Spring Semester Economics Final Exam: Study Guide

Front

What is the primary role of the Federal Reserve in the U.S. Economy?

Back

To manage monetary policy

Front

Which of the following is NOT one of the tools used to steer the country's monetary policy? Options: Open market operations, Discount rate, Reserve requirements, Taxation

Back

Taxation

Front

What type of tax is the U.S. income tax, where higher earners pay a higher percentage?

Back

Progressive tax

Front

Which economic indicator measures the total economic output of a nation?

Back

Gross Domestic Product (GDP)

Front

What happens to wages when every company wants to hire more workers than there are available?

Back

Wages tend to rise

Front

As a finance minister, what action represents expansionary fiscal policy to boost the city's economy?

Back

Encourage Evelyn to increase government spending

Front

Imagine you're the finance minister, and you find out that the government is spending more than it collects in revenue. What is this situation called?

Back

Budget deficit

Front

Which government agency is responsible for regulating the stock market?

Back

Securities and Exchange Commission (SEC)

Front

What type of tax is it where lower-income individuals pay a higher proportion?

Back

Regressive tax

Front

Primary goal of contractionary monetary policy?

Back

To control inflation