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Economic Policies and Government Regulation

Description: This quiz will evaluate your understanding of economic policies and government regulations.
Number of Questions: 14
Created by:
Tags: economics economic policies government regulation
Attempted 0/14 Correct 0 Score 0

What is the primary objective of fiscal policy?

  1. To stabilize the economy

  2. To promote economic growth

  3. To redistribute income

  4. To control inflation


Correct Option: A
Explanation:

Fiscal policy is a branch of macroeconomic policy that uses government spending and taxation to influence the economy.

Which of the following is an example of a contractionary fiscal policy?

  1. Increasing government spending

  2. Cutting taxes

  3. Raising interest rates

  4. Reducing government borrowing


Correct Option: D
Explanation:

Contractionary fiscal policy is a set of government actions that reduce aggregate demand in the economy.

What is the primary objective of monetary policy?

  1. To stabilize the economy

  2. To promote economic growth

  3. To control inflation

  4. To redistribute income


Correct Option: C
Explanation:

Monetary policy is a branch of macroeconomic policy that uses interest rates and the money supply to influence the economy.

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

  1. Raising interest rates

  2. Selling government bonds

  3. Increasing the money supply

  4. Reducing bank lending


Correct Option: C
Explanation:

Expansionary monetary policy is a set of government actions that increase aggregate demand in the economy.

What is the primary objective of government regulation?

  1. To protect consumers

  2. To promote competition

  3. To ensure financial stability

  4. To redistribute income


Correct Option: A
Explanation:

Government regulation is a set of rules and regulations that are imposed on businesses and individuals by government agencies.

Which of the following is an example of a government regulation that protects consumers?

  1. The Food and Drug Administration (FDA)

  2. The Consumer Financial Protection Bureau (CFPB)

  3. The Federal Trade Commission (FTC)

  4. The Securities and Exchange Commission (SEC)


Correct Option: A
Explanation:

The FDA is a government agency that regulates the safety of food, drugs, and medical devices.

Which of the following is an example of a government regulation that promotes competition?

  1. The Sherman Antitrust Act

  2. The Clayton Act

  3. The Robinson-Patman Act

  4. The Hart-Scott-Rodino Antitrust Improvements Act


Correct Option: A
Explanation:

The Sherman Antitrust Act is a federal law that prohibits monopolies and unreasonable restraints of trade.

Which of the following is an example of a government regulation that ensures financial stability?

  1. The Dodd-Frank Wall Street Reform and Consumer Protection Act

  2. The Sarbanes-Oxley Act of 2002

  3. The Glass-Steagall Act of 1933

  4. The Federal Deposit Insurance Corporation (FDIC)


Correct Option: A
Explanation:

The Dodd-Frank Act is a federal law that was enacted in response to the 2008 financial crisis.

Which of the following is an example of a government regulation that redistributes income?

  1. The Social Security Act

  2. The Medicare Act

  3. The Unemployment Insurance Act

  4. The Earned Income Tax Credit


Correct Option: A
Explanation:

The Social Security Act is a federal law that provides retirement, disability, and survivor benefits.

What is the primary objective of economic policy?

  1. To promote economic growth

  2. To stabilize the economy

  3. To control inflation

  4. To redistribute income


Correct Option: A
Explanation:

Economic policy is a set of government actions that are designed to influence the economy.

Which of the following is an example of an economic policy that promotes economic growth?

  1. Investing in infrastructure

  2. Providing tax incentives for businesses

  3. Reducing trade barriers

  4. Increasing government spending


Correct Option: A
Explanation:

Investing in infrastructure can help to boost economic growth by creating jobs and stimulating investment.

Which of the following is an example of an economic policy that stabilizes the economy?

  1. Using fiscal policy to manage aggregate demand

  2. Using monetary policy to manage the money supply

  3. Using government regulations to protect consumers

  4. Using government regulations to promote competition


Correct Option: A
Explanation:

Fiscal policy can be used to manage aggregate demand by increasing or decreasing government spending or taxes.

Which of the following is an example of an economic policy that controls inflation?

  1. Raising interest rates

  2. Selling government bonds

  3. Reducing the money supply

  4. Increasing bank lending


Correct Option: A
Explanation:

Raising interest rates can help to control inflation by making it more expensive for businesses and consumers to borrow money.

Which of the following is an example of an economic policy that redistributes income?

  1. Providing tax breaks for low-income families

  2. Increasing the minimum wage

  3. Expanding access to healthcare

  4. Providing subsidies for childcare


Correct Option: A
Explanation:

Providing tax breaks for low-income families can help to redistribute income by reducing the tax burden on those who are struggling to make ends meet.

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