Economics Quiz

What is a Business Cycle?

• A method of cycling to work to reduce economic activity

• The phases of expansion and contraction in economic activity

• A cycle that businesses use to plan their financial year

• The life cycle of a business from start-up to closure

What does Capital Gain refer to?

• The knowledge gained from running a business

• The profit made from the selling of a stock

• The interest earned on a savings account

• The loss incurred from the selling of a stock

What is the purpose of Collective Bargaining?

• To allow consumers to bargain for better prices in the market

• To negotiate a new labor contract between union and company representatives

• To collect funds for worker benefits

• To bargain for lower prices of raw materials

What does the Consumer Price Index (CPI) measure?

• The price of a standard group of goods meant to represent the typical "market basket" of a typical urban consumer

• The profitability of consumer products

• The average price of all consumer goods in a country

• The inflation rate of consumer goods

What is Deflation?

• The increase in price levels where consumers can buy more goods and services at higher prices

• The decrease in the overall level of government spending

• A general decrease in price levels where consumers can buy more goods and services at lower prices

• The process of deflating balloons in an economic context

What is the role of the Federal Deposit Insurance Corporation (FDIC)?

• To provide loans to businesses

• To regulate stock market trading

• To insure customer deposits if a bank fails

• To print and distribute currency

What is the Federal Reserve System commonly referred to as?

• The National Bank

• The Fed

• The Treasury

• The Central Reserve

What does the Federal Poverty Level measure?

• The average income of a nation's citizens

• The wealth distribution in a country

• Whether the income level of an individual or family qualifies them for certain federal benefits and programs

• The level of poverty in urban areas only

What is the main purpose of Fiscal Policy?

• To regulate the stock market

• To manage the country's defense strategy

• To use government spending and tax policies to influence economic conditions

• To ensure the stability of the banking system

What is a Free Trade Agreement?

• An agreement to trade goods for free between two countries

• A pact between two or more nations to reduce barriers for trade

• A policy to increase taxes on imported goods

• An agreement to standardize currency values between nations