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Home › Economy › World Economy

World Economy — Economy Questions & Practice

Practise 7 World Economy questions from Economy for competitive exams such as UPSC, Banking, SSC and Railway. Read the worked questions below, check every answer with an explanation, and track what you get wrong.

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Practice questions on World Economy — with answers

Try each question first, then open the answer. Explanations are included.

1. Which country has the largest economy in the world by nominal GDP (as of recent rankings)?

  1. AUnited States
  2. BChina
  3. CJapan
  4. DIndia
Show answer

Answer: A

The correct answer is 'United States'.

2. Which country has the second largest economy in the world by nominal GDP?

  1. AGermany
  2. BChina
  3. CJapan
  4. DUnited States
Show answer

Answer: B

The correct answer is 'China'.

3. India is commonly ranked among the top economies in the world by nominal GDP (recent rankings place it around 5th); which country does it typically rank close to?

  1. AUnited States
  2. BRussia
  3. CChina
  4. DUnited Kingdom / Germany / Japan (depending on the year)
Show answer

Answer: D

The correct answer is 'United Kingdom / Germany / Japan (depending on the year)'.

4. Which country has the largest economy in the world by Purchasing Power Parity (PPP)?

  1. AIndia
  2. BChina
  3. CUnited States
  4. DJapan
Show answer

Answer: B

The correct answer is 'China'.

5. What does 'Purchasing Power Parity (PPP)' compare?

  1. AOnly the trade balance between countries
  2. BOnly the exchange rate between two currencies
  3. COnly the GDP growth rate
  4. DThe relative value of currencies by comparing the cost of a standard basket of goods across countries
Show answer

Answer: D

The correct answer is 'The relative value of currencies by comparing the cost of a standard basket of goods across countries'.

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