basic of economics MCQs – Page 2

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

basic of economics Mcqs

21. Net investment is___________________?
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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 ?
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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 ?
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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 ?
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A. Collateral

B. Pledge

C. Assurance

D. Guaranty

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

B. Broker

C. Dealer

D. Agent

26. Monoculture is ?
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A. Homogeneous Nations

B. Homogeneous business

C. Homogeneous market

D. Farming practice of growing a single crop

27. Free port is ?
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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 ?
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A. Penalty

B. Demurrage

C. Fine

D. Charges

29. Interest that is calculated as a simple percentage of the original principal amount is called ?
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A. Market interest

B. Easy interest

C. Simple interest

D. Compound interest

30. Transfer payments means ?
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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 ?
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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 ?
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A. Golden shake hand

B. Golden bonus

C. Golden handshake

D. Friendly handshake

33. Mention the market for trading long-term debt instruments ?
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A. Stock market

B. Open market

C. Capital market

D. International market

34. Commercial policy means_______________?
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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 ?
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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 ?
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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 ?
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A. Idealism

B. Speculation

C. Risk covering

D. Blind game

38. A budgetary deficit means ?
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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 ?
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A. Gold

B. Coffee

C. Copper

D. Diamond

40. 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 January 1, 1999

C. Both of them

D. None of them

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