BPP Economics

Question 1

What is economics primarily the study of?

Accepted Answer

The production, distribution, and consumption of goods and services

Answer

The stars and planets

Answer

Government laws and regulations

Answer

Human psychology

Question 2

What does 'supply and demand' describe?

Accepted Answer

The relationship between product availability and consumer desire

Answer

A government tax system

Answer

A type of business contract

Answer

Import and export laws

Question 3

What is inflation?

Accepted Answer

A general rise in price levels over time

Answer

A decrease in the money supply

Answer

An increase in employment rates

Answer

A reduction in government spending

Question 4

What is the term for the total value of goods and services produced in a country in one year?

Accepted Answer

GDP

Answer

CPI

Answer

GNI

Answer

PPP

Question 5

What is a budget deficit?

Accepted Answer

When a government spends more than it earns

Answer

When a government earns more than it spends

Answer

When exports exceed imports

Answer

When savings exceed investments

Question 6

Which of the following is a factor of production?

Accepted Answer

Capital

Answer

Inflation

Answer

Taxation

Answer

Deficit