basic of economics MCQs – Page 3

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

basic of economics Mcqs

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

B. Free market economy

C. Capitalism

D. Socialism

43. Central bank of Pakistan is ________________?
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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 ?
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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 ?
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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 ?
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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 ?
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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 ?
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A. Wheat

B. Gold

C. Sugar

D. Silver

49. When aggregate supply exceeds aggregate demand ?
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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 ?
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A. Fluctuate

B. Remain constant

C. Rise

D. Fall

51. The cause of inflation is ?
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A. Increase in money supply

B. Fall in production

C. Decrease in money supply and fall in production

D. Increase in money supply and fall in production

52. Depression is a drastic decline in a national of international economy Its characteristic is ?
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A. All of these

B. Decreasing business activity

C. Falling prices

D. Unemployment

53. Which function is performed by both commercial banks and central banks ?
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A. Acting as bankers to the government

B. Dealing in foreign exchange

C. Fixing the main interest rate

D. Advising the government on monetary policy

54. The bank established for loans to very small enterprises in Pakistan is called_______________?
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A. First MINI Bank

B. Micro Finance Bank

C. SME- Bank

D. Moderba Bank

55. Development means economics growth plus ?
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A. Deflation

B. Inflation

C. Social change

D. Price stability

56. Which money is called Hot money ?
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A. That moves across country borders in response to interest rate differences

B. That moves away when the interest rate differential

C. Both of them

D. None of them

57. What is called the stock that sells at a high price ?
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A. Blue Chipper

B. Blue chip

C. All of these

D. An extremely valuable asset or property

58. An organization plans the use of its fund during a 12-month period. What is this period called ?
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A. Fiscal period

B. Fiscal year (FY)

C. Calendar year

D. Year unit

59. What is called the market in which forces of demand and supply are not in the control of government ?
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A. Market Economy

B. Free Market

C. Both of them

D. None of them

60. What is called that debt obligation backed strictly by the borrowers integrity ?
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A. Credit rating

B. Securities

C. Debenture

D. None of them

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