basic of economics MCQs – Page 20

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

basic of economics Mcqs
381. What is called the trade without restriction of tariffs, quotas, or foreign exchange controls ?
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A. Easy trade

B. Free trade

C. Open sky trade

D. Open trade

382. When stock market is falling it is_______________?
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A. Bullish

B. Fall down

C. Bearish

D. Crash

383. There is method by which one currency is bought, sold or valued in terms of other currencies, gold or accounting units such as the Special Drawing Right of IMF. What is it called ?
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A. Exchange rate

B. Currency exchange

C. Currency value

D. Currency value

384. An essential attribute of inflation is ?
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A. Increase in prices

B. Fall in production

C. Stagflation

D. None of these

385. Which of the following are bonds that are not registered on the books of the issuer ?
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A. Open bond

B. Bearer bond

C. Term bond

D. Blank bond

386. Trade between two countries can be useful if cost ratios of goods are ?
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A. Equal

B. Decreasing

C. Undetermined

D. Different
387. Market in which forces of demand and supply are not in the control of government is called ?
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A. Market Economy

B. Free Market

C. Both of them

D. None of them

388. The govt. can control inflation by______________?
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A. Decreasing taxes

B. Increasing money supply

C. Increasing demand for goods

D. Increasing supply of goods
389. Downsizing is ?
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A. To make in half size

B. None of these

C. to make in a smaller size

D. to make in actual size

390. In the context of contracts, what refers to secret payments made to ensure that the contract goes to a specific firm ?
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A. Commission

B. Graft

C. Bribe

D. kickback
391. The mark is imposed on goods or wrappers to show that the articles bearing this mark belong to a particular trader. What is this mark called ?
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A. Identification mark

B. Patent mark

C. Insignia

D. Trade Mark
392. A companys first sale of stock to the public is called ?
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A. Going Public

B. Initial Public Offering (IPO)

C. First Public Offering

D. Public Offering

393. The smallest unit of ownership of a company is______________?
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A. Capital

B. A share

C. A debenture

D. Invest

394. What is meant by capital stock ___________?
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A. Authorized amount of stock for issue by corporation

B. The total stated or par value of the permanently invested capital of corporation

C. Both of them

D. None of them

395. Restriction on import or export of specified or all goods with a foreign nation by the Government is called ?
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A. Restriction

B. Embargo

C. Contraband

D. Ban

396. What can a government do to increase demand in its economy ?
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A. Reduce its expenditure

B. Budget for a surplus

C. Cut taxes

D. Encourage savings

397. Point out the term for producer goods such as machinery that is used in production of commodities ?
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A. Capital goods

B. Capital assets

C. Running capital

D. Hard capital

398. A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as ?
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A. Disinflation

B. Hyper-inflation

C. Inflation

D. Deflation

399. National income refers to ?
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A. Money value of capital goods produced by a country during a year.

B. None of these

C. Money value of stocks and shares of a country during a year.

D. Money value of goods and and services produced in a country during a year.
400. Fiscal deficit in the budget means ?
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A. Primary deficit minus capital deficit

B. Budgetary deficits plus the net borrowings of the government

C. Capital deficit plus revenue deficit

D. Revenue deficit plus the net borrowings of the government