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Economics Diagnostic Test

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Opportunity cost (تكلفة الفرصة البديلة) means:

a)

Total spending

b)

A future tax

c)

The next best alternative foregone

d)

Any government payment

2.

Which of the following is an example of a resource that is not scarce?

a)

Sunlight in a desert

b)

Electricity

c)

Textbooks

d)

Train ticket

3.

Specialisation (التخصص) tends to:

a)

Lower productivity

b)

Raise productivity via focus/training

c)

Eliminate trade

d)

Fix prices

4.

A good is economic (not free) when:

a)

It is scarce and has an opportunity cost

b)

It is infinite

c)

It is always free

d)

It’s identical to air in a desert

5.

A family buys a 12-pack of water for AED 18. Unit price per bottle is:

a)

AED 1.25

b)

AED 1.50

c)

AED 1.75

d)

AED 2.00

6.

A bus card increases from AED 80 to AED 92. % change is about:

a)

10%

b)

15%

c)

18%

d)

20%

7.

A café sells 40 sandwiches at AED 12 each. Total revenue is:

a)

AED 320

b)

AED 480

c)

AED 520

d)

AED 560

8.

A mobile data plan changes from 6 GB for AED 60 to 8 GB for AED 60. What happens to the price per GB?

a)

Falls from AED 12 to AED 10 (↓16.7%)

b)

Falls from AED 10 to AED 7.5 (↓25%)

c)

Falls from AED 15 to AED 12 (↓20%)

d)

Rises from AED 7.5 to AED 10 (↑33%)

9.

The UAE’s standard VAT (ضريبة القيمة المضافة) rate is:

a)

3%

b)

5%

c)

7%

d)

9%

10.

VAT in the UAE was introduced in:

a)

2016

b)

2017

c)

2018

d)

2019

11.

Which goods face excise tax (الضريبة الانتقائية) in the UAE?

a)

Fresh milk

b)

Bread

c)

Energy drinks

d)

School textbooks

12.

A pillar of “We the UAE 2031” is:

a)

Import Substitution (إحلال الواردات)

b)

Forward Economy

c)

Fixed Wages

d)

Ruralisation (التريف)

13.

A neutral example of a government-provided merit service (خدمة استحقاقية) in the UAE is:

a)

Luxury watch showrooms

b)

Public healthcare or road infrastructure

14.

Which step best aligns with UAE’s diversification goals (أهداف التنويع الاقتصادي) in Vision 2031?

a)

Reducing all non-oil exports

b)

Growing knowledge-based sectors and tourism

c)

Eliminating free zones

d)

Pegging to the euro

15.

“One thing I’m confident about in Economics is…"

a)

Understanding opportunity cost

b)

Using percentages in economics

16.

"One thing I need help with is..."

a)

Reading economic data (tables, charts)

b)

Applying formulas

c)

UAE economic policies

d)

Writing definitions clearly

17.

When a consumer buys a soda in the UAE, which is true about the VAT ضريبة القيمة المضافة they pay?

a)

A) It is collected by the shop but passed on to the government

b)

B) It is optional and can be avoided

c)

C) It is refunded to all consumers later

d)

D) It applies only to exports

18.

The UAE recently introduced a 9% corporate tax (ضريبة الشركات). One expected goal is:

a)

A) Reduce foreign investment completely

b)

B) Diversify government revenue beyond oil

c)

C) Eliminate all VAT collections

d)

D) Stop road infrastructure projects

19.

The UAE dirham (AED) stability is important for trade and investment. Why?

a)

A) It reduces uncertainty in import/export prices

b)

B) It makes the UAE currency a cryptocurrency

c)

C) It eliminates the need for foreign banks

d)

D) It fixes all inflation problems

20.

A country’s tax authority (e.g., the UAE’s FTA) plays which role?

a)

A) Collects government revenue to fund merit services (e.g., healthcare, road infrastructure)

b)

B) Controls all stock market trading

c)

C) Sets world oil prices

d)

D) Runs private designer apparel outlets