#1
Which of the following is a primary goal of economic policy?
Achieving full employment
ExplanationMaximizing job opportunities within an economy.
#2
Which organization is responsible for regulating monetary policy in the United States?
The Federal Reserve
ExplanationCentral bank overseeing monetary policy in the U.S.
#3
What is the term used to describe the situation when the government spends more money than it collects in revenue?
Budget deficit
ExplanationOccurs when government expenditure exceeds its revenue.
#4
In economics, what does GDP stand for?
Gross Domestic Product
ExplanationTotal value of goods and services produced within a country.
#5
Which of the following is a measure of price inflation?
Consumer Price Index (CPI)
ExplanationIndicator of changes in consumer prices over time.
#6
What is fiscal policy primarily concerned with?
Influencing aggregate demand and economic activity through government spending and taxation
ExplanationManaging economy-wide demand through government's spending and tax policies.
#7
Which economic theory advocates for minimal government intervention in the economy?
Classical liberalism
ExplanationSupporting free markets with limited government involvement.
#8
What is the purpose of monetary policy?
Influencing interest rates and money supply to control inflation and stimulate economic growth
ExplanationRegulating money supply and interest rates to manage inflation and growth.
#9
Which of the following is NOT a characteristic of a market economy?
Centralized planning by the government
ExplanationAbsence of government-controlled economic decisions.
#10
What is the term for a situation in which a country's imports exceed its exports?
Trade deficit
ExplanationNegative balance in international trade.