Econ 2 Quiz #1

The national budget is the official budget of a nation that is drafted by the treasury department (which is a part of the ministry of finance)

• True

• False

National income is a total measure of the income earned by everyone in the economy

• True

• False

Disposable income is the amount of money individuals have to spend after what is paid?

• Custom duties

• wages

• taxes

• bills

The portion of disposable income not spent on consumption is known as ?

• personal income

• personal savings

• savings

• disposable savings

Individuals have a choice in how they allocate their disposable income

• True

• False

GDP is the

• total money value of the goods and services produced within a country in one financial year

• total money value of the goods and services produced by local firms of a country (whether these firms are located by the country or away) in one financial year

• broadest measure of the economies health

• all of the above

Monetary policy refers to the actions undertaken by a central bank to influence the availability of money and credit to help promote national economic objectives of .....

• growth

• employment

• stable prices

• All of the above

National Debt is how much the government owes its

• people

• creditors

• loan sharks

• all of the above

Fiscal policy involves the government adjusting its_____ and ______

• saving, spending

• spending, investments

• spending , taxes

• taxes, wages

The difference between total revenue and total expenditure of the government is termed as

• monetary surplus

• fiscal deficit

• monetary deficit

• fiscal surplus