Quiz: Test Your Economics Knowledge!
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We are already eight chapters deep into our ongoing studies in the social science of economics, the topic which deals primarily with how we look at the production, distribution, and consumption of goods and services, and how we can utilize that information. As we delve into chapter nine, however, why don’t you take the quiz to see if you have acquired the knowledge necessary to move on?
- 1.
The existence of the federal income tax and the welfare system serve as the primary elements of
- A.
Discretionary fiscal policy
- B.
Nondiscretionary fiscal policy
- C.
Monetary policy
- D.
Exchange rate policy
Correct Answer
B. Nondiscretionary fiscal policy -
- 2.
Adjustments to tax and spending policies serve as primary elements of
- A.
Discretionary fiscal policy
- B.
Nondiscretionary fiscal policy
- C.
Monetary policy
- D.
Exchange rate policy
Correct Answer
A. Discretionary fiscal policy -
- 3.
Discretionary fiscal policy is the purview of
- A.
Congress only
- B.
The president only
- C.
Congress and the president collectively through law
- D.
The federal reserve
Correct Answer
C. Congress and the president collectively through law -
- 4.
Nondiscretionary fiscal policy has its impact by
- A.
Magnifying the economic ups and downs already occurring
- B.
Purposefully adjusting interest rates
- C.
Congress focusing its constant attention
- D.
Dampening the economic ups and downs already occurring
Correct Answer
D. Dampening the economic ups and downs already occurring -
- 5.
The aggregate demand aggregate supply model examines the impact of discretionary fiscal policy and nondiscretionary fiscal by focusing on movements of
- A.
Interest rates
- B.
Aggregate supply
- C.
Aggregate demand
- D.
Regulatory policies
Correct Answer
C. Aggregate demand -
- 6.
One typical response to a recession for those interested in discretionary fiscal policy is to
- A.
Raise taxes and cut spending
- B.
Lower taxes and cut spending
- C.
Raise taxes and increase spending
- D.
Lower taxes and increase spending
Correct Answer
D. Lower taxes and increase spending -
- 7.
One typical response to an overheated economy for those interested in discretionary fiscal is to
- A.
Raise taxes and cut spending
- B.
Lower taxes and cut spending
- C.
Raise taxes and increase spending
- D.
Lower taxes and increase spending
Correct Answer
A. Raise taxes and cut spending -
- 8.
Discretionary fiscal policy as a tool for making things better is
- A.
Universally applauded as being helpful
- B.
Universally derided for never being effective
- C.
Considered by many to be effective but subject to serval concerns over timing and motive
- D.
Inconsistent with the aggregate demand aggregate supply model
Correct Answer
C. Considered by many to be effective but subject to serval concerns over timing and motive -
- 9.
The oil price increases of 2002-2005 are an example of a
- A.
Positive aggregate demand shock
- B.
Negative aggregate demand shock
- C.
Positive aggregate supply shock
- D.
Negative aggregate supply shock
Correct Answer
D. Negative aggregate supply shock -
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
-
Mar 21, 2022Quiz Edited by
ProProfs Editorial Team -
Apr 30, 2012Quiz Created by
Melkinsey2000
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