Master Economics: Online Quizzes for GED Social Studies

Question 1

If consumer spending goes up due to a stimulus package, what happens to the equilibrium price and quantity in a market?

Accepted Answer

Both price and quantity increase.

Answer

Price increases, but quantity decreases.

Answer

Price decreases, but quantity increases.

Answer

Both price and quantity decrease.

Question 2

What is the main goal of fiscal policy in managing the economy?

Accepted Answer

Influence spending and economic growth

Answer

Control the money supply

Answer

Set interest rates

Answer

Manage exchange rates

Question 3

Which of these is a key feature of communism?

Accepted Answer

Central planning

Answer

Abundant private property

Answer

Extensive economic freedom

Answer

Significant income gaps

Question 4

In a command economy, which feature stands out?

Accepted Answer

The government owns and manages most industries and resources.

Answer

Prices are set by the free interaction of supply and demand.

Answer

Consumers enjoy a wide range of options in the marketplace.

Answer

Businesses compete independently for market share.

Question 5

In a capitalist system, who primarily owns and controls the resources used to produce goods and services?

Accepted Answer

Private individuals and businesses

Answer

The government

Answer

Workers and employees

Answer

Non-profit organizations

Question 6

What is the defining characteristic of a free market economy?

Accepted Answer

Prices set by supply and demand

Answer

Government control over economic decisions

Answer

Government ownership of businesses

Answer

Government planning of production and distribution

Question 7

Which of the following is NOT considered a primary goal of fiscal policy?

Accepted Answer

Balancing the budget

Answer

Promoting economic growth

Answer

Maintaining full employment

Answer

Controlling inflation

Question 8

In a free market economy, which of these is a key characteristic?

Accepted Answer

Limited government involvement in economic decisions

Answer

Government sets prices and allocates resources

Answer

Prices are solely determined by government regulations

Answer

Economic equality is prioritized

Question 9

Which aspect is NOT typically associated with a market economy?

Accepted Answer

Government regulation

Answer

Private property ownership

Answer

Supply and demand determining prices

Answer

Businesses seeking profits

Question 10

In a free market economy, what factor primarily determines how resources are distributed?

Accepted Answer

Negotiation between buyers and sellers

Answer

Government planning

Answer

Random events

Answer

Equal distribution

Question 11

Which characteristic is NOT associated with a communist economic system?

Accepted Answer

Profit motive

Answer

Centralized planning

Answer

Limited private property

Answer

Government ownership of key industries

Question 12

What is a key characteristic of a socialist economy?

Accepted Answer

Government control over resource allocation

Answer

Private ownership of businesses

Answer

Free market competition

Answer

Profit as the main goal of production

Question 13

In a capitalist economy, what primary factor determines how limited resources are distributed among different uses?

Accepted Answer

Consumer preferences

Answer

Government regulations

Answer

Centralized planning

Answer

Availability of natural resources

Question 14

What is the primary goal of implementing a contractionary fiscal policy in an economy?

Accepted Answer

Reduce inflation by decreasing demand.

Answer

Stimulate economic growth by increasing demand.

Answer

Increase government revenue for social programs.

Answer

Promote job creation through infrastructure projects.

Question 15

In a market where there is only one seller, what type of market structure exists?

Accepted Answer

Monopoly

Answer

Perfect competition

Answer

Oligopoly

Answer

Monopsony

Question 16

In a market economy, what is the primary role of the government in relation to production?

Accepted Answer

Sets regulations and standards for businesses

Answer

Directly controls production and distribution

Answer

Owns and operates major industries

Answer

Plans and allocates resources for all economic sectors

Question 17

Which characteristic is a defining feature of a socialist economic system?

Accepted Answer

Centralized planning and significant government involvement in economic decision-making

Answer

Dominance of private property ownership in production

Answer

Unrestricted market forces as the primary determinant of economic outcomes

Answer

Emphasis on individual profit maximization as the driving force behind economic activity

Question 18

In a capitalist economic system, which of these is a defining characteristic?

Accepted Answer

Profit-driven competition

Answer

Government control of major industries

Answer

Centralized planning of the economy

Answer

Equal distribution of wealth

Question 19

What is a defining characteristic of a socialist economic system?

Accepted Answer

Government control of essential services like healthcare and transportation

Answer

Extensive private ownership of businesses and industries

Answer

Free market competition without government involvement

Answer

Minimal government-funded social welfare programs

Question 20

What is a key feature of capitalism?

Accepted Answer

Private property ownership

Answer

Centralized economic planning

Answer

Government control of industries

Answer

Lack of competition

Question 21

Which of these is a defining characteristic of a communist economic system?

Accepted Answer

Centralized planning

Answer

Private property ownership

Answer

Profit-driven economy

Answer

Free market competition

Question 22

In a market economy, what is a key characteristic?

Accepted Answer

Individuals and businesses can make their own economic choices.

Answer

Government controls all economic decisions.

Answer

Prices are set only by government rules.

Answer

Private property is not allowed.

Question 23

In a capitalist economic system, which of these is a defining feature?

Accepted Answer

Profit-driven businesses

Answer

Government control of production

Answer

Centralized economic planning

Answer

Prioritizing social equality

Question 24

According to the Law of Demand, when the price of a good increases, what is the typical response in the quantity demanded?

Accepted Answer

Quantity demanded decreases.

Answer

Quantity demanded increases.

Answer

Quantity demanded remains constant.

Question 25

Which fiscal policy is most likely to promote economic growth?

Accepted Answer

Increase government spending or decrease taxes

Answer

Increase taxes

Answer

Decrease government spending

Question 26

In a free market, what mainly determines the price where supply equals demand?

Accepted Answer

Buyers and sellers interacting

Answer

Government rules

Answer

Costs of making the product

Answer

Similar product choices

Question 27

Which of the following is a fundamental feature of a free market economy?

Accepted Answer

Voluntary exchange of goods and services

Answer

Government control of production

Answer

Price ceilings set by the government

Answer

Central planning of economic activity

Question 28

Which feature is unique to a market economy?

Accepted Answer

Economic freedom for individuals and businesses

Answer

Government control over resource distribution

Answer

Government-set prices

Question 29

In a socialist economic system, how are resources primarily distributed?

Accepted Answer

Through a centralized planning board

Answer

Based solely on consumer demand

Answer

By private businesses operating in a free market

Answer

In response to price signals in a market

Question 30

What is a key characteristic of a free trade agreement?

Accepted Answer

Removal of trade barriers between participating countries

Answer

Standardized labor and environmental regulations

Answer

Guaranteed economic growth for all participants

Question 31

Which feature is NOT typically associated with communist economic systems?

Accepted Answer

Private ownership of property and businesses

Answer

Government ownership and control of production and distribution

Answer

Public ownership of land and resources

Question 32

Which action is the Federal Reserve primarily responsible for in carrying out monetary policy?

Accepted Answer

Adjusting interest rates and regulating the money supply

Answer

Overseeing the federal budget

Answer

Negotiating international trade agreements

Answer

Managing the stock market

Question 33

Imagine a market for a specific product. Which of these would make the supply curve shift to the right? In other words, which factor would lead to more of the product being offered at each price?

Accepted Answer

It becomes cheaper to make the product

Answer

The price of the product goes up

Answer

More people want to buy the product

Answer

There are fewer companies making the product

Question 34

In a market economy, what factor primarily determines the prices of goods and services?

Accepted Answer

Supply and demand

Answer

Government regulations

Answer

Cost of production

Question 35

In economics, what is inflation?

Accepted Answer

A steady increase in the overall prices of goods and services in an economy over time.

Answer

A short-term rise in prices for certain goods or services due to seasonal factors or supply chain issues.

Answer

A government action to lower unemployment by increasing the money supply.

Answer

A measure of how much money can buy, which decreases as inflation rises.

Question 36

In a communist economic system, which of these is a key feature?

Accepted Answer

Centralized planning

Answer

Profit-driven decision-making

Answer

Privately owned production resources

Question 37

In a market economy, the equilibrium price is the price at which:

Accepted Answer

Supply and demand are equal

Answer

Supply is higher than demand

Answer

Demand is higher than supply

Answer

The government determines the price

Question 38

According to the law of demand, what happens to the quantity of a product people want to buy when its price goes up?

Accepted Answer

People will want to buy less.

Answer

People will want to buy the same amount.

Answer

People will want to buy more.

Answer

It's impossible to say.

Question 39

Which characteristic is unique to a communist economic system?

Accepted Answer

Government-controlled central planning of the economy

Answer

Private ownership of production resources

Answer

Profit maximization as a primary objective

Answer

Free market competition as the driving force for economic activity

Question 40

In a market economy, which of the following is a key characteristic?

Accepted Answer

Minimal government involvement

Answer

Government dominance in industries

Answer

Government-controlled pricing

Answer

Limited consumer options

Question 41

As the price of a good or service rises, what happens to the quantity demanded by consumers, assuming all other factors remain constant?

Accepted Answer

Decreases

Answer

Increases

Answer

Stays the same

Answer

Varies unpredictably

Question 42

Which of the following is not a type of inflation?

Accepted Answer

Deflation

Answer

Cost-push inflation

Answer

Demand-pull inflation

Answer

Hyperinflation

Question 43

When the price of a good rises, what generally happens to the quantity of that good that people want to buy?

Accepted Answer

People want to buy less of it.

Answer

People want to buy more of it.

Answer

People want to buy the same amount of it.

Answer

There's no way to predict how much people will want to buy.

Question 44

In economics, how does contractionary fiscal policy impact aggregate demand?

Accepted Answer

Decreases aggregate demand by cutting government spending or raising taxes.

Answer

Increases aggregate demand by raising government spending and maintaining tax rates.

Answer

Increases aggregate demand by boosting government spending and lowering taxes.

Answer

Has no effect on aggregate demand.

Question 45

Which factor **promotes** international trade rather than limiting it?

Accepted Answer

Free trade agreements

Answer

Import tariffs

Answer

Import quotas

Answer

Export subsidies

Question 46

Which economic system is defined by private ownership, personal liberty, and profit as the main driver of economic activity?

Accepted Answer

Capitalism

Answer

Communism

Answer

Socialism

Answer

Traditional Economy

Question 47

The Federal Reserve (Fed) is the central bank of the United States. Which of these actions is the main way the Fed influences the economy?

Accepted Answer

Adjusting short-term interest rates

Answer

Controlling government spending

Answer

Setting tax rates

Answer

Regulating consumer credit

Question 48

Which of the following is a defining characteristic of a socialist economic system?

Accepted Answer

Centralized economic planning and public ownership of major industries

Answer

Profit maximization as the main objective

Answer

Limited government involvement in the economy

Answer

Private ownership of most productive assets

Question 49

Which characteristic is a defining feature of capitalism?

Accepted Answer

Profit as the primary motivator for economic activity

Answer

Government control of major industries

Answer

Wealth distribution based only on effort and merit

Answer

Centralized economic planning by government

Question 50

During an economic recession, what is the primary goal of implementing an expansionary fiscal policy?

Accepted Answer

Stimulate economic activity

Answer

Stabilize the stock market

Answer

Reduce government spending

Answer

Control inflation

Question 51

In a free market economy, which feature is typically observed?

Accepted Answer

Limited government involvement in economic activities

Answer

Government's central planning of the economy

Answer

Government-set prices for goods and services

Answer

Government ownership and regulation of major industries

Question 52

Which characteristic is a defining feature of a communist economic system?

Accepted Answer

Centralized government planning and control of key economic sectors

Answer

Private ownership of property

Answer

Individual decision-making in economic matters

Question 53

Which scenario would cause a decrease in the supply of gasoline?

Accepted Answer

A natural disaster affecting gasoline production

Answer

A rise in gasoline prices

Answer

Lower production costs for gasoline

Answer

Government support for gasoline producers

Question 54

In a market economy, what is the primary factor that determines the price at which supply and demand are equal?

Accepted Answer

The intersection of supply and demand curves

Answer

Government regulations

Answer

Producer profit margins

Answer

Consumer preferences

Question 55

In a socialist economic system, which characteristic is prominent?

Accepted Answer

Government ownership of production resources

Answer

Government regulation of major industries

Answer

Unrestricted market competition

Question 56

In a free-market economic system, which of these is a key feature?

Accepted Answer

Limited government involvement and personal freedom

Answer

Government control over major industries

Answer

Government-set prices and centralized planning

Answer

No private property and shared ownership

Question 57

When the economy is in a recession, the government's main goal in increasing spending is to:

Accepted Answer

Boost economic growth

Answer

Reduce inflation

Answer

Balance the budget

Answer

Control the money supply

Question 58

Which economic system is defined by private individuals owning and controlling the production and distribution of goods?

Accepted Answer

Capitalism

Answer

Socialism

Answer

Communism

Question 59

How can behavioral economics be used to enhance the design of economic policies?

Accepted Answer

By considering how people actually make decisions, rather than relying solely on assumptions of rational behavior.

Answer

By focusing solely on the role of emotions in economic decisions and ignoring the influence of logical reasoning.

Answer

By assuming that people are always irrational and unpredictable in their economic behavior.

Answer

By disregarding the role of economic incentives and focusing solely on psychological factors.

Question 60

Which fundamental principle of economics explains the interaction between producers and consumers in markets?

Accepted Answer

Supply and demand

Answer

Government intervention

Answer

International trade

Answer

Economic growth

Question 61

In a market economy, what primary role does the government play?

Accepted Answer

To regulate and protect consumers

Answer

To control prices and production

Answer

To provide all goods and services

Answer

To eliminate competition

Question 62

What does the concept of elasticity measure?

Accepted Answer

The responsiveness of supply or demand to changes in price or other factors

Answer

The slope of the supply or demand curve

Answer

The total quantity of a product that is produced or consumed

Answer

The equilibrium price of a product

Question 63

What is the main distinction between a recession and a depression?

Accepted Answer

Duration and severity of the economic decline

Answer

Causes of the economic downturn

Answer

Government policies to address the economic downturn

Answer

Impact on unemployment rates

Question 64

What is the primary purpose of the World Bank?

Accepted Answer

To provide financial assistance and loans to developing countries

Answer

To promote international trade

Answer

To impose economic sanctions

Answer

To regulate global financial markets