Podcast
Questions and Answers
Which of the following scenarios best illustrates the concept of opportunity cost?
Which of the following scenarios best illustrates the concept of opportunity cost?
- A country exports goods to another country, resulting in a trade surplus.
- A company invests in new machinery, leading to increased production and higher revenues.
- A consumer buys a product on sale, saving money compared to the original price.
- A government decides to increase spending on education, leading to a decrease in healthcare funding. (correct)
Which action exemplifies expansionary fiscal policy?
Which action exemplifies expansionary fiscal policy?
- The government lowers income tax rates for individuals and corporations. (correct)
- The central bank increases the reserve requirements for commercial banks.
- The government reduces its spending on infrastructure projects.
- The central bank sells government securities in the open market.
What is the primary goal of contractionary monetary policy?
What is the primary goal of contractionary monetary policy?
- To increase employment levels in the short term.
- To control inflation by reducing the money supply. (correct)
- To encourage borrowing and investment by lowering interest rates.
- To stimulate economic growth during a recession.
Which trade policy is characterized by the absence of tariffs, quotas, and other restrictions on goods and services crossing national borders?
Which trade policy is characterized by the absence of tariffs, quotas, and other restrictions on goods and services crossing national borders?
What is the role of the World Trade Organization (WTO)?
What is the role of the World Trade Organization (WTO)?
Which of the following policies is most closely associated with supply-side economics?
Which of the following policies is most closely associated with supply-side economics?
Which of the following economic indicators is considered a lagging indicator?
Which of the following economic indicators is considered a lagging indicator?
What does Foreign Direct Investment (FDI) primarily involve?
What does Foreign Direct Investment (FDI) primarily involve?
Which concept from behavioral economics explains why individuals might make irrational decisions based on mental shortcuts?
Which concept from behavioral economics explains why individuals might make irrational decisions based on mental shortcuts?
What is the likely effect of a country's central bank lowering the reserve requirements for commercial banks?
What is the likely effect of a country's central bank lowering the reserve requirements for commercial banks?
Flashcards
Economic Policy
Economic Policy
Government actions to influence economic outcomes.
Economic Growth
Economic Growth
Increase in goods and services production over time.
Full Employment
Full Employment
Economy operating at potential with low joblessness.
Price Stability
Price Stability
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Fiscal Policy
Fiscal Policy
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Expansionary Fiscal Policy
Expansionary Fiscal Policy
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Contractionary Fiscal Policy
Contractionary Fiscal Policy
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Monetary Policy
Monetary Policy
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Open Market Operations
Open Market Operations
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Tariffs
Tariffs
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Study Notes
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