Basic Of Economics MCQs

Option A: Cost of living

Option B: Basic requirement

Option C: Cost of life

Option D: None of the above

Correct Answer: Cost of living ✔

Option A: Property right

Option B: Sole right

Option C: Copyright

Option D: Right

Correct Answer: Copyright ✔

Option A: Human Development Index (HDI)

Option B: Consumer Price Index (CPI)

Option C: Complete Price Index (CPI)

Option D: Comparative Price Index (CPI)

Correct Answer: Complete Price Index (CPI) ✔

Option A: Adam Smith

Option B: David Ricardo

Option C: David Smith

Option D: Adam Ricardo

Correct Answer: David Ricardo ✔

Option A: Pledge

Option B: Assurance

Option C: Collateral

Option D: Guaranty

Correct Answer: Collateral ✔

Option A: State Bank

Option B: National Bank

Option C: Both of them

Option D: None of them

Correct Answer: State Bank ✔

Option A: Business Crop

Option B: Cash crop

Option C: Money Crop

Option D: Earning Crop

Correct Answer: Cash crop ✔

Option A: Capitalism

Option B: Socialism

Option C: Free market economy

Option D: Liberalism

Correct Answer: Capitalism ✔

Option A: Money flight

Option B: Capital drain

Option C: Free flow

Option D: Capital flight

Correct Answer: Capital flight ✔

Option A: capital asset

Option B: solid asset

Option C: solid capital

Option D: Future asset

Correct Answer: capital asset ✔

Option A: Corporate Laws

Option B: Secondary Laws

Option C: By laws

Option D: Internal Laws

Correct Answer: By laws ✔

Option A: Dealer

Option B: Broker

Option C: Agent

Option D: Commission agent

Correct Answer: Broker ✔

Option A: Open value

Option B: Book value

Option C: Real value

Option D: Artificial value

Correct Answer: Book value ✔

Option A: Certificates

Option B: Sureties

Option C: Security bonds

Option D: Bond

Correct Answer: Bond ✔

Option A: Bill of Exchange BE

Option B: Bill of Lading

Option C: Bearer Cheque

Option D: None of them

Correct Answer: Bill of Exchange BE ✔

Option A: Payable to anyone

Option B: payable to person holding it

Option C: payable through account only

Option D: payable after specific period

Correct Answer: payable to person holding it ✔

Option A: Profit in a year

Option B: Statements of accounts that shows debit and credit accounts under the broad heads

Option C: Performance of a company

Option D: Accurate economic position

Correct Answer: Statements of accounts that shows debit and credit accounts under the broad heads ✔

Option A: Balance between a nation’s expenditure on imports and its receipts from exports

Option B: Total sum a state owned

Option C: Total liabilities of a nation

Option D: Shortfall in budget

Correct Answer: A. Balance between a nation’s expenditure on imports and its receipts from exports ✔

Option A: Assembly line

Option B: Production line

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: All wealth of a nation

Option B: Annual Income of the central government

Option C: All income of the people on a year

Option D: Income derived from taxes by the central government

Correct Answer: All income of the people on a year ✔

Option A: Monetary policy

Option B: Fiscal policy

Option C: Commercial policy

Option D: Finance policy

Correct Answer: Commercial policy ✔

Option A: Business inventory accumulate

Option B: Unemployment exists

Option C: Price of consumer goods rise

Option D: People save more than they intended to save

Correct Answer: Business inventory accumulate ✔

Option A: Inflation

Option B: Deflation

Option C: Social change

Option D: Price stability

Correct Answer: Social change ✔

Option A: Capital

Option B: Deposit

Option C: Hoarding

Option D: Profit

Correct Answer: Hoarding ✔

Option A: Underemployment

Option B: Disguised unemployment

Option C: Temporary unemployment

Option D: Cyclical unemployment

Correct Answer: Cyclical unemployment ✔

Option A: Less than one

Option B: Greater than one

Option C: Equal to one

Option D: Zero

Correct Answer: Equal to one ✔

Option A: Balance of visible trade

Option B: Balance of invisible trade

Option C: Balance on the current account

Option D: Balance of payments

Correct Answer: Balance of invisible trade ✔

Option A: Exports

Option B: Imports

Option C: Both

Option D: None

Correct Answer: Both ✔

Option A: South Africa

Option B: UK

Option C: Canada

Option D: Australia

Correct Answer: UK ✔

Option A: Adam Smith

Option B: Ricardo

Option C: Hicks

Option D: Barron

Correct Answer: Ricardo ✔

Option A: Buying and selling bills of exchange

Option B: Buying and Selling govt. securities

Option C: Buying and selling shares of companies

Option D: Buying and selling foreign exchanges

Correct Answer: Buying and Selling govt. securities ✔

Option A: Interest rate

Option B: Discount rate

Option C: Money rate

Option D: Control rate

Correct Answer: Control rate ✔

Option A: Clearing house

Option B: Open-market operations

Option C: Discount rate

Option D: Issuing of notes

Correct Answer: Open-market operations ✔

Option A: As a pensioner

Option B: As a debtor

Option C: As an entrepreneur

Option D: As an equity-holder

Correct Answer: As a pensioner ✔

Option A: Taxation

Option B: Bank rate

Option C: Open-market operations

Option D: Credit rationing

Correct Answer: Taxation ✔

Option A: Liability

Option B: Assets

Option C: Both assets and liabilities

Option D: None

Correct Answer: Assets ✔

Option A: Increased employment

Option B: Increased unemployment allowance

Option C: More progressive taxes

Option D: More regressive taxes

Correct Answer: More regressive taxes ✔

Option A: Equal

Option B: Different

Option C: Undetermined

Option D: Decreasing

Correct Answer: Different ✔

Option A: Acceptability

Option B: Divisibility

Option C: Durability

Option D: Portability

Correct Answer: Durability ✔

Option A: Increasing demand for goods

Option B: Increasing supply of goods

Option C: Increasing money supply

Option D: Decreasing taxes

Correct Answer: Increasing supply of goods ✔

Option A: Bearish

Option B: Bullish

Option C: Crash

Option D: Fall down

Correct Answer: Bearish ✔

Option A: Reduce the deficit on the balance of trade

Option B: Reduce the repayment of loans

Option C: Reduce the surplus on the capital account

Option D: Reduce the volume of exports

Correct Answer: Reduce the deficit on the balance of trade ✔

Option A: Fixed exchange rate

Option B: Flexible exchange rate

Option C: controlled exchange rate

Option D: Increasing exchange rate

Correct Answer: Flexible exchange rate ✔

Option A: For examine

Option B: Foreign exchange

Option C: Foreign exports

Option D: None of these

Correct Answer: Foreign exchange ✔

Option A: Money value of goods and and services produced in a country during a year.

Option B: Money value of stocks and shares of a country during a year.

Option C: Money value of capital goods produced by a country during a year.

Option D: None of these

Correct Answer: Money value of goods and and services produced in a country during a year. ✔

Option A: Revenue deficit plus the net borrowings of the government

Option B: Budgetary deficits plus the net borrowings of the government

Option C: Capital deficit plus revenue deficit

Option D: Primary deficit minus capital deficit

Correct Answer: Budgetary deficits plus the net borrowings of the government ✔

Option A: Gross domestic product

Option B: National income

Option C: Gross domestic income

Option D: Gross national income

Correct Answer: National income ✔

Option A: An increase in indirect taxes

Option B: An increase in managers salaries

Option C: An increase in progressive taxation

Option D: An increase in the rate of inflation

Correct Answer: An increase in progressive taxation ✔

Option A: Increase in taxation

Option B: Increase in savings

Option C: Increase in govt. spending

Option D: Decrease in consumption spending

Correct Answer: Increase in govt. spending ✔

Option A: NI

Option B: NNP

Option C: GNP

Option D: Consumption

Correct Answer: GNP ✔

Option A: A loan from a bank

Option B: A loan from one’s parents

Option C: Gifts and donations

Option D: A broker’s commission

Correct Answer: D. A broker’s commission ✔

Option A: The sale of the sub-standard commodity

Option B: Sale in a foreign market of a commodity at a price below marginal cost

Option C: Sale in a foreign market of a commodity just at marginal cost without too much of profit

Option D: Smuggling of goods without paying any customs duty

Correct Answer: Sale in a foreign market of a commodity at a price below marginal cost ✔

Option A: To add up the values of goods and services for one year

Option B: Add up all savings

Option C: To count all imports

Option D: To add up the value of semi-finished goods

Correct Answer: To add up the values of goods and services for one year ✔

Option A: Budget for a surplus

Option B: Cut taxes

Option C: Encourage savings

Option D: Reduce its expenditure

Correct Answer: Cut taxes ✔

Option A: a fall in living standards

Option B: a more youthful population

Option C: an ageing population

Option D: an increase in population

Correct Answer: an ageing population ✔

Option A: Net foreign investment

Option B: Private investment

Option C: Per capita income of citizens

Option D: None of the above

Correct Answer: Per capita income of citizens ✔

Option A: Per capita income

Option B: Industrial development

Option C: Number of people who have been lifted above the poverty line

Option D: National income

Correct Answer: National income ✔

Option A: Shareholders

Option B: Creditors

Option C: Debtors

Option D: Directors

Correct Answer: Creditors ✔

Option A: A share

Option B: A debenture

Option C: Invest

Option D: Capital

Correct Answer: A share ✔

Option A: Shares

Option B: Debentures and bonds

Option C: Commercial paper

Option D: Government securities

Correct Answer: Shares ✔

Option A: Bearer cheques

Option B: Credit Cards

Option C: Demand Drafts

Option D: Gift Cheques

Correct Answer: Credit Cards ✔

Option A: GNP

Option B: GDP

Option C: Net revenue

Option D: None of the above

Correct Answer: GNP ✔

Option A: Currency traded in foreign exchange market for which demand is persistently relative to the supply

Option B: Currency Which is used in times of war

Option C: Currency which loses its value very fast

Option D: None of these

Correct Answer: Currency traded in foreign exchange market for which demand is persistently relative to the supply ✔

Option A: The taxes earned by the State

Option B: The sum of all factors of income

Option C: Personal incomes of all the citizens

Option D: Surplus of exports over imports

Correct Answer: The sum of all factors of income ✔

Option A: an even distribution of income

Option B: an incentive to innovate

Option C: a wide range of public goods

Option D: full employment of labor

Correct Answer: an incentive to innovate ✔

Option A: the currency exchange rate

Option B: the difference between the value of visible exports and visible imports

Option C: The government’s policies to increase exports

Option D: the rate at which exports are exchanged for imports

Correct Answer: the rate at which exports are exchanged for imports ✔

Option A: Diversification

Option B: horizontal integration

Option C: monopoly

Option D: vertical integration

Correct Answer: horizontal integration ✔

Option A: Government pensioners

Option B: Creditors

Option C: Savings Bank Account holders

Option D: Debtors

Correct Answer: Debtors ✔

Option A: Money lenders

Option B: Central Bank

Option C: Private entrepreneurs

Option D: Government policy

Correct Answer: Central Bank ✔

Option A: Inflation

Option B: Hyper-inflation

Option C: Deflation

Option D: Disinflation

Correct Answer: Hyper-inflation ✔

Option A: Fall in production

Option B: Increase in prices

Option C: Stagflation

Option D: None of these

Correct Answer: Increase in prices ✔

Option A: Embargoes

Option B: Foreign exchange controls

Option C: Quotas

Option D: Tariffs

Correct Answer: Tariffs ✔

Option A: after tax

Option B: allowing for change in prices.

Option C: Plus, benefits in kind

Option D: plus, overtime payments.

Correct Answer: allowing for change in prices. ✔

Option A: Certificate issued by a company promising the payment of a specified amount at a fixed rate of interest after a specified period

Option B: Certificate for the investment in shares

Option C: Certificate for the preference share

Option D: None of these

Correct Answer: Certificate issued by a company promising the payment of a specified amount at a fixed rate of interest after a specified period ✔

Option A: Rise in budget deficit

Option B: Rise in money supply

Option C: Rise in general price index

Option D: Reflection

Correct Answer: Rise in general price index ✔

Option A: New York stock exchange

Option B: Tokyo stock exchange

Option C: London stock exchange

Option D: None of them

Correct Answer: London stock exchange ✔

Option A: Active intervention

Option B: Sound commercial affairs

Option C: Interference by the state in law and order

Option D: None of these

Correct Answer: Interference by the state in law and order ✔

Option A: Drawback

Option B: Duty

Option C: Custom

Option D: Excise

Correct Answer: Duty ✔

Option A: To write off debt

Option B: To reschedule debt

Option C: To repay debt in easy installments

Option D: The complete repayment of debt

Correct Answer: The complete repayment of debt ✔

Option A: Internal laws

Option B: By laws

Option C: Character

Option D: Memorandum of articles

Correct Answer: By laws ✔

Option A: tax that government levy on imports

Option B: tax that government levy on exports

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: Dictatorship

Option B: Socialism

Option C: Capitalism

Option D: Authoritarianism

Correct Answer: Authoritarianism ✔

Option A: Sending of money to someone at distance

Option B: The sum of money sent

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: Domestication

Option B: Protectionism

Option C: Localization

Option D: National interest

Correct Answer: Protectionism ✔

Option A: Private sector

Option B: Government

Option C: Bank

Option D: None of the above

Correct Answer: Private sector ✔

Option A: Market Economy

Option B: Free Market

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: Payment made for the use of another person’s money

Option B: Payment made for the use of bank’s money

Option C: Share in profit

Option D: Devaluation in the Currency

Correct Answer: A. Payment made for the use of another person’s money ✔

Option A: Close-Trade zone

Option B: Free-trade zone

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: Gross Domestic Product (GOP)

Option B: Gross National output (GNO)

Option C: Gross National product (GNP)

Option D: Gross National Output

Correct Answer: Gross National product (GNP) ✔

Option A: Open trade

Option B: Free trade

Option C: Open sky trade

Option D: Easy trade

Correct Answer: Free trade ✔

Option A: Four Dragons

Option B: Little Tigers

Option C: Four Tigers

Option D: All of these

Correct Answer: Four Tigers ✔

Option A: Floor price

Option B: Fixed price

Option C: Bid Price

Option D: Basic Price

Correct Answer: Floor price ✔

Option A: A tax levied on certain articles produced and consumed in a country

Option B: A licensing charge or a fee levied for certain privileges

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: Embargo

Option B: Contraband

Option C: Ban

Option D: Restriction

Correct Answer: Embargo ✔

Option A: to make in a smaller size

Option B: to make in actual size

Option C: To make in half size

Option D: None of these

Correct Answer: to make in a smaller size ✔

Option A: Excise Tax

Option B: Property Tax

Option C: Zakat

Option D: General Sales Tax

Correct Answer: General Sales Tax ✔

Option A: Devolution

Option B: Devaluation

Option C: Price cap

Option D: Cut-rate

Correct Answer: Devaluation ✔

Option A: Interest payments on external debts

Option B: repayments of external debt

Option C: none of these

Option D: Both of them

Correct Answer: Both of them ✔

Option A: property right

Option B: Sole right

Option C: Copyright

Option D: rights

Correct Answer: property right ✔

Option A: cash goods

Option B: consumer items

Option C: consumer goods

Option D: cash items

Correct Answer: consumer goods ✔