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