Download Business Economics Quiz 6D (EC:073, EC:074, Gov. Expenditures

Business Economics
Quiz 6D (EC:073, EC:074, Gov. Expenditures and Tax)
NAME________________
1. __D___ One of the main functions of a country's monetary policy is to
A.
B.
C.
D.
monitor government spending.
supervise the banking system.
issue new currency.
regulate the economy.
2. __C___ A country's easy monetary policy is often used to correct the problem of
A.
B.
C.
D.
globalization.
high taxes.
unemployment.
import quotas.
3. __B___ Which of the following actions would the Federal Reserve System take to expand monetary
policy:
A.
B.
C.
D.
Raise the Federal Discount Rate
Buy securities on the open market
Increase Reserve Requirements
Open additional financial institutions
4. __C___ Which of the following represents a good time for a country's government to use its fiscal
policy to increase taxes:
A. While the economy is expanding
B. When a recession lasts too long
C. When inflation is too high
D. While the economy is contracting
5. __C___ A government's fiscal policies that are intended to encourage economic growth are known as
__________ policies.
A. appropriate
B. complementary
C. expansionary
D. realistic
6.__B___ If a government wants to decrease economic growth, it would use a contractionary fiscal policy
that might involve
A. increasing government spending.
B. increasing taxes.
C. decreasing regulations.
D. decreasing unemployment.
7.__C___ Which of the following actions would government take to increase economic growth:
A. Decrease exports
B. Increase taxes
C.
D. Decrease government subsidies
8.__C___ What type of government policy involves raising or lowering taxes, and increasing or
decreasing government spending?
A. Disciplinary
B. Monetary
C. Fiscal
D. Social
Business Economics
Quiz 6D (EC:073, EC:074, Gov. Expenditures and Tax)
NAME________________
9.__B___ Which of the following government actions is most likely to stimulate the economy:
A. Raising the prime interest rate
B. Lowering tax rates
C. Printing less money
D. Borrowing more money
10.__C__ The government uses some of the tax money it collects from individuals and businesses to
support public welfare programs. What is the benefit of these welfare programs to businesses in a
private enterprise economy?
A. Recipients don't have to work.
B. Businesses must budget more money for taxes.
C. Funds received by recipients are spent in businesses.
D. Government has control of how the recipients spend their money.
11.__A__ Higher prices that result from a tax on luxury goods are likely to result in
A. fewer customers and less productivity.
B. more customers and more productivity.
C. fewer customers and more productivity.
D. more customers and less productivity.
12.__A__ To stimulate the economy, the government is likely to
A. increase spending.
B. restrict trade.
C. raise prices.
D. decrease expenses.