#1
Which of the following is an example of a fiscal policy measure?
Lowering interest rates by the central bank
Increasing government spending on infrastructure
Banning imports of certain goods
Increasing reserve requirements for banks
#2
What is the term used to describe a situation where a single buyer controls the market?
Monopsony
Oligopoly
Monopoly
Perfect competition
#3
Which of the following is an example of a supply-side policy?
Increasing government spending on education
Reducing income taxes
Implementing price controls
Increasing the money supply
#4
What is the term for the total value of all goods and services produced within a country's borders in a specific time period?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Aggregate Demand (AD)
Net Exports (NX)
#5
In the context of economic policy, what does 'austerity' refer to?
Expansionary fiscal policy
Reduction in government spending and/or increase in taxes
Stimulus package to boost economic growth
Policy of maintaining a fixed exchange rate
#6
What is the primary goal of government intervention in a market economy?
To ensure perfect competition
To eliminate all forms of competition
To correct market failures
To maximize consumer surplus
#7
Which of the following is an example of a price ceiling?
Minimum wage laws
Rent control regulations
Subsidies for farmers
Tax breaks for corporations
#8
Which of the following is NOT a characteristic of a perfectly competitive market?
Homogeneous products
No barriers to entry or exit
Price setting power for individual firms
Perfect information
#9
What is the term for a situation where the production of a good has a negative impact on a third party not involved in the transaction?
Externality
Market equilibrium
Public good
Natural monopoly
#10
Which of the following is a goal of trade protectionism?
Promoting international cooperation
Maximizing consumer surplus
Protecting domestic industries
Encouraging free trade
#11
What is the 'Laffer curve' used to illustrate in economics?
The relationship between inflation and unemployment
The effect of government spending on economic growth
The relationship between tax rates and government revenue
The impact of trade barriers on international trade
#12
Which of the following is NOT a tool of monetary policy?
Open market operations
Reserve requirements
Fiscal deficit
Discount rate
#13
In the context of trade policy, what does 'dumping' refer to?
Selling goods in foreign markets at a price below production cost
Subsidizing domestic industries to encourage exports
Placing tariffs on imported goods
Regulating the flow of foreign direct investment
#14
Which of the following is a characteristic of a regressive tax system?
Tax rate decreases as income increases
Tax rate increases as income increases
Tax rate is proportional to income
Tax rate varies based on expenditure
#15
Which of the following is NOT a characteristic of a public good?
Non-excludability
Non-rivalry
Excludability
Rivalry