The Amazing Quiz On Economics

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| By Cambronbill3
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Quizzes Created: 2496 | Total Attempts: 1,060,830
Questions: 15 | Attempts: 198

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Economics Quizzes & Trivia

How Much Do You Really Know About Economics?


Questions and Answers
  • 1. 

    For the purposes of retirement plans, a "highly compensated employee" is one who makes over $110,000 in compensations per year or...

    • A.

      Owns At Least 10% Of The Company

    • B.

      Owns At Least 15% Of The Company

    • C.

      Owns At Least 5% Of The Company

    • D.

      Owns At Least 1% Of The Company

    Correct Answer
    C. Owns At Least 5% Of The Company
    Explanation
    A "highly compensated employee" for retirement plans is defined as someone who earns over $110,000 in compensations per year or owns at least 5% of the company. This means that in addition to meeting the income threshold, an employee can also be considered highly compensated if they have a significant ownership stake in the company. This is because owning a substantial percentage of the company indicates a level of influence and control that aligns with the definition of a highly compensated employee.

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  • 2. 

    Which of the following is an indirect tax?

    • A.

      Income Tax

    • B.

      Estate Tax

    • C.

      Value Added Tax

    • D.

      Corporate Tax

    Correct Answer
    C. Value Added Tax
    Explanation
    Value Added Tax (VAT) is an indirect tax because it is imposed on the value added at each stage of production and distribution. It is ultimately borne by the final consumer but collected and remitted by businesses at each step of the supply chain. Unlike direct taxes such as income tax or corporate tax, which are directly levied on individuals or corporations, VAT is not directly paid by the consumer or the entity being taxed. Instead, it is an indirect tax that is passed on to the consumer through the selling price of goods or services.

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  • 3. 

    Until 2005, one could only directly trade shares on the New York Stock Exchange if they owned one of how many "seats"?

    • A.

      1166

    • B.

      1366

    • C.

      1266

    • D.

      1066

    Correct Answer
    B. 1366
    Explanation
    Before 2005, individuals could only trade shares on the New York Stock Exchange if they owned one of the 1366 "seats" available. These seats represented the limited number of memberships or licenses that allowed individuals to directly participate in trading on the exchange. Each seat holder had the privilege of trading securities on the NYSE floor, and these seats were highly valuable and sought after due to the exclusive access they provided.

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  • 4. 

    In order to avoid being classified as an odd lot, a transaction usually needs to encompass at least how many shares?

    • A.

      10

    • B.

      50

    • C.

      100

    • D.

      1000

    Correct Answer
    C. 100
    Explanation
    To avoid being classified as an odd lot, a transaction usually needs to encompass at least 100 shares. An odd lot refers to a number of shares that is less than the standard trading unit, which is typically 100 shares. By transacting at least 100 shares, an investor ensures that their trade falls within the standard trading unit and is not considered an odd lot.

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  • 5. 

    A "sawbuck" is slang for what unit of currency?

    • A.

      20 Dollar Bill

    • B.

      10 Dollar Bill

    • C.

      5 Dollar Bill

    • D.

      2 Dollar Bill

    Correct Answer
    B. 10 Dollar Bill
    Explanation
    A "sawbuck" is a slang term that originated in the 19th century and refers to a unit of currency equal to 10 dollars. The term "sawbuck" comes from the resemblance of the Roman numeral X, which represents the number 10, to the legs of a sawhorse or "buck." Therefore, the correct answer is 10 Dollar Bill.

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  • 6. 

    Established in 1960, USA Funds is a nonprofit corporation that grants loans to whom?

    • A.

      The Unemployed

    • B.

      Small Business Owners

    • C.

      Students

    • D.

      Farmers

    Correct Answer
    C. Students
    Explanation
    USA Funds, established in 1960, is a nonprofit corporation that grants loans to students. This means that USA Funds provides financial assistance in the form of loans to individuals who are pursuing higher education. The organization focuses on helping students access the funds they need to pay for tuition, books, and other educational expenses. By offering loans specifically tailored for students, USA Funds aims to support and promote educational opportunities for individuals seeking to further their academic goals.

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  • 7. 

    The North American Free Trade Agreement came into effect on January 1 of what year?

    • A.

      1995

    • B.

      1994

    • C.

      1993

    • D.

      1996

    Correct Answer
    B. 1994
    Explanation
    The North American Free Trade Agreement (NAFTA) came into effect on January 1, 1994. This agreement aimed to eliminate trade barriers between the United States, Canada, and Mexico, creating a trilateral trade bloc in North America. It established a framework for tariff reductions, increased market access, and promoted investment among the member countries. The correct answer is 1994 because that is the year when NAFTA officially began its implementation.

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  • 8. 

    What was the last year in which the United States had a positive balance of trade?

    • A.

      1975

    • B.

      1995

    • C.

      1985

    • D.

      1965

    Correct Answer
    A. 1975
    Explanation
    In 1975, the United States had a positive balance of trade, meaning that the value of its exports exceeded the value of its imports. This indicates that the country was exporting more goods and services than it was importing, resulting in a surplus in trade.

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  • 9. 

    What stock market index for the Tokyo Stock Exchange has been calculated by the Nihon Keizai Shimbun newspaper since 1950?

    • A.

      S&P Asia 50

    • B.

      Nikkei 225

    • C.

      FTSE

    • D.

      Topix

    Correct Answer
    B. Nikkei 225
    Explanation
    The correct answer is Nikkei 225. The Nikkei 225 is a stock market index for the Tokyo Stock Exchange that has been calculated by the Nihon Keizai Shimbun newspaper since 1950. It is one of the most widely recognized stock market indices in Japan and is composed of the top 225 blue-chip companies listed on the Tokyo Stock Exchange. The index is used as a benchmark to track the overall performance of the Japanese stock market.

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  • 10. 

    If you have money deposited in two banks that merge, how long will the FDIC insure your two deposits separately?

    • A.

      6 Months

    • B.

      5 Years

    • C.

      2 Years

    • D.

      1 Year

    Correct Answer
    A. 6 Months
    Explanation
    When two banks merge, the FDIC (Federal Deposit Insurance Corporation) will continue to insure your two deposits separately for a period of 6 months. After this period, the FDIC will combine the deposits into a single account and insure it up to the standard limit of $250,000. This means that for the first 6 months, each deposit will be insured separately, but after that, they will be treated as one combined deposit.

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  • 11. 

    In August of 2008, what percentage of American mortgages were either delinquent or in foreclosure?

    • A.

      5.20%

    • B.

      11.20%

    • C.

      9.20%

    • D.

      7.20%

    Correct Answer
    C. 9.20%
    Explanation
    In August of 2008, approximately 9.20% of American mortgages were either delinquent or in foreclosure. This indicates a significant financial crisis as a high percentage of mortgages were not being paid on time or were in the process of being foreclosed. This data suggests that many homeowners were struggling to meet their mortgage payments, which could be attributed to factors such as the subprime mortgage crisis and the overall economic downturn during that time period.

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  • 12. 

    United States Savings Bonds were first introduced under what Secretary of the Treasury?

    • A.

      Salmon P. Chase

    • B.

      Alexander Hamilton

    • C.

      Henry Morgenthau

    • D.

      Andrew W. Mellon

    Correct Answer
    C. Henry Morgenthau
    Explanation
    Henry Morgenthau is the correct answer because he served as the Secretary of the Treasury during the time when United States Savings Bonds were first introduced. Morgenthau held this position from 1934 to 1945, under President Franklin D. Roosevelt. During his tenure, Morgenthau played a key role in implementing various economic policies and programs, including the introduction of United States Savings Bonds as a means to finance government debt and encourage savings among citizens. Therefore, it can be concluded that Henry Morgenthau was the Secretary of the Treasury when United States Savings Bonds were first introduced.

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  • 13. 

    What is the actual initialism for the entity known as Freddie Mac?

    • A.

      FMAC

    • B.

      FHLMC

    • C.

      FRMAC

    • D.

      FRMC

    Correct Answer
    B. FHLMC
    Explanation
    The actual initialism for the entity known as Freddie Mac is FHLMC. This stands for Federal Home Loan Mortgage Corporation, which is the full name of Freddie Mac.

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  • 14. 

    What U.S. state's "kicker" rebate mandates that any state budgetary surplus beyond 2% must be returned to the taxpayers?

    • A.

      Washington

    • B.

      Montana

    • C.

      Idaho

    • D.

      Oregon

    Correct Answer
    D. Oregon
    Explanation
    Oregon's "kicker" rebate mandates that any state budgetary surplus beyond 2% must be returned to the taxpayers. This means that if the state's budget exceeds the 2% threshold, the excess amount is given back to the taxpayers as a rebate. This policy ensures that the government does not accumulate excessive funds and instead redistributes them to the citizens.

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  • 15. 

    The world's first stock exchange was opened in what Belgian city in 1460?

    • A.

      Ghent

    • B.

      Antwerp

    • C.

      Brussels

    • D.

      Bruges

    Correct Answer
    B. Antwerp
    Explanation
    The correct answer is Antwerp. Antwerp was the city where the world's first stock exchange was opened in 1460. This exchange, known as the Bruges Bourse, facilitated the trading of various commodities, including goods, currencies, and bills of exchange. Antwerp's strategic location as a major port and trading center in Europe made it an ideal location for the establishment of the first stock exchange.

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