World Economic Systems MCQ Test: World Economic Systems MCQs - Practice Questions
1. What economic model emphasizes the importance of individual choices and actions in determining economic outcomes?
2. Which economic model emphasizes the importance of supply and demand, competition, and the pursuit of self-interest in guiding economic decisions?
3. What is the primary purpose of the Organization of the Petroleum Exporting Countries (OPEC)?
4. What is the primary purpose of tariffs in international trade?
5. What is 'Hyperinflation,' and what are its potential consequences for an economy?
6. How does 'Monetary Policy' differ from 'Fiscal Policy' in influencing a country's economy?
7. What is the 'Great Moderation,' and how does it describe a period in economic history?
8. Which economic model emphasizes the importance of individual choices and actions in determining economic outcomes?
9. What is 'Quantitative Easing,' and how does it impact a country's economy?
10. In international trade, what does 'export' refer to?
11. In the context of international finance, what does the term 'SDR' stand for?
12. In economic terms, what is a 'liquidity trap'?
13. What is 'Modern Monetary Theory (MMT),' and how does it challenge conventional views on government spending?
14. Which economic model emphasizes limited government involvement and free-market principles?
15. Which term refers to the study of individual and household behavior in decision-making and allocation of resources?
16. What is the 'Resource Curse,' and how does it affect the economies of certain nations?
17. What economic concept does 'Opportunity Cost' represent, and how does it influence decision-making?
18. Which economic system advocates for the abolition of private property, aiming for a classless society where the means of production are collectively owned?
19. What is the primary purpose of subsidies in economic policy?
20. Which economic system is characterized by private ownership of the means of production, free market competition, and minimal government interference?
21. What economic model suggests that individuals act to maximize their own self-interest and that this behavior leads to a well-functioning economy?
22. What is 'Economic Nationalism,' and how does it influence trade and economic policies?
23. In international trade, what does 'import' refer to?
24. What term is used to describe the value of a country's exports minus its imports?
25. In the context of economic models, what does GDP stand for?
26. What is the economic term for a sudden and widespread decline in economic activity?
27. What term is used to describe the transfer of goods and services across national borders?
28. What economic principle suggests that, in the production of a good, the input with the lowest contribution determines the output?
29. What is a characteristic of a market economy?
30. What is the 'Phillips Curve,' and how does it depict the relationship between inflation and unemployment?
31. What is the economic term for a persistent increase in the overall price level of goods and services over time?
32. What is the 'Broken Window Fallacy,' and how does it relate to economic reasoning?
33. What is the 'Tobin Tax,' and what is its purpose in financial markets?
34. In the context of economic cycles, what phase follows a recession?
35. Which economic model emphasizes the role of money supply in influencing economic outcomes?
36. What is the 'Liquidity Trap,' and how does it affect monetary policy effectiveness?
37. Which economic indicator reflects the overall health of the labor market by measuring the percentage of the total labor force that is unemployed?
38. In the context of international finance, what does the term 'FDI' stand for?
39. What is the primary function of the Organization of the Petroleum Exporting Countries (OPEC)?
40. Which international organization aims to facilitate cooperation in monetary matters and ensure stability in the international monetary system?