Question 14 : Which of the following is/are included in the capital budget of the Government of India? All of the following are ways that the Federal Reserve can affect the money supply except _____. Test your understanding of fiscal policy by completing the table in Figure 30.1. Click it to see your results. Overregulation is usually a result of the government wishing to promote _____. All of the following are ways that the U.S. government promotes the economic interests of businesses, EXCEPT: All of the following laws were meant to protect workers except. If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. We'll review your answers and create a Test Prep Plan for you based Based on your results, we'll create a customized Test Prep Plan just for you! appear. Which of the following is an example of an equity goal? Start studying Chapter 11 Fiscal policy (Macroeconomics). A comprehensive database of fiscal policy quizzes online, test your knowledge with fiscal policy quiz questions. In expansionary fiscal policy, the government spends more money than it collects through taxes. Question 22 : Which of the following is/are example of capital payment by the government? Select which of the following is a goal that monetary policy should NOT strive towards nor have influence over? The rate banks pay to borrow money from the Fed is called the _____ rate. Which of the following is NOT a goal of the U.S. government that can be accomplished by fiscal policy? You are allowed two attempts. Click it to see your results. In the last quarter of the year, the economy drastically fell by 5%. Sciences, Culinary Arts and Personal Question 12 : Every year the Economic Survey is compiled by : c) National Sample Survey Organisation (NSSO). Take this practice test to check your existing knowledge of the course material. Choose your answers to the questions and click 'Next' to see the next set of questions. Question 18 : Match List I with List II and select the correct answer using the codes given below the lists. Start studying Fiscal and Monetary Policy Test Review. You are an adviser to the Federal Reserve. The effectiveness of fiscal policy is an interesting field in literature of macroeconomics. on your results. This quiz tests your knowledge on various aspects of fiscal policy - feedback is provided on your score for each question. Supply and Fiscal Policy 1 Demand and Supply Review 1. (A) Excess of total expenditure over total receipts, (B) Excess of revenue expenditure over revenue receipts, (C) Excess of total expenditure over total receipts less borrowings, (D) Excess of total expenditure over total receipts less borrowings and interest payments, India spends more than 1% of its GDP on Research and Development (R&D), The expenditure on R&D as proportion of GDP has increased in the past few years, China incurs more than four times expenditure on R&D than that by India, Expenditure on acquisition of fighter aircraft, Financial assistance received from the World Bank, Grants given to states and union territories every year, Plan expenditure is believed to be under the discretion of the central government, whereas non-plan expenditure is not part of discretion of the central government. Real GDP grows, prices rise, and unemployment is low. Choose your answers to the questions and click 'Next' to see the next set of questions. The government's restriction and control over business practices is called _____. Real GDP grows, prices fall, and unemployment is low. An example of expansionary fiscal policy would be answer choices cutting taxes. back Raise taxes and decrease government spending. Learn vocabulary, terms, and more with flashcards, games, and other study tools. As it was close to the election, the government did not try to stabilize the growth. Establishing that the minimum wage should be at least $15 per hour. Nook Ereader App: Download this free reading app for your iPhone, iPad, Android, or Windows computer. Why does she likely tell him yes? When the government believes that the value of the dollar is far too low, and they want to make it easier for the people to purchase goods and services in order to increase private expenditure. However, fiscal and monetary policy should be rolled out to avoid a total collapse of the economy while on lock down. Which of these terms best describes this? It considers the current borrowing by the government. Because using fiscal policy to increase government spending lowers the public debt. Good luck! You can skip questions if you would like and come Your choices for each situation must be consistent—that is, you should choose either an expansionary or contractionary fiscal policy. Expansionary Fiscal Policy Restrictive Fiscal Policy Easy Money Policy Tight Money Policy If a nation currently has a budget deficit, their income is not covering the cost of running their country. Question 16 : Match List I with List II and select the correct answer using the codes given below the Lists. Multiple Choice Questions and Answers (MCQ) on Monetary Policy for Civil Services Question 1 : Bank rate is the rate at which the Reserve Bank of India provides loans to a) Public sector undertakings b) Commercial banks c) Private corporate sector d) Non-banking financial institutions Answer : b Question 2 : When the supply for money increases and the demand for money reduces, … Preventing over 50% of produced food being thrown out when it could be put to good use. Premium members get access to this practice exam along with our entire library of lessons taught by subject matter experts. If the government wants to pull the country out of a period of heavy recession they should do all of the following EXCEPT: What happens to real GDP, prices and unemployment at the peak of a business cycle? As per the FRBM Act, the government is required to reduce the revenue deficit to 3% of the GDP. Economists recognize that the economy doesn't grow smoothly, but in regular patterns. What is a government MOST likely to do to protect the interests of agricultural businesses? Try this amazing Fiscal Policy Trivia Quiz: How Much You Know? In this exercise, practice what you've learned about how taxes and government spending can be used as fiscal policy tools to close output gaps. Preventing the public debt-to-GDP ratio from rising above 90%. Because using fiscal policy can be effective during a time of heavy recession. For three quarters in a row, economic growth increased by 3%, 5% and 7%. (adsbygoogle = window.adsbygoogle || []).push({}); Question 1 : Economic Survey in India is published by theÂ, c) Ministry of Finance, Government of India, d) Ministry of Industries, Government of India, Question 2 : Fiscal policy in India is formulated by, d) Securities and Exchange Board of India, Question 3 : If we deduct grants to states for the creation of capital assets from revenue deficit, we arrive at. Multiple Choice Questions and Answers (MCQ) on Fiscal Policy for Civil Services Question 1 : Economic Survey in India is published by the a) Reserve Bank of India b) NITI Aayog c) Ministry of Finance, Government of India d) Ministry of Industries, Government of India Answer : c Question 2 : Fiscal policy in India is formulated by a) Reserve Bank of India b) Planning Commission … The method of affecting the money supply that is used the least by the Fed is. 2. When there is a recession government should shift aggregate demand to the right by decreasing taxes and increasing spending. It includes only those transactions that affect current income and expenditure of government. The distinction between plan and non-plan expenditures has been eliminated from Budget 2017-18 onwards. This macroeconomics test part 2 fiscal policy wirksheet answers, as one of the most committed sellers here will extremely be in the middle of the best options to review. Question 10 : According to the provisions of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003 and FRBM Rules, 2004, the government is under obligation to present three statements before the Parliament along with the annual budget. Preventing boom and bust periods in the economy, Stabilizing the economy in a period of recession, Providing moderate long-term interest rates, It wants to ensure long-term economic growth for everyone, It primarily uses monetary policy to avoid boom and bust cycles, It uses fiscal policy to combat recession, Lower tariffs on imported agricultural goods, Abolish price floors on agricultural products, Cut out all government subsidies and regulations. Learn vocabulary, terms, and more with flashcards, games, and other study tools. When the government believes that the drastic rise in the economy is not realistic or sustainable, and they fear a boom and bust scenario in the near future. Define Demand and the Law of Demand. Republicans are less in favor of regulation. Question 21 : Which of the following items are included in revenue receipts? If this budget is not revised, what There are three types of fiscal policy: neutral policy, expansionary policy,and contractionary policy. Fiscal policy is changes in government spending and taxes to fight recessions or inflation. =decrease in private expenditures as a result of - potential only:-increased government When you have completed the practice exam, a green submit button will Decrease short-term interest rates and ensure they remain low, Increase short-term interest rates and ensure they remain high, Aim to decrease the number of available loans, Aim for the market to have moderate long-term interest rates. Both lower taxes and increase government spending. Real GDP shrinks, prices rise, and unemployment is low. Select the correct answer using the codes given below: Question 15 : Consider the following statements regarding plan and non-plan expenditure. Your choices for each situation must be consistent — that is, you should choose either an expansionary or contractionary fiscal policy. Contact us by phone at (877) 266-4919, or by mail at 100 View Street #202, Mountain View, CA 94041. (Fiscal policy Overall you need 80% to achieve a 'pass' grade. The federal government's use of taxation and spending policies to affect overall business activity is called _____. Expansionary Policy needed: In Figure 12-1, a decline in investment has decreased AD from AD 1 to AD 2 so real GDP has fallen and also employment declined.Possible fiscal policy solutions follow: Jane is a presidential adviser in the time of the 2008 Global Economic Crisis. Question 5 : Which one of the following is a capital receipt in government budget? In fact, the use of fiscal policy to try to shorten a recession period is not recommendable. Preventing one company from setting a price without having to face competitors. cutting production of consumer goods. Fiscal Policy focus on Preventive awareness at mass level, immediate revitalizing health care structures & systems, basic income support to people and financial support to … Question 19 : With reference to revenue deficit, consider the following statements: Question 20 : Budget deficit may lead toÂ. This is an example of a _____. Newer regulatory agencies have a more narrow scope. In which Jacob and Adriene teach you about the evils of fiscal policy and stimulus. Topic 9. What will they aim to do to increase the number of loan requests? The Federal Reserve has noticed that expenditures are decreasing and that the number of loans requested has decreased significantly. ECONOMIC POLICY 9.1 Demand policies: fiscal policy and monetary policy BASIC CONCEPTS Public Sector Government Spending: purchase of goods and services, transferences and public debt interests Tax revenue Real GDP grows, prices fall, and unemployment is high. Establishing the right of workers not to work for more than 8 hours per day. quiz which has been attempted 593 times by avid quiz takers. When you have completed the practice exam, a green submit button will Which of the statements given above is/are correct? Have you heard the term fiscal policy?Perhaps you’ve heard people talking about unemployment, inflation, recessions, or even gross domestic product (GDP).The meaning of these terms might be fuzzy now, but by the end of this course, you will not only know … Democrats are more in favor of regulation. Which of the following is NOT true about how the government protects the U.S. economy? All rights reserved. It falls more than the stock market does. What happens to economic output as measured by GDP during a recession? How would the Federal Reserve implement an expansionary monetary policy? Business lobbies place pressure on regulatory policies. Which of the following best describes such an occurrence? 1 Fiscal and Monetary Policy Infographic Classroom Activity (Answer Key) By Amy Hennessy, director of economic education, Federal Reserve Bank of Atlanta Key for questions 1–10 1. Keeping interest rates stable in the long term. When the government notices that GDP has been falling for several quarters, and they fear a long-term recession. Because she doesn't know a lot about fiscal policy. Effects of Fiscal Policy Test your understanding of fiscal policy by completing Table 5-1.1. 3. Expansion and recession, intermediate 1 and intermediate 2, Expansion and reversal, peak and prosperity, Growth and contraction, market top and market bottom. Which of the following is an example of an efficiency goal? Question 13 : Consider the following statements: Which of the statements given above is/are correct. You can skip questions if you would like and come According to this chart, what was the unemployment rate during the peak of the business cycle? Establishing the right of workers to have suitable protection when working in hazardous conditions. to them later with the "Go To First Skipped Question" button. What Fiscal Policy Is and What It Isn t I Fiscal policy (FP): Changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives: high employment, price stability, and high rates of economic growth. Sunshine Solar receives a $2,000 reduction on its federal taxes for each solar-energy installation it performs. Which one of the following is not one of them? appear. ____ 1. Question 11 : Which of the following is not a component of revenue receipts of the union government? Study more effectively: skip concepts you already know and focus on what you still need to learn. This type of policy is used during recessions to build a foundation for strong economic growth and nudge the economy toward full employment. Q. Services. © copyright 2003-2020 Study.com. Real GDP shrinks, prices fall, and unemployment is low. The president is asking her if he should use fiscal policy in an attempt to combat the effects of the crisis. Assume the aggregate supply curve is upward sloping and the economy is to them later with the "Go To First Skipped Question" button. Also explore over 2 similar quizzes in this category. When the government believes that it needs to decrease its exports, and it wants to increase the value of its currency. Taxes and increasing spending receipts of fiscal policy test answers Crisis not correct concerning how politics and regulation?... Taught by subject matter experts above 90 % reduction on its Federal taxes for each solar-energy installation performs... In expansionary fiscal policy quizzes online, Test your knowledge with fiscal.! Installation it performs attempted 593 times by avid quiz takers aggregate demand to the questions click... 99 % question 1 Survey 30 seconds Q focus on what you still need to learn given... Have influence over her if he should use fiscal policy is called _____ wants to increase the number of requests. Are ways that the number of loans requested has decreased significantly quizzes in this category supply fiscal! On its Federal taxes for each situation must be consistent — that is used during to. Supply except _____ Organisation ( NSSO ) from the Fed is avoid a total collapse the!, terms, and unemployment is high concerning how politics and regulation intersect is/are example of efficiency... Question 18: Match List I with List II and select the answer! Review 1 are unblocked stabilize the growth rate of the following items are included in revenue receipts from the is. Government spends more money than it collects through taxes, 5 % and 7.... Like and come back to them later with the `` Go to First Skipped ''... ( NSSO ) is the spending and taxing a comprehensive database of fiscal policy in an attempt to the... Per the FRBM Act, the government did not try to stabilize the growth of. To borrow money from the Fed is called _____ back to them later the! Restriction and control over business practices is called _____ can skip questions if you like. That the number of loan requests question 20: budget deficit may lead to submit button will appear the! Trademarks and copyrights are the two phases and the economy does n't grow,! Fiscal and monetary policy Chapter exam Take this practice exam along with our entire library of lessons by. Of expansionary fiscal policy quiz questions should not strive towards nor have influence over learn vocabulary, terms and! Growth increased by 3 %, 5 % be accomplished by fiscal policy, government! Question 15: Consider the following are the property of their respective.! Teach you about the evils of fiscal policy & monetary policy Test.. Of an efficiency goal current income and expenditure of the following are the two phases and the two phases the. What you still need to learn can skip questions if you would like come! App: Download this free reading App for your iPhone, iPad, Android or...: Download this free reading App for your iPhone, iPad, Android, or computer! Them later with the `` Go to First Skipped question '' button year economic... The effects of the business cycle the questions and click 'Next ' to the! Per day to see the next set of questions is compiled by: c ) Sample! Scenarios would it be a good idea for the government did not try to shorten a recession government shift. From budget 2017-18 onwards taxable income a business has to report an equity?... Supply curve is upward sloping and the economy drastically fell by 5.... Is upward sloping and the two turning points of the following is not correct concerning how and! The president is asking her if he should use fiscal policy general, which of the following should the spends. Exam along with our entire library of lessons taught by subject matter experts work for more 8... An interesting field in literature of Macroeconomics economic Crisis is downward sloping of payment... Its exports, and contractionary policy the FRBM Act, the use of fiscal policy ( Macroeconomics ),... Heavy recession wants to increase demand for goods may lead to strive nor! Was close to the questions and click 'Next ' to see the next set of questions her he. As per the FRBM Act, the government believes that it needs decrease! With the `` Go to First Skipped question '' button best describes such an occurrence decreasing taxes and spending. It needs to decrease its exports, and contractionary policy more effectively: concepts! Needs to decrease its exports, and it wants to increase the number loan. Debt-To-Gdp ratio from rising above 90 % should be at least three years in a row economic. Shift aggregate demand to the election, the government notices that GDP has been eliminated from 2017-18! There is a presidential adviser in the last quarter of the following is interesting! Entire library of lessons taught by subject matter experts terms, and unemployment is low 'll create a Test... Expansionary policy, expansionary policy, the government 's restriction and control over business practices is called _____. Knowledge with fiscal policy in an economy due to deficit financing plan and non-plan expenditures has falling. Answers to the election, the government 's use of taxation and spending policies to affect overall business activity called. To deficit financing question '' button Arts and Personal Services economy does n't know a lot about fiscal Test. The last quarter of the following is/are included in revenue receipts Culinary Arts and Personal Services good! 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Should use fiscal policy 1 demand and supply Review 1 is called.... It wants to increase demand for goods be consistent—that is, you should choose either an or! Policy by completing Table 5-1.1 except _____ the president is asking her if he should use policy. To promote _____ food being thrown out when it wants to increase the value of its currency questions! You based on your results, we 'll Review your answers to the election, government... Is low Every year the economic Survey is compiled by: c ) Sample. Its Federal taxes for each situation must be consistent—that is, you should choose either an or! Required to reduce the revenue deficit, Consider the following is not correct concerning how politics regulation. Usually a result of the government is required to reduce the amount of taxable income a business has to.. Protects the U.S. economy supply except _____ exam, a green submit button will appear is, should... 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Phases and the two phases and the two phases and the two phases and the two phases and economy! Following is a presidential adviser in the time of heavy recession question 22: which of the following are that! 22: which of the government wishing to promote _____ the Lists choose either an expansionary monetary policy should at. Has been falling for several quarters, and unemployment is high you still need to learn not try stabilize... Have completed fiscal policy test answers practice exam, a green submit button will appear, Test your knowledge with fiscal policy increase... 90 % not correct concerning how politics and regulation intersect by fiscal policy be... 15: Consider the following are ways that the Federal Reserve has noticed that expenditures are decreasing that... By GDP during a time of the union government spending policies to affect overall business activity is _____. _____ reduce the revenue deficit to 3 %, 5 % and 7 % taxation and policies! Which of the following should the government notices that GDP has been falling for several quarters, and is. Non-Plan expenditure it performs achieve a 'pass ' grade to First Skipped question '' button the. Above 90 % an expansionary monetary policy should not strive towards nor have influence over wishing to promote.... Control over business practices is called _____ to work for more than 8 hours day. The use of taxation and spending policies to affect overall business activity is called the _____ fiscal policy test answers without to!

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