Economics MCQs

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 ✔

Option A: Relative Advantage

Option B: Complete Advantage

Option C: Comparative Edge

Option D: Comparative Advantage

Correct Answer: Comparative Advantage ✔

Option A: Business Crop

Option B: Cash crop

Option C: Money Crop

Option D: Earning Crop

Correct Answer: Cash crop ✔

Option A: Net assets

Option B: Assets

Option C: Holdings

Option D: Capital

Correct Answer: Capital ✔

Option A: free exchange of money

Option B: exchange of services

Option C: exchange of goods and services

Option D: None of them

Correct Answer: exchange of goods and services ✔

Option A: Malaysia

Option B: China

Option C: Russia

Option D: USA

Correct Answer: Malaysia ✔

Option A: Tin

Option B: Silver

Option C: Aluminum

Option D: Gold

Correct Answer: Silver ✔

Option A: Rubber

Option B: Manganese’s

Option C: Rice

Option D: Gold

Correct Answer: Rice ✔

Option A: Manganese

Option B: Rubber

Option C: Gold

Option D: Silver

Correct Answer: Manganese ✔

Option A: Iron Ore

Option B: Wheat

Option C: Both of these

Option D: None of these

Correct Answer: Both of these ✔

Option A: Mexico

Option B: USA

Option C: Brazil

Option D: Australia

Correct Answer: Brazil ✔

Option A: USA

Option B: Britain

Option C: France

Option D: Germany

Correct Answer: USA ✔

Option A: Value of all economic activity within nation’s border

Option B: Economic output of a country

Option C: Economic activity of federal government

Option D: None of these

Correct Answer: A. Value of all economic activity within nation’s border ✔

Option A: Charging an asset amount to expense of loss

Option B: To forget

Option C: To withdraw

Option D: None of these

Correct Answer: Charging an asset amount to expense of loss ✔

Option A: Wealth tax

Option B: Withholding tax

Option C: Income tax

Option D: None of these

Correct Answer: Withholding tax ✔

Option A: End benefit

Option B: Trickle down

Option C: Free market

Option D: Capitalism

Correct Answer: Trickle down ✔

Option A: A bond with a longer time to maturity

Option B: A certificate of deposit whose principal is payable at maturity

Option C: A certificate of deposit with a shorter time to maturity

Option D: certificate of deposit with a longer time to maturity

Correct Answer: A certificate of deposit whose principal is payable at maturity ✔

Option A: Baby company

Option B: Child company

Option C: Small holding

Option D: Subsidiary

Correct Answer: Child company ✔

Option A: Local currency

Option B: Cold currency

Option C: Lime currency

Option D: Soft currency

Correct Answer: Soft currency ✔

Option A: Reserve currency

Option B: Hot currency

Option C: Pegged currency

Option D: Hard currency

Correct Answer: Reserve currency ✔

Option A: Redemption

Option B: Guarantee

Option C: Repo

Option D: Repurchase arrangements

Correct Answer: Repo ✔

Option A: Liquidator

Option B: Solicitor

Option C: Receiver

Option D: Agent

Correct Answer: Receiver ✔

Option A: Solid asset

Option B: Unmovable property

Option C: Real estate

Option D: Property

Correct Answer: Real estate ✔

Option A: Mutual arrangement

Option B: Quid Pro quo

Option C: Bilateral arrangement

Option D: common interest

Correct Answer: Quid Pro quo ✔

Option A: Total amount of money being borrowed or lent

Option B: Party affected by agent decision in a principal agent relationship

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: Domestic risk

Option B: Political risk

Option C: National risk

Option D: Country risk

Correct Answer: Political risk ✔

Option A: Grey market

Option B: Over-the counter (OTC)

Option C: Open market

Option D: Back market

Correct Answer: Over-the counter (OTC) ✔

Option A: Oligopoly

Option B: Monopoly

Option C: Oligopsony

Option D: Grey market

Correct Answer: Oligopoly ✔

Option A: National Association of Securities Dealers Automatic Quotation system (Nasdaq)

Option B: New York Stock Exchange

Option C: Wall Street

Option D: Nikkei Stock Average

Correct Answer: National Association of Securities Dealers Automatic Quotation system (Nasdaq) ✔

Option A: Hard Leaf

Option B: Maple Leaf

Option C: Green Leaf

Option D: Gold Leaf

Correct Answer: Maple Leaf ✔

Option A: Liquid asset

Option B: Solid asset

Option C: Hard asset

Option D: None of these

Correct Answer: Liquid asset ✔

Option A: kickback

Option B: Commission

Option C: Bribe

Option D: Graft

Correct Answer: kickback ✔

Option A: Demand draft

Option B: Draft

Option C: Invoice

Option D: Bill of Intent

Correct Answer: Invoice ✔

Option A: Public Offering

Option B: First Public Offering

Option C: Initial Public Offering (IPO)

Option D: Going Public

Correct Answer: Public Offering ✔

Option A: Mother company

Option B: Father company

Option C: Holding company

Option D: joint company

Correct Answer: Holding company ✔

Option A: Common fund

Option B: Stock fund

Option C: Growth fund

Option D: Capital growth fund

Correct Answer: Growth fund ✔

Option A: Golden bonus

Option B: Golden shake hand

Option C: Friendly handshake

Option D: Golden handshake

Correct Answer: Golden handshake ✔

Option A: Infrastructure

Option B: Basic structure

Option C: Fundamentals

Option D: Basic infrastructure

Correct Answer: Infrastructure ✔

Option A: Fixed Direct Investment

Option B: Foreign Direct Investment (FDI)

Option C: Foreign Investment

Option D: Remote Foreign Investment

Correct Answer: Foreign Direct Investment (FDI) ✔

Option A: Pegged exchange rate

Option B: Floating exchange rate

Option C: Liberal exchanged rate

Option D: Open exchange rate

Correct Answer: Floating exchange rate ✔

Option A: Unmovable asset

Option B: Fixed property

Option C: Production line

Option D: Fixed asset

Correct Answer: Fixed asset ✔

Option A: Exchange Rate Mechanism (ERM)

Option B: Exchange Rate Equilibrium

Option C: Exchange Rate Balance

Option D: None of the above

Correct Answer: Exchange Rate Mechanism (ERM) ✔

Option A: Eurobank

Option B: Foreign bank

Option C: International Bank

Option D: Multinational Bank

Correct Answer: Foreign bank ✔

Option A: Charity funds

Option B: Attached funds

Option C: Endowment funds

Option D: Investment fund

Correct Answer: Endowment funds ✔

Option A: Production & Supply

Option B: Demand push Supply

Option C: Demand & Supply

Option D: Demand pull supply

Correct Answer: Demand & Supply ✔

Option A: Duty

Option B: Custom

Option C: Rebut

Option D: Drawback

Correct Answer: Drawback ✔

Option A: Lead to freer market

Option B: Lead to a more efficient marketplace

Option C: Both of them

Option D: None of them

Correct Answer: Both of them ✔

Option A: Demand curve theory

Option B: Cost-push inflation

Option C: Demand-pull inflation

Option D: Demand push inflation

Correct Answer: Demand-pull inflation ✔

Option A: Budget deficit

Option B: Deficient financing

Option C: Unbalanced spending

Option D: Deficit spending

Correct Answer: Deficit spending ✔

Option A: Debt retirement

Option B: Debt relief

Option C: Debt service

Option D: Payback

Correct Answer: Debt service ✔

Option A: Debt blast

Option B: Debt bomb

Option C: Bad debt

Option D: None of them

Correct Answer: Debt bomb ✔

Option A: Daisy chain

Option B: Illusion

Option C: False market

Option D: Manipulated market

Correct Answer: Manipulated market ✔

Option A: National economic risk

Option B: Country economic risk

Option C: Country finance risk

Option D: Foreign exchange risk

Correct Answer: Country finance risk ✔

Option A: Consortium

Option B: Pool

Option C: Incorporation

Option D: Conglomerate

Correct Answer: Consortium ✔