

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 | |