#1
Which economic theory advocates for minimal government intervention in the economy?
Keynesian economics
Monetarism
Classical economics
Marxian economics
#2
What is the main goal of fiscal policy?
Controlling the money supply
Regulating interest rates
Stabilizing the economy
Encouraging exports
#3
What is the primary tool used by central banks to control the money supply?
Fiscal policy
Monetary policy
Trade policy
Industrial policy
#4
What is the name of the policy that involves increasing government spending or decreasing taxes to stimulate economic growth?
Monetary policy
Fiscal policy
Supply-side policy
Trade policy
#5
Which of the following is NOT a component of GDP (Gross Domestic Product)?
Consumer spending
Government spending
Imports
Investment
#6
According to the Phillips Curve, what is the relationship between inflation and unemployment?
Inversely proportional
Directly proportional
No relationship
Cyclically related
#7
Who is considered the founder of modern economics?
Adam Smith
Karl Marx
John Maynard Keynes
Friedrich Hayek
#8
Which economic theory emphasizes the role of expectations and perceptions in shaping economic outcomes?
Rational expectations theory
Keynesian economics
Austrian economics
Behavioral economics
#9
What is the term used to describe a situation where one party has more information than the other party in an economic transaction?
Market equilibrium
Asymmetric information
Perfect competition
Monopoly power
#10
Who developed the theory of comparative advantage?
Adam Smith
David Ricardo
John Maynard Keynes
Karl Marx
#11
What is the concept behind the Laffer Curve?
The relationship between money supply and inflation
The trade-off between inflation and unemployment
The relationship between tax rates and government revenue
The relationship between interest rates and investment
#12
Which of the following is NOT a characteristic of monopolistic competition?
Many buyers and sellers
Product differentiation
Perfect information
Low barriers to entry
#13
According to the quantity theory of money, what is the relationship between the money supply and the price level?
Directly proportional
Inversely proportional
No relationship
Cyclically related
#14
Which of the following is a characteristic of a command economy?
Private property rights
Market competition
Centralized planning
Consumer sovereignty
#15
What is the term used to describe a situation where the price of a good or service does not reflect its true cost to society?
Market equilibrium
Excess supply
Negative externality
Price floor