basic of economics MCQs – Page 6

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

basic of economics Mcqs

101. National Income is essentially composed of ?
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A. Income derived from taxes by the central government

B. All income of the people on a year

C. All wealth of a nation

D. Annual Income of the central government

102. Which of the following is a form of international reserve assets, created by IMF in 1967 whose value is based on a portfolio of widely used currencies ?
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A. IMF Drawing Rights (SDR)

B. Sure, Drawing Rights (SDR)

C. International Drawing Right (IDR)

D. Special Drawing Right (SDR)

103. If GNP of Pakistan rises. it will encourage ?
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A. None

B. Imports

C. Exports

D. Both

104. Devaluation means ?
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A. Converting rupee into gold

B. Lowering of the value of one currency in comparison of some foreign currency

C. Making rupee dearer in comparison to some foreign currency

D. None of these

105. Which of the following must always balance ?
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A. Balance of invisible trade

B. Balance on the current account

C. Balance of visible trade

D. Balance of payments

106. When the stock market is rising it is ?
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A. Hottest

B. Bullish

C. Bearish

D. Rising up

107. India is the chief exporter of ?
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A. Mica

B. Gold

C. Silver

D. Rubber

108. With whom would you associate the following quote The business of business is business ?
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A. Alfred Marshal

B. Karl Marx

C. Adam smith

D. Milton Friedman

109. How I measured the change in the cost of basic goods and services in comparison with a fixed base period ?
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A. Human Development Index (HDI)

B. Comparative Price Index (CPI)

C. Complete Price Index (CPI)

D. Consumer Price Index (CPI)

110. Estimated income and plane for expenditure is called Budget. What is Budget deficit ?
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A. Less Public spending than amount of revenue corporation

B. None of them

C. More public spending than amount of revenue

D. Balance between public spending and amount of revenue

111. What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?
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A. Goodwill

B. Bonus

C. Up level

D. Upgradation

112. What does mean by Emerging Markets ?
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A. Financial markets of Asian economies

B. Financial markets of East Europes economies

C. Financial markets of developing economies

D. Financial markets of Latin America

113. Failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bound indenture is called ?
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A. Rolling debt

B. Default

C. Rescheduling

D. Bad debt

114. Term a countrys decision to tie the value of its currency to another countrys currency gold or a basket of currencies ?
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A. Relative exchange rate

B. Pagged exchanged rate

C. Knotted exchange rate

D. Fixed exchange rate

115. Which term is used for a countrys holdings of intentionally acceptable means of payment ?
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A. Holdings

B. Foreign currency

C. Treasure

D. Reserves

116. USA is the chief exporter of ?
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A. Coal

B. All of these

C. Copper

D. Cotton

117. Which of the following is a valid currency______________?
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A. Promissory note

B. Currency note

C. Exchange rate

D. Bank cheque

118. What is called the crop which is grown for sale rather than the farmers own use ?
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A. Money Crop

B. Business Crop

C. Cash crop

D. Earning Crop

119. What is referred by the hard currency ?
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A. Any currency backed by gold or silver bullion rather than credit

B. Stable currency value of which does not fluctuate greatly

C. Both of them

D. None of them

120. What is the meaning of the term stagflation ?
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A. None of these

B. Fall in employment due to declining production

C. Fall in prices due to less circulation of currency

D. High inflation rate combined with high unemployment and unchanged consume demand

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