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Untitled Quiz

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

An example of a durable good is a?

a)

Apple

b)

Chocolate bar

c)

Truck

d)

Disposable camera

2.

a)

Deflation

b)

Expansion

c)

Inflation

d)

Recession

3.
a)

Buying food for a birthday party

b)

Opening a very small business

c)

Performing one’s own home repairs

d)

Selling stocks that have declined in value

4.

Which of the following is a tool of monetary policy by the federal reserve

a)

Sending stimulus checks to people

b)

Government spending

c)

Setting tax rates

d)

Changing interest rates

5.

New U.S manufactured Goodyear tire sold to the General Motors Corporation that is put on a new Chevy impala

a)

C-Consumer Spending

b)

I-Investment Spending

c)

G-government spending

d)

(X-M) net exports

e)

Not counted towards gdp

6.

In the United States economists estimate that full employment is an unemployment rate of about

a)

4-6%

b)

1-3%

c)

7-9%

d)

9-11%

7.

The federal reserve increases interest rates on loans and mortgages

a)

Expansionary Monetary Policy

b)

Contractionary Monetary Policy

8.

How does the federal reserve control the money supply through the reserve requirement?

a)

By Requiring banks to hold a certain amount of money in reserves

b)

By setting interest rates for loans

c)

By regulating the stock market

d)

By buying and selling government securities

9.

What is Business Cycle in economics

a)

The periodic rise and fall of stock market prices

b)

The recurring pattern of economic growth and contraction in a country’s economy

c)

The total amount of goods and services a household will buy at a price level

d)

The natural cycle of seasons that affect agricultural production

10.

During the pandemic, Congress approved three different stimulus packages that sent money to every adult in the US. What type of fiscal policy is this?

a)

Expansionary fiscal policy

b)

Contractionary fiscal policy

11.

In 1982, President Reagan signed a bill increasing taxes in an attempt to slow inflation and reduce the deficit. What type of fiscal policy is this?

a)

Expansionary Fiscal Policy

b)

Contractionary Fiscal Policy

12.

What is an example of Contractionary Monetary Policy?

a)

Cutting taxes

b)

Decreasing Interest Rates

c)

Increasing the Required Reserve Rates

d)

Increasing government spending