Fiscal Policy Quiz

Fiscal Policy Quiz

12th Grade

20 Qs

quiz-placeholder

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Fiscal Policy Quiz

Fiscal Policy Quiz

Assessment

Quiz

Other

12th Grade

Easy

Created by

Joe Brogan

Used 1+ times

FREE Resource

20 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary tool used by governments to influence the economy through spending on goods and services?

Fiscal policy

Foreign policy

Trade policy

Monetary policy

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does an increase in government spending affect aggregate demand in the economy?

An increase in government spending leads to a decrease in government revenue.

An increase in government spending has no impact on aggregate demand in the economy.

An increase in government spending increases aggregate demand in the economy.

An increase in government spending decreases aggregate demand in the economy.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the two main categories of government spending?

mandatory spending and discretionary spending

required spending and elective spending

fixed spending and flexible spending

essential spending and optional spending

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Explain the concept of progressive taxation and provide an example.

Progressive taxation means everyone pays the same tax rate regardless of income.

Progressive taxation is a system where tax rates increase as income levels rise. An example is the income tax system in many countries.

An example of progressive taxation is sales tax.

Progressive taxation is a system where tax rates decrease as income levels rise.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purpose of regressive taxation and how does it impact different income groups?

Regressive taxation has no impact on different income groups.

Progressive taxation aims to benefit lower-income individuals more than higher-income groups.

Regressive taxation aims to benefit higher-income individuals more than lower-income groups.

Regressive taxation aims to shift the tax burden towards lower-income individuals, impacting them more than higher-income groups.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Define budget deficit and discuss its implications on the economy.

A budget deficit leads to decreased national debt

A budget deficit occurs when a government spends less money than it receives in revenue

A budget deficit results in lower interest rates

A budget deficit is when a government spends more money than it receives in revenue, leading to increased national debt, potential inflation, higher interest rates, and reduced confidence in the government's financial management.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What measures can a government take to reduce a budget deficit?

Print more money, borrow from other countries

Implement social programs, increase foreign aid

Increase debt, reduce taxes

Increase taxes, cut spending, implement austerity measures, sell assets, stimulate economic growth

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