MCQOPTIONS
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MCQOPTIONS
This section includes 381 Mcqs, each offering curated multiple-choice questions to sharpen your General knowledge and support exam preparation. Choose a topic below to get started.
| 301. |
The market efficiently allocates scarce resource among alternative ends such that ? |
| A. | consumers receive goods for which they are willing to pay |
| B. | - Production resources hire out to maximize income) |
| C. | I- the market determines available labor and capital |
| D. | - the market distributes income among rich individuals |
| Answer» B. - Production resources hire out to maximize income) | |
| 302. |
A sum of money or other property owed by one person or organization to another is called |
| A. | Credit |
| B. | Debt |
| C. | Obligation |
| D. | All of the above |
| Answer» B. Debt | |
| 303. |
Cash crop is the crop |
| A. | Which gives high profit to the farmers |
| B. | Which is grown only for sale |
| C. | Which is grown after taking Cash loan from Banks |
| D. | None of the above one |
| Answer» B. Which is grown only for sale | |
| 304. |
Suppose, due to political instability, Russians suddenly choose to purchase UK assets as opposed to Russian assets Which of the following statements is true regarding the value of the pound and UK net exports ? |
| A. | The pound appreciates, and UK net exports rise |
| B. | The pound appreciates, and UK net exports fall |
| C. | The pound depreciates, and UK net exports rise |
| D. | The pound depreciates, and UK net exports fall |
| Answer» C. The pound depreciates, and UK net exports rise | |
| 305. |
Economics in India Pakistan the Philippines and Mexico argue the foodgrain growth would not have kept up with population growth in the last four decades without ? |
| A. | improved packages of high-yielding seed varieties |
| B. | - fertilizers, pesticides and irrigation |
| C. | I- improved transportation |
| D. | better extension service |
| Answer» B. - fertilizers, pesticides and irrigation | |
| 306. |
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. | |
| 307. |
Statuses are based on______________? |
| A. | division of labor |
| B. | age |
| C. | gender |
| D. | all of the above |
| Answer» E. | |
| 308. |
Which of the following measures would the government take to finance its borrowing requirements? |
| A. | Sell government securities |
| B. | Sell bills of exchange |
| C. | Sell ordinary shares |
| D. | Buy treasury bills |
| Answer» B. Sell bills of exchange | |
| 309. |
Social movements never_________________? |
| A. | develop into political parties |
| B. | are voluntary associations |
| C. | gain control of governments |
| D. | none of the above |
| Answer» E. | |
| 310. |
Policies to reduce factor price distortion include? |
| A. | Encouraging small-scale industry |
| B. | - Decreasing subsidies to capital investors |
| C. | I- Reducing social security programs and payroll taxation |
| D. | - Setting market-clearing exchange rates |
| Answer» B. - Decreasing subsidies to capital investors | |
| 311. |
Simon S.Kuznets argues that the major stock of an economically advanced country is not its physical capital but ? |
| A. | natural resources |
| B. | body of knowledge |
| C. | land |
| D. | quantity of labor |
| Answer» C. land | |
| 312. |
The balance of trade can only worsen if income ____ relative to absorption ? |
| A. | increases |
| B. | decreases |
| C. | does not change |
| D. | None of the above |
| Answer» C. does not change | |
| 313. |
An increase in costs will ? |
| A. | Shift aggregate demand |
| B. | Shift aggregate supply |
| C. | Reduce the natural rate of unemployment |
| D. | Increase the productivity of employees |
| Answer» C. Reduce the natural rate of unemployment | |
| 314. |
Term the interchange of commodities across political frontiers without restriction such as tariffs, quotas, or foreign exchange controls ? |
| A. | Open trade |
| B. | Free trade |
| C. | Open sky trade |
| D. | Easy trade |
| Answer» C. Open sky trade | |
| 315. |
Which of the following concepts represents the extra revenue a firm receives from the services of an additional unit of a factor of production? |
| A. | Total revenue |
| B. | Marginal physical product |
| C. | marginal revenus product |
| D. | Marginal revenue |
| Answer» D. Marginal revenue | |
| 316. |
Shortly after 1979 World Bank introduced loans that emphasized reforms in trade, agriculture industry public enterprise financial energy education or other sectors and were known as ? |
| A. | Structural adjustment loans |
| B. | sectoral adjustment loans |
| C. | internal adjustment loans |
| D. | external leverage loans |
| Answer» C. internal adjustment loans | |
| 317. |
During the 1980s and 1990s the economic policies of China, supported by Deng Xiaoping have led directly to______________?? |
| A. | an increase in trade with the West |
| B. | a return to a strict command economy |
| C. | the success of the commune system |
| Answer» C. the success of the commune system | |
| 318. |
Skills that embodied in a person are called |
| A. | Human capital |
| B. | Embodied skills |
| C. | Physical capital |
| D. | Experience skills |
| Answer» B. Embodied skills | |
| 319. |
The order written by the drawer to a commercial bank or central bank to pay on demand a particular sum to a bearer is referred to as |
| A. | Pay check |
| B. | Cheque |
| C. | Draft |
| D. | Money order |
| Answer» B. Cheque | |
| 320. |
Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the long run ? |
| A. | Output falls, prices are unchanged from the initial value |
| B. | Price fall, output is unchanged from its initial value |
| C. | Output and the price level are unchanged from their initial values |
| D. | Prices rise, output is unchanged from its initial value |
| Answer» E. | |
| 321. |
Which of the following groups is most likely to benefit from inflation? |
| A. | Exporters |
| B. | Debtors |
| C. | Pensioners |
| D. | Creditors |
| Answer» B. Debtors | |
| 322. |
The Islamic Development Bank would provide half a billion US dollars in Capital to create |
| A. | Private Pan Islamic Bank |
| B. | International Islamic Foundation for Science and Technology |
| C. | Refugees Rehabilitation Fund |
| D. | None of the above |
| Answer» B. International Islamic Foundation for Science and Technology | |
| 323. |
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 | |
| 324. |
There are three fundamental questions every society must answer. Which of the following is/are one of these questions? |
| A. | What goods and services are to be produced? |
| B. | How are the goods and services to be produced? |
| C. | Who will get the goods and services that are produced? |
| D. | All of the above |
| Answer» B. How are the goods and services to be produced? | |
| 325. |
The production of a commodity in which a higher proportion of capital is used is known as |
| A. | Labour Intensive |
| B. | Capital Intensive |
| C. | Both of the above |
| D. | None of the above |
| Answer» B. Capital Intensive | |
| 326. |
Systems of beliefs and behavior designed to meet basic human needs are called ? |
| A. | the welfare system |
| B. | religions |
| C. | government |
| D. | institutions |
| Answer» E. | |
| 327. |
Term the covering of a short position by purchasing a long contract, usually resulting from the short of a commodity ? |
| A. | Short-positioning |
| B. | Buyback |
| C. | Drawback |
| D. | None of them |
| Answer» C. Drawback | |
| 328. |
Social control through the enforcement of norms works because ? |
| A. | everyone fears pain and embarrassment |
| B. | individuals are anxious to be accepted |
| C. | people need to be manipulated |
| D. | independent though and action are too hard |
| Answer» C. people need to be manipulated | |
| 329. |
The statement of the wealth of a business organization or individual on a given date usually the last day of the fiscal year is termed as: |
| A. | Balance Sheet |
| B. | Balance list |
| C. | Both of the above |
| D. | None of the above |
| Answer» B. Balance list | |
| 330. |
Skepticism refers to________________? |
| A. | impartiality |
| B. | doubting |
| C. | repetition |
| D. | precision |
| Answer» C. repetition | |
| 331. |
Supply-side theories claim that__________________? |
| A. | business cycles are caused by insufficient supply |
| B. | a decline in aggregate supply is responsible for economic downturns |
| C. | an increase in aggregate supply causes output and employment to decline |
| D. | none of the above |
| Answer» C. an increase in aggregate supply causes output and employment to decline | |
| 332. |
Symbols differ from signals in that______________? |
| A. | symbols have universal meaning |
| B. | symbols are intrinsically meaningful |
| C. | symbols are biologically determined |
| D. | none of the above |
| Answer» E. | |
| 333. |
If you were working full-time now, you could earn $20,000 per year. Instead, you are working parttime while going to school. In your current part-time job, you earn $5,000 per year. At your school, the annual cost of tuition, books, and other fees is $2,000. The opportunity cost of completing your education is: |
| A. | $2,000 |
| B. | $5,000 |
| C. | $17,000 |
| D. | $20,000 |
| Answer» B. $5,000 | |
| 334. |
_______ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods? |
| A. | incomes policy |
| B. | Moral hazard |
| C. | Fiscal policy |
| Answer» D. | |
| 335. |
Symbolic interaction ? |
| A. | excludes written language |
| B. | is entirely nonverbal |
| C. | includes gestures speech and music |
| D. | none of the above |
| Answer» D. none of the above | |
| 336. |
Stressing the desirability of retaining each group,s cultural distinctiveness is part of the ideology of______________? |
| A. | Anglo-conformity |
| B. | melting pot |
| C. | ethnicity |
| D. | cultural pluralism |
| Answer» E. | |
| 337. |
Countries facing a persistent external deficit can ? |
| A. | borrow overseas |
| B. | . increase trade restrictions and exchange controls |
| C. | I. undertake expansionary monetary and fiscal policies |
| D. | . Undertake expenditure-reducing policies |
| Answer» B. . increase trade restrictions and exchange controls | |
| 338. |
An economy when private and government enterprises both operates, is: |
| A. | Free economy |
| B. | Closed economy |
| C. | Joint economy |
| D. | Mixed economy |
| Answer» B. Closed economy | |
| 339. |
Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be __________ the size of the quantity fluctuations? |
| A. | relatively greater then |
| B. | relatively less than |
| C. | the same as |
| D. | any of the above |
| Answer» B. relatively less than | |
| 340. |
In the case of agriculture |
| A. | The demand has shifted to the right more than the supply has shifted to the right |
| B. | The demand has shifted to the right less than the supply has shifted to the right |
| C. | The demand has shifted to the left more than the supply has shifted to the left |
| D. | The demand has shifted to the left less than the supply has shifted to the left |
| Answer» B. The demand has shifted to the right less than the supply has shifted to the right | |
| 341. |
Suppose that the domestic government allows a specific number of goods to be imported each year, but it does not specify from where the product is shipped or who is permitted to import Such a trade barrier is known as ? |
| A. | an import tariffs |
| B. | a tariff rate quota |
| C. | a selective quota |
| D. | a global quota |
| Answer» E. | |
| 342. |
Technological advances, shifts in consumer tastes, and increased competition all of which reduce demand for a product are typical of which stage in the PLC ? |
| A. | decline stage |
| B. | introduction stage |
| C. | growth stage |
| D. | maturity stage |
| Answer» B. introduction stage | |
| 343. |
Last week, Martha spent one day cleaning a house. For this, she was paid $50. The rest of the week, she spent looking for a job. Martha would be classified as |
| A. | Employed |
| B. | Unemployed |
| C. | Not in the labor force |
| D. | Structurally unemployed |
| Answer» B. Unemployed | |
| 344. |
The fundamental economic problem faced by all societies is: |
| A. | Unemployment |
| B. | Inequality |
| C. | Poverty |
| D. | Scarcity |
| Answer» B. Inequality | |
| 345. |
White -collar crime_____________? |
| A. | is based on violence |
| B. | gains small amounts of money for its perpetrators |
| C. | is very costly to society |
| D. | is punished more severely than blue-collar crime |
| Answer» D. is punished more severely than blue-collar crime | |
| 346. |
Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today ? |
| A. | The impact on both price and quantity is ambiguous |
| B. | Price will decrease, quantity is ambiguous. |
| C. | price will increase, quantity will decrease |
| D. | price will increase, quantity is ambiguous. |
| Answer» E. | |
| 347. |
Using the numbers in question 5, the Real GDP for 2002 is: |
| A. | $400 |
| B. | $500 |
| C. | $800 |
| D. | $900 |
| Answer» B. $500 | |
| 348. |
Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)? |
| A. | appreciation in the value of both currencies |
| B. | depreciation in the value of both currencies |
| C. | appreciation in the value of the yen against the mark |
| D. | depreciation in the value of the yen against the mark |
| Answer» E. | |
| 349. |
If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ? |
| A. | should increase the dollar value of exports |
| B. | should not have any effect on the dollar value of U.S imports |
| C. | must increase the balance of trade |
| D. | All of the above |
| Answer» E. | |
| 350. |
The ability of the Organization of Petroleum Exporting Countries (OPEC) to maximize profits is hampered by ? |
| A. | a lack of substitutes for oil |
| B. | similar cost schedules for member countries |
| C. | highly inelastic world demand curve for oil |
| D. | economic recession for oil importing nations |
| Answer» E. | |