#1
What does fiscal policy primarily involve?
Government regulation of interest rates
Government control over money supply
Government taxation and spending
Government regulation of international trade
#2
What is the primary objective of antitrust laws?
To encourage monopolistic behavior
To regulate labor markets
To prevent the formation of monopolies and promote fair competition
To regulate the stock market
#3
Which of the following is NOT a tool of monetary policy?
Open market operations
Discount rates
Government spending
Reserve requirements
#4
What is the primary function of the Federal Reserve System in the United States?
Regulating international trade
Regulating fiscal policy
Conducting monetary policy
Setting tax rates
#5
What is the primary purpose of tariffs in international trade?
To encourage imports
To decrease government revenue
To restrict imports and protect domestic industries
To promote free trade agreements
#6
What is the purpose of a sovereign wealth fund?
To finance government deficits
To invest in foreign currencies
To manage government-owned assets and investments
To regulate international trade
#7
Which of the following is a tool used by governments to stimulate economic growth during a recession?
Austerity measures
Expansionary monetary policy
Supply-side economics
Regulatory capture
#8
Which of the following economic policies aims to reduce income inequality?
Monetary policy
Supply-side economics
Redistribution of wealth
Austerity measures
#9
What is the main goal of contractionary monetary policy?
To decrease interest rates
To reduce inflation
To increase government spending
To stimulate economic growth
#10
In which phase of the business cycle is the economy characterized by high unemployment and low consumer spending?
Expansion
Peak
Recession
Trough
#11
Which of the following is an example of expansionary fiscal policy?
Increasing taxes
Decreasing government spending
Reducing interest rates
Increasing government spending
#12
Which of the following is a characteristic of a mixed economy?
Government ownership of all means of production
Complete absence of government intervention
Private ownership of the means of production with some government intervention
Purely market-based allocation of resources
#13
Which economic theory advocates for reducing government intervention in markets to promote economic growth?
Keynesian economics
Monetarism
Supply-side economics
Marxism
#14
What is the purpose of automatic stabilizers in fiscal policy?
To decrease government spending during economic downturns
To increase government revenue during economic expansions
To automatically adjust taxes and transfer payments in response to economic conditions
To stabilize international exchange rates
#15
Which economic concept refers to 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)
Balance of Trade
Inflation Rate
#16
Which of the following economic indicators is used to measure the level of price changes for goods and services over time?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment Rate
Interest Rate
#17
Which of the following economic theories advocates for minimal government intervention in both the economy and social affairs?
Classical liberalism
Socialism
Communism
Keynesian economics