What is “exchange rate”?Rate of inflationValue of one currency in terms of anotherGovernment spendingTax rateB) Value of one currency in terms of anotherExchange rate shows how much one currency is worth compared to another.
What is “capitalism”?Government controls all resourcesPrivate ownership of resources and businessesNo trade allowedEqual income for all: B) Private ownership of resources and businessesCapitalism is an economic system based on private ownership and free markets.
What is “tariff”?SubsidyLoanTax on importsExport policyC) Tax on imports: Tariffs are taxes imposed on imported goods.
What is “balance of trade”?Total government spendingDifference between exports and importsNational incomeInflation rateB) Difference between exports and importsBalance of trade shows the gap between a country’s exports and imports.
What is “hyperinflation”?Very low inflationNo inflationExtremely high and rapid inflationStable pricesC) Extremely high and rapid inflationHyperinflation is a situation where prices rise uncontrollably.
What is “subsidy”?Tax imposed by governmentFinancial support given by governmentLoan from bankPrivate investmentB) Financial support given by governmentSubsidies are provided to support businesses or consumers.
What is “fiscal policy”?Policy related to money supplyGovernment taxation and spending policyTrade agreementsForeign investmentB) Government taxation and spending policyFiscal policy involves government decisions on taxation and expenditure.
What is “interest rate”?Government taxCost of borrowing moneyPrice of goodsExchange rateB) Cost of borrowing moneyInterest rate is the percentage charged on borrowed money.
What is “economic recession”?Decline in economic activityRapid growthIncrease in exportsRise in employmentA) Decline in economic activityA recession is a period of reduced economic performance.
What is “demand” in economics?Supply of goodsDesire and ability to buy goodsGovernment spendingTotal productionB) Desire and ability to buy goodsDemand refers to consumers’ willingness and ability to purchase goods or services.
What is “privatization”?Government taking controlSelling public sector assets to private ownersIncreasing taxesReducing importsB) Selling public sector assets to private ownersPrivatization involves transferring ownership from the public to the private sector.
What is “inflation targeting”?Fixing exchange ratesControlling populationMaintaining stable inflation rateIncreasing importsC) Maintaining stable inflation rateCentral banks use inflation targeting to keep price levels stable.
What is “opportunity cost”?Total profit earnedCost of the next best alternative foregoneGovernment expenditurePrice of goodsB) Cost of the next best alternative foregoneOpportunity cost is the value of the best alternative that is given up when making a choice.
What is “public sector”?Private companiesBusinesses owned by individualsGovernment-owned organizationsForeign companiesC) Government-owned organizationsThe public sector includes organizations owned and operated by the government.
What is “supply” in economics?Demand for goodsAmount of goods available for salePrice of goodsProfit earnedB) Amount of goods available for saleSupply refers to how much of a product is offered in the market.
What is “capital” in economics?A cityMoney used for investmentGovernment policyPopulationB) Money used for investmentCapital refers to financial resources used to produce goods and services.
What does “import” mean?Selling goods abroadBuying goods from another countryLocal productionTax collectionB) Buying goods from another countryImports are goods or services brought into a country.
What is “economic growth”?Decrease in productionIncrease in production and incomeRise in unemploymentReduction in tradeB) Increase in production and incomeEconomic growth means an increase in a country’s output and income.
What is “deflation”?Rise in pricesFall in general price levelsIncrease in wagesGrowth in economyB) Fall in general price levelsDeflation is the decrease in the overall price level of goods and services.
Which sector includes banking and insurance?Primary sectorSecondary sectorTertiary sectorAgricultural sectorC) Tertiary sectorThe tertiary sector provides services like banking, insurance, and education.
What is “national debt”?Personal loansCompany profitsTotal government borrowingBank savings: C) Total government borrowingNational debt is the total amount a government owes.
What is a budget deficit?When income exceeds expenditureWhen expenditure exceeds incomeEqual income and expenditureNo government spendingB) When expenditure exceeds incomeA budget deficit occurs when a government spends more than it earns.
What does “unemployment rate” measure?Total populationNumber of employed peoplePercentage of jobless people in the workforceTotal income of workersC) Percentage of jobless people in the workforceIt shows the proportion of people actively seeking jobs but unable to find one.
What is “foreign direct investment (FDI)”?Loans from banksInvestment in local markets onlyInvestment by a company in another countryGovernment taxesC) Investment by a company in another countryFDI involves businesses investing directly in operations abroad.
What does GDP stand for in economics?Gross Domestic ProductGlobal Development PlanGeneral Domestic PriceGross Development PolicyA) Gross Domestic ProductGDP measures the total value of goods and services produced within a country.
Inflation refers to:General rise in pricesDecrease in pricesIncrease in employmentStability of currencyA) General rise in pricesInflation is the rate at which the general level of prices for goods and services rises.
Which organization provides financial assistance to developing countries?WTOIMFNATOOPECB) IMFThe International Monetary Fund (IMF) supports countries with financial aid and economic advice.