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The World Of Economics
Contributed by: Hewitt
  • 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) United States
B) North Korea
C) Japan
D) Germany
  • 4. What does the term 'liquidity' refer to?
A) The stability of a currency
B) The risk of an investment
C) The profitability of an investment
D) The ease of converting an asset to cash
  • 5. Which of the following defines opportunity cost?
A) The cost of the next best alternative
B) The cost of resources used
C) The total cost of a decision
D) The benefit received from a decision
  • 6. What is diversification in investments?
A) Investing in a single asset
B) Buying only stocks
C) Holding cash only
D) Spreading investments across various assets
  • 7. Which of the following is a fiscal policy tool?
A) Government spending
B) Interest rates
C) Exchange rates
D) Money supply
  • 8. What is a market economy?
A) An economy based on supply and demand
B) An economy with equal distribution
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) Oil
C) Money
D) Labor
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