#1
Which of the following is NOT a component of GDP?
Government spending
Exports
Imports
Household savings
#2
What does CPI stand for?
Consumer Price Index
Cost-Price Indicator
Corporate Profit Index
Currency Purchasing Index
#3
What is the name for the total value of all goods and services produced within a country's borders in a specific time period?
Gross National Product (GNP)
Gross Domestic Product (GDP)
Net National Product (NNP)
Net Domestic Product (NDP)
#4
What is the primary function of the Federal Reserve System in the United States?
Fiscal policy implementation
Monetary policy implementation
Taxation policy formulation
Trade policy formulation
#5
Which of the following is a characteristic of a mixed economy?
Government ownership of all resources
Lack of government intervention
Private ownership of resources and government intervention
Complete absence of government
#6
What is the name for the rate at which a country's currency can be exchanged for another currency?
Exchange rate
Interest rate
Inflation rate
Nominal rate
#7
What is the term for the situation when an economy experiences negative economic growth for two consecutive quarters?
Stagnation
Recession
Depression
Deflation
#8
Which of the following is an example of expansionary fiscal policy?
Decreasing government spending
Increasing taxes
Increasing government spending
Decreasing interest rates
#9
What does the term 'crowding out' refer to in economics?
Increased government spending
Decreased interest rates
Increased consumer spending
Decreased private investment due to increased government borrowing
#10
What is the Phillips Curve used to analyze?
The relationship between inflation and unemployment
The relationship between GDP and inflation
The relationship between interest rates and investment
The relationship between government spending and taxation
#11
What is the main goal of contractionary monetary policy?
To reduce inflation
To stimulate economic growth
To decrease unemployment
To increase consumer spending
#12
What does the term 'stagflation' refer to?
High inflation and low unemployment
Low inflation and high unemployment
High inflation and high unemployment
Low inflation and low unemployment
#13
What is the name of the rate at which banks lend to each other overnight?
Federal Funds Rate
Prime Rate
Discount Rate
LIBOR
#14
What is the difference between fiscal policy and monetary policy?
Fiscal policy is conducted by central banks, while monetary policy is conducted by governments.
Fiscal policy involves changes in government spending and taxation, while monetary policy involves changes in the money supply and interest rates.
Fiscal policy focuses on controlling inflation, while monetary policy focuses on promoting economic growth.
Fiscal policy is used during recessions, while monetary policy is used during periods of high inflation.
#15
Which of the following is NOT a tool of monetary policy?
Open market operations
Fiscal deficit
Reserve requirements
Discount rate
#16
Which of the following is an example of automatic stabilizers in fiscal policy?
Government subsidies
Unemployment benefits
Income tax cuts
Infrastructure spending