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