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Key Economic Concepts Quiz

Key Economic Concepts · Medium

20 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 20 questions in this Key Economic Concepts quiz
  1. What is 'Parity'?

    • A. Inequality
    • B. Equality in value/status
    • C. Inflation
    • D. High price
  2. What is the 'World Bank' primarily concerned with?

    • A. Currency exchange
    • B. Short term loans
    • C. Regulating trade
    • D. Development and poverty reduction
  3. What is 'Yield'?

    • A. Loss
    • B. Income return on an investment
    • C. Price
    • D. Total cost
  4. Which type of economy is most common today?

    • A. Pure Market
    • B. Pure Command
    • C. Traditional
    • D. Mixed Economy
  5. What is 'Command Economy'?

    • A. Government decided
    • B. Market decided
    • C. Traditional
    • D. Barter
  6. Which market has many sellers?

    • A. Monopoly
    • B. Duopoly
    • C. Perfect competition
    • D. Oligopoly
  7. What is 'Value Added'?

    • A. Extra cost
    • B. Increase in value at each production stage
    • C. Tax
    • D. Profit
  8. What is 'Monetary Policy'?

    • A. Labor union regulations
    • B. Government spending
    • C. International trade laws
    • D. Control of money supply and interest rates
  9. What is the term for the cost of the next best alternative foregone?

    • A. Opportunity Cost
    • B. Variable Cost
    • C. Marginal Cost
    • D. Fixed Cost
  10. Which organization regulates trade?

    • A. UN
    • B. WTO
    • C. IMF
    • D. World Bank
  11. What is 'Maturity'?

    • A. Tax date
    • B. Opening date
    • C. End of a financial instrument's life
    • D. Interest rate
  12. What is 'Outsourcing'?

    • A. Buying a firm
    • B. Closing a factory
    • C. Hiring more staff
    • D. Contracting work to an outside supplier
  13. Which index is most commonly used to measure inflation?

    • A. Producer Price Index (PPI)
    • B. Consumer Price Index (CPI)
    • C. Big Mac Index
    • D. GDP Deflator
  14. What is a 'Sunk Cost'?

    • A. Variable cost
    • B. A discount
    • C. Future cost
    • D. A cost that cannot be recovered
  15. Which organization is the 'Lender of Last Resort'?

    • A. Central Bank
    • B. WTO
    • C. Commercial Bank
    • D. World Bank
  16. What is 'Laissez-faire'?

    • A. High taxes
    • B. Government control
    • C. Trade restrictions
    • D. No government interference in economy
  17. What is opportunity cost?

    • A. Next best alternative
    • B. Extra cost
    • C. Fixed cost
    • D. Total cost
  18. What is 'Liabilities'?

    • A. What you owe
    • B. Total profit
    • C. What you own
    • D. Income
  19. What is 'Brain Drain'?

    • A. Mental illness
    • B. Loss of skilled workers to other countries
    • C. School closures
    • D. Old age
  20. Who regulates banks?

    • A. UN
    • B. Government
    • C. Central Bank
    • D. IMF