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Key Economic Concepts Quiz

Key Economic Concepts · Hard

16 questions · Unlimited attempts · Free online practice

Economics helps us understand how people, businesses, and governments make choices when resources are limited. By learning key economic concepts, you can better understand prices,...

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All 16 questions in this Key Economic Concepts quiz
  1. Which economist proposed the theory of 'Comparative Advantage'?

    • A. Adam Smith
    • B. Thomas Malthus
    • C. David Ricardo
    • D. Karl Marx
  2. What is 'Externalities'?

    • A. Foreign debt
    • B. Exports
    • C. Side effects of production/consumption on third parties
    • D. Outside trade
  3. What is the term for inflation combined with slow economic growth?

    • A. Stagflation
    • B. Deflation
    • C. Reflation
    • D. Hyperinflation
  4. What is 'Zero-sum game'?

    • A. Everyone loses
    • B. Everyone wins
    • C. One's gain is another's loss
    • D. No one plays
  5. What is the term for a market with only one buyer?

    • A. Duopoly
    • B. Monopoly
    • C. Monopsony
    • D. Oligopoly
  6. What is 'Zero-sum'?

    • A. No one wins
    • B. Lose-lose
    • C. One person's gain is another's loss
    • D. Win-win
  7. What is 'Mercan'tilism'?

    • A. A tax system
    • B. Theory that wealth is increased by exports
    • C. Local trade
    • D. Free trade
  8. What is the 'Laffer Curve' peak?

    • A. Maximum tax rate
    • B. Point of maximum tax revenue
    • C. Point of zero tax
    • D. Highest GDP point
  9. What is 'Cartel'?

    • A. A group of firms colluding to control prices
    • B. A government agency
    • C. A type of bank
    • D. A legal business
  10. Which measure includes foreign income?

    • A. GDP
    • B. CPI
    • C. GNP
    • D. PPP
  11. Who wrote 'The General Theory of Employment, Interest and Money?

    • A. Thomas Malthus
    • B. Adam Smith
    • C. John Maynard Keynes
    • D. Milton Friedman
  12. What is monetarism associated with?

    • A. Friedman
    • B. Smith
    • C. Marshall
    • D. Keynes
  13. What is 'Moral Hazard'?

    • A. Illegal trading
    • B. A stock crash
    • C. A bad investment
    • D. Increased risk-taking when insured
  14. What is 'Comparative Advantage'?

    • A. Having more land
    • B. Producing everything
    • C. Producing at lower opportunity cost
    • D. Having more money
  15. Which organization issues the World Economic Outlook report?

    • A. WTO
    • B. IMF
    • C. World Bank
    • D. UN
  16. Which bank gives long-term loans?

    • A. Central
    • B. Commercial
    • C. Rural
    • D. Development