#1
Which of the following is a primary source of revenue for most governments?
Sales tax
Income tax
Property tax
Import tariffs
#2
What does GDP stand for?
Gross Domestic Product
General Domestic Price
Global Demand Production
Government Development Program
#3
Which of the following is NOT a tool of fiscal policy?
Government spending
Taxation
Interest rates
Borrowing
#4
What is the term for a situation where the government's expenditures exceed its revenues?
Budget surplus
Budget deficit
Budget equilibrium
Budget shortfall
#5
What is the purpose of quantitative easing (QE) in monetary policy?
To reduce inflation
To stimulate economic growth
To increase interest rates
To decrease money supply
#6
Which of the following is a measure of income inequality within a country?
Gini coefficient
Consumer Price Index
Aggregate demand
Net exports
#7
Which of the following is a characteristic of expansionary fiscal policy?
Increased government spending
Higher interest rates
Lower budget deficit
Reduced money supply
#8
What is the main goal of contractionary monetary policy?
To reduce unemployment
To stimulate economic growth
To decrease money supply
To lower taxes
#9
Which of the following is NOT a component of fiscal policy?
Government spending
Taxation
Interest rates
Borrowing
#10
Which economic theory advocates for government intervention in the economy to stabilize output and employment?
Classical economics
Keynesian economics
Monetarism
Supply-side economics
#11
What is the purpose of a sovereign wealth fund?
To provide financial aid to developing countries
To invest surplus funds for future generations
To stabilize exchange rates
To regulate international trade
#12
In the context of taxation, what does the term 'progressive' mean?
Tax rates increase as income increases
Tax rates decrease as income increases
Everyone pays the same amount of tax
Taxation is based on consumption
#13
In which situation would a government likely implement expansionary fiscal policy?
High inflation and high unemployment
Low inflation and low unemployment
High inflation and low unemployment
Low inflation and high unemployment
#14
In the context of fiscal policy, what is the 'crowding out' effect?
Increased government spending leads to decreased private investment
Decreased government spending leads to increased private investment
Increased government spending leads to increased private investment
Decreased government spending leads to decreased private investment
#15
Which economic theory argues that government intervention in the economy should be minimal?
Keynesian economics
Monetarism
Supply-side economics
Classical economics