basic of economics MCQs – Page 5

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

basic of economics Mcqs

81. GNP is_______________?
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A. Total monetary transactions in an economy

B. Total sales in the economy

C. The market value of all goods and services produced in an economy

D. Total spending in an economy

82. What is called an additional levy added to some charge ?
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A. Fine

B. Extra charges

C. Surcharge

D. Additional Charged

83. Velocity of circulation of money means ?
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A. The number of times a unit of money changes hands annually

B. The number of times as unit of money changes hands monthly

C. The number of times a unit of money changes value

D. The number of times a unit of money changes hands daily

84. Which of the following is regarded as a factor of production ?
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A. None of these

B. Profit

C. Interest

D. Capital

85. Which branch of accounting provides information to help the management of a firm evaluate production costs and efficiency ?
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A. Cost Accounting

B. Outcome risk

C. Efficient Account

D. Ultra-country economic risk

86. Reduction in the circulation of money resulting from fall of prices is known as ?
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A. cost

B. inflation

C. cost effective

D. deflation

87. Consumption spending does not include ?
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A. Households payment of rent for an apartment

B. Households purchases of food

C. Households purchase of a car

D. Households purchase of stock in any XYZ corporation

88. Theory of comparative advantages was presented by ?
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A. Barron

B. Hicks

C. Adam Smith

D. Ricardo

89. An exchange arrangement was formed in 1979 that governs the currencies of European union member countries. What this arrangement called ?
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A. Common Monetary System (CMS)

B. European Currency System (ECS)

C. European Monetary Fund (EMF)

D. European Monetary Mechanism (EMM)

90. What is called that market in which supply overwhelms demand ?
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A. Deflated market

B. Weak market

C. Bearish market

D. Depressed market

91. Term the average income of the people of a country during a year ?
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A. National income

B. Per capita Income

C. Domestic income

D. Protection Income

92. Which of the following is known as foreign exchange ?
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A. Transaction of International monetary business

B. Negotiable bills drawn in one country to be paid in another country

C. Both of them

D. None of them

93. Which company holds the world record for having the maximum number of shareholders ?
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A. State Bank

B. General Motors

C. Reliance Industries Ltd.

D. British Gas

94. Rules and Particles that govern the management of an organization are called ?
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A. Character

B. By laws

C. Internal laws

D. Memorandum of articles

95. What occurs when a firms business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ?
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A. Bankruptcy

B. Crash

C. Liquidation

D. Solvency

96. When a commercial bank creates credit its immediate effect is that it raises__________________?
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A. The interest rates

B. The exchange rates

C. The money supplies

D. The real national income

97. Term the shared of profits of a joint stock company ?
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A. Profit-share

B. Dividend

C. Share

D. Margin

98. What is called when a private company first offers shares to the public market and investors ?
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A. Coming public

B. going public

C. Public floating

D. Public offering

99. Which of the following is an example of government policy that could reduce inflation ?
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A. increasing import duties

B. increasing bank lending

C. None of these

D. reducing government expenditure

100. What term is given to unemployment caused by a downturn in the business cycle ?
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A. Cyclical unemployment

B. Disguised unemployment

C. Temporary unemployment

D. Underemployment

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