In economics, what type of tax takes a larger percentage of income as a person earns more?
Answer
Progressive tax
80 Economics Basics Trivia Questions with Answers
80 public questions with answers, drawn from the well. How many can you answer?
What is a central bank’s purchase of government securities to increase the money supply called?
Answer
Open-market operations
Which economist wrote The Wealth of Nations, published in 1776?
Answer
Adam Smith
In economics, what is the ability of a borrower to repay a loan called?
Answer
Creditworthiness
In economics, what is the value of a country's currency based on the prices of goods in different countries called?
Answer
Purchasing power parity
In economics, what term describes a sustained increase in output per worker or per hour worked?
Answer
Labor productivity growth
In economics, what curve shows the maximum combinations of two goods an economy can produce with available resources?
Answer
Production possibility frontier
In economics, what principle says countries should specialize in goods with the lowest opportunity cost?
Answer
Comparative advantage
In economics, what coefficient summarizes income or wealth inequality on a scale from 0 to 1?
Answer
Gini coefficient
In economics, what is the price at which the quantity supplied equals the quantity demanded called?
Answer
Equilibrium price
In economics, what is the percentage of an additional dollar of income that a person spends called?
Answer
Marginal propensity to consume
In economics, what is the total income earned by a country’s residents and businesses in a year called?
Answer
Gross national income
In economics, what is the percentage change in quantity demanded divided by the percentage change in income called?
Answer
Income elasticity of demand
In economics, what is the inflation-adjusted interest rate called?
Answer
Real interest rate
In economics, what is the percentage of deposits that banks must keep available rather than lend out called?
Answer
Reserve requirement
In economics, what term describes a situation where one party in a transaction has more information than the other?
Answer
Information asymmetry
In economics, what measure is calculated by dividing a country's GDP by its population?
Answer
GDP per capita
In economics, what problem occurs when people benefit from a shared resource without paying for it?
Answer
Free-rider problem
In economics, what is a tax on imported goods called?
Answer
Tariff
In economics, what kind of good is non-excludable and non-rivalrous?
Answer
Public good
In economics, what is a cost imposed on an uninvolved third party called?
Answer
Negative externality