#1
Which of the following is a fiscal policy tool used to stimulate economic growth?
Monetary policy
Quantitative easing
Tax cuts
Open market operations
#2
In economics, what does GDP stand for?
Gross Domestic Product
Gross Domestic Profit
General Demand Percentage
General Domestic Price
#3
What is the primary goal of monetary policy?
Maximizing employment
Minimizing inflation
Stabilizing exchange rates
All of the above
#4
Which of the following is NOT a characteristic of a market economy?
Government ownership of resources
Private ownership of resources
Voluntary exchange
Competition among businesses
#5
Which of the following is an example of a contractionary monetary policy measure?
Decreasing interest rates
Increasing government spending
Buying government securities
Lowering reserve requirements
#6
Which economic policy aims to control inflation by reducing the money supply?
Expansionary monetary policy
Contractionary monetary policy
Fiscal policy
Trade policy
#7
What does the 'Laffer curve' illustrate in economics?
Relationship between inflation and unemployment
Trade-offs between efficiency and equity
Relationship between tax rates and tax revenue
Effects of government spending on aggregate demand
#8
What is the term for the total value of goods and services produced within a country's borders in a specific time period?
GNP (Gross National Product)
NNP (Net National Product)
GDP (Gross Domestic Product)
NI (National Income)
#9
Which of the following is an example of an expansionary fiscal policy measure?
Increasing government spending
Raising taxes
Decreasing the money supply
Selling government securities
#10
Which of the following is NOT a function of money in an economy?
Medium of exchange
Store of value
Unit of measurement
Producer of goods
#11
Which economist is associated with the concept of 'comparative advantage'?
John Maynard Keynes
Adam Smith
David Ricardo
Milton Friedman
#12
What is the term for a situation where the government spends more money than it collects in revenues?
Fiscal deficit
Budget surplus
Trade deficit
National debt
#13
According to the Phillips curve, what is the relationship between inflation and unemployment?
Inverse
Direct
No relationship
Cyclical
#14
Which of the following is NOT a characteristic of a command economy?
Centralized decision-making
Private ownership of resources
Government control of production
Limited consumer choice
#15
According to the theory of the business cycle, which phase represents a period of declining economic activity?
Expansion
Peak
Trough
Recession