#1
Which of the following is a source of government revenue?
Public expenditure
Foreign aid
Corporate taxes
Unemployment benefits
#2
Which of the following is NOT a direct tax?
Income tax
Value-added tax (VAT)
Property tax
Capital gains tax
#3
Which of the following is a component of government revenue?
Budget deficit
National debt
Income tax
Public debt
#4
Which of the following is NOT a type of government revenue?
Corporate taxes
Sales taxes
Public debt
Income taxes
#5
What economic policy aims to stimulate economic growth during a recession by increasing government spending and decreasing taxes?
Monetary policy
Fiscal policy
Supply-side policy
Trade policy
#6
Which tax system imposes a higher tax rate on those with higher incomes?
Progressive tax system
Regressive tax system
Proportional tax system
Flat tax system
#7
What is the main function of tariffs in economic policy?
To increase government revenue
To regulate international trade
To control inflation
To stabilize exchange rates
#8
What is the purpose of a budget deficit in economic policy?
To reduce government spending
To promote savings
To finance government spending beyond revenue
To decrease taxes
#9
What economic theory advocates for government intervention to correct market failures and ensure economic stability?
Keynesian economics
Monetarism
Classical economics
Austrian economics
#10
Which of the following is a form of expansionary fiscal policy?
Decreasing government spending
Increasing interest rates
Decreasing taxes
Selling government bonds
#11
Which of the following is a tool of monetary policy used by central banks to influence the money supply and interest rates?
Open market operations
Corporate taxes
Fiscal stimulus
Trade barriers
#12
What is the primary goal of contractionary monetary policy?
To increase unemployment
To decrease inflation
To stimulate economic growth
To increase consumer spending
#13
What is the purpose of a trade surplus in international trade?
To encourage exports
To decrease government revenue
To stimulate domestic consumption
To promote foreign investment
#14
What is the main objective of supply-side economic policies?
To control inflation
To increase government spending
To stimulate aggregate demand
To promote long-term economic growth
#15
What is the purpose of contractionary fiscal policy?
To reduce unemployment
To increase government spending
To stabilize prices
To slow down economic growth
#16
What is the primary objective of expansionary monetary policy?
To increase inflation
To reduce interest rates
To decrease money supply
To lower unemployment