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Key Economic Concepts Quiz

Key Economic Concepts · Supply & Demand Quiz

20 questions · Unlimited attempts · Free online practice

Economics helps us understand how people, businesses, and governments make choices when resources are limited. By learning key economic concepts, you can better understand prices,...

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All 20 questions in this Key Economic Concepts quiz
  1. What is 'National Debt'?

    • A. Debt of a company
    • B. Total money a government owes
    • C. Bank debt
    • D. Personal debt
  2. Which economist proposed the theory of 'Comparative Advantage'?

    • A. Adam Smith
    • B. Thomas Malthus
    • C. David Ricardo
    • D. Karl Marx
  3. What is 'Interest'?

    • A. Total profit
    • B. A type of tax
    • C. The price of borrowing money
    • D. A government gift
  4. Which sector includes services like banking and tourism?

    • A. Tertiary
    • B. Secondary
    • C. Primary
    • D. Quaternary
  5. What is deficit?

    • A. Surplus
    • B. Profit
    • C. Shortfall
    • D. Balance
  6. What is 'Bankruptcy'?

    • A. Opening a shop
    • B. Legal state of being unable to pay debts
    • C. Becoming rich
    • D. A bank merger
  7. What is a 'Merger'?

    • A. Closing a business
    • B. Opening a branch
    • C. Selling shares
    • D. Combining two companies
  8. What is 'Forecast'?

    • A. Past data
    • B. Tax bill
    • C. Old news
    • D. Prediction of future trends
  9. What is 'Socialism'?

    • A. Collective/Public ownership
    • B. Monarchy
    • C. Private ownership
    • D. Anarchy
  10. What is 'Value Added'?

    • A. Extra cost
    • B. Increase in value at each production stage
    • C. Tax
    • D. Profit
  11. What is 'Barter'?

    • A. Exchanging goods without money
    • B. A bank
    • C. A type of tax
    • D. Using money
  12. Which market has many sellers?

    • A. Monopoly
    • B. Duopoly
    • C. Perfect competition
    • D. Oligopoly
  13. What is a 'Command Economy'?

    • A. Traditional
    • B. Barter based
    • C. Market driven
    • D. Government driven
  14. What is 'Bond'?

    • A. Cash
    • B. A loan to a firm or government
    • C. A tax
    • D. Ownership in a firm
  15. What is money used for?

    • A. Tax
    • B. Exchange
    • C. Decoration
    • D. Storage
  16. What is 'Parity'?

    • A. Inequality
    • B. Equality in value/status
    • C. Inflation
    • D. High price
  17. What is 'Stock'?

    • A. Ownership in a corporation
    • B. A tax
    • C. A loan
    • D. A bond
  18. What is 'Protectionism'?

    • A. Protecting the environment
    • B. Guarding the central bank
    • C. Restricting imports to protect domestic industries
    • D. Encouraging free trade
  19. What is a 'Sunk Cost'?

    • A. Variable cost
    • B. A discount
    • C. Future cost
    • D. A cost that cannot be recovered
  20. What is 'Capital' in economics?

    • A. Money only
    • B. Human population
    • C. The capital city
    • D. Tools/Machinery used in production