864 + Mcqs in Economics (GK) Page 14 McqOptions

651.	What is meant by foreign investment?
A.	The market in which transactions are conducted to effect the transfer of the currency of one country into that of another
B.	The transfer of resources from developed to developing countries.
C.	The acquistion by governments, institutions or individuals in one country of assets in another.
D.	All of the above
Answer» D. All of the above

Discussion

652.	If a firm is operating at loss in the short- period in perfect combination, it should :
A.	decrease the production and the price.
B.	increase the production and the price
C.	continue to operate as long as it covers even the variable costs.
D.	shut-down and leave the industry
Answer» D. shut-down and leave the industry

Discussion

653.	Scarce inputs that can yield utility through production or provision of goods and services are referred to as:
A.	Resources
B.	Assets
C.	Means
D.	Capabilities
Answer» B. Assets

Discussion

654.	Equilibrium output is deter-mined by:
A.	the equality between total Variable cost and Marginal revenue.
B.	the equality between Marginal cost and Marginal revenue.
C.	the equality between Average cost and Average revenue.
D.	the equality between total cost and total revenue.
Answer» C. the equality between Average cost and Average revenue.

Discussion

655.	Capital output ratio of a commodity measures -
A.	its per unit cost of production
B.	the amount of capital invested per unit of output
C.	the ratio of capital depreciation to quantity of output
D.	the ratio of working capital employed to quantity of output
Answer» C. the ratio of capital depreciation to quantity of output

Discussion

656.	Theoretically trade between two countries lakes place on account of -
A.	differences In costs
B.	scarcity of goods
C.	comparative differences in costs
D.	need for exports
Answer» D. need for exports

Discussion

657.	Both-way trade between two countries is also known as:
A.	Government Expenditure
B.	Fiscal Revenue
C.	Volume of Trade
D.	Terms of Trade
Answer» D. Terms of Trade

Discussion

658.	If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm -
A.	24
B.	18
C.	36
D.	60
Answer» D. 60

Discussion

659.	The branch of economics concerned with the rate at which natural resources are consumed over time is called
A.	Marxism
B.	Capitalism
C.	Depletion theory
D.	Game Theory
Answer» D. Game Theory

Discussion

660.	Equilibrium price means -
A.	Price determined by demand and supply
B.	Price determined by Cost and Profit
C.	Price determined by Cost of production
D.	Price determined to maximize profit
Answer» B. Price determined by Cost and Profit

Discussion

661.	What is the term for total sales value divided by the number of units sold and thus equals to average price is?
A.	Average Cost
B.	Average Sale
C.	Average Revenue
D.	None of the above
Answer» D. None of the above

Discussion

662.	Capital formation in an economy depends on -
A.	Total Income
B.	Tot al demand
C.	Total savings
D.	Total production
Answer» D. Total production

Discussion

663.	Equilibrium price in the market is determined by the -
A.	equality between marginal cost and average cost.
B.	equality between total cost and total revenue.
C.	equality between average cost and average revenue.
D.	equality between marginal cost and marginal revenue.
Answer» E.

Discussion

664.	Marginal cost is the -
A.	cost of producing a unit of output
B.	cost of producing an extra unit of output
C.	cost of producing the total output
D.	cost of producing a given level of output
Answer» C. cost of producing the total output

Discussion

665.	Under hill cost pricing, price is determined -
A.	by adding a margin to the average cost
B.	by comparing marginal cost and marginal revem
C.	by adding normal profit to the marginal cost
D.	by the total al cost of production
Answer» B. by comparing marginal cost and marginal revem

Discussion

666.	The General Equilibrium Analysis" was developed by -
A.	Marshall
B.	Ricardo
C.	Walras
D.	Adam Smith
Answer» D. Adam Smith

Discussion

667.	The equilibrium of a firm under perfect competition will be determined when -
A.	Marginal Revenue > Average Cost
B.	Marginal Revenue > Average Revenue
C.	Marginal Revenue = Marginal Cost
D.	Marginal Cost > Average Cost
Answer» D. Marginal Cost > Average Cost

Discussion

668.	The economic agent who perceives market opportunities and assembles the factors of production to exploit them in a firm is referred to as
A.	Broker
B.	Entrepreneur
C.	Middle Agent
D.	Promotor
Answer» C. Middle Agent

Discussion

669.	An economic good or commodity purchased by households for final consumption is called:
A.	Consumer good
B.	Consumption good
C.	Final good
D.	All of the above
Answer» E.

Discussion

670.	The flow of goods or services to any economic agent or unit is called:
A.	Income
B.	Import
C.	Export
D.	None of the above
Answer» B. Import

Discussion

671.	The economic situation in which only a single seller or producer supplies a commodity or a service is called:
A.	Monopoly
B.	Possession
C.	Cartel
D.	Trust
Answer» B. Possession

Discussion

672.	The international trade and exchange between more than two countries without discrimination between those involved is called:
A.	Unilateralism
B.	Bilateralism
C.	Multilateralism
D.	None of the above
Answer» D. None of the above

Discussion

673.	Which of the following is a consequence of inflationary price rise?
A.	Obstacle in development
B.	Increase in economic inequalities
C.	All of these
D.	Adverse effect on the balance of payment
Answer» D. Adverse effect on the balance of payment

Discussion

674.	The extension in the range of goods and services in a firm or geographic region is called:
A.	Reduction
B.	Expansion
C.	Diversification
D.	Modification.
Answer» D. Modification.

Discussion

675.	The quantity of goods and services consumed by an individual or a household is called:
A.	Standard of living
B.	Standard of success
C.	Gross Domestic Product
D.	Gross National Product
Answer» B. Standard of success

Discussion

676.	The 'break-even' point is where
A.	marginal revenue equals marginal cost
B.	average revenue equals average cost,
C.	total revenue equals total cost
D.	None of the above
Answer» D. None of the above

Discussion

677.	At "Break-even point"
A.	the industry is in equilibrium in the long run.
B.	the producers suffers the minimum losses
C.	the seller earns maximum profit
D.	the firm is at zero-profit point
Answer» E.

Discussion

678.	The skills and knowledge embodied in the labour force are termed as:
A.	Investment
B.	Labour Capital
C.	Human Resources
D.	Human Capital
Answer» E.

Discussion

679.	The terms 'Bull' and 'Bear' are associated with -
A.	Banking
B.	Foreign Trade
C.	Stock Market
D.	Internet Trade
Answer» D. Internet Trade

Discussion

680.	The value of a commodity expressed in terms of money is known as -
A.	Price
B.	Utility
C.	Value
D.	Wealth
Answer» B. Utility

Discussion

681.	Taxes are as certain as the death, because -
A.	They constitute the major source of government revenue.
B.	Government have no other source of revenue.
C.	Most PSUs are run inefficiently.
D.	Government has its own budget constraints.
Answer» B. Government have no other source of revenue.

Discussion

682.	Tax on inheritance is called -
A.	Excise duty
B.	Estate duty
C.	Gift tax
D.	Sales tax
Answer» C. Gift tax

Discussion

683.	The condition in which the independent flow of goods and services in international exchange is neither restricted nor encouraged by direct government intervention is known as:
A.	Free Trade
B.	Barter Trade
C.	Both of the above
D.	None of the above
Answer» B. Barter Trade

Discussion

684.	In economic theory, a tangible good or service resulting from the process of production is known as
A.	Product
B.	Article
C.	Commodity
D.	Item
Answer» D. Item

Discussion

685.	Extreme forms of markets are -
A.	Perfect competition; Oligopoly
B.	Oligopoly; Monopoly
C.	Perfect competition; Monopoly
D.	Perfect competition; Monopolistic competition
Answer» D. Perfect competition; Monopolistic competition

Discussion

686.	A camera in the hands of a professional photographer is a good.
A.	Free
B.	Intermediary
C.	Consumer
D.	Capital
Answer» C. Consumer

Discussion

687.	The reduction in the useful life of a capital good or consumer good through economic or technological change as distinct from physical deterioration in use is termed as:
A.	Depreciation
B.	Devaluation
C.	Obsolesience
D.	All of the above
Answer» D. All of the above

Discussion

688.	The theory that all human action is motivated by pleasure and the avoidance of pain or the ethic that it should be so motivated. Such theory is termed as
A.	Sadism
B.	Hedonism
C.	Satanism
D.	Spiritualism
Answer» C. Satanism

Discussion

689.	Variable costs are those that vary directly with the rate of output e.g., labour costs, fuel and power etc., These are also known as:
A.	Prime costs
B.	Direct costs
C.	Operating costs
D.	All of the above
Answer» E.

Discussion

690.	Evaluating all the options to find out most suitable solution to business problems is interdisplinary activities. It is called -
A.	Professional research
B.	Management research
C.	Operational research
D.	Commercial research
Answer» D. Commercial research

Discussion

691.	The inefficiencies associated with employing a representative to carry out a task for you rather than carrying it out yourself are known as in economical terms as
A.	Agency Cost
B.	Total Cost
C.	Running Cost
D.	None of the above
Answer» B. Total Cost

Discussion

692.	A business function concerned with the formulation of long term objectives and the development of plans to achieve them is called:
A.	Business Planning
B.	Corporate Planning
C.	Both of the above
D.	None of the above
Answer» C. Both of the above

Discussion

693.	Compared to the rich the poor save -
A.	A larger part of their income
B.	An equal part of their income
C.	A smaller part of their income
D.	All of their incomes
Answer» D. All of their incomes

Discussion

694.	Indirect taxes by nature are -
A.	degressive
B.	regressive
C.	progressive
D.	proportional
Answer» C. progressive

Discussion

695.	The allocation of labour such that each worker specializes in one or a few functions in the production process is known as:
A.	Division of Labour
B.	Distribution of Wealth
C.	Efficient Worker
D.	None of the above
Answer» B. Distribution of Wealth

Discussion

696.	When too much money is chasing too few goods, the situation is -
A.	deflation
B.	inflation
C.	recession
D.	stagflation
Answer» C. recession

Discussion

697.	Pakistan s largest export market is:
A.	USA
B.	Germany
C.	Japan
D.	Saudi Arabia
Answer» B. Germany

Discussion

698.	A market that is dominated by a few large suppliers is known as:
A.	Oligopoly
B.	Monopoly
C.	Duopoly
D.	None of the above
Answer» B. Monopoly

Discussion

699.	Which of the changes below is most likely to lead directly to an increase in the income growth rate?
A.	An increase in wages
B.	An increase in interest rates
C.	An increase in the balance of payments deficit
D.	An increase in capital investment
Answer» E.

Discussion

700.	The setting up of mathematical models describing economic relationship testing the validity of such hypotheses is termed as:
A.	Econometrics
B.	Commerce
C.	Trade
D.	Finance
Answer» B. Commerce

Discussion

Explore topic-wise MCQs in General Knowledge (GK).

What is meant by foreign investment?

If a firm is operating at loss in the short- period in perfect combination, it should :

Scarce inputs that can yield utility through production or provision of goods and services are referred to as:

Equilibrium output is deter-mined by:

Capital output ratio of a commodity measures -

Theoretically trade between two countries lakes place on account of -

Both-way trade between two countries is also known as:

If the average total cost is Rs.54, total fixed cost is Rs.45000 and quantity produced is 2500 units, find the average variable costs (in Rs.) of the firm -

The branch of economics concerned with the rate at which natural resources are consumed over time is called

Equilibrium price means -

What is the term for total sales value divided by the number of units sold and thus equals to average price is?

Capital formation in an economy depends on -

Equilibrium price in the market is determined by the -

Marginal cost is the -

Under hill cost pricing, price is determined -

The General Equilibrium Analysis" was developed by -

The equilibrium of a firm under perfect competition will be determined when -

The economic agent who perceives market opportunities and assembles the factors of production to exploit them in a firm is referred to as

An economic good or commodity purchased by households for final consumption is called:

The flow of goods or services to any economic agent or unit is called:

The economic situation in which only a single seller or producer supplies a commodity or a service is called:

The international trade and exchange between more than two countries without discrimination between those involved is called:

Which of the following is a consequence of inflationary price rise?

The extension in the range of goods and services in a firm or geographic region is called:

The quantity of goods and services consumed by an individual or a household is called:

The 'break-even' point is where

At "Break-even point"

The skills and knowledge embodied in the labour force are termed as:

The terms 'Bull' and 'Bear' are associated with -

The value of a commodity expressed in terms of money is known as -

Taxes are as certain as the death, because -

Tax on inheritance is called -

The condition in which the independent flow of goods and services in international exchange is neither restricted nor encouraged by direct government intervention is known as:

In economic theory, a tangible good or service resulting from the process of production is known as

Extreme forms of markets are -

A camera in the hands of a professional photographer is a good.

The reduction in the useful life of a capital good or consumer good through economic or technological change as distinct from physical deterioration in use is termed as:

The theory that all human action is motivated by pleasure and the avoidance of pain or the ethic that it should be so motivated. Such theory is termed as

Variable costs are those that vary directly with the rate of output e.g., labour costs, fuel and power etc., These are also known as:

Evaluating all the options to find out most suitable solution to business problems is interdisplinary activities. It is called -

The inefficiencies associated with employing a representative to carry out a task for you rather than carrying it out yourself are known as in economical terms as

A business function concerned with the formulation of long term objectives and the development of plans to achieve them is called:

Compared to the rich the poor save -

Indirect taxes by nature are -

The allocation of labour such that each worker specializes in one or a few functions in the production process is known as:

When too much money is chasing too few goods, the situation is -

Pakistan s largest export market is:

A market that is dominated by a few large suppliers is known as:

Which of the changes below is most likely to lead directly to an increase in the income growth rate?

The setting up of mathematical models describing economic relationship testing the validity of such hypotheses is termed as: