Mr. Lee Monetary Policy (Government)

Which of the following is a tool used in Monetary Policy?

• Taxation

• Government spending

• Central bank actions

• Public services

Which policy is primarily concerned with the actions of a central bank?

• Fiscal Policy

• Monetary Policy

• Trade Policy

• Social Policy

Which of the following is an example of a positive externality?

• Pollution

• Education

• Traffic congestion

• Noise

Fill in the blank: _______ is an example of a Natural Monopoly.

• A) Ice cream

• B) Cable TV

• C) Fish in the ocean

• D) Tornado siren

Stabilizing the economy is a task of which policy?

• Monetary policy

• Fiscal policy

• Trade policy

• Industrial policy

Medicare is a part of federal government spending. True or False?

• A) True

• B) False

Fill in the blank: _______ is a category of federal government spending related to health.

• Medicare

• Education

• Defense

• Transportation

Which of the following is not a category of federal government spending?

• Health

• Net interest

• Space exploration

• Other

Which of the following is a task of fiscal policy?

• Correct for externalities

• Increase inflation

• Reduce exports

• Privatize industries

Fiscal policy aims to _______ the economy.

• Destabilize

• Stabilize

• Ignore

• Complicate