basic of economics Mcqs
1. Point out the use of the term price fixing ?
comments icon0

A. Unlawful agreement between manufacturers to set and maintain specified price on typically competing products

B. Artificial setting of price of commodity by government

C. Both of them

D. None of them

2. What is called increased demand for a limited supply of goods and service result of which is increase in consumer prices ?
comments icon0

A. Demand push

B. Demand supply

C. Demand pulls

D. Cost pull

3. What is Euro ?
comments icon0

A. Deposit outside ones home country but in the home country currency

B. European currency unit, introduced on Jan, 1 1999

C. Both of them

D. None of them

4. Which city in Germany has the distinction of housing the first car manufacturing plant in the world ?
comments icon0

A. Berlin

B. Frankfurt

C. Bonn

D. Stuttgart

5. How is termed the governments order to prevent the arrival or departure of merchant ships or to restrict import or export of specified or all goods with a foreign nation ?
comments icon0

A. Ban

B. Embargo

C. Restriction

D. Contraband

6. Treasury bill is used for_________________?
comments icon0

A. Getting long term loans

B. Treasury bill in not credit instrument

C. Treasury bill is a govt. tax bill

D. Getting short term loans
7. Which of the following is the Pakistans central bank ?
comments icon0
A. State Bank

B. National Bank

C. Both of them

D. None of them

8. Blue chip company is used in the context of general equities. What does it refer ?
comments icon0
A. Large and creditworthy company

B. A multinational company

C. A conglomerate company

D. A consortium of companies

9. What is Dumping ?
comments icon0
A. Scale of goods in large quantities and at low price

B. Scale of goods in large quantities with High price

C. sale of goods in large quantities with high quality

D. Scale of goods in large quantities with low quality

10. The standard of living in a country is represented by its ?
comments icon0

A. National income

B. None of these

C. Per capita income

D. Poverty ratio

11. Which is most likely to cause a more even distribution of income ?
comments icon0

A. An increase in managers salaries

B. An increase in indirect taxes

C. An increase in progressive taxation

D. An increase in the rate of inflation

12. Gross Domestic Product (GDP) is__________________?
comments icon0

A. Economic activities of federal government

B. Economics output of a country

C. Value of all economic activity with in a nations border

D. None of these

13. Bank issued a document that authorizes the bearer to receive money from one of its foreign branches or from another bank abroad. What such document is called ?
comments icon0

A. Letter of expression

B. Letter of intent

C. Demand draft

D. letter of Credit
14. Percentage of total industry sales that a particular company controls is called ?
comments icon0
A. Market share

B. Net share

C. Holding share

D. Lions share

15. Economic development ?
comments icon0

A. All of the above

B. Exists when there is equal distribution of income

C. Is the same as economic growth

D. Means improvement in lifestyle
16. Government granted monetary assistance to a person or a group in support of an enterprise regarded as being in public interest. This is called subsidy. Point out the statement which is also a subsidy ?
comments icon0

A. Financial assistance given to aged people

B. Financial assistance given to small companies

C. Financial assistance given by one person or government to another

D. Financial assistance given to poor people

17. A long-term asset, such as land or building is termed as ?
comments icon0

A. solid asset

B. solid capital

C. Future asset

D. capital asset
18. Which of the following can be used for check inflation temporarily ?
comments icon0

A. increase in wages

B. None of these

C. Decrease in money supply

D. Decrease in tax
19. What is called the rules of laws which governs the internal affairs of an organization ?
comments icon0

A. Internal Laws

B. Secondary Laws

C. Corporate Laws

D. By laws
20. Government borrows in the form of promissory note to repay the bearer after some fixed days from the date of issue. How is called such borrowing ?
comments icon0

A. Term bound

B. Securities

C. Treasury bill

D. Bond

21. Net investment is___________________?
comments icon0
A. Gross investment minus capital consumption allowance

B. Gross investment minus govt. Investment

C. Gross investment minus household investment

D. None of the above

22. Pick out the generic term for the securities industry firms that buy sell and underwrite securities ?
comments icon0
A. Wall street

B. Yahoo index

C. Nikkei index

D. NASDAQ

23. What is called the situation in which a debtor remains unable to pay his creditors in full ?
comments icon0
A. Bankruptcy

B. Crash

C. Default

D. Total loss

24. A borrower gives to creditor a security to grantee repayment of a loan. What is this security called ?
comments icon0
A. Collateral

B. Pledge

C. Assurance

D. Guaranty

25. The intermediary agent in the purchase and sale of any good is known as ?
comments icon0

A. Commission agent

B. Broker

C. Dealer

D. Agent

26. Monoculture is ?
comments icon0

A. Homogeneous Nations

B. Homogeneous business

C. Homogeneous market

D. Farming practice of growing a single crop
27. Free port is ?
comments icon0
A. Where no expert or import duties are levied

B. Where no import duties are levied

C. Where everything can be import or export

D. Where no export duties are levied

28. Which term is used for fine that is payable for failing to clear goods from a storehouse with in a specific period of time ?
comments icon0

A. Penalty

B. Demurrage

C. Fine

D. Charges

29. Interest that is calculated as a simple percentage of the original principal amount is called ?
comments icon0

A. Market interest

B. Easy interest

C. Simple interest

D. Compound interest

30. Transfer payments means ?
comments icon0

A. Bank loans

B. Payments made to all factors of production

C. The payment without work

D. Tax payments

31. Keynesian economics is an economic theory of British economist John Maynard. What this theory states ?
comments icon0
A. Active government intervention is necessary to ensure economic growth and stability

B. Government intervention is not necessary to ensure economic growth and stability

C. Regulation is necessary for economic growth and stability

D. A free market is necessary for economic growth and stability

32. Large payment to senior employee who is forced into retirement is called ?
comments icon0

A. Golden shake hand

B. Golden bonus

C. Golden handshake

D. Friendly handshake

33. Mention the market for trading long-term debt instruments ?
comments icon0

A. Stock market

B. Open market

C. Capital market

D. International market

34. Commercial policy means_______________?
comments icon0
A. Policy about imports and exports

B. Policy about money supply

C. Policy about markets

D. Policy of controlling of prices of goods

35. What is called interest that is paid previously earned interest as well as on the principal ?
comments icon0

A. Gross interest

B. Simple interest

C. Total interest

D. Compound interest

36. What is called amount of money to purchase the goods and services to maintain life ?
comments icon0

A. None of these

B. Cost living

C. Cost of life

D. Basic requirement
37. Which term is used for an engagement in risky business with the idea of making a large profit in short time ?
comments icon0

A. Idealism

B. Speculation

C. Risk covering

D. Blind game

38. A budgetary deficit means ?
comments icon0

A. Current expenditure is more than current revenue

B. Total expenditure is more than current revenue

C. Total expenditure is more than total revenue

D. Capital expenditure is more than capital revenue

39. South Africa is the chief exporter of ?
comments icon0
A. Gold

B. Coffee

C. Copper

D. Diamond

40. What is Euro ?
comments icon0

A. Deposit outside ones home country but in the home country currency

B. European currency unit, introduced on January 1, 1999

C. Both of them

D. None of them

41. Governments and corporations sell interest bearing certificates to raise money for expansion or trade. What is called these certificates ?
comments icon0

A. Certificates

B. Sureties

C. Bond

D. Security bonds

42. Name the system in which the means of production and distribution are privately or corporate owned and development is proportionate to the accumulation and reinvestment of profits which are gained in a free market ?
comments icon0

A. Liberalism

B. Free market economy

C. Capitalism

D. Socialism

43. Central bank of Pakistan is ________________?
comments icon0
A. State Bank

B. National Bank

C. Both of them

D. None of them

44. How is termed the group which consists of Singapore, Hong kong, Taiwan, and south Korea ?
comments icon0

A. All of these

B. Four Dragons

C. Four Tigers

D. Little Tigers

45. Term the minimum income level below which a person is considered to be living in poverty ?
comments icon0

A. Poverty level

B. Poverty line

C. Both of them

D. None of them

46. Amount of money needed to purchase the goods and services required to maintain a certain standard of living called ?
comments icon0
A. Cost of living

B. Cost of life

C. None of the above

D. Basic requirement

47. Who is a Lame Duck in a stock market ?
comments icon0

A. A new investor

B. A member of the stock exchange who cannot meet his obligations

C. A old investor

D. None of the above

48. Of which items chief exporter is Indonesia ?
comments icon0

A. Wheat

B. Gold

C. Sugar

D. Silver

49. When aggregate supply exceeds aggregate demand ?
comments icon0

A. Unemployment exists

B. Price of consumer goods rise

C. Business inventory accumulate

D. People save more than they intended to save

50. If saving exceeds investment the national income will ?
comments icon0

A. Fluctuate

B. Remain constant

C. Rise

D. Fall