The world economy is a complex and ever-evolving beast, weaving together the fortunes of nations, industries, and individuals. But how much do you really know about the forces shaping this global phenomenon? Put your knowledge to the test with this fun and informative GK quiz!
1. What is the most common measure of a country's economic size?
A) Population
B) Land area
C) Gross Domestic Product (GDP)
D) Military spending
Answer: C)
Explanation: The Federal Reserve Bank of St. Louis mentions, “The most common measure of the economy is called gross domestic product (or GDP). GDP measures the total market value of all final goods and services produced in an economy in a given year.”
2. Which international organisation monitors the global financial system?
A) World Trade Organisation
B) International Monetary Fund
C) United Nations Development Programme
D) World Bank
Answer: B)
Explanation: The IMF supports its member countries in achieving sustainable economic growth and reducing poverty through financial assistance, policy advice, and capacity development.
3. Which economic system relies heavily on government intervention and centralised planning?
A) Capitalism
B) Command economy
C) Mixed economy
D) Socialism
Answer: D)
Explanation: Socialist economies generally involve strong government control over production, distribution, and pricing of goods and services. This approach aims to achieve greater equality in access to resources, including education and healthcare.
4. What is the name for a period of sustained economic decline?
A) Recession
B) Stagnation
C) Depression
D) Deflation
Answer: A)
Explanation: The Reserve Bank of Australia mentions: “A recession can be defined as a sustained period of weak or negative growth in real GDP (output) that is accompanied by a significant rise in the unemployment rate. Many other indicators of economic activity are also weak during a recession.”
5. Which country currently has the largest nominal GDP?
A) China
B) Japan
C) United States
D) Germany
Answer: C)
Explanation: According to the Global PEO Services, the United States continues to hold the coveted title of the world's largest economy, with a staggering GDP of $20.89 trillion.
6. What is the name for the digital currency recently launched by China?
A) YuanPay
B) Alipay
C) Renminbi Digital Yuan
D) e-CNY
Answer: D)
Explanation: The e-CNY is China's first foray into central bank digital currencies.
7. What is the name for the largest free trade agreement in the world by GDP?
A) NAFTA
B) RCEP
C) CPTPP
D) EU Single Market
Answer: B)
Explanation: The Department of Foreign Affairs and Trade states: “RCEP is the world's largest free trade agreement by members' GDP.”
8. What's the full form of BRICS?
A) Big Rising International Corporate Societies
B) Booming Resources and Infrastructure Creation Squad
C) Brazil, Russia, India, China, South Africa
D) Bureaucratic Research Institutes for Consumer Spending
Answer: C)
Explanation: BRICS stands for Brazil, Russia, India, China, and South Africa. Originally coined as BRIC (excluding South Africa) by economist Jim O'Neill of Goldman Sachs in 2001, he envisioned these four economies dominating the global economy by 2050. The inclusion of South Africa occurred in 2010.
9. Bitcoin and other cryptocurrencies are classified as:
A) Digital assets based on blockchain technology
B) Commodities like gold or oil
C) Foreign exchange currencies used for international trade
D) Traditional stocks and bonds traded on financial markets
Answer: A)
Explanation: The IRS describes cryptocurrencies as “Digital assets are broadly defined as any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary. Digital assets include (but are not limited to): Convertible virtual currency and cryptocurrency.”
10. What is accurate regarding the global economy?
A) Involves only one country
B) Pertains exclusively to tourists
C) Involves multiple countries
D) Involves only two countries
Answer: C)
Explanation: The world economy by definition involves various countries interacting through trade, finance, and other economic activities.
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