Government Economic Policies and Programs Quiz

Explore fiscal & monetary policies, international trade, labor markets & more. Test your knowledge in this macroeconomics quiz!

Practice Learn Test

Which of the following is a fiscal policy tool used by governments to stimulate economic growth?

Monetary policy

Trade policy

Tax policy

Environmental policy

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

Gross Domestic Product (GDP)

Consumer Price Index (CPI)

Unemployment rate

Trade balance

Which government program provides financial assistance to individuals with low income, including food and healthcare benefits?

Social Security

Medicaid

Unemployment insurance

TANF (Temporary Assistance for Needy Families)

Which economic philosophy advocates for minimal government intervention and emphasizes the importance of free markets?

Socialism

Capitalism

Communism

Fascism

What is the primary goal of expansionary monetary policy?

Reducing inflation

Stimulating economic growth

Increasing interest rates

Balancing the budget

Which economic theory advocates for government intervention during economic downturns to stabilize the economy?

Classical economics

Keynesian economics

Monetarism

Supply-side economics

In the context of government economic policies, what does the term 'austerity' refer to?

Increasing government spending

Reducing government spending

Maintaining a balanced budget

Implementing progressive taxation

What is the primary goal of supply-side economic policies?

Stimulating consumer spending

Promoting economic equality

Boosting aggregate demand

Increasing productivity and efficiency

What is the purpose of a sovereign wealth fund in the context of government economic policies?

To provide subsidies to industries

To manage public debt

To invest excess foreign exchange reserves

To regulate interest rates

#10

Which international organization is responsible for providing financial assistance and policy advice to member countries in need?

World Trade Organization (WTO)

International Monetary Fund (IMF)

World Bank

Organization for Economic Cooperation and Development (OECD)

#11

What is the role of the central bank in implementing monetary policy?

Controlling government spending

Regulating financial institutions

Issuing currency and managing interest rates

Conducting trade negotiations

#12

What is the primary objective of a countercyclical fiscal policy during an economic recession?

Increasing taxes to reduce government debt

Reducing government spending to control inflation

Stimulating the economy through increased government spending

Promoting income inequality through tax breaks for the wealthy