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MR. CARO’S ECONOMICS FINAL
1. Which of the following is the best definition of fiscal policy?
2. Which of the following is the best description of expansionary policy?
3. Which of the following best explains what contractionary policy?
4. Why would the federal government enact a contractionary policy towards the economy?
5. Which of the following best defines budget surplus?
6. Which of the following best explains what a budget deficit is?
7. Which of the following best defines what a balanced budget is?
8. What are the two tools of fiscal policy that are used to influence the economy?
9. How does the government borrow money?
10. What is interest?
11. Which is the best definition of Monetary Policy?
12. Which best defines what The Federal Reserve System (The Fed) is?
13. Who is Janet Yellen
14. Demand-side economics calls for the government to do what during a recession or
depression?
15. Which of the following is a cause for a budget surplus?
16. Which of the following is not an entitlement?
17. Which of the following is a cause of budget deficits?
18. Which of the following is an effect of budget deficits?
19. Which government institution is in charge of Monetary policy?
20. Which government institutions are in charge of Fiscal Policy?
21. Why would the FED raises reserve requirements?
22. Why would the FED lower the discount rate?
23. When the FED sells bonds what happens to the money supply and why?
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MR. CARO’S ECONOMICS FINAL
24. Which of the following is a government security?
25. Why would the FED lower reserve requirements?
26. Why would the FED raise the discount rate?
27. When the FED buys bonds, what does this do to the money supply and why?
28. What does GDP stand for?
29. Define GDP.
30. When prices go up, demand will _______________________?
31. When prices go down, demand will _______________________?
32. When prices go up, supply will _______________________?
33. When prices go down, supply will _______________________?
34. The knowledge and skills a worker gains through education and experience is known as?
35. A political system in which the government owns all resources and production factors is
known as?
36. A political system based on the belief that wealth should be evenly distributed is known
as?
37. The economic belief that government should not intervene in the marketplace is known
as?
38. When one company dominates a market and is often the only company in that industry is
known as?
39. Which of the following is the most important rule when investing in stocks?
40. Which of the following is a mandatory expense?
41. Which of the following is an example of discretionary spending?
42. What two fiscal policy tools can be used to influence the economy?
43. How can fiscal policy boost the economy?
44. How can fiscal policy slow the economy?
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MR. CARO’S ECONOMICS FINAL
45. Which economic system does America have?
46. Which of the following is NOT a factor of production?
47. Which of the following is not an entitlement?
48. Which person wrote Wealth of Nations?
49. The amount of money left after expenses are paid is your ________.
50. America’s federal income tax structure is which of the following?
51. The program created in the 1930’s to help the older population with their expenses is?
52. In business, efficiency will lead to an increase in ________________ and
_______________.
53. A tax structure for which the percentage of income paid in taxes decreases as income
increases is?
54. A tax structure for which the percentage of income paid in taxes increases as income
increases is?
55. A tax structure for which the percentage of income paid in taxes remains the same at all
income levels is?
56. Which of the following can best describe the difference between Macroeconomics and
microeconomics?
57. The two biggest mandatory expenses for the American budget are?
58. The biggest discretionary expense is?
59. Which of the following is not a significant revenue source for states?
60. The government cannot tax which of the following?
61. Which of the following are the correct levels of government?
62. A tax on a gift from one living person to another living person of more than $12K is
known as?
63. The income received before expenses are paid is?
64. The use of government spending and revenue collection to influence the economy is
known as?
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MR. CARO’S ECONOMICS FINAL
65. If the government collected $3.2 trillion in taxes but spent $3.6 trillion, this would be
considered which type of budget?
66. Demographics are which of the following?
67. Which of the following is an effect of a budget deficit?
68. Of the following, which is the best way to lower the federal deficit?
69. Who has the most influence over monetary policy?
70. Which of the following is something the Federal Reserve is NOT responsible for?
71. Government laws in a market the affects the production of a good is known as?
72. A certificate of ownership of a corporation is?
73. A formal contract issued by a corporation or government that includes the promise to
repay borrowed money with interest at fixed intervals is best known as?
74. The shift from local to global markets as countries seek foreign trade and investment best
describes which of the following?
75. The percentage of the nation’s labor force that is unemployed is known as?
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