FSOT : Practice Quiz On Economics! Trivia
(18).jpg "FSOT : Practice Quiz On Economics! Trivia")
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- 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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