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

Fiscal Policy Quiz

Quiz
•
Other
•
12th Grade
•
Easy

Joe Brogan
Used 1+ times
FREE Resource
20 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
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
Create a free account and access millions of resources
Similar Resources on Wayground
21 questions
Economics Unit 5

Quiz
•
9th - 12th Grade
15 questions
AP Government Review 5

Quiz
•
11th - 12th Grade
20 questions
10 Week Economics Quiz

Quiz
•
12th Grade
15 questions
Government's Role in Economic Policy

Quiz
•
12th Grade
15 questions
Impact of Fiscal and Monetary Policies

Quiz
•
12th Grade
21 questions
Econ Quiz #2

Quiz
•
9th - 12th Grade
25 questions
Financial Literacy

Quiz
•
12th Grade
20 questions
Demand and Supply Side Policies, Output Gaps, and Economy

Quiz
•
11th - 12th Grade
Popular Resources on Wayground
25 questions
Equations of Circles

Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)

Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System

Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice

Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers

Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons

Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)

Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review

Quiz
•
10th Grade