basic of economics MCQs – Page 17

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

basic of economics Mcqs
321. A stock that sells at a high price because of public confidence in its long record of steady earnings is called ?
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A. An extremely valuable asset or property

B. Blue chip

C. Blue Chipper

D. All of these
322. What is called the centers around the ability of a national economy to generate enough interests and principal on its foreign debt ?
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A. National economic risk

B. Foreign exchange risk

C. Country economic risk

D. Country finance risk
323. Goods and monies from which future income can be derived is called ?
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A. Capital

B. Holdings

C. Assets

D. Net assets

324. Name the political and economic system in which the government owns and controls the means of production to benefit all the people ?
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A. Authoritarianism

B. Capitalism

C. Communism

D. Socialism
325. Market value of all final goods and services produced in a country during a year is definition of ?
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A. NNP

B. Consumption

C. GNP

D. NI

326. From the sale of capital assets tax is levied on profits. What this tax is called ?
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A. Capital gains tax

B. Profit tax

C. Capital tax

D. Excise duty

327. Depression is a drastic decline in a national or international economy. Its characteristic is_____________?
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A. Falling prices

B. Unemployment

C. All of these

D. Decreasing business activity

328. Interest is______________?
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A. Share in profit

B. Devaluation in the Currency

C. Payment made for the use of another persons money

D. Payment made for the use of banks money

329. What does mean by Franchise__________________?
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A. All of the above

B. A privilege or right officially granted by a person or group by a government

C. Authorization granted to someone to sell or distribute a companys goods or service in certain area

D. Territory or limits within which immunity, privilege or right may be exercised

330. Name the methodology by which members of the EMS maintain their currency exchange rates within an agreed upon range with respect to other member countries ?
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A. None of the above

B. Exchange Rate Balance

C. Exchange Rate Equilibrium

D. Exchange Rate Mechanism (ERM)
331. Name a gold, silver, or platinum coin than usually traded at slightly more than its current bullion value ?
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A. Green Leaf

B. Gold Leaf

C. Hard Leaf

D. Maple Leaf
332. What is Remittance_______________?
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A. Sending of money to someone at distance

B. The sum of money sent

C. Both of them

D. None of them

333. Deregulation is the reduction of governments role in controlling markets. Which of the following is result(s) of deregulation ?
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A. Lead to freer market

B. Lead to a more efficient marketplace

C. Both of them

D. None of them

334. National income of a country is based on ?
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A. The taxes earned by the State

B. Personal incomes of all the citizens

C. Surplus of exports over imports

D. The sum of all factors of income
335. What is called a group of countries that have removed all tariffs, quotas, and export subsidies on trade among themselves ?
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A. Close-trade zone

B. Free trade zone

C. Both of them

D. None of them

336. Estimated value that is added to a product or material to each stage, of its manufacture or distribution, is known as ?
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A. Excise

B. Value added

C. Tax on stage

D. Value addition

337. Rate of growth of an economy is measured in terms of________________?
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A. National income

B. Industrial development

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

D. Per capita income

338. What is called the trade of goods or services without the exchange of money ?
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A. Barter

B. Liberal Exchange

C. Free exchange

D. Bilateral Trade

339. What is called a countrys total financial obligations to the rest of the world ?
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A. External debt

B. Debt burden

C. Total dept

D. National liabilities

340. Which of the following is referred by the phrase trade balance ?
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A. Income from imports

B. Income from export

C. Difference between imports and exports

D. All of them