MCQOPTIONS
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MCQOPTIONS
This section includes 431 Mcqs, each offering curated multiple-choice questions to sharpen your Economics Mcqs knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
What is referred by the discount rate________________? |
| A. | Advance deduction of the interest in purchasing, selling or lending a commercial paper |
| B. | State (central) Bank’s interest rate on loans to its member banks |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 52. |
Term the enterprise or organization which is managed by those who use its facilities or services ? |
| A. | Limited company |
| B. | Society |
| C. | Corporation |
| D. | Cooperative |
| Answer» E. | |
| 53. |
Goods that satisfy human wants though their direct use or consumption are called______________? |
| A. | cash goods |
| B. | consumer items |
| C. | consumer goods |
| D. | cash items |
| Answer» D. cash items | |
| 54. |
A country can still gain from trading certain goods even though its trading partners can produce those goods more cheaply. How is known this principle ? |
| A. | Relative Advantage |
| B. | Complete Advantage |
| C. | Comparative Edge |
| D. | Comparative Advantage |
| Answer» E. | |
| 55. |
What is called a place of work where all workers within a section must belong to a single official recognized trade union ? |
| A. | Monopolized shop |
| B. | Monopolized area |
| C. | Closed shop |
| D. | Monopolized market |
| Answer» D. Monopolized market | |
| 56. |
The term Cartel refers to ? |
| A. | A combination of firms for business purposes |
| B. | An official agreement between governments at war, especially for exchange of prisoners |
| C. | Unity of parties, factions or nations in a common cause |
| D. | All of the above |
| Answer» E. | |
| 57. |
Find out the term for the purpose that a buyer must pay for the goods at the time of its delivery ? |
| A. | Barter |
| B. | payment on Delivery |
| C. | Gives in take |
| D. | Cash on Delivery |
| Answer» E. | |
| 58. |
Term the body of goods and monies from which future income can be derived ? |
| A. | Net assets |
| B. | Solid asset |
| C. | Holdings |
| D. | Capital |
| Answer» E. | |
| 59. |
Point out the term for producer goods such as machinery that is used in production of commodities ? |
| A. | Capital assets |
| B. | Running capital |
| C. | Capital goods |
| D. | Hard capital |
| Answer» D. Hard capital | |
| 60. |
What is meant by capital stock ___________? |
| 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 |
| Answer» D. None of them | |
| 61. |
Which term is used for an addition to normal payment by a company or extra payment of gratuity to workers ? |
| A. | Bonus |
| B. | Overtime |
| C. | Prize |
| D. | Gift |
| Answer» B. Overtime | |
| 62. |
How is termed the balance of investment and return; in which investment and return are exactly equal ? |
| A. | Break even |
| B. | Breakeven point |
| C. | Both of them |
| D. | None of them |
| Answer» D. None of them | |
| 63. |
What is called the sequence of economic activity which is typically characterized by recession, fiscal recovery, growth and fiscal decline ? |
| A. | Economic Cycle |
| B. | Business Cycle |
| C. | Complete Cycle |
| D. | Cycle Business |
| Answer» C. Complete Cycle | |
| 64. |
Who is a “Lame Duck” in a stock market ? |
| A. | A new investor |
| B. | A old investor |
| C. | A member of the stock exchange who cannot meet his obligations |
| D. | None of the above |
| Answer» D. None of the above | |
| 65. |
Devaluation of currency helps to promote ? |
| A. | National income |
| B. | Saving |
| C. | Imports at lower cost |
| D. | Exports |
| Answer» E. | |
| 66. |
If saving exceeds investment the national income will ? |
| A. | Fall |
| B. | Rise |
| C. | Fluctuate |
| D. | Remain constant |
| Answer» E. | |
| 67. |
Which function is performed by both commercial banks and central banks ? |
| A. | Acting as bankers to the government |
| B. | Advising the government on monetary policy |
| C. | Dealing in foreign exchange |
| D. | Fixing the main interest rate |
| Answer» D. Fixing the main interest rate | |
| 68. |
The most industrialized country in Asia is ? |
| A. | Japan |
| B. | South Korea |
| C. | Taiwan |
| D. | Malaysia |
| Answer» B. South Korea | |
| 69. |
What is Black Money ? |
| A. | Income on which payment of tax is usually evaded |
| B. | Illegally earned money |
| C. | Money earned through underhand deals |
| D. | None of these |
| Answer» B. Illegally earned money | |
| 70. |
What can a central bank increase in order to reduce consumer borrowing ? |
| A. | commercial bank deposits |
| B. | government bank deposits |
| C. | government spending |
| D. | interest rates |
| E. | None of these |
| Answer» E. None of these | |
| 71. |
Consumption spending does not include ? |
| A. | Household’s purchases of food |
| B. | Households’ purchase of a car |
| C. | Household’s payment of rent for an apartment |
| D. | Household’s purchase of stock in any XYZ corporation |
| Answer» E. | |
| 72. |
We measure national income by this method ? |
| A. | Expenditure method |
| B. | Income method |
| C. | Product method |
| D. | All of the above |
| Answer» E. | |
| 73. |
Net investment is___________________? |
| A. | Gross investment minus household investment |
| B. | Gross investment minus govt. Investment |
| C. | Gross investment minus capital consumption allowance |
| D. | None of the above |
| Answer» D. None of the above | |
| 74. |
What would reduce the role of central planning in a economy ? |
| A. | Increasing government spending |
| B. | Increasing public ownership of firms |
| C. | Increasing the role of markets |
| D. | Removing the profit motive |
| Answer» D. Removing the profit motive | |
| 75. |
What does price elasticity of demand measure ? |
| A. | Changes in price caused by changes in demand |
| B. | The rate of change of sales |
| C. | The responsiveness of demand to price changes |
| D. | The value of sales at a given price |
| Answer» D. The value of sales at a given price | |
| 76. |
Devaluation means ? |
| 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 |
| Answer» C. Making rupee dearer in comparison to some foreign currency | |
| 77. |
Transfer payments means ? |
| A. | Bank loans |
| B. | The payment without work |
| C. | Tax payments |
| D. | Payments made to all factors of production |
| Answer» C. Tax payments | |
| 78. |
A tax which is paid by the person on whom the tax is incident is called a ? |
| A. | Local tax |
| B. | Indirect tax |
| C. | Direct tax |
| D. | Rate |
| Answer» D. Rate | |
| 79. |
What would cause a country’s exchange rate to fall ? |
| A. | An increases demand for its exports |
| B. | Increased demand for its imports |
| C. | An increased inflow of capital |
| D. | None of the above |
| Answer» C. An increased inflow of capital | |
| 80. |
When the stock market is rising it is ? |
| A. | Bearish |
| B. | Bullish |
| C. | Hottest |
| D. | Rising up |
| Answer» C. Hottest | |
| 81. |
The standard of living in a country is represented by its ? |
| A. | National income |
| B. | Per capita income |
| C. | Poverty ratio |
| D. | None of these |
| Answer» C. Poverty ratio | |
| 82. |
According to the law of demand. When ? |
| A. | Price increase demand decreases |
| B. | Price decreases demand decreases |
| C. | Price increased demand increases |
| D. | None of these |
| Answer» B. Price decreases demand decreases | |
| 83. |
The bank established for loans to very small enterprises in Pakistan is called_______________? |
| A. | Micro Finance Bank |
| B. | Moderba Bank |
| C. | SME- Bank |
| D. | First MINI Bank |
| Answer» B. Moderba Bank | |
| 84. |
An evaluation of an individual’s or company’s ability to obligations or its likelihood of not defaulting is known as ? |
| A. | Credibility |
| B. | Credit risk |
| C. | Credit credibility |
| D. | Credit rating |
| Answer» C. Credit credibility | |
| 85. |
Pakistan’s fiscal years starts from? |
| A. | 1st September |
| B. | 1st January |
| C. | 1st April |
| D. | 1st July |
| Answer» E. | |
| 86. |
National income refers to ? |
| A. | Money value of goods and and services produced in a country during a year. |
| B. | Money value of stocks and shares of a country during a year. |
| C. | Money value of capital goods produced by a country during a year. |
| D. | None of these |
| Answer» B. Money value of stocks and shares of a country during a year. | |
| 87. |
Gross National income is always more than Net National income because it includes ? |
| A. | Foreign income |
| B. | Capital consumption allowance |
| C. | Indirect taxes |
| D. | Direct taxes |
| Answer» C. Indirect taxes | |
| 88. |
When the State Bank wants to decrease money supply in the country, it _______________? |
| A. | Buys govt. securities in stock market |
| B. | Sells govt. securities |
| C. | Lowers discount rate |
| D. | B and C of above |
| Answer» C. Lowers discount rate | |
| 89. |
Treasury bill is used for_________________? |
| A. | Getting short term loans |
| B. | Getting long term loans |
| C. | Treasury bill in not credit instrument |
| D. | Treasury bill is a govt. tax bill |
| Answer» B. Getting long term loans | |
| 90. |
When a commercial bank creates credit its immediate effect is that it raises__________________? |
| A. | The exchange rates |
| B. | The interest rates |
| C. | The money supplies |
| D. | The real national income |
| Answer» D. The real national income | |
| 91. |
The power of a bank to create credit is affected by ? |
| A. | The cash reserve requirement |
| B. | The amount of cash available |
| C. | The number of branches of a bank |
| D. | A and B of above |
| Answer» E. | |
| 92. |
The Liquidity Trap condition occurs at a_______________? |
| A. | Low rate of interest |
| B. | Very low rate of interest |
| C. | High rate of interest |
| D. | Very high rate of interest |
| Answer» C. High rate of interest | |
| 93. |
With whom would you associate the following quote” The business of business is business” ? |
| A. | Milton Friedman |
| B. | Adam smith |
| C. | Alfred Marshal |
| D. | Karl Marx |
| Answer» B. Adam smith | |
| 94. |
The period of high inflation and low economic growth is termed as ? |
| A. | Stagnation |
| B. | Take-off stage in economy |
| C. | Stagflation |
| D. | None of these |
| Answer» D. None of these | |
| 95. |
Which of the following is regarded as a factor of production ? |
| A. | Capital |
| B. | Interest |
| C. | Profit |
| D. | None of these |
| Answer» B. Interest | |
| 96. |
Which of the following can be used for check inflation temporarily ? |
| A. | increase in wages |
| B. | Decrease in money supply |
| C. | Decrease in tax |
| D. | None of these |
| Answer» D. None of these | |
| 97. |
Which type of income is earned only the actor of production enterprise ? |
| A. | interest |
| B. | Profit |
| C. | rent |
| D. | wages |
| Answer» C. rent | |
| 98. |
When the stock market is down falling it is called ? |
| A. | Bullish |
| B. | Bearish |
| C. | Falling |
| D. | Crashing |
| Answer» C. Falling | |
| 99. |
Mention the term which is used for the large-scale removal of individual and corporate investment capital and income from a country ? |
| A. | Money flight |
| B. | Capital drain |
| C. | Free flow |
| D. | Capital flight |
| Answer» E. | |
| 100. |
The situation with increasing unemployment and inflation is terms as ? |
| A. | Hyperinflation |
| B. | Reflection |
| C. | Stagflation |
| D. | Galloping |
| Answer» D. Galloping | |