Economic Concepts Quiz

If country A's GDP is 2,000,000 USD and Velocity of money is 5, the money supply is _____ USD.

ms=gdp/v

• 10m

• 400k

• 2m

• 200k

If country A's GDP is 3,000,000 USD and Velocity of money is 6, what is the money supply?

MS=GDP/V

• 500k

• 5m

• 18m

• 180k

What is the period in the business cycle from peak to trough referred to as?

• boom

• recovery

• recession

• expansion

The period in the business cycle from a trough up to a peak is referred to as _____.

• bust

• inflation period

• expansion

• recession

The factories, machinery, technology, etc. that are necessary to sustain an industry is called _____.

• capital goods

• land resources

• labor

• technical resources

What is a tariff?

• a legal limit on the imported quantity of a good

• a legal limit on the exported quantity of a good

• a tax on goods exported to other countries

• a tax on goods imported into the country

How does hyperinflation affect the price of the commodities?

• Price of the commodities rapidly decreases at high level

• Price of the commodities rapidly increases at high level

• prices of the commodities remain the same

• prices of the commodities are not affected

The unemployment wherein the workers' skills do not match the jobs that are available for the current economy is called _____ unemployment.

• seasonal

• structural

• cyclical

• frictional

If more money is supplied to the economy, then which of the following is being used?

• Expansionary fiscal policy

• Contractionary fiscal policy

• Expansionary monetary policy

• Contractionary monetary policy

If an Italian businessman brings investment to Da Nang city to open an Italian Pizza restaurant, in which of the following is counted for his business?

• GDP of Vietnam

• GDP of Italy

• Both A and B

• None of the above