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