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Focused topic practice

basic of economics MCQs

Practise focused basic of economics questions with marked answers for exam preparation and subject revision.

basic of economics Mcqs
1. Point out the use of the term price fixing ?
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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 ?
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A. Demand push

B. Demand supply

C. Demand pulls

D. Cost pull

3. What is Euro ?
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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 ?
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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 ?
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A. Ban

B. Embargo

C. Restriction

D. Contraband

6. Treasury bill is used for_________________?
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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 ?
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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 ?
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A. Large and creditworthy company

B. A multinational company

C. A conglomerate company

D. A consortium of companies

9. What is Dumping ?
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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 ?
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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 ?
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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__________________?
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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 ?
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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 ?
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A. Market share

B. Net share

C. Holding share

D. Lions share

15. Economic development ?
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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 ?
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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 ?
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A. solid asset

B. solid capital

C. Future asset

D. capital asset
18. Which of the following can be used for check inflation temporarily ?
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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 ?
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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 ?
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A. Term bound

B. Securities

C. Treasury bill

D. Bond