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