The Limits of Markets (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What type of economic problem is market instability?
What type of economic problem is market instability?
A market failure affecting entire economy
What does the business cycle refer to?
What does the business cycle refer to?
Fluctuations in economic growth levels
What characterizes boom periods in the business cycle?
What characterizes boom periods in the business cycle?
Phases of high economic growth
What economic problem do boom periods cause?
What economic problem do boom periods cause?
Inflation from excess demand
What problem occurs during recessions?
What problem occurs during recessions?
Rising unemployment
What are the two types of economic stabilisation policies?
What are the two types of economic stabilisation policies?
Fiscal policy and monetary policy
What does countercyclical policy mean?
What does countercyclical policy mean?
Applying opposite force to economy's trend
What does government do when economy grows too fast?
What does government do when economy grows too fast?
Reduce spending and raise taxes/rates
How does government respond during recessions?
How does government respond during recessions?
Increase spending and cut taxes/rates
What distinguishes microeconomic from macroeconomic policies?
What distinguishes microeconomic from macroeconomic policies?
Micro targets firms; macro targets economy