Economic Policy Perspectives Quiz

Test your knowledge on economic policies, supply-side economics, GDP, inflation, Phillips Curve & more. Explore key concepts in macroeconomics!

#1

Which economic policy focuses on reducing government intervention in the economy?

Monetary policy
Fiscal policy
Laissez-faire policy
Keynesian policy
#2

Who is known for advocating supply-side economics?

Milton Friedman
John Maynard Keynes
Adam Smith
Ronald Reagan
#3

What is the primary goal of expansionary fiscal policy?

To reduce government spending
To increase taxes
To stimulate economic growth
To combat inflation
#4

Who coined the term 'invisible hand' in economics?

Adam Smith
John Maynard Keynes
Karl Marx
Friedrich Hayek
#5

What is the primary objective of contractionary monetary policy?

To decrease interest rates
To boost consumer spending
To reduce inflation
To increase government borrowing
#6

Which economist is associated with the theory of comparative advantage?

David Ricardo
John Maynard Keynes
Milton Friedman
Paul Krugman
#7

What does GDP stand for in economics?

Global Demand Power
Gross Domestic Product
Government Development Plan
General Demand Pool
#8

Which economic policy aims to stabilize prices and combat inflation?

Monetary policy
Fiscal policy
Supply-side policy
Austerity policy
#9

What is the main tool used by central banks in conducting monetary policy?

Fiscal policy
Interest rates
Taxation
Government spending
#10

Which economic concept refers to the total value of goods and services produced within a country's borders?

Gross National Product (GNP)
Net Exports
Gross Domestic Product (GDP)
Disposable Income
#11

What is the main goal of a trade tariff?

To reduce imports
To encourage exports
To stabilize exchange rates
To promote economic growth
#12

Which economic indicator measures the average change in prices of goods and services over time?

Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Unemployment Rate
Labor Force Participation Rate
#13

What is the 'Phillips Curve' in economics?

A curve showing the relationship between inflation and unemployment
A curve showing the relationship between supply and demand
A curve showing the relationship between GDP and GNP
A curve showing the relationship between interest rates and investment
#14

What is the 'Tragedy of the Commons' in economics?

A situation where individuals exploit common resources for personal gain, leading to depletion
A theory explaining the relationship between supply and demand
An economic model describing the movement of goods and services
A concept illustrating the benefits of specialization and trade
#15

What is the 'liquidity trap' in economics?

A situation where monetary policy becomes ineffective due to very low interest rates
A theory explaining the relationship between money supply and inflation
A model describing the behavior of consumers during a recession
A concept illustrating the benefits of international trade
#16

What is the 'Triffin dilemma' in economics?

A situation where a country's currency is used as a global reserve currency but creates instability in the international monetary system
A theory explaining the relationship between inflation and unemployment
A model describing the behavior of firms in a competitive market
A concept illustrating the benefits of international trade agreements
#17

What is 'stagflation' in economics?

A situation of high inflation combined with high unemployment and stagnant economic growth
A model explaining the relationship between supply and demand
An economic concept describing the movement of capital between countries
A theory illustrating the benefits of deregulation

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