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.
| 51. |
Which market is called Bear market ? |
| A. | Market with upward and stock prices. |
| B. | Market with a prolonged period of falling stock prices |
| C. | A very big market |
| D. | A very big industrial market |
| Answer» C. A very big market | |
| 52. |
Which kind of Tax is Federal subject ? |
| A. | Excise Tax |
| B. | Property Tax |
| C. | Zakat |
| D. | General Sales Tax |
| Answer» E. | |
| 53. |
Which is the oldest stock exchange of the world ? |
| A. | New York stock exchange |
| B. | Tokyo stock exchange |
| C. | London stock exchange |
| D. | None of them |
| Answer» D. None of them | |
| 54. |
Which is the most widely used tool of monetary policy ? |
| A. | Clearing house |
| B. | Open-market operations |
| C. | Discount rate |
| D. | Issuing of notes |
| Answer» C. Discount rate | |
| 55. |
Which is most likely to cause a more even distribution of income ? |
| A. | An increase in indirect taxes |
| B. | An increase in managers salaries |
| C. | An increase in progressive taxation |
| D. | An increase in the rate of inflation |
| Answer» D. An increase in the rate of inflation | |
| 56. |
Which function is performed by both commercial banks and central banks ? |
| A. | Acting as bankers to the government |
| B. | Advising the government on monetary policy |
| C. | Dealing in foreign exchange |
| D. | Fixing the main interest rate |
| Answer» D. Fixing the main interest rate | |
| 57. |
Which form of business organization falls between a corporation and partnership ? |
| A. | joint company |
| B. | Joint stock company |
| C. | Limited joint company |
| D. | Limited Company |
| Answer» C. Limited joint company | |
| 58. |
Which exchange rate system is characterized by the absence of government intervention ? |
| A. | Free float |
| B. | Clean float |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 59. |
Which economics term describes the takeover of one textile manufactures by another ? |
| A. | Diversification |
| B. | horizontal integration |
| C. | monopoly |
| D. | vertical integration |
| Answer» C. monopoly | |
| 60. |
Which economics doctrine opposes government regulation or interference in commerce beyond the minimum necessary for a free enterprise system to operate according to its own economics laws and non-interference in affairs of others ? |
| A. | Free market economy |
| B. | Laissez faire also Laisser faire |
| C. | Open market economy |
| D. | Liberal market economy |
| Answer» C. Open market economy | |
| 61. |
Which country is the chief exporter of Tin ? |
| A. | Malaysia |
| B. | China |
| C. | Russia |
| D. | USA |
| Answer» B. China | |
| 62. |
Which country is the chief exporter of jute ? |
| A. | Bangladesh |
| B. | India |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 63. |
Which country is the chief exporter Aluminum? |
| A. | USA |
| B. | Britain |
| C. | France |
| D. | Germany |
| Answer» B. Britain | |
| 64. |
Which country is the chief exporter of coffee? |
| A. | Mexico |
| B. | USA |
| C. | Brazil |
| D. | Australia |
| Answer» D. Australia | |
| 65. |
Which company holds the world record for having the maximum number of shareholders ? |
| A. | Reliance Industries Ltd. |
| B. | British Gas |
| C. | General Motors |
| D. | State Bank |
| Answer» B. British Gas | |
| 66. |
Which city in Germany has the distinction of housing the first car manufacturing plant in the world ? |
| A. | Frankfurt |
| B. | Bonn |
| C. | Berlin |
| D. | Stuttgart |
| Answer» C. Berlin | |
| 67. |
Which branch of accounting provides information to help the management of a firm evaluate production costs and efficiency ? |
| A. | Efficient Account |
| B. | Cost Accounting |
| C. | Ultra-country economic risk |
| D. | Outcome risk |
| Answer» C. Ultra-country economic risk | |
| 68. |
Where ‘Nikkei Stock average’ applies ? |
| A. | Mainly to Korean equities |
| B. | Mainly to international equities |
| C. | Mainly to Japanese equities |
| D. | Mainly to US equities |
| Answer» C. Mainly to Japanese equities | |
| 69. |
When the stock market is rising it is ? |
| A. | Bearish |
| B. | Bullish |
| C. | Hottest |
| D. | Rising up |
| Answer» C. Hottest | |
| 70. |
When the stock market is down falling it is called ? |
| A. | Bullish |
| B. | Bearish |
| C. | Falling |
| D. | Crashing |
| Answer» C. Falling | |
| 71. |
When the State Bank wants to decrease money supply in the country, it _______________? |
| A. | Buys govt. securities in stock market |
| B. | Sells govt. securities |
| C. | Lowers discount rate |
| D. | B and C of above |
| Answer» C. Lowers discount rate | |
| 72. |
When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics? |
| A. | Cost push theory |
| B. | Supply and Demand theory |
| C. | Fundamental theory |
| D. | Ricardo’s theory |
| Answer» C. Fundamental theory | |
| 73. |
When stock market is falling it is_______________? |
| A. | Bearish |
| B. | Bullish |
| C. | Crash |
| D. | Fall down |
| Answer» B. Bullish | |
| 74. |
When banks prepare their balance sheets. They show the money lent in ? |
| A. | Liability |
| B. | Assets |
| C. | Both assets and liabilities |
| D. | None |
| Answer» C. Both assets and liabilities | |
| 75. |
When aggregate supply exceeds aggregate demand ? |
| A. | Business inventory accumulate |
| B. | Unemployment exists |
| C. | Price of consumer goods rise |
| D. | People save more than they intended to save |
| Answer» B. Unemployment exists | |
| 76. |
When a commercial bank creates credit its immediate effect is that it raises__________________? |
| A. | The exchange rates |
| B. | The interest rates |
| C. | The money supplies |
| D. | The real national income |
| Answer» D. The real national income | |
| 77. |
What would reduce the role of central planning in a economy ? |
| A. | Increasing government spending |
| B. | Increasing public ownership of firms |
| C. | Increasing the role of markets |
| D. | Removing the profit motive |
| Answer» D. Removing the profit motive | |
| 78. |
What would cause a country’s exchange rate to fall ? |
| A. | An increases demand for its exports |
| B. | Increased demand for its imports |
| C. | An increased inflow of capital |
| D. | None of the above |
| Answer» C. An increased inflow of capital | |
| 79. |
What term is given to unemployment caused by a downturn in the business cycle ? |
| A. | Underemployment |
| B. | Disguised unemployment |
| C. | Temporary unemployment |
| D. | Cyclical unemployment |
| Answer» E. | |
| 80. |
What occurs when a firm’s business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ? |
| A. | Solvency |
| B. | Crash |
| C. | Bankruptcy |
| D. | Liquidation |
| Answer» E. | |
| 81. |
What meant by excise ? |
| A. | A tax levied on certain articles produced and consumed in a country |
| B. | A licensing charge or a fee levied for certain privileges |
| C. | Both of these |
| D. | None of the above |
| Answer» D. None of the above | |
| 82. |
What is write-Off? |
| A. | Charging an asset amount to expense of loss |
| B. | To forget |
| C. | To withdraw |
| D. | None of these |
| Answer» B. To forget | |
| 83. |
What is underwriter ? |
| A. | To assume financial responsibility for grantee against failure |
| B. | To sign so as to assume liability in case of specified losses |
| C. | To guarantee the purchase or to agree to buy the unsold part of stock at fixed time and price |
| D. | All of them |
| Answer» E. | |
| 84. |
What is the rate of exchange or exchange rate ? |
| A. | Power to buy foreign currency |
| B. | Foreign currency holding |
| C. | Ratio at which unit of one country’s currency is exchanged for unit of another country currency |
| D. | None of them |
| Answer» D. None of them | |
| 85. |
What is the period called 12-months plan of a country to use its funds ? |
| A. | Fiscal period |
| B. | Calendar year |
| C. | Year unit |
| D. | Fiscal year (FY) |
| Answer» E. | |
| 86. |
What is the meaning of the term stagflation ? |
| A. | Fall in prices due to less circulation of currency |
| B. | Fall in employment due to declining production |
| C. | High inflation rate combined with high unemployment and unchanged consume demand |
| D. | None of these |
| Answer» D. None of these | |
| 87. |
What is the cost effective ? |
| A. | Cheap things |
| B. | Substandard things |
| C. | Economical in terms of the goods or services received for the money spent |
| D. | Free in terms of the goods or services received for the money spent |
| Answer» D. Free in terms of the goods or services received for the money spent | |
| 88. |
What is Tariff ? |
| A. | tax that government levy on imports |
| B. | tax that government levy on exports |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 89. |
What is sales tax_____________? |
| A. | Levied on the retail price of merchandise and collected by retailer |
| B. | Tax deducted at source |
| C. | Tax on local produce |
| D. | Tax on gross sale |
| Answer» B. Tax deducted at source | |
| 90. |
What is Remittance_______________? |
| A. | Sending of money to someone at distance |
| B. | The sum of money sent |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 91. |
What is referred by the Working capital ? |
| A. | Assets of business that can be applied to its operation |
| B. | Amount of current assets that exceeds current liabilities |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 92. |
What is referred by the term ‘Portfolio ? |
| A. | A collection of investments, real or financial |
| B. | Net assets of a company |
| C. | Total profit of company in a year |
| D. | Total unmovable assets of a company |
| Answer» B. Net assets of a company | |
| 93. |
What is referred by the by economic theory “Liberalism” ? |
| A. | The free market |
| B. | Gold standard |
| C. | Laissez faire |
| D. | All of these |
| Answer» E. | |
| 94. |
What is referred by the discount rate________________? |
| A. | Advance deduction of the interest in purchasing, selling or lending a commercial paper |
| B. | State (central) Bank’s interest rate on loans to its member banks |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 95. |
What is referred by the hard currency ? |
| A. | Any currency backed by gold or silver bullion rather than credit |
| B. | Stable currency value of which does not fluctuate greatly |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 96. |
What is referred by interest ? |
| A. | Payment made for the use of another person’s money |
| B. | payment made for the use of bank’s money |
| C. | Share in profit |
| D. | Devaluation in the currency |
| Answer» B. payment made for the use of bank’s money | |
| 97. |
What is referred by cost push inflation ? |
| A. | Decreased production costs drive prices up |
| B. | Decreased production costs drive prices down |
| C. | increased production costs drive prices down |
| D. | increased production costs drive prices up |
| Answer» E. | |
| 98. |
What is referred a group of companies that cooperate and share resources in order to achieve a common objective ? |
| A. | Consortium |
| B. | Pool |
| C. | Incorporation |
| D. | Conglomerate |
| Answer» B. Pool | |
| 99. |
What is public sector ? |
| A. | Public corporations |
| B. | Central and local government |
| C. | Nationalized Industries |
| D. | All of them |
| Answer» E. | |
| 100. |
What is price support ? |
| A. | To increase price artificially |
| B. | Maintenance of price through public subsidy or government intervention |
| C. | To enhance price |
| D. | To maintain price at specific level |
| Answer» C. To enhance price | |