Fiscal Policy Trivia Quiz: How Much You Know?
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How much do you know about fiscal policy? Do you think you can pass this quiz? You will need to know the difference between a fiscal policy and an expansionary policy, define a balanced budget, budget deficit and budget surplus, our current national debt, what causes debt, and what are progressive and regressive taxes. This awesome quiz can help you learn more about fiscal policy.
- 1.What is Fiscal Policy?
- A.
A policy that seeks to expand the money supply to encourage economic growth.
- B.
A finance ministry to slow down an economy.
- C.
A government policy for dealing with the budget.
- 2.What would the government do if it wants to use an Expansionary Policy?
- A.
Increase GDP, increase taxes. they're worried about inflation.
- B.
Lower taxes and are worried about gov't spending.
- C.
Decrease taxes and decrease GDP.
- D.
Increase gov't spending.
- 3.What is Expansionary Policy?
- A.
A policy that seeks to expand the money supply to encourage economic growth.
- B.
A government policy for dealing with the budget.
- C.
A finance ministry to slow down an economy.
- 4.What would the government do if it wants to use a Contractionary Policy?
- A.
Lower taxes and are worried about gov't spending
- B.
Increase GDP, increase taxes. they're worried about inflation
- C.
Decrease taxes and decrease GDP
- D.
Increase gov't spending
- 5.________________ is the idea that an initial amount of spending (usually by the government) leads to increased consumption spending.
- 6.Define Balance Budget.
- A.
How much more we spend than what we bring in.
- B.
How much we are below our deficit per year.
- C.
When the government spends as much money as it generates in revenue.
- D.
How much debt we have total.
- 7.Define Budget Deficit.
- A.
How much more we spend than what we bring in.
- B.
How much we are below our deficit per year.
- C.
When the government spends as much money as it generates in revenue.
- D.
How much debt we have total.
- 8.Define Budget Surplus.
- A.
How much more we spend than what we bring in.
- B.
How much we are below our deficit per year.
- C.
When the government spends as much money as it generates in revenue.
- D.
How much debt we have total.
- 9.When was the last time the gov't had a surplus?
- A.
2011
- B.
1995
- C.
1978
- D.
2000
- E.
2004
- 10.Define National Debt.
- A.
How much more we spend than what we bring in.
- B.
How much debt we have total.
- C.
How much we are below our deficit per year.
- D.
When the government spends as much money as it generates in revenue.
- 11.What is our current national debt?
- A.
$5 billion
- B.
$4 trillion
- C.
$3 million
- D.
$2 thousand
- E.
$8 trillion
- 12.What are the causes of debt?
- A.
War
- B.
Housing
- C.
Cars
- D.
National Disasters
- E.
School
- F.
Recessions
- 13.What is the "Crowding out" effect?
- A.
Reduction in private consumption or investment that occurs because of an increase in government spending.
- B.
When the government spends as much money as it generates in revenue.
- C.
How much we are below our deficit per year.
- D.
How much more we spend than what we bring in.
- 14.Define Progressive tax;
- A.
The poor is taxed a higher % than the rich.
- B.
The rich are taxed a higher % than the poor.
- C.
Everyone is taxed the same amount.
- 15.Define Regressive tax;
- A.
The poor is taxed a higher % than the rich.
- B.
The rich are taxed a higher % than the poor.
- C.
Everyone is taxed the same amount.
- 16.Define Proportional tax;
- A.
The poor are taxed higher % than the rich.
- B.
The rich are taxed higher % than the poor.
- C.
Everyone is taxed the same amount.
- 17.What is an example of a progressive tax?
- A.
Social Security Tax
- B.
Fixed Dollar Amount
- C.
Income Tax
- 18.What is an example of regressive tax?
- A.
Social Security Tax
- B.
Fixed Dollar Amount
- C.
Income Tax
- 19.What is an example of proportional tax?
- A.
Social Security Tax
- B.
Fixed Dollar Amount
- C.
Income Tax
- 20.Four Criteria to determine fairness in taxes.
- A.
Money
- B.
Ability to pay
- C.
Simplicity
- D.
Taxing
- E.
Benefits received
- F.
Debt
- G.
Efficiency
- 21.What is the biggest portion of government spending?
- A.
Income Administration
- B.
Social Security Administration
- C.
Fixed Dollar Administration
- 22.What is mandatory spending?
- A.
Essential
- B.
Non-Essential
- 23.What is discretionary spending?
- A.
Essential
- B.
Non-Essential
- 24.What is Keynesian economics?
- A.
Little to no govt spending
- B.
Has more govt spending
- 25.What is New classical economics?
- A.
Little to no govt spending
- B.
Has more govt spending
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