MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Corporation tax is a tax imposed on - |
| A. | the net incomes of the companies |
| B. | the corporate properties |
| C. | the utilities provided by the corporation |
| D. | tax imposed by the corporation on individual properties |
| Answer» B. the corporate properties | |
| 2. |
Money placed in an account at a financial institution and constituting a claim on it is known as |
| A. | Deposit |
| B. | Credit |
| C. | Debt |
| D. | Hoarding |
| Answer» B. Credit | |
| 3. |
Pakistan s domestic demand for petroleum products in growing annually with the percentage of: |
| A. | 3 percent |
| B. | 5 percent |
| C. | 8 percent |
| D. | 15 percent |
| Answer» C. 8 percent | |
| 4. |
What is called if estimate of income and expenditure are for future as opposed to an account that records financial transaction? |
| A. | Quota |
| B. | Allocation |
| C. | Budget |
| D. | Estimate |
| Answer» D. Estimate | |
| 5. |
Arranging one s financial affairs within the law so as to minimize taxation liabilities is known as |
| A. | Tax evasion |
| B. | Tax avoidance |
| C. | Tax burden |
| D. | Tax expenditures |
| Answer» C. Tax burden | |
| 6. |
The business arrangement in which two companies invest in a project over which both have partial control is termed as: |
| A. | Joint Ventrue |
| B. | Speculation |
| C. | Project |
| D. | Undertaking |
| Answer» B. Speculation | |
| 7. |
An association of individuals or corporations formed to conduct a specific financial transaction such as buying a business is known as: |
| A. | Merger |
| B. | Joint Venture |
| C. | Syndicate |
| D. | Franchise |
| Answer» D. Franchise | |
| 8. |
Sums of money laid aside and normally invested to provide a regular income on retirement or in compensation for disablement for the remainder of a person s life is called: |
| A. | Provident Funds |
| B. | Pension Funds |
| C. | Social Security |
| D. | None of the above |
| Answer» C. Social Security | |
| 9. |
In which of the following districts, the government of Pakistan has given incentives package to farmers for growing black tea on experimental basis? |
| A. | Rawalpindi |
| B. | Mardan |
| C. | Mansehra |
| D. | Noshki |
| Answer» D. Noshki | |
| 10. |
The degree to which an asset can be quickly and cheaply turned into money, is termed as: |
| A. | Insolvency |
| B. | Liquidity |
| C. | Bankruptcy |
| D. | All of the above |
| Answer» C. Bankruptcy | |
| 11. |
Identify the member of G-8 organization, which will provide 300 million US dollars to Pakistan in 1999 for certain development projects? |
| A. | America |
| B. | United Kingdom |
| C. | Germany |
| D. | Japan |
| Answer» E. | |
| 12. |
A sustained reduction in the general level of prices is called: |
| A. | Inflation |
| B. | Deflation |
| C. | Disinflation |
| D. | Both B and C |
| Answer» E. | |
| 13. |
Which one of the following arguments can be used in favour of the market economy? |
| A. | It guarantees full employment of labour |
| B. | It leads to equality of wealth |
| C. | It allows the government to plan investment in each industry |
| D. | All of the above |
| Answer» B. It leads to equality of wealth | |
| 14. |
Bank Rate refers to the interest rate at which - |
| A. | Commercial banks receive deposits from the public |
| B. | Central bank gives loans to Commercial banks |
| C. | Government loans are floated |
| D. | Commercial banks grant loans to their customers |
| Answer» C. Government loans are floated | |
| 15. |
If the tax rate increases with the higher level of income, it shall be called - |
| A. | Proportional tax |
| B. | Progressive tax |
| C. | Lump sum tax |
| D. | Regressive tax |
| Answer» C. Lump sum tax | |
| 16. |
The situation in which aggregate demand in the economy is growing at a rate reliable to lead to inflation is called: |
| A. | Overdraft |
| B. | Overheating |
| C. | Oversubscription |
| D. | None of the above |
| Answer» C. Oversubscription | |
| 17. |
A loan facility on the customer s current account at a bank permitting him to withdraw up to a certain agreed limit for an agreed period, is referred to as: |
| A. | Personal Loan |
| B. | Mortgage |
| C. | Overdraft |
| D. | Credit |
| Answer» D. Credit | |
| 18. |
The period of account used for financial purposes is known as: |
| A. | Financial Year |
| B. | Fiscal Year |
| C. | Both of the above |
| D. | None of the above |
| Answer» D. None of the above | |
| 19. |
The legal instrument that pledges a house or other real estate as security for repayment of a loan is called: |
| A. | Mortgage |
| B. | Bond |
| C. | Foreclosure |
| D. | Lien |
| Answer» B. Bond | |
| 20. |
Which of the following sector is the main source of foreign exchange earnings in Pakistan? |
| A. | Industry |
| B. | Agriculture |
| C. | Both the above |
| D. | None of the above one |
| Answer» C. Both the above | |
| 21. |
Which one of the following is having elastic demand? |
| A. | Electricity |
| B. | Medicines |
| C. | Rice |
| D. | Match boxes |
| Answer» B. Medicines | |
| 22. |
When price of a substitute of commodity falls, the demand for - |
| A. | falls |
| B. | remains unchanged |
| C. | increases at increasing rate |
| D. | rises |
| Answer» B. remains unchanged | |
| 23. |
The contract to pay a premium for which the insurer will pay compensation in certain happenings e.g., fire theft or motor accident is termed as: |
| A. | Insurance |
| B. | Warranty |
| C. | Security |
| D. | Safeguard |
| Answer» B. Warranty | |
| 24. |
Inflation occurs when aggregate supply is - |
| A. | more than aggregate demand |
| B. | less than aggregate demand |
| C. | equal to aggregate demand |
| D. | None of these |
| Answer» C. equal to aggregate demand | |
| 25. |
Pinpoint the source, through which budgetary gap is financed in Pakistan? |
| A. | External borrowing |
| B. | Domestic non-Bank borrowing |
| C. | Borrowing from to banking system |
| D. | All the above sources |
| Answer» E. | |
| 26. |
Which organization collects data for the unorganized sector? |
| A. | NSSO |
| B. | CSO |
| C. | ASI |
| D. | RBI |
| Answer» B. CSO | |
| 27. |
The persistent increases in the general level of prices is known as: |
| A. | Hyperinflation |
| B. | Inflation |
| C. | Devaluation |
| D. | Recession |
| Answer» C. Devaluation | |
| 28. |
The measure of the total flow of goods and services produced by the economy over a specified time period, normally a year or a quarter is referred to as |
| A. | Gross national product (GNP) |
| B. | Gross domestic product (GDP) |
| C. | Both of the above |
| D. | None of the above |
| Answer» C. Both of the above | |
| 29. |
In which of the following country, population growth rate is lowest? |
| A. | Japan |
| B. | India |
| C. | Sri Lanka |
| D. | Indonesia |
| Answer» B. India | |
| 30. |
In which of the following country, the population growth rate is lowest? |
| A. | Pakistan |
| B. | China |
| C. | Indonesia |
| D. | Bangladesh |
| Answer» C. Indonesia | |
| 31. |
The proportion of a sum of money that is paid over a specified time period in payment for its loan is called: |
| A. | Rate of interest |
| B. | Rate of substitution |
| C. | Rate of return |
| D. | None of the above |
| Answer» B. Rate of substitution | |
| 32. |
Identify the main reason of 'deficit financing' in Pakistan- |
| A. | Low savings |
| B. | Rapid growth of Population |
| C. | Inadequate banking facilities |
| D. | All the above one |
| Answer» E. | |
| 33. |
For an inferior good, demand falls when - |
| A. | price rises |
| B. | income rise |
| C. | price falls |
| D. | income falls |
| Answer» C. price falls | |
| 34. |
Which of the following mobile phone company is in private sector? |
| A. | Mobilinks |
| B. | Paktel |
| C. | Insta Phone |
| D. | All of the above |
| Answer» E. | |
| 35. |
A bank loan made without collateral security to a private customer for specific purposes is called: |
| A. | Personal Loan |
| B. | Credit |
| C. | Finance |
| D. | Lien |
| Answer» B. Credit | |
| 36. |
The regulations of World Trade Organization (WTO) shall be enforced from: |
| A. | 1 January 2002 |
| B. | 1 January 2003 |
| C. | 1 July 2004 |
| D. | 1 January 2005 |
| Answer» E. | |
| 37. |
Freeing the economy from all unnecessary controls and regulations is referred to as - |
| A. | Freedom |
| B. | Privatisation |
| C. | Liberalisation |
| D. | Globalisation |
| Answer» D. Globalisation | |
| 38. |
The process of curing inflation by reducing money supply is called - |
| A. | Cost-push inflation |
| B. | Demand-pull inflation |
| C. | Disinflation |
| D. | Reflation |
| Answer» D. Reflation | |
| 39. |
A unit price elastic demand curve will touch - |
| A. | both price and quantity axis |
| B. | neither price axis, nor quantity axis |
| C. | only price axis |
| D. | only quantity axis |
| Answer» C. only price axis | |
| 40. |
A horizontal demand curve is - |
| A. | relatively elastic |
| B. | perfectly inelastic |
| C. | perfectly elastic |
| D. | of unitary elasticity |
| Answer» D. of unitary elasticity | |
| 41. |
Legislation prohibiting the paying of wages below some specified level is known as |
| A. | Standard Wage |
| B. | Minimum Wage |
| C. | Maximum Wage |
| D. | Optimum Wage |
| Answer» C. Maximum Wage | |
| 42. |
The value of investment multiplier relates to - |
| A. | change in income due to change in autonomous investment. |
| B. | change in autonomous investment due to change in income. |
| C. | change in income due to change in consumption. |
| D. | change in the income due to change in induced investment. |
| Answer» C. change in income due to change in consumption. | |
| 43. |
If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is - |
| A. | perfectly inelastic |
| B. | elastic |
| C. | perfectly elastic |
| D. | inelastic |
| Answer» D. inelastic | |
| 44. |
'Law of demand' implies that when there is excess demand for a commodity, then |
| A. | price of the commodity falls |
| B. | price of the commodity remains same |
| C. | price of the commodity rises |
| D. | quantity demanded of the commodity falls |
| Answer» D. quantity demanded of the commodity falls | |
| 45. |
Cross elasticity of demand between petrol and car is - |
| A. | infinite |
| B. | positive |
| C. | zero |
| D. | negative |
| Answer» E. | |
| 46. |
The World Trade Organization secretariat is headed by a director-general, has around 500 staff and is based in: |
| A. | New York |
| B. | Rome |
| C. | Geneva |
| D. | Brussels |
| Answer» D. Brussels | |
| 47. |
In an economy, the sectors are classified into public and private on the basis of - |
| A. | employment conditions |
| B. | nature of economic activities |
| C. | ownership of enterprises |
| D. | use of raw materials |
| Answer» D. use of raw materials | |
| 48. |
By the end of June 2002, the World Trade Organization had 144 members and around 34 observer governments. With how many years of becoming observers, these observers must start accession negotiations? |
| A. | 2 years |
| B. | 3 years |
| C. | 4 years |
| D. | 5 years |
| Answer» E. | |
| 49. |
The process of invigorating activity in a sector of the economy by reducing the government controls that have the effect of creating barriers to entry is called |
| A. | Privatization |
| B. | Regulation |
| C. | Deregulation |
| D. | All of the above |
| Answer» D. All of the above | |
| 50. |
A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to - |
| A. | Zero |
| B. | One |
| C. | Less than one |
| D. | Infinity |
| Answer» E. | |