Economic Policies Review

Which economic system combines elements of command, market, and traditional economies?

• Traditional economy

•  Mixed economy

• Market economy

• Command economy

Why did the British Parliament adopt new economic policies after the French and Indian War?

• To punish the colonists for their lack of support for the war

• to allow the colonies to trade with countries besides Britain

• To limit the development of industry in the colonies

• To pay off debts incurred in the fighting the war

The economic system of mercantilism was opposed by later American colonists because it

• supported colonial manufacturing

• took gold and silver from American mines

• prohibited colonists from fishing or trading in furs

• prohibited colonists from trading with other foreign countries

Which economic policy aims to reduce government intervention in the market?

• Laissez-faire

• Protectionism

• Keynesianism

• Mercantilism

What is the primary goal of fiscal policy?

• Control inflation

• Regulate interest rates

• Manage unemployment

• Influence economic growth

Which policy involves adjusting the money supply to influence the economy?

• Fiscal policy

• Monetary policy

• Trade policy

• Industrial policy

What is a common tool used in monetary policy?

• Taxation

• Government spending

• Interest rates

• Subsidies

Which economic policy is characterized by high tariffs and quotas?

• Free trade

• Protectionism

• Laissez-faire

• Deregulation

What is the main objective of supply-side economics?

• Increase consumer demand

• Reduce government spending

• Boost production and supply

• Control inflation

Which policy is often used to combat recession?

• Austerity measures

• Expansionary fiscal policy

• Contractionary monetary policy

• Protectionism