Question 1

The discipline of economics can be divided into:
A) microeconomics and macroeconomics.
B) stocks and flows.
C) merchandise and services.
D) unlimited wants and limited resources.
E) exports and imports.

Accepted Answer

Microeconomics and macroeconomics are the two main divisions of economics. Microeconomics focuses on individual agents and markets, while macroeconomics deals with the economy as a whole.

Question 2

The study of microeconomics focuses on the:
A) interaction of international trade and domestic production of goods and services.
B) operation of the entire economy.
C) role of the banking system in the economy.
D) structure and performance of particular industries and markets.
E) GDP of a country.

Accepted Answer

Microeconomics is concerned with the behavior of individual entities such as markets, firms, and consumers, and how they make decisions regarding the allocation of resources. It specifically looks at the structure and performance of particular industries and markets, unlike macroeconomics which deals with the economy as a whole.

Question 3

International economics is a blend of:
A) microeconomics and sociology.
B) macroeconomics and medicine.
C) regional economics and macroeconomics.
D) microeconomics and macroeconomics.
E) trade and GDP.

Accepted Answer

International economics integrates both microeconomic and macroeconomic perspectives to analyze global economic policies, trade, and investment flows.

Question 4

The majority of economic activity is:
A) international activity.
B) domestic activity.
C) trade block activity.
D) internationalization.
E) government spending.

Accepted Answer

The majority of economic activity in most countries is domestic activity, encompassing all economic transactions and activities that occur within a country's borders, including production, consumption, and investment. International activity, trade block activity, internationalization, and government spending are significant but do not surpass the volume of domestic economic activities.

Question 5

GDP has several major exclusions, including:
A) economic activity that does not occur in a market.
B) items resold during the period.
C) legally sold items that are non-taxable.
D) illegal activity.
E) all of the above.

Accepted Answer

GDP measures the market value of all final goods and services produced within a country in a given period. It excludes non-market activities (like household chores), resold items (since they were counted when first sold), non-taxable legal items (if they don't involve a market transaction), and illegal activities (as they are not officially recorded in market transactions).

Question 6

GDP for a country excludes which of the following?
A) Consumption by the public
B) Imports and exports
C) Illegal economic activities
D) Investment spending by businesses
E) none of the above

Accepted Answer

GDP (Gross Domestic Product) measures the value of all officially recognized final goods and services produced within a country in a given period. It includes consumption by the public, both imports and exports (although imports are subtracted from GDP), and investment spending by businesses. However, it excludes illegal economic activities because they are not reported to the government and thus not included in official economic statistics.

Question 7

GDP is:
A) the sum of the amounts of goods and services in the economy.
B) a measure of the amount of capital in an economy.
C) a measure of per capita economic growth of the economy.
D) a monetary measure of final output produced during a given period of time.

Accepted Answer

GDP, or Gross Domestic Product, is a monetary measure that represents the total value of all final goods and services produced over a specific time period within a country's borders. It is used to gauge the economic performance of a country. Choices A, B, and C do not accurately define GDP.

Question 8

The size of the world economy is approximately:
A) $15 trillion.
B) $20 trillion.
C) $32 trillion.
D) $45 trillion.
E) $73 trillion.

Accepted Answer

As of my last update in 2023, the size of the world economy, measured by global Gross Domestic Product (GDP), is closest to $73 trillion. This figure fluctuates based on economic conditions, inflation, and exchange rates.

Question 9

The total GDP of the world economy is approximately:
A) $10 trillion.
B) $15 trillion.
C) $32 trillion.
D) $45 trillion.
E) $86 trillion.

Accepted Answer

As of my last update in 2023, the total GDP of the world economy is approximately $86 trillion, making option E the correct choice. This figure is based on the latest estimates from the World Bank and the International Monetary Fund, which track global economic output.

Question 10

The average GDP per capita in the low-income economies is approximately:
A) $602.
B) $635.
C) $812.
D) $3,200.
E) $2,140.

Accepted Answer

The average GDP per capita in low-income economies is approximately $812. This figure is based on data from the World Bank and other international financial institutions that categorize countries by income level and calculate average GDP per capita for these groups.

Question 11

The average GDP per capita in the middle-income economies is approximately:
A) $360.
B) $1,123.
C) $2,782.
D) $5,483.
E) $8,672.

Accepted Answer

Middle-income economies typically have a GDP per capita ranging from about $1,036 to $12,535, and $5,483 falls within this range.

Question 12

The average GDP per capita in the high-income economies is approximately:
A) $5,642.
B) $10,000.
C) $15,000.
D) $34,316.
E) $44,717.

Accepted Answer

High-income economies typically have a higher GDP per capita, and $44,717 is a more accurate reflection of the average GDP per capita in these economies.

Question 13

The high-income economies account for about:
A) 40% of world output.
B) 55% of world output.
C) 60% of world output.
D) 63% of world output.
E) 78% of world output.

Accepted Answer

High-income economies account for approximately 63% of world output, reflecting their significant contribution to global GDP.

Question 14

The low-income economies account for approximately what percentage of world output?
A) 1%
B) 3%
C) 10%
D) 15%
E) 25%

Accepted Answer

Low-income economies account for approximately 1% of world output, reflecting their small economic size relative to middle- and high-income countries.

Question 15

Approximately 63% of the world's economic output is produced by:
A) low-income countries.
B) middle-income countries.
C) high-income countries.
D) low- and middle-income countries.
E) Latin America.

Accepted Answer

High-income countries are responsible for approximately 63% of the world's economic output due to their advanced economies and higher GDP.

Question 16

The high-income economies account for approximately what percentage of world output?
A) 16%
B) 40%
C) 50%
D) 63%
E) 78%

Accepted Answer

High-income economies account for approximately 63% of world output, reflecting their significant contribution to global economic activity despite representing a smaller percentage of the world's population.

Question 17

Which of the following is a multilateral institution that makes loans to developing countries?
A) The OECD
B) The World Bank
C) The WTO
D) The INA
E) The GATT

Accepted Answer

The World Bank is a multilateral institution that provides financial and technical assistance to developing countries for development programs (e.g., bridges, roads, schools) that are expected to improve the economic prospects and quality of life for people in those countries.

Question 18

Imports are:
A) the part of domestic consumption from foreign producers.
B) the part of domestic production sold to foreigners.
C) the part of domestic investment that is purchased by foreigners.
D) the part of manufactured goods purchased by foreigners.
E) none of the above

Accepted Answer

Imports are goods and services that are produced abroad and then sold domestically, making choice A the correct definition.

Question 19

Total world imports and exports of merchandise are each a little over:
A) $556 billion.
B) $1 trillion.
C) $10 trillion.
D) $19 trillion.
E) $22 trillion.

Accepted Answer

The answer of Total world imports and exports of merchandise...

Question 20

Total imports of merchandise in the world economy are approximately:
A) $700 billion.
B) $1 trillion.
C) $2.2 trillion.
D) $10 trillion.
E) $19 trillion.

Accepted Answer

As of my last update in 2023, the total imports of merchandise in the world economy are approximately $19 trillion. This figure reflects the vast scale of global trade and the interconnectedness of economies worldwide.

Quiz 1: Introduction: An Overview of the World Economy

The discipline of economics can be divided into:

The study of microeconomics focuses on the:

International economics is a blend of:

The majority of economic activity is:

GDP has several major exclusions, including:

GDP for a country excludes which of the following?

GDP is:

The size of the world economy is approximately:

The total GDP of the world economy is approximately:

The average GDP per capita in the low-income economies is approximately:

The average GDP per capita in the middle-income economies is approximately:

The average GDP per capita in the high-income economies is approximately:

The high-income economies account for about:

The low-income economies account for approximately what percentage of world output?

Approximately 63% of the world's economic output is produced by:

The high-income economies account for approximately what percentage of world output?

Which of the following is a multilateral institution that makes loans to developing countries?

Imports are:

Total world imports and exports of merchandise are each a little over:

Total imports of merchandise in the world economy are approximately: