Question 1

What is the concept of interest rates?

Accepted Answer

The rate at which central banks lend money to commercial banks

Question 2

What is the concept of government budget balance?

Accepted Answer

The difference between government revenue and government spending

Question 3

What is the concept of Gross Domestic Product (GDP)?

Accepted Answer

The total value of goods and services produced within an economy

Question 4

What is the concept of economic growth rate?

Accepted Answer

The percentage change in an economy's real GDP from one period to another

Question 5

What is the concept of comparative advantage?

Accepted Answer

The idea that countries can benefit from trade by specializing in goods and services for which they have a relative advantage in production

Question 6

What is the concept of fiscal neutrality?

Accepted Answer

The idea that government revenue and spending are neutral in their impact on the economy

Question 7

What is the concept of open market operations?

Accepted Answer

The process by which central banks buy or sell government securities on the open market

Question 8

What is the concept of automatic stabilizers?

Accepted Answer

Government policies that automatically adjust government spending and taxes in response to changes in the economy

Question 9

What is the concept of aggregate demand?

Accepted Answer

The total value of goods and services demanded by households, businesses, government, and foreigners within an economy

Question 10

What is the concept of diminishing marginal utility?

Accepted Answer

The idea that the additional utility derived from consuming an extra unit of a good or service decreases as consumption increases

Social science: Trivia questions with answers