Economics Quiz

What is the definition of inflation?

• The total value of goods produced and services provided in a country during one year.

• A general increase in prices and fall in the purchasing value of money.

• A financial gain, the difference between the amount earned and the amount spent.

• Cost of borrowing money expressed as a percentage.

How would you define debt?

• Money paid regularly at a particular rate for the use of money lent.

• Wealth in the form of money or other assets owned by a person or organization.

• The loss of potential gain from other alternatives when one alternative is chosen.

• Something, typically money, that is owed or due.

What does Gross Domestic Product (GDP) represent?

• Tax imposed on the purchase of imports.

• The desire of buyers for a commodity, product, or service.

• The total value of goods produced and services provided in a country during one year.

• Money paid regularly at a particular rate for the use of money lent.

What is the concept of interest?

• Wealth in the form of money or other assets owned by a person or organization.

• Money paid regularly at a particular rate for the use of money lent.

• A general increase in prices and fall in the purchasing value of money.

• The amount earned and the amount spent in buying, operating, or producing something.

What does the term "tariff" refer to?

• The loss of potential gain from other alternatives when one alternative is chosen.

• Tax imposed on the purchase of imports to stimulate domestic production.

• Cost of borrowing money expressed as a percentage.

• When a government, business, or household spends more than their income.

How would you define the concept of profit?

• The desire of buyers for a commodity, product, or service.

• A general increase in prices and fall in the purchasing value of money.

• Something, typically money, that is owed or due.

• A financial gain, the difference between the amount earned and spent.

When a government, business, or household spends more in a given period than they generate in income, what is this called?

• Deficit

• Opportunity Costs

• Capital

• Inflation

What is the meaning of opportunity costs?

• Tax imposed on the purchase of imports.

• When one alternative is chosen over others, resulting in a loss of potential gain.

• Wealth in the form of money or other assets owned by a person or organization.

• The desire of buyers for a commodity, product, or service.

What is the definition of capital?

• The total value of goods produced and services provided in a country during one year.

• A general increase in prices and fall in the purchasing value of money.

• Wealth in the form of money or other assets for a specific purpose.

• Money paid regularly at a particular rate for the use of money lent.

What does the term "interest rate" represent?

• The desire of buyers for a commodity, product, or service.

• Cost of borrowing money expressed as a percentage.

• A financial gain, the difference between the amount earned and spent.

• Tax imposed on the purchase of imports.