WorksheetsUniversity-Level Economics and Finance Quiz
Total questions: 25
Worksheet time: 8mins
What is the basic economic problem that arises because resources are limited?
Inflation
Unemployment
Scarcity
Surplus
In a perfectly competitive market, firms are considered to be:
Price makers
Price takers
Government regulated
Monopoly owners
The law of demand states that, ceteris paribus, when the price of a good increases:
Demand increases
Demand decreases
Supply decreases
No effect on demand
Which of the following is NOT a factor of production?
Land
Labor
Capital
Price
GDP stands for:
Gross Domestic Price
General Development Policy
Gross Domestic Product
Global Domestic Production
Inflation refers to:
A decrease in money supply
A sustained increase in the general price level
The total market value of all goods
A rise in wages
Which type of economic system is characterized by private ownership and free markets?
Communism
Capitalism
Socialism
Traditional Economy
The Phillips Curve represents the relationship between:
Inflation and employment
Inflation and unemployment
Demand and supply
Taxes and government spending
What is the opportunity cost?
The financial cost of a decision
The value of the next best alternative forgone
The amount of money spent on production
The total cost of all alternatives
A market structure where one firm dominates the industry is called:
Oligopoly
Perfect competition
Monopoly
Monopolistic competition
A recession is typically defined as:
A period of high inflation
A period of negative GDP growth for two consecutive quarters
A stock market crash
A rise in employment
Fiscal policy refers to government policies concerning:
Money supply and interest rates
Taxation and government spending
Trade agreements
Inflation control
The invisible hand concept was introduced by:
Karl Marx
John Maynard Keynes
Adam Smith
Milton Friedman
What does ROI stand for in finance?
Return on Investment
Rate of Inflation
Reserve of Income
Return of Interest
A stock dividend is:
A cash payment made to bondholders
An increase in stock prices
The issuance of additional shares to shareholders
A fee paid to a stockbroker
What does a bond represent?
Ownership in a company
A type of derivative
A loan made by an investor to a borrower
A government tax
The Dow Jones Industrial Average tracks:
30 large publicly traded U.S. companies
The entire stock market
Only technology companies
The world’s top 500 companies
The term "liquidity" in finance refers to:
How easily an asset can be converted to cash
The level of profit a company earns
The interest rate charged on loans
The volatility of the stock market
A high P/E (price-to-earnings) ratio often indicates:
A stock may be overvalued
A company is unprofitable
A company is in debt
A low dividend payout
The primary function of a central bank is to:
Print money for commercial banks
Regulate monetary policy and control inflation
Approve corporate loans
Invest in stock markets
A "bull market" is characterized by:
Rising stock prices
Falling stock prices
High unemployment
Low consumer confidence
What is a mutual fund?
A private investment by a single individual
A portfolio of stocks and bonds managed by professionals
A government-controlled pension fund
A real estate investment trust
The yield on a bond represents:
The stock price fluctuations
The percentage return an investor earns from interest payments
The total bond issuance
The government tax rate on bonds
Which financial instrument allows an investor to bet on the future price of an asset?
Stock
Mutual Fund
Futures Contract
Savings Bond
Which ratio measures a company’s ability to meet its short-term obligations?
P/E Ratio
Current Ratio
Debt-to-Equity Ratio
Dividend Yield
