Economics and Policy Quiz

What is the Consumer Price Index used to measure?

• Total value of the country’s exports

• The average price of a basket of goods and services consumed by a typical household

• The level of government debt

• The rate of unemployment

The expenditures on capital goods and services by businesses to expand or improve operations is best described as:

• Gross Domestic Product

• Consumer Spending

• Business Investment

• Government Transfer Payments

Which of the following is an example of Consumer Behavior?

• The White House imposes a tariff on imports from Canada & Mexico.

• Zoe applies for a small business loan with hopes of opening her own bakery.

• The Federal Open Market Committee votes to lower interest rates.

• Olivia picked up extra shifts at work over spring break so she can splurge on her prom dress.

Which of the following is an example of Government Spending?

• Congress increases the income tax rate for Americans earning over $250,000 annually.

• Target expands into the EV market by offering charging stations at major cities on the West coast.

• The White House approves funding for a new generation of fighter jets, boosting national defense

• The Chairman of the Federal Reserve holds a press conference to provide an update on the health of the overall economy.

The reallocation of resources to social welfare programs is best described as:

• Gross Domestic Product

• Consumer Spending

• Business Investment

• Government Transfer Payments

Which of the following best describe direct taxes?

• A tax paid indirectly through increased prices, such as a sales tax.

• A tax levied on goods and services imported into the country at the border.

• A tax imposed on corporations only.

• A tax paid directly by individuals or businesses such as income tax.

Which of the following best describes government deregulation?

• The White House increases its oversight over the basic operations of the Internal Revenue Service

• Congress votes to ban TikTok in order to promote national security and consumer protection

• North Carolina passes a new law to require ticket sellers to display the total price of tickets

• The Environmental Protection Agency rolls back 31 environmental rules that target climate change.

The total value of all goods and services produced within a country in a given period is best described as:

• Gross Domestic Product

• Consumer Spending

• Inflation Rate

• Unemployment Rate

What is the major difference between fiscal and monetary policy?

• Fiscal policy is focused on inflation, while monetary addresses unemployment

• Fiscal policy lowers and raises interest rates, while monetary policy increases and decreases taxes

• Fiscal policy involves Congress & the Executive Branch, while monetary policy is determined by the Federal Reserve

• Fiscal Policy is determined by the Federal Open Market Committee, monetary policy involves taxation and government spending

Which of the following best describe indirect taxes?

• The property taxes Taylor directly files to the IRS for her private jet.

• The corporate taxes Target pays directly to the US Government

• Ms. Barkley files her income taxes before the April due date!

• Xavier made sure to budget for sales tax when making purchases for his spring break trip