The World Of Economics - Test
  • 1. What is the basic economic problem?
A) Surplus
B) Inflation
C) Deflation
D) Scarcity
  • 2. What does GDP stand for?
A) General Development Program
B) Gross Development Plan
C) General Domestic Product
D) Gross Domestic Product
  • 3. Which of the following is a command economy?
A) North Korea
B) Germany
C) Japan
D) United States
  • 4. What does the term 'liquidity' refer to?
A) The profitability of an investment
B) The stability of a currency
C) The risk of an investment
D) The ease of converting an asset to cash
  • 5. Which of the following defines opportunity cost?
A) The benefit received from a decision
B) The total cost of a decision
C) The cost of resources used
D) The cost of the next best alternative
  • 6. What is diversification in investments?
A) Holding cash only
B) Spreading investments across various assets
C) Investing in a single asset
D) Buying only stocks
  • 7. Which of the following is a fiscal policy tool?
A) Exchange rates
B) Government spending
C) Interest rates
D) Money supply
  • 8. What is a market economy?
A) An economy with government control
B) An economy with equal distribution
C) An economy with fixed prices
D) An economy based on supply and demand
  • 9. Which of the following is considered a natural resource?
A) Oil
B) Money
C) Labor
D) Factory
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