Financial Literacy and Economics Quiz
Challenge your knowledge with these 15 questions covering inflation, GDP, fiscal policy, market structures, and more!
#1
What is inflation?
A decrease in the general price level of goods and services
An increase in the general price level of goods and services
A situation where there is no change in the general price level
A decrease in the value of money
#2
What does GDP stand for?
Gross Domestic Product
Global Development Program
General Demand Pricing
Growth Development Percentage
#3
What is the law of demand?
As the price of a good increases, the quantity demanded decreases
As the price of a good decreases, the quantity demanded increases
As the price of a good increases, the quantity demanded increases
As the price of a good decreases, the quantity demanded decreases
#4
What is opportunity cost?
The explicit cost of a decision
The total cost of a decision
The value of the next best alternative foregone
The marginal cost of a decision
#5
What is the concept of comparative advantage?
A country can produce all goods more efficiently than other countries.
A country can produce a good at a lower opportunity cost than other countries.
A country has the highest absolute advantage in all goods.
A country's production possibilities curve is not affected by trade.
#6
Which of the following is a fiscal policy tool?
Open market operations
Changes in reserve requirements
Government spending
Discount rate
#7
What is the primary function of the Federal Reserve in the United States?
Regulate international trade
Manage fiscal policy
Control inflation rates
Manage monetary policy
#8
Which of the following is a characteristic of a monopoly market structure?
Many buyers and sellers
Homogeneous products
A single seller with significant control over price
Low barriers to entry
#9
What is the formula for calculating the unemployment rate?
(Number of employed workers / Labor force) × 100
(Number of unemployed workers / Labor force) × 100
(Number of unemployed workers / Number of employed workers) × 100
(Number of employed workers / Number of unemployed workers) × 100
#10
What is the key characteristic of a command economy?
Private ownership of resources
Centralized government control of resources
Free market mechanisms
Equal distribution of wealth
#11
What is the term used to describe the total value of all final goods and services produced within a country's borders in a given year?
Gross National Product (GNP)
Net Domestic Product (NDP)
Gross Domestic Product (GDP)
National Income (NI)
#12
Which of the following is a feature of perfect competition?
Product differentiation
Few sellers
Price setting power for individual firms
Ease of entry and exit
#13
What is the Phillips curve used to illustrate?
The relationship between inflation and unemployment
The relationship between interest rates and investment
The relationship between government spending and GDP
The relationship between savings and consumption
#14
What is a tariff?
A tax on imported goods
A subsidy for exported goods
A quota on imported goods
A restriction on domestic production
#15
What is the quantity theory of money primarily concerned with?
The relationship between money supply and interest rates
The impact of fiscal policy on economic growth
The relationship between money supply and price level
The impact of trade policies on exchange rates
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