Basic Principles Of Economics! Trivia Quiz

1.

All of the following where reasons for the Great Depression of 1929 except _________?

A.

Hyper Inflation
B.

World War
C.

Protectionism
D.

Lack of technology
E.

Simultaneous price rise

Correct Answer
D. Lack of technology

Explanation
The Great Depression of 1929 was primarily caused by factors such as the stock market crash, overproduction, and excessive speculation. Lack of technology is not a commonly cited reason for the Great Depression. In fact, advancements in technology during the 1920s, such as the widespread use of electricity and the development of new consumer goods, were seen as contributing factors to the economic boom prior to the crash.

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2.

In the years after World War II the world economy was dominated by which region or country?

A.

Western Europe
B.

China
C.

United States
D.

Russia
E.

Latin America

Correct Answer
C. United States

Explanation
In the years after World War II, the United States emerged as the dominant economic power. The war had devastated many countries, including Western Europe, and the United States was largely untouched by the conflict. This allowed the US to rapidly rebuild its industries and infrastructure, leading to a period of economic growth known as the "post-war boom." The US became the world's leading exporter and its currency, the US dollar, became the global reserve currency. The Marshall Plan, a US initiative to provide economic aid to war-torn Europe, further solidified the United States' economic dominance during this period.

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3.

In finance, the exchange rates are also known as _________________.

Correct Answer
the foreign-exchange rate
FOREX rate
FX rate
foreign exchange
foreign-exchange rate

Explanation
One answer only

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4

4.

The formula for GDP is?

A.

Consumption + foreign investment + government spending + (exports − imports)
B.

Consumption + gross investment + government spending + (exports − imports)
C.

Consumption + gross investment + household spending + (exports − imports)
D.

Consumer goods + gross investment + household spending + (exports − imports)
E.

Consumer goods + gross investment + household spending + exports

Correct Answer
B. Consumption + gross investment + government spending + (exports − imports)

Explanation
The correct answer is "consumption + gross investment + government spending + (exports − imports)". This formula represents the components of GDP, which include consumption (spending by households), gross investment (spending on capital goods), government spending, and the net difference between exports and imports. By summing up these components, we can calculate the total value of goods and services produced within a country's borders.

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5.

The world economy around 1950 had a HIGH level of connectedness?

A.

Yes
B.

No

Correct Answer
B. No

Explanation
The world economy around 1950 did not have a high level of connectedness. This can be attributed to several factors such as limited international trade, restricted cross-border investments, and the aftermath of World War II which resulted in many countries focusing on rebuilding their own economies rather than engaging in global trade. Additionally, the Cold War and the division of the world into two blocs further limited economic integration between countries.

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6.

____________ is the share of economic output that is being sold to other countries.

Correct Answer
Export GDP Ratio
Export GDP

Explanation
The correct answer is "Export GDP Ratio." This refers to the proportion or percentage of a country's economic output that is being sold to other countries. It is a measure of the extent to which a country is engaged in international trade and is dependent on foreign markets for its goods and services. Export GDP, on the other hand, is not a recognized term or concept in economics.

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7.

What are the three factors?

A.

Consumer Institutions, National Commitments to Globalization, and Changes in Technology
B.

New Global Institutions, United States Commitments to Globalization, and Changes in Technology
C.

New Global Institutions, National Commitments to lower tariffs, and Changes in Technology
D.

New Global Institutions, National Commitments to Globalization, and Changes in governmental policies
E.

New Global Institutions, National Commitments to Globalization, and Changes in Technology

Correct Answer
E. New Global Institutions, National Commitments to Globalization, and Changes in Technology

Explanation
The three factors mentioned in the correct answer are New Global Institutions, National Commitments to Globalization, and Changes in Technology. These factors are likely to have a significant impact on the global landscape and can influence various aspects such as trade, policies, and technological advancements. The inclusion of new global institutions indicates the emergence of new organizations or frameworks that can shape international relations. National commitments to globalization suggest that countries are actively participating in global trade and cooperation. Changes in technology highlight the importance of technological advancements in shaping the global economy and society.

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