#1
Which of the following is a tool used by central banks to control the money supply in an economy?
Fiscal policy
Monetary policy
Trade policy
Industrial policy
#2
Which international organization is responsible for promoting monetary cooperation and exchange rate stability?
World Bank
International Monetary Fund (IMF)
World Trade Organization (WTO)
Organisation for Economic Co-operation and Development (OECD)
#3
What is the primary objective of trade policy?
Minimizing unemployment
Promoting economic growth
Maximizing trade surpluses
Balancing trade deficits
#4
Which of the following is a characteristic of a command economy?
Decentralized decision-making
Private ownership of means of production
Centralized government planning
Laissez-faire approach
#5
Which economic concept is associated with the idea that individuals may not always make rational decisions due to cognitive biases?
Perfect competition
Behavioral economics
Laissez-faire
Socialism
#6
What is the primary goal of fiscal policy?
Stabilize prices
Maximize employment
Minimize inflation
Minimize government intervention
#7
Which economic theory advocates for minimal government intervention in the market?
Keynesian economics
Monetarism
Classical economics
Supply-side economics
#8
What is the Phillips Curve used to illustrate in economic policy?
The relationship between inflation and unemployment
The impact of government spending on GDP
The elasticity of demand for consumer goods
The effects of taxation on income distribution
#9
What is the primary function of a central bank in a country's economic system?
Conducting monetary policy
Regulating international trade
Enforcing fiscal policies
Providing social welfare programs
#10
In economic terms, what does the Laffer Curve illustrate?
The relationship between tax rates and government spending
The impact of interest rates on inflation
The trade balance between imports and exports
The relationship between tax rates and tax revenue
#11
What is the function of antitrust laws in economic regulation?
To promote monopolies
To prevent monopolies and promote competition
To regulate international trade
To control inflation
#12
In the context of economic policy, what does 'deregulation' refer to?
Increasing government control in the market
Removing or reducing government regulations in the market
Imposing new regulations on businesses
Introducing price controls
#13
Which of the following is a key element of supply-side economics?
Increasing government spending
Reducing taxes to stimulate economic growth
Expanding social welfare programs
Implementing strict price controls
#14
What is the Tragedy of the Commons in the context of resource management?
A market failure due to insufficient government intervention
The depletion of shared resources due to individual self-interest
A successful implementation of environmental regulations
The impact of inflation on common goods
#15
What is the purpose of exchange rate policies in international economics?
To control inflation
To regulate government spending
To manage the value of a country's currency relative to others
To address income inequality