#1
Which economic system relies on supply and demand with minimal government intervention?
Socialism
Capitalism
Communism
Mixed Economy
#2
Which international organization provides financial assistance and policy advice to member countries with economic difficulties?
World Trade Organization (WTO)
International Monetary Fund (IMF)
World Bank
Organization for Economic Cooperation and Development (OECD)
#3
Which economic indicator is often used to assess the overall health of an economy and is calculated as the sum of consumer spending, business investment, government spending, and net exports?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment rate
Producer Price Index (PPI)
#4
Which economic policy tool involves adjusting the money supply and interest rates to achieve macroeconomic goals?
Fiscal policy
Monetary policy
Trade policy
Income policy
#5
Which economic theory suggests that government intervention in the economy is necessary to address market failures and ensure social welfare?
Laissez-faire economics
Keynesian economics
Supply-side economics
Monetarism
#6
What is fiscal policy primarily concerned with?
Controlling the money supply
Managing government expenditures and taxation
Regulating interest rates
Supervising international trade
#7
In economics, what does the term 'Laissez-faire' refer to?
Government intervention in the market
Free-market capitalism with little to no government interference
Progressive taxation
Trade protectionism
#8
What is the Phillips Curve used to illustrate in economic policy?
The relationship between inflation and unemployment
The impact of taxes on economic growth
The efficiency of monetary policy
The role of government in income distribution
#9
What is the primary goal of expansionary fiscal policy during a recession?
To reduce government spending
To increase taxes
To decrease the money supply
To boost economic growth and employment
#10
Which economic concept suggests that individuals and businesses will act in a way that maximizes their own self-interest?
Altruism
Rational choice theory
Socialism
Keynesian economics
#11
Which of the following is an example of a contractionary monetary policy tool?
Reducing interest rates
Increasing government spending
Selling government securities
Lowering taxes
#12
What is the Tragedy of the Commons in the context of economic policy?
The depletion of shared resources due to individual self-interest
Government overregulation of private industries
A situation where the market fails to allocate resources efficiently
The ineffectiveness of fiscal policy during a recession
#13
Which of the following is a tool of trade policy aimed at protecting domestic industries from foreign competition?
Export subsidies
Tariffs
Floating exchange rates
Open market operations
#14
In the context of economic policy, what does the term 'stagflation' refer to?
High inflation combined with high unemployment
A period of rapid economic growth
A situation of low inflation and low unemployment
A decline in consumer spending
#15
What is the purpose of quantitative easing in monetary policy?
To decrease the money supply
To increase interest rates
To stimulate economic growth by increasing the money supply
To promote currency devaluation