Macroeconomic Policies and Systems Quiz

Test your knowledge of macroeconomic policies and systems with this quiz covering fiscal policy tools, monetary goals, economic indicators, and more.

#1

Which of the following is a tool of fiscal policy?

Interest rates
Open market operations
Government spending
Reserve requirements
#2

In economics, what does GDP stand for?

Gross Domestic Product
Gross Disposable Profit
Global Demand Projection
Government Debt Percentage
#3

What is the primary goal of monetary policy?

Stabilizing prices
Reducing government spending
Promoting economic growth
Controlling inflation
#4

Which of the following is NOT a characteristic of a command economy?

Centralized decision-making
Private ownership of property
Government control of resources
Production targets set by the government
#5

What is the name of the economic indicator that measures the average prices of goods and services in an economy?

Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Unemployment Rate
Labor Force Participation Rate
#6

Which of the following is an example of expansionary monetary policy?

Decreasing government spending
Raising interest rates
Buying government securities
Increasing reserve requirements
#7

What is the name of the economic system where the means of production are privately owned and operated for profit?

Socialism
Communism
Capitalism
Mixed economy
#8

What is the name of the policy used by central banks to increase the money supply in the economy?

Contractionary policy
Expansionary policy
Inflation targeting
Quantitative easing
#9

In the context of fiscal policy, what does the term 'budget deficit' refer to?

When government spending exceeds government revenue
When government revenue exceeds government spending
When government spending equals government revenue
When there is no government revenue
#10

What is the name of the principle that suggests that adding more of a factor of production will eventually result in smaller increases in output?

Diminishing marginal returns
Elasticity of demand
Law of demand
Economies of scale
#11

What is the formula to calculate the unemployment rate?

(Number of unemployed workers / Labor force) x 100
(Number of employed workers / Labor force) x 100
(Number of unemployed workers / Total population) x 100
(Number of employed workers / Total population) x 100
#12

What is the name of the policy that aims to reduce income inequality by taxing the wealthy more than the poor?

Progressive taxation
Regressive taxation
Flat taxation
Inclusive taxation
#13

Which of the following is a characteristic of a recession?

Rising GDP
Decreasing unemployment rate
Falling consumer spending
Increasing business investment
#14

What is the name of the policy that involves increasing government spending or decreasing taxes to stimulate economic growth?

Contractionary fiscal policy
Expansionary fiscal policy
Monetary policy
Austerity policy
#15

What is the name of the economic theory that advocates for minimal government intervention in the economy?

Monetarism
Keynesian economics
Classical economics
Neo-Keynesian economics

Sign In to view more questions.

Sign InSign Up

Quiz Questions with Answers

Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.

Test Your Knowledge

Craft your ideal quiz experience by specifying the number of questions and the difficulty level you desire. Dive in and test your knowledge - we have the perfect quiz waiting for you!

Other Quizzes to Explore