1. The Weakest Economic Link The SES Economics Quiz

2. 1. When you spend £10 on petrol, which of these gets the biggest share of that money? 30 A.The filling station as profit B.The company that extracted the crude oil C.The refinery that turned it into petrol D.The government via tax A.The filling station as profit B.The company that extracted the crude oil C.The refinery that turned it into petrol D.The government via tax

3. 2. If a good is not scarce, this means that: 30 A.it has zero opportunity cost. B.people consume all they can afford. C.there is no shortage at current prices. D.everyone can afford to buy at least some of the good. A.it has zero opportunity cost. B.people consume all they can afford. C.there is no shortage at current prices. D.everyone can afford to buy at least some of the good.

4. 3. A firm is selling a product for which demand is price inelastic. If it reduces price it will: 30 A.increase both revenue and profit. B.decrease revenue and increase profit. C.increase revenue and decrease profit. D.decrease both revenue and profit. A.increase both revenue and profit. B.decrease revenue and increase profit. C.increase revenue and decrease profit. D.decrease both revenue and profit.

5. 4. What is a sub-prime mortgage? 30 A.A mortgage given at a very low interest rate B.A mortgage given to people with low unpredictable income C.A mortgage which is more than 100% of the value of the house D.A mortgage which is less than 100% of the value of the house A.A mortgage given at a very low interest rate B.A mortgage given to people with low unpredictable income C.A mortgage which is more than 100% of the value of the house D.A mortgage which is less than 100% of the value of the house

6. 5. What does credit crunch mean? 30 A.A very low interest rate B.A shortage of credit C.A fall in house prices D.People unable to pay their debts A.A very low interest rate B.A shortage of credit C.A fall in house prices D.People unable to pay their debts

7. 6. What does the term LIBOR stand for? 30 A.Loans and Inter-Bank Offered Rate B.Loans and Interest between Banks and Other Rates C.London Inter-Bank Offered Rate D.Level of Interest Borrowed at Other Rates A.Loans and Inter-Bank Offered Rate B.Loans and Interest between Banks and Other Rates C.London Inter-Bank Offered Rate D.Level of Interest Borrowed at Other Rates

8. 7. Which of these wise statements was made by John Maynard Keynes? 30 A.If at first you don't succeed, don't take up skydiving. B.In the long run, we're all dead. C.If you think nobody cares whether you're dead or alive, try missing a couple of mortgage payments. D.If you lent someone £20 and never saw them again, it was probably worth it. A.If at first you don't succeed, don't take up skydiving. B.In the long run, we're all dead. C.If you think nobody cares whether you're dead or alive, try missing a couple of mortgage payments. D.If you lent someone £20 and never saw them again, it was probably worth it.

9. 8. Which one of the following countries has accumulated debt greater than 100% of GDP? 30 A.The UK B.Germany C.The USA D.Japan A.The UK B.Germany C.The USA D.Japan

10. 9. The main purpose of the Doha round of WTO negotiations was/is to: 30 A.increase aid to developing countries. B.increase IMF lending. C.cut tariffs. D.cancel debts owed by less developed countries. A.increase aid to developing countries. B.increase IMF lending. C.cut tariffs. D.cancel debts owed by less developed countries.

11. 10. Which was the first bank to be nationalised by the UK government? 30 A.Lloyds TSB B.Royal Bank of Scotland C.HBOS D.Northern Rock A.Lloyds TSB B.Royal Bank of Scotland C.HBOS D.Northern Rock

12. 11. UBS bank is based in which country? 30 A.Uruguay B.Belgium C.Sweden D.Switzerland A.Uruguay B.Belgium C.Sweden D.Switzerland

13. 12. Who or what are Fannie Mae and Freddie Mac? 30 A.Two American bankers B.Two American banks C.Two American mortgage lenders D.Two American senators on the Finance Committee A.Two American bankers B.Two American banks C.Two American mortgage lenders D.Two American senators on the Finance Committee

14. 13. Which of the following is the Bank of Englands inflation target? 30 A.2% RPI B.2% CPI C.2½% RPI D.2½% CPI A.2% RPI B.2% CPI C.2½% RPI D.2½% CPI

15. 14. Some people think that bailing out the banks will encourage them to take greater risks in the future. This is referred to as: 30 A.moral hazard. B.quantitative easing. C.hedging. D.paradox of thrift. A.moral hazard. B.quantitative easing. C.hedging. D.paradox of thrift.

16. 15. Which is the worlds largest exporter? 30 A.Germany B.Japan C.China D.The USA A.Germany B.Japan C.China D.The USA

17. 16. Which of the following areas of Scotland has the highest unemployment rate? 30 A.Shetland Islands B.Scottish Borders C.North Ayrshire D.City of Edinburgh A.Shetland Islands B.Scottish Borders C.North Ayrshire D.City of Edinburgh

18. 17. Unemployment caused by the decline of the shipbuilding industry is referred to as 30 A.frictional. B.cyclical. C.structural. D.seasonal. A.frictional. B.cyclical. C.structural. D.seasonal.

19. 18. What is the current standard rate of VAT in the UK? 30 A.12½% B.15% C.17½% D.22½% A.12½% B.15% C.17½% D.22½%

20. 19. How many of the 27 EU countries have adopted the euro as their currency? 30 A.10 B.12 C.15 D.16 A.10 B.12 C.15 D.16

21. 20. On 17 th February US President Barack Obama signed an economic stimulus package calling it the most sweeping recovery package in our history – how much was it worth? 30 A.$187bn B.$387bn C.$587bn D.$787bn A.$187bn B.$387bn C.$587bn D.$787bn

22. You are the Weakest Economic Link Goodbye!