This quiz works best with JavaScript enabled. Home > Fiscal > Policy > Fiscal Policy – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Fiscal Policy Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these are examples of government revenue A) Income tax. B) Credit. C) Pensions. D) Work for the dole. Show Answer Correct Answer: A) Income tax. 2. Occurs when the government takes in more than it spends A) Budget surplus. B) Treasury notes. C) National debt. D) None of above. Show Answer Correct Answer: A) Budget surplus. 3. These are rules used by federal agencies (run by executive) to protect consumers from harm or to protect businesses from unfair competition from bigger, stronger competitors. A) Political Pressure. B) Regulations. C) Discretionary Spending. D) Entitlements. Show Answer Correct Answer: B) Regulations. 4. Which is a goal of the Federal Reserve? A) Create a high level of inflation. B) Create price stability in the economy. C) Print currency for American citizens. D) Develop fiscal policy for the United States. Show Answer Correct Answer: B) Create price stability in the economy. 5. A problem with redistributive fiscal policy is ..... A) It can disincentivise people from working. B) People are less likely to save. C) Businesses will invest more. D) That it is unconstitutional. Show Answer Correct Answer: A) It can disincentivise people from working. 6. Who is responsible for fiscal policy? A) The president. B) The House of Representatives. C) The Senate. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Which is an example of automatic stabilizer? A) Stimulus checks that congress had to vote on. B) A paycheck from your employer. C) Unemployment Insurance. D) Interest on your savings account. Show Answer Correct Answer: C) Unemployment Insurance. 8. Expansionary fiscal policies lead to ..... spending. A) Deficit. B) Debt. C) Bad. D) Decreased. Show Answer Correct Answer: A) Deficit. 9. Which of the following is a benefit of government regulations? A) Consumers protected from harm. B) Decreased profits for corporations. C) More rainbows, unicorns, and narwhals. D) More money in consumer's pockets. Show Answer Correct Answer: A) Consumers protected from harm. 10. When would Congress want to use expansionary fiscal policy? A) During periods of high inflation. B) When the economy hits the peak of the business cycle. C) During periods of high unemployment. D) During an election. Show Answer Correct Answer: C) During periods of high unemployment. 11. Which fiscal policy is the government likely to adopt during a contraction? A) Expansionary. B) Contractionary. C) Easy Money. D) Tight Money. Show Answer Correct Answer: A) Expansionary. 12. During inflation, Congress should ..... taxes and ..... spending A) Reduce / reduce. B) Reduce / increase. C) Increase / reduce. D) Increase / increase. Show Answer Correct Answer: C) Increase / reduce. 13. Taxes that have the same percentage regardless of income level A) Progressive. B) Regressive. C) Proportional. D) All of the above. Show Answer Correct Answer: C) Proportional. 14. A political problem with fiscal policy is A) The implementation lag is immediate. B) The impact lag is too short. C) Poiltically increasing taxes can cause government loss of votes. D) None of above. Show Answer Correct Answer: C) Poiltically increasing taxes can cause government loss of votes. 15. Franklin D. Roosevelt's New Deal would be an example of A) Expansionary fiscal policy. B) Contractionary fiscal policy. C) Expansionary monetary policy. D) Contractionary monetary policy. Show Answer Correct Answer: A) Expansionary fiscal policy. 16. Your parents pay a tax each year of $ 3500 that is based off the value of your home. Which type of tax do your parents pay each year? A) Payroll Tax. B) Income Tax. C) Sales Tax. D) Property Tax. Show Answer Correct Answer: D) Property Tax. 17. The institution responsible for managing a nation's money supply is the ..... A) Central Bank. B) Trade Commission. C) National Security. D) Government Regulator. Show Answer Correct Answer: A) Central Bank. 18. Keynesian economics differs from Classical economic theory in that A) Equilibrium can only be achieved at full employment. B) Full employment equilibrium is not automatically attained. C) Full employment is unobtainable in the long run. D) None of above. Show Answer Correct Answer: B) Full employment equilibrium is not automatically attained. 19. Which of the following will most likely create a "contraction" to occur in the economy. A) Cutting government spending. B) Expansionary fiscal policy. C) Lowering the discount rate. D) The Federal Reserve buying bonds. Show Answer Correct Answer: A) Cutting government spending. 20. Keynesian followers believe this entity should increase demand during contractions A) Federal Government. B) Federal Reserve. C) State Governments. D) Individual Producers. Show Answer Correct Answer: A) Federal Government. ← PreviousNext →Related QuizzesFiscal QuizzesFiscal Policy Quiz 1Fiscal Policy Quiz 2Fiscal Policy Quiz 3Fiscal Policy Quiz 4Fiscal Policy Quiz 5Fiscal Policy Quiz 6Fiscal Policy Quiz 7Fiscal Policy Quiz 9Fiscal Policy Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books