Government Fiscal Policies and Constitutional Powers Quiz
Test your knowledge on fiscal policy tools, government branches, and constitutional authority in public finance.
#1
Which branch of government is primarily responsible for fiscal policy?
Executive
Legislative
Judicial
Administrative
#2
Which of the following is NOT a tool of fiscal policy?
Government spending
Taxation
Monetary policy
Borrowing
#3
Which government body is responsible for implementing fiscal policy in many countries?
Central bank
Executive branch
Parliament
Supreme Court
#4
What is the term used to describe a situation where government spending exceeds revenue?
Budget deficit
Budget surplus
National debt
Trade deficit
#5
In the United States, who has the authority to approve the federal budget?
President
Congress
Supreme Court
Secretary of the Treasury
#6
Which clause of the U.S. Constitution grants Congress the power to tax and spend?
Commerce Clause
Necessary and Proper Clause
Supremacy Clause
Taxing and Spending Clause
#7
Which of the following is an example of contractionary fiscal policy?
Increasing government spending
Decreasing taxes
Decreasing interest rates
Increasing reserve requirements
#8
What is the main objective of discretionary fiscal policy?
To stabilize the economy during economic downturns
To maintain a balanced budget at all times
To minimize government intervention in the economy
To encourage long-term economic growth
#9
What is the primary goal of expansionary fiscal policy?
To decrease inflation
To increase unemployment
To decrease government spending
To stimulate economic growth
#10
Which of the following is NOT a characteristic of automatic stabilizers in fiscal policy?
They require legislative action to be activated
They operate automatically in response to economic conditions
They help stabilize fluctuations in economic activity
They include unemployment insurance and progressive taxation
#11
What is the term used to describe the total amount of outstanding debt owed by the government?
Budget deficit
Budget surplus
National debt
Trade deficit
#12
Which of the following is a potential consequence of persistent budget deficits?
Increased consumer spending
Increased interest rates
Decreased government borrowing
Increased economic growth
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