#1
Which of the following is a characteristic of a recession?
High inflation
Decrease in unemployment rates
Decline in GDP
Increase in consumer spending
#2
Which of the following is NOT a characteristic of a market economy?
Government ownership of resources
Price flexibility
Private ownership of resources
Consumer choice
#3
Which of the following is an example of expansionary fiscal policy?
Increasing taxes
Decreasing government spending
Reducing interest rates
Increasing government spending
#4
What is the term used to describe the total value of all goods and services produced in a country within a given time period?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Inflation rate
Unemployment rate
#5
What is the term used to describe a situation where a country imports more goods and services than it exports?
Trade deficit
Trade surplus
Balance of payments
Current account deficit
#6
What is the term used to describe a sustained increase in the general price level of goods and services in an economy over a period of time?
Deflation
Stagflation
Hyperinflation
Inflation
#7
What is the term for a situation where the demand for goods and services exceeds their supply, leading to an increase in prices?
Stagflation
Deflation
Inflation
Recession
#8
What is fiscal policy?
A policy related to the regulation of banks
A policy related to government spending and taxation
A policy related to international trade
A policy related to monetary supply
#9
Which economic indicator is often used to measure inflation?
GDP per capita
Consumer Price Index (CPI)
Unemployment rate
Balance of trade
#10
What is the primary goal of expansionary monetary policy?
To decrease money supply and control inflation
To increase interest rates and encourage saving
To decrease government spending and reduce the budget deficit
To stimulate economic growth by increasing money supply
#11
What is the term for a situation where the economy experiences a prolonged period of high inflation, low economic growth, and high unemployment?
Stagflation
Hyperinflation
Deflation
Recession
#12
What is the main objective of supply-side economics?
To increase government spending
To stimulate demand through tax cuts
To boost economic growth by focusing on factors that influence the supply of goods and services
To control inflation through monetary policy
#13
Which of the following is NOT a component of aggregate demand?
Consumption
Investment
Government spending
Imports
#14
Which of the following is a tool of monetary policy used by central banks to influence the money supply?
Quantitative easing
Fiscal stimulus
Supply-side tax cuts
Government subsidies
#15
What is the Phillips Curve used to describe?
The relationship between inflation and unemployment
The relationship between government spending and economic growth
The relationship between interest rates and investment
The relationship between savings and consumption
#16
What is the role of the Federal Reserve in the United States economy?
Regulating international trade
Setting fiscal policy
Managing monetary policy
Controlling government spending
#17
What is the Laffer curve used to illustrate?
The relationship between inflation and unemployment
The relationship between tax rates and tax revenue
The relationship between interest rates and investment
The relationship between government spending and economic growth
#18
What is the name of the theory that suggests that in the long run, increases in the money supply result in proportional increases in price levels?
Keynesian economics
Monetarism
Classical economics
Austrian economics
#19
What is the term used to describe the measure of the responsiveness of quantity demanded of a good to a change in its price?
Elasticity
Monopoly
Perfect competition
Oligopoly
#20
In economics, what is the 'invisible hand' referred to as?
The role of government in regulating markets
The mechanism by which supply and demand are balanced in a free market
The process of central planning in a command economy
The role of consumers in determining market prices