Coach Mosley's High School Economics Quiz

What is the law of supply and demand?

• The law of supply and demand is a concept that states that the price of a good or service is determined by the government.

• The law of supply and demand is a legal principle that governs the production and distribution of goods and services.

• The law of supply and demand is an economic principle that states that the price of a good or service is determined by the relationship between the quantity of the good or service that producers are willing to supply and the quantity that consumers are willing to demand.

• The law of supply and demand is a theory that suggests that the price of a good or service is determined by the cost of production.

Which of the following is an example of a monopoly?

• Government-owned utility company

• Local grocery store

• Online marketplace

• Private hospital

What is GDP?

• Gross Domestic Profit

• Government Development Program

• Global Domestic Product

• Gross Domestic Product

Which of the following is an example of a tariff?

• Tax on exported goods

• Subsidy for domestic production

• Price ceiling on goods

• Tax on imported goods

What is the purpose of expansionary fiscal policy?

• To reduce government spending and decrease aggregate demand.

• To stabilize the economy and maintain a balanced budget.

• To increase taxes and decrease disposable income.

• To stimulate economic growth and increase aggregate demand.

What is inflation?

• The rate at which the general level of prices for goods and services is irrelevant

• The rate at which the general level of prices for goods and services is rising

• The rate at which the general level of prices for goods and services is staying constant

• The rate at which the general level of prices for goods and services is falling

Which of the following is an example of a trade surplus?

• Country A importing more goods than it exports

• Country A not engaging in any international trade

• Country A exporting more goods than it imports

• Country A having an equal balance of imports and exports

What is the role of the Federal Reserve in the economy?

• Regulate monetary policy, supervise and regulate banks, and maintain the stability of the financial system.

• Regulate the stock market

• Set tax rates for the country

• Provide loans to individuals and businesses

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

• Lowering interest rates

• Increasing reserve requirements for commercial banks

• Decreasing reserve requirements for commercial banks

• Increasing government spending

What is the main goal of a command economy?

• To prioritize profit and economic growth.

• To have the government control and make decisions regarding the production, distribution, and pricing of goods and services.

• To encourage individual ownership and private enterprise.

• To promote competition and free market principles.