CHAPTER 2 PRACTICE Economics Quiz

What is the definition of economy as described in the learning material?

• A system of government policies and regulations

• A financial and social system of how resources flow through society

• A method of managing a country's political affairs

• A study of human behavior in social contexts

What does the field of economics study?

• The choices that people, companies, and governments make in allocating society's resources

• The political systems and their impact on society

• The cultural development of human societies

• The technological advancements in different industries

What does macroeconomics study?

• The individual behavior of consumers and businesses

• The study of a country's overall economic dynamics

• The cultural impact of economic policies

• The technological advancements in the economy

Which of the following is an example of a macroeconomic issue?

• Consumer preferences

• Employment rate

• Business management strategies

• Individual savings habits

What does microeconomics focus on?

• The global economy

• Smaller economic units such as individual consumers, families, and individual businesses

• Government policies

• International trade

What was the primary cause of the biggest economic downturn in the U.S. in early 2020?

• Natural disasters

• Government-mandated economic lockdowns due to COVID-19

• Trade wars

• Technological advancements

What was one of the first steps in the Federal response to the economic crisis caused by the pandemic?

• Increasing taxes

• Implementing COVID-19 vaccinations

• Reducing interest rates

• Expanding international trade

What is the role of both macroeconomics and microeconomics in the economy?

• They play an integral role in the global economy

• They focus solely on individual businesses

• They are only concerned with government policies

• They do not impact the economy significantly

What was one of the highest priorities of the incoming Biden administration in early 2021?

• Reducing unemployment

• Distributing COVID-19 vaccinations

• Increasing interest rates

• Managing the Great Recession

What was the Federal Reserve's strategy to manage the crisis mentioned in the text?

• Increasing interest rates

• Decreasing interest rates

• Increasing taxes

• Reducing government spending