basic of economics Mcqs
351. A number of relating prices of a group of commodities to their prices during an arbitrarily chosen based period is called ?
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A. Price choosing

B. Price index

C. Price indexing

D. Price fixing

352. Central banks rate of lending to commercial banks is called ?
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A. Money rate

B. Control rate

C. Discount rate

D. Interest rate

353. What is called when government spending overwhelms government revenue resulting in government borrowing ?
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A. Deficient financing

B. Budget deficit

C. Unbalanced spending

D. Deficit spending
354. Name the price at which the issuer of a bond may retire part of the pond at a specified call date ?
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A. Call price

B. Term Price

C. Bid price

D. Future Price

355. Indemnity is_______________?
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A. All of these

B. A legal exemption from liability for damages

C. Security against damages loss, or injury

D. Compensation for damages loss, or injury suffered

356. Which of the following is not required while computing Gross National Product (GNP) ?
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A. Private investment

B. None of the above

C. Net foreign investment

D. Per capita income of citizens
357. Find out the term for the purpose that a buyer must pay for the goods at the time of its delivery ?
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A. Cash on Delivery

B. Barter

C. payment on Delivery

D. Gives in take

358. What is called the minimum price of a commodity that is fixed by government in order to save the interests of producer of raw materials ?
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A. Fixed price

B. Bid price

C. Floor price

D. Basic price

359. How is termed the ability to buy ?
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A. Purchasing power parities (PPP)

B. Gross purchasing power

C. Income level

D. Purchasing power

360. What is called the manipulation of the market by traders to create the illusion of active volume to attract investors ?
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A. Manipulated market

B. False market

C. Illusion

D. Daisy chain

361. Which country is the chief exporter of Tin ?
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A. Russia

B. China

C. USA

D. Malaysia
362. Which term is used for the value imprinted on a security ?
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A. Par value

B. Net value

C. Real value

D. Gross value

363. Which is the oldest stock exchange of the world ?
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A. London stock exchange

B. Tokyo stock exchange

C. New York stock exchange

D. None of them

364. What is called bankruptcy practitioner appointed by secured creditors to oversee the repayment of debts?
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A. Liquidator

B. Receiver

C. Solicitor

D. Agent

365. The term Dumping means ?
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A. The sale of the sub-standard commodity

B. Smuggling of goods without paying any customs duty

C. Sale in a foreign market of a commodity at a price below marginal cost

D. Sale in a foreign market of a commodity just at marginal cost without too much of profit

366. Investment funds are established for the supports of institutions such as hospitals investment is called ?
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A. Attached funds

B. Endowment funds

C. Charity funds

D. Investment fund

367. To determine the correct level of GNP, it is necessary to ?
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A. Add up all savings

B. To add up the values of goods and services for one year

C. To count all imports

D. To add up the value of semi-finished goods

368. What is defined as the active management of resources to provide the greatest present benefit without comprising the potential benefits to future generations ?
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A. Managed economy

B. None of these

C. Prudent development

D. Sustainable development
369. Different workers or group of workers separate the production works and trade into__________processes. What this separation is called?
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A. Closed shop

B. Divided Labor

C. Open shop

D. Division of Labor
370. Mention the name for that urban and rural region which is closely associated economically with an adjoining town or city. Term is also used to describe the area that is serviced by a port or coastal settlement ?
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A. Parasite land

B. Hinterland

C. Dependent land

D. Country land

371. The term technology refers to______________?
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A. Science based know low

B. Application of science to achieve a commercial or industrial objective

C. Application of modern science in the country

D. All of these

372. What is Tariff ?
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A. tax that government levy on imports

B. tax that government levy on exports

C. Both of them

D. None of them

373. Mention the name for economic theory that the support of business that allows them to flourish will eventually benefit middle- and lower-income people in the form of increased economic activity and reduced unemployment?
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A. Trickle down

B. End benefit

C. Free market

D. Capitalism

374. How is termed the balance of investment and return; in which investment and return are exactly equal ?
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A. Break even

B. Breakeven point

C. Both of them

D. None of them

375. What is referred a group of companies that cooperate and share resources in order to achieve a common objective ?
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A. Incorporation

B. Pool

C. Consortium

D. Conglomerate

376. What do you understand by Laissez faire ?
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A. Active intervention

B. Interference by the state in law and order

C. Sound commercial affairs

D. None of these

377. Economic system in which the government owns and controls the means of production to benefit all the people is called ?
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A. Dictatorship

B. Capitalism

C. Socialism

D. Authoritarianism
378. Which term is used for a bank account which can be operated at will ?
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A. Current account

B. Fixed account

C. Fluctuated account

D. Saving Account

379. Term the covering of a short position by purchasing a long contract, usually resulting from the short of a commodity ?
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A. None of them

B. Drawback

C. Short-positioning

D. Buyback
380. Term the body of goods and monies from which future income can be derived ?
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A. Capital

B. Net assets

C. Solid asset

D. Holdings

381. What is called the trade without restriction of tariffs, quotas, or foreign exchange controls ?
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A. Easy trade

B. Free trade

C. Open sky trade

D. Open trade

382. When stock market is falling it is_______________?
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A. Bullish

B. Fall down

C. Bearish

D. Crash

383. There is method by which one currency is bought, sold or valued in terms of other currencies, gold or accounting units such as the Special Drawing Right of IMF. What is it called ?
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A. Exchange rate

B. Currency exchange

C. Currency value

D. Currency value

384. An essential attribute of inflation is ?
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A. Increase in prices

B. Fall in production

C. Stagflation

D. None of these

385. Which of the following are bonds that are not registered on the books of the issuer ?
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A. Open bond

B. Bearer bond

C. Term bond

D. Blank bond

386. Trade between two countries can be useful if cost ratios of goods are ?
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A. Equal

B. Decreasing

C. Undetermined

D. Different
387. Market in which forces of demand and supply are not in the control of government is called ?
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A. Market Economy

B. Free Market

C. Both of them

D. None of them

388. The govt. can control inflation by______________?
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A. Decreasing taxes

B. Increasing money supply

C. Increasing demand for goods

D. Increasing supply of goods
389. Downsizing is ?
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A. To make in half size

B. None of these

C. to make in a smaller size

D. to make in actual size

390. In the context of contracts, what refers to secret payments made to ensure that the contract goes to a specific firm ?
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A. Commission

B. Graft

C. Bribe

D. kickback
391. The mark is imposed on goods or wrappers to show that the articles bearing this mark belong to a particular trader. What is this mark called ?
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A. Identification mark

B. Patent mark

C. Insignia

D. Trade Mark
392. A companys first sale of stock to the public is called ?
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A. Going Public

B. Initial Public Offering (IPO)

C. First Public Offering

D. Public Offering

393. The smallest unit of ownership of a company is______________?
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A. Capital

B. A share

C. A debenture

D. Invest

394. What is meant by capital stock ___________?
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A. Authorized amount of stock for issue by corporation

B. The total stated or par value of the permanently invested capital of corporation

C. Both of them

D. None of them

395. Restriction on import or export of specified or all goods with a foreign nation by the Government is called ?
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A. Restriction

B. Embargo

C. Contraband

D. Ban

396. What can a government do to increase demand in its economy ?
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A. Reduce its expenditure

B. Budget for a surplus

C. Cut taxes

D. Encourage savings

397. Point out the term for producer goods such as machinery that is used in production of commodities ?
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A. Capital goods

B. Capital assets

C. Running capital

D. Hard capital

398. A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as ?
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A. Disinflation

B. Hyper-inflation

C. Inflation

D. Deflation

399. National income refers to ?
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A. Money value of capital goods produced by a country during a year.

B. None of these

C. Money value of stocks and shares of a country during a year.

D. Money value of goods and and services produced in a country during a year.
400. Fiscal deficit in the budget means ?
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A. Primary deficit minus capital deficit

B. Budgetary deficits plus the net borrowings of the government

C. Capital deficit plus revenue deficit

D. Revenue deficit plus the net borrowings of the government