FSOT : Practice Quiz On Economics! Trivia

75 Questions | Total Attempts: 1018

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FSOT : Practice Quiz On Economics! Trivia

Are you ready for this FSOT practice quiz on economics? This quiz may be of assistance. You will be responsible for grasping the supply/demand economic theory. Who is South America’s only OPEC member, what is the communist manifesto, what does laissez-faire mean, what book did Adam Smith write, what economic style are you most influenced by, and which currency is no longer traded? See how you are with money matters and take the quiz.


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

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