#1
Which economic policy aims to stimulate economic growth by increasing the money supply and reducing interest rates?
Monetary policy
Fiscal policy
Supply-side policy
Trade policy
#2
What is the primary tool used by governments to influence fiscal policy?
Taxation
Interest rates
Money supply
Government spending
#3
Which of the following is NOT a goal of economic policy?
Full employment
Price stability
Income inequality
Economic growth
#4
Which of the following is an example of an indirect tax?
Income tax
Sales tax
Property tax
Corporate tax
#5
Which of the following is an example of contractionary fiscal policy?
Increasing government spending
Reducing taxes
Increasing taxes
Buying government securities
#6
Which economist is associated with the concept of 'laissez-faire' economics?
John Maynard Keynes
Adam Smith
Milton Friedman
Paul Krugman
#7
Which of the following is a characteristic of expansionary monetary policy?
Decreasing money supply
Increasing interest rates
Reducing government spending
Lowering reserve requirements
#8
In the context of trade policy, what does 'protectionism' refer to?
Promoting free trade
Reducing tariffs and quotas
Imposing barriers to foreign goods
Facilitating international cooperation
#9
Which economic policy tool is typically used to counteract inflation?
Expansionary monetary policy
Expansionary fiscal policy
Contractionary monetary policy
Contractionary fiscal policy
#10
What is the 'Phillips Curve' primarily used to demonstrate?
The relationship between inflation and unemployment
The impact of interest rates on investment
The effect of government spending on GDP growth
The relationship between exports and imports
#11
Which of the following is a consequence of a strong currency in terms of international trade?
Increased exports
Increased imports
Trade deficit
Trade surplus
#12
Which economic theory suggests that government intervention in the economy is often counterproductive?
Keynesian economics
Monetarism
Classical economics
Neo-Keynesian economics
#13
In the context of monetary policy, what does 'open market operations' refer to?
Setting interest rates
Buying and selling government securities
Regulating bank reserves
Direct lending to banks
#14
Which economist is associated with the concept of 'trickle-down economics'?
John Maynard Keynes
Adam Smith
Milton Friedman
Ronald Reagan