#1
Which of the following is an example of a fiscal policy tool?
Interest rates
Taxation
Money supply
Exchange rates
#2
What is the main purpose of the Food Stamp Program (Supplemental Nutrition Assistance Program - SNAP) in the United States?
To provide financial aid for college students
To assist low-income individuals and families in purchasing food
To subsidize agricultural exports
To regulate food safety standards
#3
What is the primary goal of a trade embargo?
To increase imports
To promote free trade
To restrict or prohibit trade with a particular country
To lower tariffs
#4
Which of the following is an example of expansionary fiscal policy?
Decreasing government spending
Raising interest rates
Lowering taxes
Reducing money supply
#5
What is the primary objective of a price support program?
To increase the prices of goods
To provide subsidies for low-income individuals
To maintain stable prices for agricultural products
To regulate interest rates
#6
Which of the following is an example of a demand-side policy to combat unemployment?
Reducing government spending
Lowering interest rates
Increasing income taxes
Increasing government spending
#7
What is the primary purpose of a trade barrier?
To promote free trade
To lower production costs
To restrict international trade
To encourage foreign investment
#8
What is the purpose of the Affordable Care Act (ACA) in the United States?
To regulate environmental pollution
To provide affordable health insurance
To reform immigration policies
To promote agricultural subsidies
#9
Which of the following is NOT a characteristic of expansionary monetary policy?
Lowering interest rates
Increasing government spending
Increasing money supply
Encouraging borrowing and spending
#10
Which of the following is a characteristic of contractionary fiscal policy?
Decreasing government spending
Lowering taxes
Increasing money supply
Encouraging borrowing and spending
#11
What does the term 'quantitative easing' refer to in monetary policy?
Decreasing interest rates
Increasing government spending
Increasing money supply through asset purchases
Encouraging investment in stocks
#12
Which of the following is NOT a tool of monetary policy?
Open market operations
Quantitative easing
Foreign exchange intervention
Income tax rates
#13
What is the main purpose of the Earned Income Tax Credit (EITC) in the United States?
To encourage saving for retirement
To provide financial assistance to low-income working individuals and families
To regulate corporate taxation
To subsidize agricultural production
#14
Which of the following is a characteristic of a regressive tax?
The tax rate decreases as income increases
The tax rate increases as income increases
The tax burden falls more heavily on lower-income individuals
The tax burden falls more heavily on higher-income individuals
#15
What is the primary objective of a subsidy?
To decrease the production of a good
To increase taxes on a specific industry
To encourage production or consumption of a good
To reduce consumer spending
#16
In the context of economics, what does 'Laffer curve' represent?
Relationship between inflation and unemployment
Relationship between tax rates and government revenue
Relationship between supply and demand
Relationship between GDP and GNP
#17
Which of the following is a goal of supply-side economics?
Reducing government regulation
Increasing income tax rates
Expanding social welfare programs
Decreasing consumer spending
#18
What is the main objective of antitrust laws?
To encourage monopolistic practices
To regulate international trade
To prevent or control monopolies and promote fair competition
To increase consumer prices
#19
Which of the following is NOT a factor affecting the effectiveness of monetary policy?
Inflation expectations
Government regulations
Exchange rates
Central bank credibility
#20
What is the main purpose of a development subsidy?
To reduce government spending
To encourage investment in emerging industries
To regulate interest rates
To increase income taxes