Practice key questions from Microeconomics, Macroeconomics, and International Economics.
Choose the correct option, then click “Show Answer” to check your result!
1️⃣ Question: What does GDP stand for?
A) Gross Development Product
B) Gross Domestic Product
C) Government Domestic Policy
D) Global Demand Price
Correct Answer: B) Gross Domestic Product
2️⃣ Question: The law of demand states that, other things being equal, as the price of a good decreases —
A) Demand decreases
B) Supply increases
C) Quantity demanded increases
D) Price remains constant
Correct Answer: C) Quantity demanded increases
3️⃣ Question: Which of the following is a leakage in the circular flow of income?
A) Investment
B) Savings
C) Government Spending
D) Exports
Correct Answer: B) Savings
4️⃣ Question: Which economic theory explains international trade based on comparative advantage?
A) Keynesian Theory
B) Mercantilism
C) Ricardian Theory
D) Classical Demand Theory
Correct Answer: C) Ricardian Theory
5️⃣ Question: What does “inflation” refer to in economics?
A) A fall in the price of goods and services
B) A sustained increase in general price levels
C) An increase in unemployment
D) A rise in GDP growth rate
Correct Answer: B) A sustained increase in general price levels
6️⃣ Question: Which of the following is NOT a factor of production?
A) Land
B) Labor
C) Capital
D) Technology
Correct Answer: D) Technology
7️⃣ Question: What is the main objective of monetary policy?
A) Increase exports
B) Control inflation and stabilize currency
C) Promote agriculture
D) Increase taxation
Correct Answer: B) Control inflation and stabilize currency
8️⃣ Question: What does opportunity cost represent?
A) The cost of goods produced
B) The benefit of the best alternative forgone
C) Total production cost
D) Market equilibrium cost
Correct Answer: B) The benefit of the best alternative forgone
9️⃣ Question: Fiscal policy is mainly concerned with —
A) Government spending and taxation
B) Money supply control
C) Population growth
D) Exchange rates
Correct Answer: A) Government spending and taxation
🔟 Question: Which organization calculates the Human Development Index (HDI)?
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