16
What is the primary aim of supply-side economics?
To increase government spending
To reduce income inequality
To stimulate economic growth by incentivizing production
To regulate financial markets
#17
Which of the following is an example of expansionary fiscal policy?
Increasing government spending and decreasing taxes
Decreasing government spending and increasing taxes
Decreasing government spending and decreasing taxes
Increasing government spending and increasing taxes