MCQOPTIONS
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MCQOPTIONS
This section includes 406 Mcqs, each offering curated multiple-choice questions to sharpen your Economics knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which of the following terms refers to income that is saved and not invested ? |
| A. | Capital |
| B. | Deposit |
| C. | Hoarding |
| D. | Profit |
| Answer» D. Profit | |
| 2. |
Which of the following would cause income to become more unequal ? |
| A. | Increased employment |
| B. | Increased unemployment allowance |
| C. | More progressive taxes |
| D. | More regressive taxes |
| Answer» E. | |
| 3. |
Which of the following would increase national income ? |
| A. | Increase in taxation |
| B. | Increase in savings |
| C. | Increase in govt. spending |
| D. | Decrease in consumption spending |
| Answer» D. Decrease in consumption spending | |
| 4. |
Which property the paper money does not process ? |
| A. | Acceptability |
| B. | Divisibility |
| C. | Durability |
| D. | Portability |
| Answer» D. Portability | |
| 5. |
Which situation will a country face, if the birth rate falls sharply, while the death rate remains unchanged ? |
| A. | a fall in living standards |
| B. | a more youthful population |
| C. | an ageing population |
| D. | an increase in population |
| Answer» D. an increase in population | |
| 6. |
Which statistical factor is used to convert current currency purchasing power into inflation adjusted purchasing power ? |
| A. | Deflector |
| B. | Purchasing power parity |
| C. | Inflator |
| D. | Deflation |
| Answer» B. Purchasing power parity | |
| 7. |
Which term is used for a bank account which can be operated at will ? |
| A. | Saving Account |
| B. | Fixed account |
| C. | Current account |
| D. | Fluctuated account |
| Answer» D. Fluctuated account | |
| 8. |
Which term is used for a country’s holdings of intentionally acceptable means of payment ? |
| A. | Holdings |
| B. | Reserves |
| C. | Foreign currency |
| D. | Treasure |
| Answer» C. Foreign currency | |
| 9. |
Which term is used for an addition to normal payment by a company or extra payment of gratuity to workers ? |
| A. | Bonus |
| B. | Overtime |
| C. | Prize |
| D. | Gift |
| Answer» B. Overtime | |
| 10. |
Which term is used for an engagement in risky business with the idea of making a large profit in short time ? |
| A. | Idealism |
| B. | Blind game |
| C. | Speculation |
| D. | Risk covering |
| Answer» D. Risk covering | |
| 11. |
Which term is used for fine that is payable for failing to clear goods from a storehouse with in a specific period of time ? |
| A. | Demurrage |
| B. | Penalty |
| C. | Charges |
| D. | Fine |
| Answer» B. Penalty | |
| 12. |
Which term is used for the period of competition in which each competitor tries to cut retail prices below the others ? |
| A. | Price competition |
| B. | Price support |
| C. | Price war |
| D. | Price battle |
| Answer» D. Price battle | |
| 13. |
Which term is used for the total net value of all goods and services produced in a country in specified period of time ? |
| A. | National income |
| B. | Public income |
| C. | Local income |
| D. | Gross income |
| Answer» B. Public income | |
| 14. |
Which term is used for the value imprinted on a security ? |
| A. | Real value |
| B. | Net value |
| C. | Par value |
| D. | Gross value |
| Answer» D. Gross value | |
| 15. |
Which theory of economic management focuses on encouraging product through tax reduction ? |
| A. | Liberalism |
| B. | Free market economics |
| C. | Supply-side economics |
| D. | Supervised market |
| Answer» D. Supervised market | |
| 16. |
Which type of income is earned only the actor of production enterprise ? |
| A. | interest |
| B. | Profit |
| C. | rent |
| D. | wages |
| Answer» C. rent | |
| 17. |
Who among the following is most benefited from inflation ? |
| A. | Government pensioners |
| B. | Creditors |
| C. | Savings Bank Account holders |
| D. | Debtors |
| Answer» E. | |
| 18. |
Who is a “Lame Duck” in a stock market ? |
| A. | A new investor |
| B. | A old investor |
| C. | A member of the stock exchange who cannot meet his obligations |
| D. | None of the above |
| Answer» D. None of the above | |
| 19. |
Who is called Father of Economics ? |
| A. | Adam smith |
| B. | David Ricardo |
| C. | David smith |
| D. | Adam Ricardo |
| Answer» B. David Ricardo | |
| 20. |
Who is insolvent_______________? |
| A. | A firm that is unable to pay debts |
| B. | A firm that is liquidated |
| C. | A firm that is for sale |
| D. | A firm that has more liabilities than assets |
| Answer» B. A firm that is liquidated | |
| 21. |
With whom would you associate the following quote” The business of business is business” ? |
| A. | Milton Friedman |
| B. | Adam smith |
| C. | Alfred Marshal |
| D. | Karl Marx |
| Answer» B. Adam smith | |
| 22. |
Which of the following payment instruments introduced by the banks is known as plastic money ? |
| A. | Bearer cheques |
| B. | Credit Cards |
| C. | Demand Drafts |
| D. | Gift Cheques |
| Answer» C. Demand Drafts | |
| 23. |
Which of the following must always balance ? |
| A. | The balance of visible trade |
| B. | The balance of invisible trade |
| C. | The balance on the current account |
| D. | The balance of payments |
| Answer» E. | |
| 24. |
Which of the following is the Pakistan’s central bank ? |
| A. | State Bank |
| B. | National Bank |
| C. | Both of them |
| D. | None of them |
| Answer» B. National Bank | |
| 25. |
Which of the following is referred by the phrase trade balance ? |
| A. | Income from export |
| B. | Difference between imports and exports |
| C. | Income from imports |
| D. | All of them |
| Answer» C. Income from imports | |
| 26. |
Which of the following is regarded as a factor of production ? |
| A. | Capital |
| B. | Interest |
| C. | Profit |
| D. | None of these |
| Answer» B. Interest | |
| 27. |
Which of the following is referred by principle ? |
| A. | Total amount of money being borrowed or lent |
| B. | Party affected by agent decision in a principal agent relationship |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 28. |
Which of the following is referred by the Debt retirement ? |
| A. | To write-off debt |
| B. | To reschedule debt |
| C. | To repay debt in easy installments |
| D. | The complete repayment of debt |
| Answer» E. | |
| 29. |
Which of the following is rate of interest the major international banks charge each other for borrowings ? |
| A. | New York Interbank Offered Rates (NIBOR) |
| B. | international Interbank Offered Rates (IOBOR) |
| C. | London Interbank Offered Rate (LIBOR) |
| D. | USA Interbank Offered Rate (UIBOR) |
| Answer» D. USA Interbank Offered Rate (UIBOR) | |
| 30. |
Which of the following is Price of the last transaction of a particular stock completed during a day’s trading session on an exchange ? |
| A. | Night Price |
| B. | Closing Price |
| C. | End price |
| D. | Final price |
| Answer» C. End price | |
| 31. |
Which of the following is not required while computing Gross National Product (GNP) ? |
| A. | Net foreign investment |
| B. | Private investment |
| C. | Per capita income of citizens |
| D. | None of the above |
| Answer» D. None of the above | |
| 32. |
Which of the following is not rated by credit rating agencies ? |
| A. | Shares |
| B. | Debentures and bonds |
| C. | Commercial paper |
| D. | Government securities |
| Answer» B. Debentures and bonds | |
| 33. |
Which of the following is not an instrument of monetary policy ? |
| A. | Taxation |
| B. | Bank rate |
| C. | Open-market operations |
| D. | Credit rationing |
| Answer» B. Bank rate | |
| 34. |
Which of the following is not a function of a commercial bank? |
| A. | Accepting public deposits |
| B. | Granting loan and advances |
| C. | Undertaking agency functions |
| D. | Banker to the government |
| Answer» E. | |
| 35. |
Which of the following is known as foreign exchange ? |
| A. | Transaction of International monetary business |
| B. | Negotiable bills drawn in one country to be paid in another country |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 36. |
Which of the following is indicated by the term unemployed ? |
| A. | Employed only part time when one needs full time employment |
| B. | Inadequately employed |
| C. | Note fully used or employed |
| D. | All of them |
| Answer» E. | |
| 37. |
Which of the following is called a wholly or partially owned company what is the part of the large corporation? |
| A. | Baby company |
| B. | Child company |
| C. | Small holding |
| D. | Subsidiary |
| Answer» C. Small holding | |
| 38. |
Which of the following is an example of government policy that could reduce inflation ? |
| A. | increasing bank lending |
| B. | increasing import duties |
| C. | reducing government expenditure |
| D. | None of these |
| Answer» D. None of these | |
| 39. |
Which of the following is a withdraw from the circular flow income stream ? |
| A. | Investment |
| B. | Subsidies |
| C. | Taxation |
| D. | Consumption |
| Answer» D. Consumption | |
| 40. |
Which of the following is a valid currency______________? |
| A. | Promissory note |
| B. | Currency note |
| C. | Exchange rate |
| D. | Bank cheque |
| Answer» C. Exchange rate | |
| 41. |
Which of the following is a price that is equal to the face value of a security ? |
| A. | Balanced |
| B. | At Equilibrium |
| C. | At Par |
| D. | None of them |
| Answer» D. None of them | |
| 42. |
Which of the following is a form of international reserve assets, created by IMF in 1967 whose value is based on a portfolio of widely used currencies ? |
| A. | Special Drawing Right (SDR) |
| B. | IMF Drawing Rights (SDR) |
| C. | International Drawing Right (IDR) |
| D. | Sure, Drawing Rights (SDR) |
| Answer» B. IMF Drawing Rights (SDR) | |
| 43. |
Which of the following groups suffer the most from inflation ? |
| A. | Debtors |
| B. | Creditors |
| C. | Business class |
| D. | None of these |
| Answer» C. Business class | |
| 44. |
Which of the following can be used for check inflation temporarily ? |
| A. | increase in wages |
| B. | Decrease in money supply |
| C. | Decrease in tax |
| D. | None of these |
| Answer» D. None of these | |
| 45. |
Which of the following are bonds that are not registered on the books of the issuer ? |
| A. | Open bond |
| B. | Blank bond |
| C. | Term bond |
| D. | Bearer bond |
| Answer» E. | |
| 46. |
Which money is called ‘Earnest’ Money ? |
| A. | Advanced payment to bind a contract or bargain |
| B. | A token of something to come |
| C. | A promise or assurance |
| D. | All of these |
| Answer» E. | |
| 47. |
Which money is called Hot money ? |
| A. | That moves across country borders in response to interest rate differences |
| B. | That moves away when the interest rate differential |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 48. |
Which mineral’s chief exporter is Russia? |
| A. | Manganese |
| B. | Rubber |
| C. | Gold |
| D. | Silver |
| Answer» B. Rubber | |
| 49. |
Which measures. taken by a government would be intended to raise the price of imports ? |
| A. | Embargoes |
| B. | Foreign exchange controls |
| C. | Quotas |
| D. | Tariffs |
| Answer» E. | |
| 50. |
Which market is characterized by a small number of large buyers who control all purchases and therefore the market price of a good a service ? |
| A. | Oligopoly |
| B. | Grey market |
| C. | Oligopsony |
| D. | Green market |
| Answer» D. Green market | |