basic of economics Mcqs
251. The term real wage means the money wage ?
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A. allowing for change in prices.

B. plus, overtime payments.

C. after tax

D. Plus, benefits in kind

252. The branch of economics Microeconomics deals with______________?
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A. small units, including individual companies and small group of consumers

B. Economics of stock market

C. Economics of provinces

D. Economics of homes

253. A payment is made in return for some transference of privilege. What this payment is called ?
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A. Rent

B. Share

C. Intellectual royalty

D. Royalty
254. Which of the following would increase national income ?
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A. Increase in savings

B. Increase in taxation

C. Increase in govt. spending

D. Decrease in consumption spending

255. Name the company in which the liability of the shareholders is limited to the amount of their shares ?
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A. Limited company

B. Cooperative

C. Corporation

D. Incorporation

256. Shareholders of a corporation elect individuals to carry out certain tasks that are establishment in the charter. What these individuals are called ?
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A. Top brass

B. Board of Governor

C. Board of Directors

D. Management

257. How is termed the legal proceeding in which debtor remains unable to pay his creditors in full ?
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A. Total loss

B. Bankruptcy

C. Crash

D. Default

258. What is called degree of buyers responsiveness to price changes ?
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A. Production & Supply

B. Demand & Supply

C. Demand push Supply

D. Demand pull supply

259. Mention an electronic quotation system in USA that provides price quotations to market participants about more actively traded common stock issues in OTC market ?
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A. Wall Street

B. National Association of Securities Dealers Automatic Quotation system (Nasdaq)

C. New York Stock Exchange

D. Nikkei Stock Average

260. When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics?
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A. Supply and Demand theory

B. Fundamental theory

C. Ricardos theory

D. Cost push theory

261. Which economics doctrine opposes government regulation or interference in commerce beyond the minimum necessary for a free enterprise system to operate according to its own economics laws and non-interference in affairs of others ?
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A. Free market economy

B. Liberal market economy

C. Open market economy

D. Laissez faire also Laisser faire
262. Mention the theory of inflation or price increase that results from so-called excess demand ?
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A. Demand curve theory

B. Demand push inflation

C. Demand-pull inflation

D. Cost-push inflation

263. Barter is the trade of goods or services with ?
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A. exchange of services

B. free exchange of money

C. exchange of goods and services

D. None of them

264. Account is format banking, brokerage or business relationship established to provide for regular services. dealings and other financial transactions. Which of the following phenomenon(s) are also referred by term, Account ?
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A. A precise list or enumeration of financial transactions

B. Money deposited for checking savings or breakage use

C. A customer having business or credit relationship with a firm

D. All of these
265. Term the exclusive right of one or more persons to carry on some branch of trade of manufacture It is a sole power of dealing in something ?
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A. Encroachment

B. Monopoly

C. Unipolarity

D. Monotony

266. China is the chief exporter of_______________?
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A. Rice

B. Rubber

C. Gold

D. Manganeses

267. Which of the following is not an instrument of monetary policy ?
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A. Open-market operations

B. Bank rate

C. Taxation

D. Credit rationing

268. What is called the sequence of economic activity which is typically characterized by recession, fiscal recovery, growth and fiscal decline ?
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A. Economic Cycle

B. Business Cycle

C. Cycle Business

D. Complete Cycle

269. Of which minerals chief exporter is Mexico ?
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A. Tin

B. Gold

C. Silver

D. Aluminum

270. The French term Bourse refers to_________________?
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A. A big company

B. Stock market

C. A multinational company

D. Joint-stock

271. There is an arrangement which allows a firm to use research from another firm at no cost in exchange for executing all of its trades with the firm that provides the research. What this arrangement is called?
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A. Bilateral arrangement

B. common interest

C. Mutual arrangement

D. Quid Pro quo
272. What are called goods that satisfy human wants through their direct use ?
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A. cash goods

B. cash items

C. consumer goods

D. consumer items

273. What is called the price that a potential buyer is willing to pay for a security ?
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A. Bid

B. None of these

C. Quote price

D. Offer price

274. What is called the difference in the money value between exports and imports during the specific period of time ?
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A. Balance of payment

B. Balance of trade

C. Terms of trade

D. Balance sheet

275. Which of the following is Price of the last transaction of a particular stock completed during a days trading session on an exchange ?
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A. Night Price

B. Closing Price

C. Final price

D. End price

276. A seller of goods or services writes a bill that is submitted to a purchaser for payment. What this bill is called?
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A. Demand draft

B. Bill of Intent

C. Invoice

D. Draft

277. What is more likely to be found in a free market economy than in a planned economy ?
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A. full employment of labor

B. an incentive to innovate

C. a wide range of public goods

D. an even distribution of income

278. The exchange rate is the ratio at which the currency of one country is exchanged for the currency of another. Which method was developed by the World bank to exchange rates ?
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A. Atlas method of exchange rate

B. Open market exchange rate

C. Free market exchange rate

D. Breton Wood method

279. A firm owns long-lived property that is used by a firm in the Production of its income. What this property is called ?
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A. Fixed property

B. Unmovable asset

C. Fixed asset

D. Production line

280. Which of the following is indicated by the term unemployed ?
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A. Inadequately employed

B. Employed only part time when one needs full time employment

C. Note fully used or employed

D. All of them
281. What is Debt Service ?
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A. Interest payments on external debts

B. repayments of external debt

C. none of these

D. Both of them
282. Which of the following is referred by principle ?
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A. Total amount of money being borrowed or lent

B. Party affected by agent decision in a principal agent relationship

C. Both of them

D. None of them

283. By the way of an underwriter, the sale of a new security is issued to the public a transaction that must be registered with the securities and exchange commission. How is know this process ?
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A. Registering

B. Going public

C. Public offering

D. Debuting

284. Possibility of negative events or changes in the business climate of country is called?
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A. National risk

B. Country risk

C. Domestic risk

D. Political risk
285. Hard currency is defined as ?
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A. Currency Which is used in times of war

B. Currency traded in foreign exchange market for which demand is persistently relative to the supply

C. None of these

D. Currency which loses its value very fast

286. Termed the written statement which expresses the intention of undersigned to enter into a formal agreement ?
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A. Papers of Landing

B. Letter of Credit

C. Letter of intent

D. Letter of Expression

287. When banks prepare their balance sheets. They show the money lent in ?
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A. Liability

B. Assets

C. Both assets and liabilities

D. None

288. The sum of total income received for the services of labor, land or capital in a country is called?
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A. National income

B. Gross domestic income

C. Gross national income

D. Gross domestic product

289. What could a government do to correct the current account deficit ?
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A. Reduce the volume of exports

B. Reduce the repayment of loans

C. Reduce the deficit on the balance of trade

D. Reduce the surplus on the capital account

290. Minimum price of a commodity fixed by government to save the interest of producer of raw materials is called ?
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A. Floor price

B. Bid Price

C. Fixed price

D. Basic Price

291. What is called interest payments plus repayments of principal to creditors ?
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A. Debt relief

B. Debt service

C. Payback

D. Debt retirement

292. Name a default on debt and obligations by a major financial institution that disrupts the stability of the economic system ?
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A. Debt blast

B. Bad debt

C. Debt bomb

D. None of them

293. Which money is called Earnest Money ?
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A. A promise or assurance

B. Advanced payment to bind a contract or bargain

C. All of these

D. A token of something to come

294. What is Debt retirement______________?
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A. To repay debt in easy installments

B. To reschedule debt

C. The complete repayment of debt

D. To write off debt

295. Term bond are bonds whose principle is payable at maturity. What does mean by Term certificate?
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A. A certificate of deposit whose principal is payable at maturity

B. A certificate of deposit with a shorter time to maturity

C. certificate of deposit with a longer time to maturity

D. A bond with a longer time to maturity

296. Name a corporation that owns enough voting stock in another firm to control management and operations by influencing of electing its board of directors ?
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A. joint company

B. Holding company

C. Father company

D. Mother company

297. What is write-Off?
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A. Charging an asset amount to expense of loss

B. None of these

C. To forget

D. To withdraw

298. Which is the best measure of economic growth of a country ?
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A. Net revenue

B. GDP

C. None of the above

D. GNP
299. Mention a mutual fund that is invested primarily in stocks with a history of and future potential for capital gains ?
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A. Growth fund

B. Capital growth fund

C. Stock fund

D. Common fund

300. The term Cartel refers to ?
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A. An official agreement between governments at war, especially for exchange of prisoners

B. All of the above

C. Unity of parties, factions or nations in a common cause

D. A combination of firms for business purposes