basic of economics Mcqs
201. What meant by excise ?
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A. A tax levied on certain articles produced and consumed in a country

B. A licensing charge or a fee levied for certain privileges

C. Both of these

D. None of the above

204. The Liquidity Trap condition occurs at a_______________?
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A. Very low rate of interest

B. Low rate of interest

C. High rate of interest

D. Very high rate of interest

205. Beyond any mortgage thereon and liability therein, the residual value of a business or property is called equity. Which of the following are also included by term equity ?
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A. The market value of securities less any debt incurred and common stock and preferred stock

B. Funds provided to a business by the sale of stock

C. Both of them

D. None of them

206. Deregulation is the reduction of governments role in ?
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A. Controlling Banks

B. None of them

C. Controlling cooperation

D. Controlling markets
207. What is underwriter ?
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A. All of them

B. To guarantee the purchase or to agree to buy the unsold part of stock at fixed time and price

C. To sign so as to assume liability in case of specified losses

D. To assume financial responsibility for grantee against failure

208. Which of the following is referred by the Debt retirement ?
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A. To write-off debt

B. To repay debt in easy installments

C. The complete repayment of debt

D. To reschedule debt

210. We measure national income by this method ?
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A. Product method

B. Income method

C. Expenditure method

D. All of the above
212. What is called the overall study of aspects and working of a national economy ?
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A. Gross economics

B. Macroeconomics

C. Mega economics

D. Micro economics

214. Who is called Father of Economics ?
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A. David smith

B. Adam Ricardo

C. Adam smith

D. David Ricardo

215. Malaysia is the chief exporter of ?
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A. Rubber

B. Tin

C. Diamond

D. Jute

216. Term the central market for buying and selling all kind of securities ?
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A. A multinational company

B. Joint stock

C. A big company

D. Stock Exchange
217. A detailed, itemized list, report or record or things in ones possession or the process of making such a list, or items listed in this list, or the stock, is called inventory. Which of the following is also inventory ?
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A. Total obligation of a firm

B. List of stock a company own

C. List of assets of a corporation

D. An evaluation or a survey, as of abilities or resources
220. Common market is an agreement between two or more countries. What this agreement permits ?
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A. Free movement of capital and labor

B. Free movement of goods and services

C. Both of them

D. None of them

226. Pakistans fiscal years starts from?
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A. 1st April

B. 1st July

C. 1st September

D. 1st January

227. What is Free port ?
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A. Where no import duties are levied

B. Where everything can be import or export

C. Where no export or import duties are levied

D. Where no export duties are levied

229. Capital Flight from a country is called ?
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A. removal of individual and corporate investment

B. All of these

C. removal of capital drain

D. removal of income

230. When the State Bank wants to decrease money supply in the country, it _______________?
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A. B and C of above

B. Lowers discount rate

C. Buys govt. securities in stock market

D. Sells govt. securities
231. What is called the acquisition abroad of physical assets with operating control that resides in parent corporation ?
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A. Foreign Direct Investment (FDI)

B. Foreign Investment

C. Fixed Direct Investment

D. Remote Foreign Investment

232. What is a Debenture ?
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A. Certificate for the investment in shares

B. Certificate for the preference share

C. None of these

D. Certificate issued by a company promising the payment of a specified amount at a fixed rate of interest after a specified period
234. Debenture holders of a company are its_______________?
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A. Directors

B. Creditors

C. Shareholders

D. Debtors

237. Which of the following would cause income to become more unequal ?
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A. Increased unemployment allowance

B. More progressive taxes

C. More regressive taxes

D. Increased employment

238. What is referred by the discount rate________________?
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A. Advance deduction of the interest in purchasing, selling or lending a commercial paper

B. State (central) Banks interest rate on loans to its member banks

C. Both of them

D. None of them

240. Term the rules and particles that govern the management of an organization ?
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A. By laws

B. Character

C. Memorandum of articles

D. Internal laws

241. What is artificial currency ?
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A. De-valued currency

B. A currency substitutes

C. Coins

D. Silver

242. The system under which a countrys currency is exchangeable for a fixed weight of gold on demand at central bank is called ?
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A. God standard system

B. Gold based system

C. None of the above

D. Bullion standard system

243. What is called the amount of non-military foreign aid which a country received ?
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A. Friendly aid

B. Grands

C. Official Development Assistance (ODA)

D. Foreign aid

244. To what does the phrase terms of trade refer ?
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A. the currency exchange rate

B. the rate at which exports are exchanged for imports

C. The governments policies to increase exports

D. the difference between the value of visible exports and visible imports

245. LIFO (last in, first out) means ?
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A. to make queue

B. turn by turn

C. make space for new production

D. items are removed in inverse order
246. Which economics term describes the takeover of one textile manufactures by another ?
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A. vertical integration

B. Diversification

C. horizontal integration

D. monopoly

249. What is called a Tax on imports, exports ?
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A. Excise

B. Drawback

C. Duty

D. Custom

250. Which kind of Tax is Federal subject ?
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A. Excise Tax

B. General Sales Tax

C. Zakat

D. Property Tax