#1
Which of the following is a tool used by governments to control inflation?
Fiscal policy
Monetary policy
Trade policy
Industrial policy
#2
What is the primary goal of antitrust laws?
To encourage monopolies
To regulate competition
To reduce taxes
To increase government intervention
#3
Which of the following is an example of a fiscal policy tool?
Open market operations
Interest rate adjustments
Taxation
Reserve requirements
#4
What is the primary aim of government subsidies?
To decrease production
To increase consumer prices
To decrease consumer demand
To encourage production or consumption
#5
What does the term 'deregulation' refer to in the context of government policies?
Increasing government control over an industry
Decreasing government control over an industry
Maintaining the same level of government control over an industry
Nationalizing an industry
#6
Which of the following is NOT a goal of government regulation?
Protecting consumers
Promoting competition
Maximizing corporate profits
Ensuring market stability
#7
Which economic theory advocates for minimal government intervention in the economy?
Keynesian economics
Classical economics
Monetarism
Marxian economics
#8
What is the primary purpose of a price ceiling?
To prevent prices from falling below a certain level
To prevent prices from rising above a certain level
To regulate supply and demand
To encourage monopolies
#9
In which market structure do firms have the most control over prices?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#10
What is the primary goal of a contractionary monetary policy?
To reduce government spending
To decrease taxes
To stimulate economic growth
To reduce inflation
#11
What is the term used to describe a situation where one person or company dominates an entire industry?
Oligopoly
Perfect competition
Monopoly
Monopolistic competition
#12
Which of the following is a characteristic of a progressive tax system?
Tax rate decreases as income increases
Tax rate remains constant regardless of income
Tax rate increases as income increases
Tax rate decreases as income decreases
#13
What is the 'Laffer curve' often used to illustrate?
The relationship between inflation and unemployment
The relationship between tax rates and government revenue
The impact of government spending on GDP
The effect of interest rates on investment
#14
Which of the following is NOT a tool of monetary policy?
Discount rate
Quantitative easing
Subsidies
Open market operations
#15
What is the primary objective of a trade barrier such as tariffs or quotas?
To encourage free trade
To reduce government revenue
To restrict imports or exports
To stabilize currency exchange rates
#16
What is the term for a situation where the government's expenditures exceed its revenues?
Budget surplus
Budget deficit
Fiscal equilibrium
Fiscal policy
#17
Which of the following is an example of a countercyclical fiscal policy measure?
Increasing taxes during an economic downturn
Decreasing government spending during an economic downturn
Increasing government spending during an economic downturn
Decreasing transfer payments during an economic downturn