Fiscal / Domestic / Foreign Policy

Front

Which economic system relies on customs and traditions to answer the basic economic questions?

Back

Traditional

Front

In a market economy, how are decisions about what to produce typically made?

Back

By consumers and producers through supply and demand

Front

How does scarcity affect government decision-making?

Back

Governments must prioritize resources to address competing demands.

Front

How do mixed economies differ from command economies?

Back

Mixed economies combine government control with market freedom.

Front

Which of the following measures changes in the cost of living over time? Gross Domestic Product (GDP), Consumer Price Index (CPI), Unemployment rate, Business cycle

Back

Consumer Price Index (CPI)

Front

What does the GDP measure?

Back

The total value of goods and services produced in a country

Front

What is a period of declining economic activity called?

Back

Recession

Front

A high unemployment rate typically indicates:

Back

An economy struggling to create jobs

Front

How does the business cycle reflect economic instability?

Back

It alternates between periods of expansion and contraction.

Front

What is the primary goal of fiscal policy?

Back

To manage economic growth and stability