FSOT : Practice Quiz On Economics! Trivia

75 Questions | Total Attempts: 989

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FSOT : Practice Quiz On Economics! Trivia

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Questions and Answers
  • 1. 
    Based on supply/demand economic theory, price controls on the supply of wheat during a famine would result in
    • A. 

      An increased supply of low-cost wheat.

    • B. 

      Social unrest.

    • C. 

      No supply of low-cost wheat.

    • D. 

      A scarcity of low-cost wheat.

  • 2. 
    South America's only OPEC member is
    • A. 

      Mexico.

    • B. 

      Brazil.

    • C. 

      Bolivia.

    • D. 

      Venezuela.

  • 3. 
    In 1898, President _____________ launched the trust-busting era, when he appointed the U.S. Industrial Commission on Trusts, which interrogated Carnegie, Rockefeller, Schwab, and other industrial titans.
    • A. 

      William McKinley.

    • B. 

      Theodore Roosevelt.

    • C. 

      Franklin D. Roosevelt.

    • D. 

      William Taft.

  • 4. 
    Since World War II, the agriculture sector's contribution to GDP among first-world nations has generally 
    • A. 

      Stayed the same.

    • B. 

      Fallen.

    • C. 

      Increased.

    • D. 

      Remained immeasurable.

  • 5. 
    Which of these works first introduced Marxism?
    • A. 

      The Invisible Hand.

    • B. 

      Das Kapital.

    • C. 

      Mein Kampf.

    • D. 

      The Communist Manifesto.

  • 6. 
    An economist who advocates that governments take a laissez-faire approach to the economy is advocating
    • A. 

      That the government intervene in markets to protect the vulnerable.

    • B. 

      That the economy should regulate itself without government intervention.

    • C. 

      That the government intervene only in regulating the money supply.

    • D. 

      None of the above.

  • 7. 
    Adam Smith wrote his landmark book in 1776, called the
    • A. 

      Declaration of Independence.

    • B. 

      The Wealth of Nations.

    • C. 

      Das Kapital.

    • D. 

      The Creation of Wealth.

  • 8. 
    In July 1944, even as World War II still raged, delegates met to sign the Bretton-Woods Agreement, which did not result in the following:
    • A. 

      Member countries agreed to combat currency fluctuations by pegging their currency to gold and a reserve currency.

    • B. 

      Member countries created the IMF.

    • C. 

      Member countries created the International Bank for Reconstruction.

    • D. 

      Member countries created the Marshall Plan.

  • 9. 
    In the 17th century, an increased supply of South American gold in Europe caused prices to rise (inflation).  In the 21st century, countries experiencing large net inflows of currency must __________ in order to avoid inflationary pressures.
    • A. 

      Sterilize the inflows by soaking up the currency and purchasing international bonds.

    • B. 

      Sterilize the inflows by issuing domestic bonds.

    • C. 

      Peg their currency to the dominate export market's currency.

    • D. 

      Peg their currency to the dollar.

  • 10. 
    If you favor governmental spending to reduce the down portion of an economic cycle, you are most influenced by
    • A. 

      Keynes.

    • B. 

      Smith.

    • C. 

      Mark.

    • D. 

      Ricardo.

  • 11. 
    Conventional wisdom suggests that as stock values increase, bond yields
    • A. 

      Increase.

    • B. 

      Stay the same.

    • C. 

      Decline.

    • D. 

      None of the above.

  • 12. 
    It was the dramatic 1911 breakup of this American monopoly that helped set the stage for the modern American economy.
    • A. 

      US Steel.

    • B. 

      Edison Power.

    • C. 

      AT&T.

    • D. 

      Standard Oil.

  • 13. 
    Gold frequently increases in value during political or economic instability because
    • A. 

      Gold is intrinsically valuable.

    • B. 

      As a respective currency weakens, speculators know that governments will purchase gold to prop up their currency.

    • C. 

      It is seen as a reliable store of value.

    • D. 

      None of the above.

  • 14. 
    Which currency is no longer traded?
    • A. 

      Baht.

    • B. 

      Forint.

    • C. 

      Mark.

    • D. 

      Ruble.

  • 15. 
    In recent years, farmers have plowed under their corn or wheat, rather than harvest it for market.  This decision is best explained by
    • A. 

      Mass irrational behavior.

    • B. 

      Farmers avoiding the variable cost of taking their products to market.

    • C. 

      Farmers attempting to recover their base cost.

    • D. 

      The rising marginal cost of producing corn or wheat.

  • 16. 
    In 2003 and 2004, the largest exporter in the world (in dollar terms) was
    • A. 

      Germany.

    • B. 

      China.

    • C. 

      United States.

    • D. 

      Japan.

  • 17. 
    The consumer price index (CPI) is
    • A. 

      A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

    • B. 

      A cost of living index.

    • C. 

      An exact measure of inflation.

    • D. 

      None of the above.

  • 18. 
    This disease (or diseases) significantly dampened economic growth in some countries.
    • A. 

      Bird flu.

    • B. 

      Mad cow.

    • C. 

      AIDS.

    • D. 

      All of the above.

  • 19. 
    When demand dramatically increases for a little-known fashion name because of positive media exposure, this will cause a(n) _________ shift in the demand curve.
    • A. 

      Upward.

    • B. 

      Downward.

    • C. 

      Leftward.

    • D. 

      Rightward.

  • 20. 
    Which of the following would not be counted as a part of India's gross domestic product (GDP)?
    • A. 

      An expatriate Indian engineer's wages in New York.

    • B. 

      A U.S. Embassy employee whose wages are deposited in a local New Delhi bank.

    • C. 

      A thief's ill-gotten goods from a tourist visiting the Taj Mahal.

    • D. 

      An Indian peasant trading chicken for rice.

  • 21. 
    Studies of Americans clearly indicate that an overwhelming number
    • A. 

      See themselves as working-class.

    • B. 

      Do not believe in social classes.

    • C. 

      See themselves as middle-class.

    • D. 

      Resent the domination of middle-class values.

  • 22. 
    Despite having sizable natural resources, only a few countries in Africa have been able to make use of mining as a launching pad for sustained economic development.  Which of the following explains this?
    • A. 

      Lack of legislation governing royalties.

    • B. 

      A decline in quality and low market prices.

    • C. 

      A lack of local capital.

    • D. 

      Political instability and government corruption.

  • 23. 
    Which of the following is consistent with a favorable trade balance?
    • A. 

      More goods and services are available for domestic use than are able to be consumed.

    • B. 

      Gold reserves increase.

    • C. 

      Net foreign investment is negative.

    • D. 

      Domestic exports of merchandise exceeds imports of merchandise.

  • 24. 
    During the Middle Ages, international trade flourished as
    • A. 

      Traders from Venice traded gold for Chinese spices and silks.

    • B. 

      Arab traders traded salt for gold from Mali.

    • C. 

      Europeans traded gold for products such as sugar and cloth from the Middle East.

    • D. 

      All of the above.

  • 25. 
    Tariffs on ______ imports have raised U.S. prices many times higher than the world average, while helping impoverish many Caribbean nations.
    • A. 

      Car.

    • B. 

      Sugar.

    • C. 

      Chocolate.

    • D. 

      Coffee