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.

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