World Economic Systems MCQ Test 1

1. Which international organization aims to facilitate cooperation in monetary matters and ensure stability in the international monetary system?

2. Which term refers to the study of individual and household behavior in decision-making and allocation of resources?

3. What is the 'Broken Window Fallacy,' and how does it relate to economic reasoning?

4. What is 'Helicopter Money,' and how does it differ from conventional monetary policies?

5. Which economic system advocates for the abolition of private property, aiming for a classless society where the means of production are collectively owned?

6. What is 'Modern Monetary Theory (MMT),' and how does it challenge conventional views on government spending?

7. What is 'Comparative Advantage' in international trade, and how does it contribute to economic efficiency?

8. What is the economic term for the total value of goods and services produced within a country in a specific period?

9. What is the role of the World Trade Organization (WTO) in global trade?

10. What is 'Dutch Disease,' and how does it impact a nation's economy?

11. According to the Phillips Curve, what is the relationship between inflation and unemployment?

12. In international trade, what does 'import' refer to?

13. What is 'Gini Coefficient,' and how is it used to measure economic inequality?

14. What economic system relies on supply and demand to determine prices and allocate resources?

15. In the context of international trade, what does 'balance of trade' refer to?

16. What is a characteristic of a command economy?

17. What is the primary purpose of subsidies in economic policy?

18. What is a key feature of a mixed economy?

19. Which economic indicator reflects the average change in prices of goods and services over time?

20. What is 'Behavioral Economics,' and how does it explore human decision-making?

21. What is 'Quantitative Easing,' and how does it impact a country's economy?

22. Which economic system is characterized by private ownership of the means of production, free market competition, and minimal government interference?

23. What is the primary goal of monetary policy?

24. What is the 'Resource Curse,' and how does it affect the economies of certain nations?

25. In the context of economic models, what does GDP stand for?

26. What economic model suggests that individuals act to maximize their own self-interest and that this behavior leads to a well-functioning economy?

27. What is the primary function of the World Trade Organization (WTO)?

28. Which international organization provides financial and technical assistance to developing countries for development projects?

29. What is the primary purpose of the Organization of the Petroleum Exporting Countries (OPEC)?

30. What is the 'Multiplier Effect' in economics, and how does it impact changes in government spending?

31. In international trade, what does the term 'tariff' refer to?

32. What is the 'Hawala System,' and how does it function in the realm of informal finance?

33. What is the 'Phillips Curve,' and how does it depict the relationship between inflation and unemployment?

34. What type of economy is characterized by the government's control over all economic decisions?

35. In the context of economic cycles, what phase follows a recession?

36. Which economic indicator reflects the overall health of the labor market by measuring the percentage of the total labor force that is unemployed?

37. What is 'Universal Basic Income (UBI),' and how might it transform economic structures?

38. Which economic model emphasizes the role of the money supply in influencing economic activity?

39. What economic system is characterized by a blend of market forces and government intervention?

40. What term is used to describe the transfer of goods and services across national borders?

41. What is the 'Liquidity Trap,' and how does it affect monetary policy effectiveness?

42. Which term refers to the study of the overall economy, including aspects like inflation, unemployment, and national income?

43. What is 'Fintech,' and how does it reshape traditional financial services?

44. In economic terms, what is inflation?

45. What is the primary function of the Organization of the Petroleum Exporting Countries (OPEC)?

46. What is the role of the Federal Reserve in the United States?

47. Which economic model emphasizes the importance of supply and demand, competition, and the pursuit of self-interest in guiding economic decisions?

48. How does 'Monetary Policy' differ from 'Fiscal Policy' in influencing a country's economy?

49. What is 'Economic Diversification,' and why is it crucial for certain economies?

50. What is the primary focus of Behavioral Economics?