WorksheetsEconomia Quiz Competition 2025
Total questions: 25
Worksheet time: 20mins
What happens in a competitive market when the government imposes a price ceiling below the equilibrium price?
Quantity demanded falls below quantity supplied
A surplus is created
A shortage is created
The price rises to eliminate the excess demand
A consumer reaches equilibrium when:
Total utility is maximized
Marginal utility per dollar is equal for all goods
Expenditure exceeds income
Income is fully saved
If Bangladesh increases the Statutory Liquidity Ratio (SLR) requirements for commercial banks, what is the immediate impact on monetary conditions?
Inflation will rise
Banks will have more funds to lend
Credit to private sector will tighten
Imports will surge due to excess liquidity
In the short run, the law of diminishing marginal returns sets in when:
All inputs are fixed
Marginal product of labor is increasing
Variable input increases and marginal product begins to decline
Total product begins to increase at an increasing rate
Which economic theory is central to the storyline of the film "A Beautiful Mind"?
Keynesian multiplier
Nash equilibrium and non-cooperative game theory
Law of diminishing returns
Rational expectations hypothesis
Which of the following reflects the limitations of monetary policy in a developing economy like Bangladesh?
Excessive money creation always results in hyperinflation
Transmission mechanism is weak due to underdeveloped financial markets
Monetary policy only affects fiscal balance
Interest rates cannot influence capital flows
Compared to perfect competition, a monopoly tends to:
Produce more and charge less
Produce less and charge more
Set price equal to marginal cost
Eliminate deadweight loss
When the price of a good increases by 10% and the quantity demanded falls by 5%, the price elasticity of demand is:
0.5 and demand is inelastic
2 and demand is elastic
1 and demand is unit elastic
5 and demand is highly elastic
Diamonds are priced higher than water because
they are sold by selected firms with monopolistic powers
their marginal utility to buyers is higher than that of water
their total utility to buyers is higher than that of water
consumer don't buy them at lower price
Which of the following is included in the calculation of Gross Domestic Product (GDP) using the expenditure approach?
Purchases of used goods
Government spending on infrastructure
Transfer payments like pensions
Illegal economic activities
Which of the following is generally regarded as the true index of economic growth?
An increase in national income at constant prices during a year
A sustained increase in real per capita income
An increase in national income at current prices over time
An increase in national income along with a corresponding increase in population
Which of the following best characterizes a major macroeconomic issue currently affecting Bangladesh's economy in 2025, with implications for both growth and stability?
Excessive trade surplus due to falling imports
Deflation caused by overproduction in agriculture
Foreign exchange pressure driven by declining remittances and rising import bills
A surge in industrial investment leading to overheating of the economy
During inflation, who suffers the most?
Wage and salary earners
Creditors
Debtors
Businessmen
Which of the following Sustainable Development Goals (SDGs) is most directly linked to promoting inclusive and sustainable economic growth within a country?
SDG 7
SDG 13
SDG 15
SDG 8
Which of the following is an example of expansionary fiscal policy?
Increasing taxes
Reducing government spending
Decreasing taxes
Increasing interest rates
The Environmental Kuznets Curve (EKC) hypothesizes that:
Pollution rises indefinitely with income
Economic growth and environmental degradation are inversely related at all levels
Environmental degradation first rises with income, then falls after a threshold
Only poor countries can afford to pollute less
Bangladesh exports textiles and imports high-tech machinery. According to the Heckscher-Ohlin (H-O) model, what is the theoretical explanation?
Bangladesh has an absolute advantage in textile production
Bangladesh has a relative abundance of capital
Bangladesh has a relative abundance of labor, favoring labor-intensive exports
Technology transfer enables textile exports
The following are the values for Consumption, Investment, Imports, Exports, and Government spending for the country of Strowsburg in the year 2020 given in billions of dollars: C = $12,000 I = $4,000 G = $3,000 M = $5,000 X = $3,000.
$17000
$20000
$16000
$21000
A country introduces a value-added tax (VAT) system to replace its inefficient sales tax. Which of the following is the most accurate advantage of this policy shift?
It reduces the tax base
It promotes cascading taxation
It improves compliance through input tax credit mechanism
It increases inflation permanently
Which of the following policy strategies is best suited for dealing with a balance of payments crisis in a developing country?
Decrease interest rates and increase public wages
Increase government borrowing from domestic markets
Depreciate the currency and seek external financing
Remove all trade tariffs immediately
Assume Bangladesh faces a sudden surge in foreign remittances, causing the Taka to appreciate sharply. Which monetary policy response would be most appropriate to stabilize the exchange rate and maintain export competitiveness?
Reduce the Cash Reserve Ratio (CRR)
Intervene in the open market to buy USD
Increase the repo rate
Allow free float to continue appreciating
How is political instability affecting Bangladesh's economy in 2025?
Delayed elections cause investor uncertainty, reducing foreign investment and slowing growth.
Past infrastructure projects fully protect the economy from political issues.
Political stability attracts more foreign investment, improving the economy.
Banning political parties has no effect on inflation or employment.
How does money illusion impact economic decision-making in the context of inflation?
Workers misinterpret nominal wage increases as real wage gains, leading to increased labor supply despite unchanged purchasing power.
Consumers reduce spending due to accurate perceptions of real income changes during inflation.
Firms lower prices to account for inflation, correctly anticipating real revenue declines.
Investors consistently adjust for inflation, ensuring no distortion in asset allocation decisions.
Which of the following canon of taxation is given by Adam Smith
Canon of diversity
Canon of simplicity
Canon of productivity
Canon of economy
Which of the following best describes the economic condition known as stagflation?
A period of low inflation and high economic growth
A simultaneous increase in unemployment and inflation with stagnant economic growth
A period of deflation accompanied by rising GDP
A boom in the stock market despite a recession in the real economy
