Unit 3 Macro-Economics/ Government Role in Economy

Question 1

When the central bank sells government securities in the open market, it is likely pursuing:

Accepted Answer

Contractionary monetary policy

Question 2

Which government agency is responsible for regulating food and drug safety in the United States?

Accepted Answer

Food and Drug Administration (FDA)

Question 3

When the central bank (Fed) lowers interest rates to encourage borrowing and spending, it is implementing:

Accepted Answer

Expansionary monetary policy

Question 4

Which of the following are primary goals of International trade agreements?

Accepted Answer

Promote free and fair trade between countries

Question 5

A government's decision to increase taxes and reduce government spending to combat inflation is an example of:

Accepted Answer

Contractionary fiscal policy

Question 6

Which of the following crops is NC famous for growing?

Accepted Answer

Tobacco

Question 7

Which of the following is a trade barrier that restricts the quantity of a specific imported good entering a country?

Accepted Answer

Quota

Question 8

When a government decreases taxes and increases government spending to stimulate economic growth, it is implementing:

Accepted Answer

Expansionary fiscal policy

Question 9

What is the primary purpose of government regulation in the economy?

Accepted Answer

Promoting economic stability and protecting consumers

Question 10

Fiscal policy primarily involves:

Accepted Answer

Government policies related to taxation and spending

Question 11

What does the term "protectionism" refer to in the context of global trade?

Accepted Answer

Using trade barriers to shield domestic industries from foreign competition

Question 12

What does "deregulation" refer to in the context of government regulation?

Accepted Answer

Reduction of government regulations on businesses

Question 13

The government's main source of revenue comes from:

Accepted Answer

Taxes imposed on individuals and businesses

Question 14

Which international organization is responsible for overseeing global trade agreements and resolving trade disputes?

Accepted Answer

World Trade Organization (WTO)

Question 15

Which government agency is responsible for regulating the securities industry and protecting investors in the USA?

Accepted Answer

Securities and Exchange Commission (SEC)

Question 16

The Environmental Protection Agency (EPA) primarily focuses on:

Accepted Answer

Protecting the environment and public health

Question 17

The concept of Modern Monetary Theory can best be described as

Accepted Answer

Inflation & resources are main factors to consider when spending money.

Question 18

The Department of Homeland Security (DHS) is responsible for:

Accepted Answer

Enforcing immigration laws and protecting national security

Question 19

Which Government agency is responsible for regulating telecommunications and broadcasting in the USA?

Accepted Answer

Federal Communications Commission (FCC)

Question 20

Which of the following is an example of a government regulation aimed at protecting the environment?

Accepted Answer

Emission standards for automobiles

Question 21

Which agency oversees workplace safety and health in the United States?

Accepted Answer

Department of Labor

Question 22

What is antitrust legislation designed to prevent?

Accepted Answer

Monopolistic behavior and unfair business practices

Question 23

Which of the following is a tool commonly used in monetary policy?

Accepted Answer

Raising the reserve requirement

Question 24

What is a trade deficit?

Accepted Answer

A situation where a country&#x27;s imports exceed its exports

Question 25

According to modern monetary theory what is the main purpose of taxation?

Accepted Answer

Taxes are used to create value in regards to a country’s currency

Question 26

The central bank's primary tool for conducting monetary policy is:

Accepted Answer

Federal Discount (Funds) Rate

Question 27

Expansionary fiscal policy is often used to:

Accepted Answer

Stimulate economic growth

Unit 3 Macro-Economics/ Government Role in Economy

Questions 27

Unit 3 Macro-Economics/ Government Role in Economy

Questions 27