Explore topic-wise MCQs in Economics Mcqs.

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.

1.

Mention the market for trading long-term debt instruments ?

A. Stock market
B. Open market
C. Capital market
D. International market
Answer» D. International market
2.

Name a gold, silver, or platinum coin than usually traded at slightly more than its current bullion value ?

A. Hard Leaf
B. Maple Leaf
C. Green Leaf
D. Gold Leaf
Answer» C. Green Leaf
3.

A company’s first sale of stock to the public is called ?

A. Public Offering
B. First Public Offering
C. Initial Public Offering (IPO)
D. Going Public
Answer» D. Going Public
4.

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

A. Charity funds
B. Attached funds
C. Endowment funds
D. Investment fund
Answer» D. Investment fund
5.

What can a government do to increase demand in its economy ?

A. Budget for a surplus
B. Cut taxes
C. Encourage savings
D. Reduce its expenditure
Answer» C. Encourage savings
6.

Term the central market for buying and selling all kind of securities ?

A. A big company
B. Stock Exchange
C. Joint stock
D. A multinational company
Answer» C. Joint stock
7.

What is the meaning of the term stagflation ?

A. Fall in prices due to less circulation of currency
B. Fall in employment due to declining production
C. High inflation rate combined with high unemployment and unchanged consume demand
D. None of these
Answer» D. None of these
8.

Bearer cheque is ?

A. Payable to anyone
B. payable to person holding it
C. payable through account only
D. payable after specific period
Answer» C. payable through account only
9.

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 ?

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
Answer» D. None of them
10.

During a given period how the economic activity of a nation is measured?

A. Gross Domestic Product (GOP)
B. Gross National output (GNO)
C. Gross National product (GNP)
D. Gross National Output
Answer» D. Gross National Output
11.

Central bank of Pakistan is ________________?

A. State Bank
B. National Bank
C. Both of them
D. None of them
Answer» B. National Bank
12.

GNP is_______________?

A. Total sales in the economy
B. Total monetary transactions in an economy
C. The market value of all goods and services produced in an economy
D. Total spending in an economy
Answer» D. Total spending in an economy
13.

What is deflation________________?

A. Deficit Budget
B. Reduction in taxation
C. Increase in public expenditure
D. Reverse of inflation
Answer» E.
14.

Economic development is measured on the basis of ?

A. Increase in nominal GNP
B. Increase in real GNP
C. Increase in personal income
D. Increase in government revenue
Answer» C. Increase in personal income
15.

Developments in a national economy can affect the outcome of an international financial transaction. What this process is called ?

A. International economic risk
B. Country economic risk
C. Ultra-country economic risk
D. Outcome risk
Answer» C. Ultra-country economic risk
16.

Total number of adults currently employed or actively seeking work in all economic sectors is known as ?

A. Labor force
B. Labor potential
C. Work force
D. All of them
Answer» B. Labor potential
17.

Which country is the chief exporter Aluminum?

A. USA
B. Britain
C. France
D. Germany
Answer» B. Britain
18.

Downsizing is______________?

A. to make in a smaller size
B. to make in a actual size
C. to make in a half size
D. None of the above
Answer» B. to make in a actual size
19.

What does mean by Deed________________?

A. legal instrument used to grand a right
B. Something done
C. legal instrument
D. none of the above
Answer» B. Something done
20.

How is termed the economic theories or Maynard Keynes especially those which advocate government monetary and fiscal and stimulate business activity ?

A. Market Economy
B. Harvard Group
C. Keynesian
D. London Group
Answer» D. London Group
21.

What is referred by interest ?

A. Payment made for the use of another person’s money
B. payment made for the use of bank’s money
C. Share in profit
D. Devaluation in the currency
Answer» B. payment made for the use of bank’s money
22.

Which of the following is a valid currency______________?

A. Promissory note
B. Currency note
C. Exchange rate
D. Bank cheque
Answer» C. Exchange rate
23.

Two countries can gain from foreign trade if ?

A. Cost ratios are different
B. Tariff rates are different
C. Price ratios are different
D. A and C of above
Answer» E.
24.

From each according to his ability to each according to his need is the theoretical slogan of ?

A. Feudal System
B. Capitalist System
C. Fascist System
D. Communist System
Answer» E.
25.

Exchange rate of which of the following currencies falls because of persistent balance of payments deficit ?

A. Gold currency
B. Hard currency
C. Silver currency
D. Soft currency
Answer» E.
26.

Commercial policy means_______________?

A. Policy about markets
B. Policy about money supply
C. Policy about imports and exports
D. Policy of controlling of prices of goods
Answer» D. Policy of controlling of prices of goods
27.

Oil is measured in barrels. What is the abbreviation for barrels________________?

A. Brl
B. Bel
C. Bbl
D. Obl
Answer» D. Obl
28.

Depression is a drastic decline in a national or international economy. It’s characteristic is_____________?

A. Decreasing business activity
B. Falling prices
C. Unemployment
D. All of these
Answer» E.
29.

Which city in Germany has the distinction of housing the first car manufacturing plant in the world ?

A. Frankfurt
B. Bonn
C. Berlin
D. Stuttgart
Answer» C. Berlin
30.

Which term is used for a bank account which can be operated at will ?

A. Saving Account
B. Fixed account
C. Current account
D. Fluctuated account
Answer» D. Fluctuated account
31.

What is Demand note ?

A. Draft payable in lawful money upon demand
B. Cheque payable in lawful money upon demand
C. Security payable in lawful money upon demand
D. Term deposit payable in lawful money upon demand
Answer» B. Cheque payable in lawful money upon demand
32.

What is the cost effective ?

A. Cheap things
B. Substandard things
C. Economical in terms of the goods or services received for the money spent
D. Free in terms of the goods or services received for the money spent
Answer» D. Free in terms of the goods or services received for the money spent
33.

Cost of production plus a fixed rate of profit is called ?

A. cost plus
B. Cost effective
C. End price
D. Consumer price
Answer» B. Cost effective
34.

Name the organization in which people are associated together for a common purpose under a common name. This organization is recognized and created by law ?

A. Company
B. Corporation
C. Cooperative
D. Limited Company
Answer» C. Cooperative
35.

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 ?

A. Floor price
B. Fixed price
C. Bid price
D. Basic price
Answer» B. Fixed price
36.

Name the method of inventory accounting in which the oldest remaining items are assumed to have been first sold ?

A. FIFO (first in first out)
B. LAFO (last in first out)
C. First come First serve
D. None of these
Answer» B. LAFO (last in first out)
37.

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 ?

A. Currency exchange
B. Currency value
C. Currency value
D. Exchange rate
Answer» E.
38.

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 ?

A. Free market economy
B. Laissez faire also Laisser faire
C. Open market economy
D. Liberal market economy
Answer» C. Open market economy
39.

Endorsement means anything written upon the back of the document What does means by Endorse ?

A. To verify signature
B. To verify the person holding cheque
C. To sign one’s name upon the back of cheque
D. To sign one’s name upon the front of cheque
Answer» D. To sign one’s name upon the front of cheque
40.

By Which scale the value of all economic activity produced by a nation during a given period is measured ?

A. Gross Domestic Product (GOP)
B. Gross National output (GNO)
C. Gross National Product (GNP)
D. Gross National output
Answer» D. Gross National output
41.

Indemnity is_______________?

A. Security against damages loss, or injury
B. A legal exemption from liability for damages
C. Compensation for damages loss, or injury suffered
D. All of these
Answer» E.
42.

Different workers or group of workers separate the production works and trade into__________processes. What this separation is called?

A. Divided Labor
B. Closed shop
C. Division of Labor
D. Open shop
Answer» D. Open shop
43.

The cause of inflation is ?

A. Increase in money supply
B. Fall in production
C. Increase in money supply and fall in production
D. Decrease in money supply and fall in production
Answer» D. Decrease in money supply and fall in production
44.

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

A. Demand draft
B. Draft
C. Invoice
D. Bill of Intent
Answer» D. Bill of Intent
45.

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 ?

A. Hinterland
B. Country land
C. Dependent land
D. Parasite land
Answer» B. Country land
46.

The system under which a country’s currency is exchangeable for a fixed weight of gold on demand at central bank is called ?

A. God standard system
B. Gold based system
C. Bullion standard system
D. None of the above
Answer» B. Gold based system
47.

What is called a group of countries that have removed all tariffs, quotas, and export subsidies on trade among themselves ?

A. Close-trade zone
B. Free trade zone
C. Both of them
D. None of them
Answer» D. None of them
48.

The amount that is paid for carriage of goods by chips, railways, airways etc is called ?

A. Hire and Fire
B. Rent
C. Transportation Changes
D. Freight
Answer» E.
49.

What does mean by Franchise__________________?

A. A privilege or right officially granted by a person or group by a government
B. Authorization granted to someone to sell or distribute a company’s goods or service in certain area
C. Territory or limits within which immunity, privilege or right may be exercised
D. All of the above
Answer» E.
50.

Which money is called ‘Earnest’ Money ?

A. Advanced payment to bind a contract or bargain
B. A token of something to come
C. A promise or assurance
D. All of these
Answer» E.