Economics Quiz

What is "Creeping inflation"?

• A persistent fall in the general price level of goods and services.

• Inflation caused by rising costs of production.

• Small rises in the general price level over a long period.

• Caused by an excess of AD over AS.

What does 'Net primary income' measure?

• The total stock of unpaid debt issued by a government

• The net flow of profits, interest, and dividends from investments in other countries

• The price of one country's currency in relation to another

• The amount the government must borrow each year to finance their spending

Which of the following is NOT considered an injection in the circular flow of income?

• Investment (I)

• Government spending (G)

• Exports (X)

• Savings (S)

What is the definition of "balanced growth" in macroeconomics?

• When government spending equals tax revenues

• When outflows on the current account equal inflows

• When output and capital stock grow at the same rate

• When there is a low positive inflation rate

What is the focus of pro-market supply-side policies?

• Increasing government spending and borrowing

• Reducing the size of the state and extending the role of market forces

• Increasing barriers to entry for new firms

• Promoting monopolies

What is the primary goal of monetary policy?

• To control inflation and stabilize the currency

• To increase government spending

• To reduce the size of the state

• To promote monopolies

What does 'fiscal policy' primarily involve?

• Adjusting the interest rates

• Managing government spending and taxation

• Controlling the money supply

• Regulating monopolies

What is 'structural unemployment'?

• Unemployment caused by seasonal changes

• Unemployment due to a mismatch of skills in the labor market

• Unemployment caused by economic recessions

• Unemployment due to voluntary job changes