Home Economics Lecturer Economics Introduction and Basics of Economics Important MCQs

Introduction and Basics of Economics Important MCQs

1 - A supply curve is directly affected by ?

all of the above

2 - when a market is in equilibrium ?

All of the above

3 - If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale this is an example of ?

a negative linear relationship

4 - A straight-line diagram can be drawn knowing the ________ and ________?

scale and slope

5 - A real value can be derived from a nominal value by ?

adjusting or changes in prices

6 - Time series data show information ?

about different points in time over the same variable

7 - Macroeconomics is the study of ?

the economy as a whole

8 - In the mixed economy________________?

economics problems are solved by the government and market

9 - A market can accurately be described as_________________?

the process by which prices adjust to reconcile the allocation of resources

10 - Economics is the study of ?

how society decides what how and for whom to produce

11 - Which of the following is not part of the opportunity cost of going on holiday ?

the money you spent on food

12 - An increase in the price of beef providers information which ?

tells producers to produce more beef.

13 - High and persistent inflation is caused by ?

unions increasing wages too much

14 - Which of the following statements is true about a market economy ?

Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare

15 - Which of the following products would be least capable of producing an externality ?

food

16 - Since people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increase by 20% then ?

fewer students will take degree courses in education and more will take accounting courses

17 - Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is ?

Rs20 (because you found the money Rs 20 to buy other things) plus the value of your time spent at the game.

18 - A rational person does not act unless ?

The action produces marginal benefits that exceed marginal costs.

19 - Trade-offs are required because wants are unlimited, and resources are ?

Scarce

20 - Which one of the following is a normative statement ?

Inequality in the distribution of income is a more serious problem than unemployment

21 - In a free market system, the amount of goods and services that any one household gets depends upon its ?

income and wealth

22 - Periods of less than full employment corresponds to _________________ ?

points inside the production possibility curve.

23 - Opportunity cost is_________________?

that which we forgo, or give up, when we make a choice or a decision.

24 - A student chooses to study because the marginal benefit is greater than the ______________ cost?

marginal

25 - Unemployment means that ?

at the going wage rate, there are people who want to work but cannot find work.

26 - Inflation is___________________?

an increase in the overall price level.

27 - Aggregate supply is the total amount ?

of goods and services produced in an economy.

28 - Microeconomics is not concerned with the behavior of ?

aggregate demand

29 - The economics the central problem is ?

Scarcity

30 - The public sector includes ?

All trade via barter

31 - A mixed economy ?

Has market forces and government intervention

32 - The basic economic problems will not be solved by ?

The creation of unlimited resources

33 - An increase in consumer income will increase demand for a _________ but decrease demand for a?

normal good inferior good

34 - If a price increase of good A increases the quantity demanded of good B, then good B is a________________?

substitute good

35 - A demand curve can shift because changing ?

all of the above

36 - ________ and ___________ do not directly affect the demand curve ?

the costs of production bank opening hours

37 - The equilibrium price clears the market it is the price at which _________________?

B and C

38 - When we know the quantity of a product that buyers wish to purchase at each possible price we know_____________?

Demand

39 - On a graph, a positive linear relationship___________________?

moves up to the right

40 - If you income during one year is Rs10,000 and the following year it is Rs12,000 then it has grown by ________________?

0.2

41 - The retail price index is used to__________________?

measure changes in the cost of living

42 - Data are important in economics because _________ and ____________?

they suggest relationships for explanation, allow testing of hypotheses

43 - If marginal benefit is greater than marginal cost, a rational choice involves ?

more of the activity

44 - Normative economics Forms ________ based on ________?

positive statements, facts

45 - In a free market?

Prices adjust to reconcile scarcity and desires

46 - The opportunity cost of a good is______________?

the quantity of other goods sacrificed to get another unit of that good

47 - Productivity can be increased by ?

improving the education of workers

48 - You are planning to run a hot dog stand during a forthcoming fair. You originally estimated that you will generated sales revenue of Rs 2000 and you have already spent Rs 1000 building the hot dog stand. The hot dog stand is nearly completed but now you e

Rs 800

49 - The Phillips curve shows that ?

a decrease in inflation temporarily increases unemployment.

50 - Workers in Western Europe enjoy a high standard of living because ?

none of these answers.

51 - Which of the following situations describes the greatest market power ?

Microsoft's impact on the price of desktop operating systems

52 - Which of the following activities is most likely to produce an externality?

A student has a party in her room in the student hall of residence.

53 - Foreign trade ?

allows a country to have a greater variety of products at a lower cost than if it tried to produce everything to home.

54 - Raising taxes and increasing welfare payments ?

improves equity at the expense of efficiency.

55 - Economics is the study of ?

how to reduce our wants until we are satisfied.

56 - Which of the following involves a trade – off ?

All of these answers involve trade-offs

57 - In a planned or command economy, all the economics decisions are taken by the ?

government

58 - The circular flow of goods and incomes shows the relationship between?

income and money

59 - A graph showing all the combinations of goods and services that can be produced if all of society's resources are used efficiently is a ?

Production possibility curve.

60 - The concept of opportunity cost ?

Suggests a major increase in public health care spending means an expansion in other areas will be harder to achieve.

61 - A recession is ?

a period during which aggregate output declines.

62 - The total demand for goods and services in an economy is known as_____________?

aggregate demand

63 - The study of inflation is part of ?

macroeconomics.

64 - Macroeconomics deals with?

economics aggregates

65 - Which of the following is a normative statement in economics ?

The government should concentrate on reducing unemployment

66 - In a command (planned) economy ?

Resources are allocated by market forces

67 - The free market involves ?

Market forces of supply and demand

68 - Which of the following is not one of the basic economic s ?

How to maximize economic growth

69 - Human wants are_______________?

Unlimited

70 - The sacrifice involved when you choose a particular course of action is called the?

Opportunity cost

71 - The sacrifice involved when you choose a particular course of action is called the ?

Opportunity cost

72 - Resources in an economy ?

Are limited at any moment in time

73 - What is deflation________________?

Reverse of inflation

74 - Two countries can gain from foreign trade if ?

A and C of above

75 - Which of the following is a valid currency______________?

Currency note

76 - From each according to his ability to each according to his need is the theoretical slogan of ?

Communist System

77 - Exchange rate of which of the following currencies falls because of persistent balance of payments deficit ?

Soft currency

78 - Oil is measured in barrels. What is the abbreviation for barrels________________?

Bbl

79 - Commercial policy means_______________?

Policy about imports and exports

80 - Which city in Germany has the distinction of housing the first car manufacturing plant in the world ?

Bonn

81 - Balance of payments of a country includes ?

A and B of above

82 - Which of the following is not a function of a commercial bank?

Banker to the government

83 - The bank established for loans to very small enterprises in Pakistan is called_______________?

Micro Finance Bank

84 - Treasury bill is used for_________________?

Getting short term loans

85 - When the State Bank wants to decrease money supply in the country, it _______________?

Sells govt. securities

86 - When a commercial bank creates credit its immediate effect is that it raises__________________?

The money supplies

87 - The Liquidity Trap condition occurs at a_______________?

Very low rate of interest

88 - The power of a bank to create credit is affected by ?

A and B of above

89 - Pakistan's fiscal years starts from?

1st July

90 - A tariff______________?

Reduces the volume of trade

91 - Velocity of circulation of money means ?

The number of times a unit of money changes hands annually

92 - Government of Pakistan issues currency on the basis of__________________?

Demand for money in the country

93 - Economic development is measured on the basis of ?

Increase in real GNP

94 - When the stock market is rising it is ?

Bullish

95 - What would cause a country's exchange rate to fall ?

Increased demand for its imports

96 - The cause of inflation is ?

Increase in money supply and fall in production

97 - According to the law of demand. When ?

Price increase demand decreases

98 - Gross National income is always more than Net National income because it includes ?

Capital consumption allowance

99 - A budgetary deficit means ?

Total expenditure is more than total revenue

100 - Which is most likely to cause a more even distribution of income ?

An increase in progressive taxation

101 - Economic development ?

Means improvement in lifestyle

102 - Which of the following is a withdraw from the circular flow income stream ?

Taxation

103 - Consumption spending does not include ?

Household's purchase of stock in any XYZ corporation

104 - Net investment is___________________?

Gross investment minus capital consumption allowance

105 - GNP is_______________?

The market value of all goods and services produced in an economy

106 - We measure national income by this method ?

All of the above

107 - What is the meaning of the term stagflation ?

High inflation rate combined with high unemployment and unchanged consume demand

108 - What does price elasticity of demand measure ?

The responsiveness of demand to price changes

109 - What would reduce the role of central planning in a economy ?

Increasing the role of markets

110 - Transfer payments means ?

The payment without work

111 - The standard of living in a country is represented by its ?

Per capita income

112 - A tax which is paid by the person on whom the tax is incident is called a ?

Direct tax

113 - Who is a "Lame Duck" in a stock market ?

A member of the stock exchange who cannot meet his obligations

114 - Which company holds the world record for having the maximum number of shareholders ?

Reliance Industries Ltd.

115 - Devaluation of currency helps to promote ?

Exports

116 - If saving exceeds investment the national income will ?

Remain constant

117 - Which function is performed by both commercial banks and central banks ?

Dealing in foreign exchange

118 - What is Black Money ?

Income on which payment of tax is usually evaded

119 - The most industrialized country in Asia is ?

Japan

120 - What can a central bank increase in order to reduce consumer borrowing ?

interest rates

121 - Which of the following is an example of government policy that could reduce inflation ?

reducing government expenditure

122 - Which of the following groups suffer the most from inflation ?

Creditors

123 - With whom would you associate the following quote" The business of business is business" ?

Milton Friedman

124 - Devaluation means ?

Lowering of the value of one currency in comparison of some foreign currency

125 - The period of high inflation and low economic growth is termed as ?

Stagflation

126 - Which of the following can be used for check inflation temporarily ?

Decrease in tax

127 - Which of the following must always balance ?

The balance of payments

128 - Which type of income is earned only the actor of production enterprise ?

Profit

129 - Which of the following is regarded as a factor of production ?

Capital

130 - The situation with increasing unemployment and inflation is terms as ?

Stagflation

131 - When the stock market is down falling it is called ?

Bearish

132 - Large payment to senior employee who is forced into retirement is called ?

Golden handshake

133 - What is Euro ?

Both of them

134 - Deregulation is the reduction of government's role in ?

Controlling markets

135 - Term the central market for buying and selling all kind of securities ?

Stock Exchange

136 - Term the average income of the people of a country during a year ?

Per capita Income

137 - Currency that is expected to drop in value relative to other currencies is called ?

Soft currency

138 - What is called the tax that is levied on retail price of merchandise collected by retailer ?

Sales Tax

139 - What is public sector ?

All of them

140 - Term the minimum income level below which a person is considered to be living in poverty ?

Both of them

141 - What is National debt or public debt ?

All of these

142 - Governmental non-interference in commerce is called ?

Laissez faire also Laisser faire

143 - What is inflation ?

Increase in the amount of circulating money

144 - What is Free port ?

Where no export or import duties are levied

145 - What is called a country's total financial obligations to the rest of the world ?

External debt

146 - What is the period called 12-months plan of a country to use its funds ?

Fiscal year (FY)

147 - Gross Domestic Product (GDP) is__________________?

Value of all economic activity with in a nation's border

148 - What is Dumping ?

Sale of goods in large quantities and at a low price

149 - Depression is a drastic decline in a national of international economy It's characteristic is ?

All of these

150 - Scale for measuring the average share price and percentage change of 30 major US industrial companies is called ?

Dow Jones Index

151 - Reduction in the circulation of money resulting from fall of prices is known as ?

deflation

152 - What is called amount of money to purchase the goods and services to maintain life ?

Basic requirement

153 - Name the organization that is managed by those who use its facilities ?

Cooperative

154 - Who is called Father of Economics ?

Adam smith

155 - Central bank of Pakistan is ________________?

State Bank

156 - Capital Flight from a country is called ?

All of these

157 - Estimated income and plane for expenditure is called Budget. What is Budget deficit ?

More public spending than amount of revenue

158 - What is called the stock that sells at a high price ?

All of these

159 - What is called the situation in which a debtor remains unable to pay his creditors in full ?

Bankruptcy

160 - Of which item's chief exporter is Indonesia ?

Sugar

161 - Malaysia is the chief exporter of ?

Rubber

162 - India is the chief exporter of ?

Silver

163 - Which country is the chief exporter of jute ?

Both of them

164 - South Africa is the chief exporter of ?

Gold

165 - USA is the chief exporter of ?

All of these

166 - Which of the following is not an indirect tax ?

Sales tax

167 - Pick out the generic term for the securities industry firms that buy sell and underwrite securities ?

Wall street

168 - What is called the difference in the value of a nation's imports over exports or exports over imports ?

Both a & b

169 - What is called an additional levy added to some charge ?

Extra charges

170 - Which of the following is a form of international reserve assets, created by IMF in 1967 whose value is based on a portfolio of widely used currencies ?

Special Drawing Right (SDR)

171 - Interest that is calculated as a simple percentage of the original principal amount is called ?

Simple interest

172 - Bank loans are usually altered to have longer maturities in order to assist the borrower in making the necessary repayments. What these loans are called____________?

Rescheduled loans

173 - Name the Company that is listed with the SEC after submission of a required statement and compliance with disclosure requirement ?

Registered company

174 - what is called an evaluation of credit quality of a company's debt issued by Moody's S&P and Fitch investors services ?

Ratings

175 - Term the authorization whether written or electronic, that shareholders' votes may be cast by others ?

Proxy vote

176 - What is referred by the term ‘Portfolio ?

A collection of investments, real or financial

177 - P2P is business slang. What does it refer ?

Both of them

178 - Which market is characterized by a small number of large buyers who control all purchases and therefore the market price of a good a service ?

Oligopsony

179 - Where ‘Nikkei Stock average' applies ?

Mainly to international equities

180 - Percentage of total industry sales that a particular company controls is called ?

Market share

181 - Which of the following is rate of interest the major international banks charge each other for borrowings ?

London Interbank Offered Rate (LIBOR)

182 - What occurs when a firm's business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ?

Liquidation

183 - Keynesian economics is an economic theory of British economist John Maynard. What this theory states ?

Active government intervention is necessary to ensure economic growth and stability

184 - Which form of business organization falls between a corporation and partnership ?

Joint stock company

185 - Who is insolvent_______________?

A firm that is unable to pay debts

186 - Which money is called Hot money ?

Both of them

187 - What is called that legal process through which a company receives a charter and state in which it is based allows it to operate as corporation ?

Incorporation

188 - What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?

Goodwill

189 - What is called when a private company first offers shares to the public market and investors ?

going public

190 - Which exchange rate system is characterized by the absence of government intervention ?

Both of them

191 - By which process the holder of a mortgage seizes the property of a homeowner who has not made interest and or principal payments on time as stipulated in the mortgage contract ?

Foreclosure

192 - Term a country's decision to tie the value of its currency to another country's currency gold or a basket of currencies ?

Fixed exchange rate

193 - What is called that company which make loans to individuals, while not receiving deposits like a bank ?

Finance corporation

194 - An exchange arrangement was formed in 1979 that governs the currencies of European union member countries. What this arrangement called ?

Common Monetary System (CMS)

195 - What is Euro ?

Both of them

196 - What does mean by ‘Emerging Markets ?

Financial markets of developing economies

197 - A tax on imports exports, or consumption goods is called ?

Duty

198 - Portion of a company's profit paid to common and preferred shareholders is called ?

Dividend

199 - What is called that market in which supply overwhelms demand ?

Depressed market

200 - Which statistical factor is used to convert current currency purchasing power into inflation adjusted purchasing power ?

Deflector

201 - Failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bound indenture is called ?

Default

202 - Which of the following is referred by the Debt retirement ?

The complete repayment of debt

203 - What is called that debt obligation backed strictly by the borrower's integrity ?

Debenture

204 - An evaluation of an individual's or company's ability to obligations or its likelihood of not defaulting is known as ?

Credit risk

205 - Developments in a national economy can affect the outcome of an international financial transaction. What this process is called ?

Country economic risk

206 - Which branch of accounting provides information to help the management of a firm evaluate production costs and efficiency ?

Cost Accounting

207 - What is called interest that is paid previously earned interest as well as on the principal ?

Simple interest

208 - Common market is an agreement between two or more countries. What this agreement permits ?

Both of them

209 - Mention the market for trading long-term debt instruments ?

Capital market

210 - A market in which prices are in an upward trend is known as ?

Bull market

211 - What is called a check that is returned by a bank because it is not payable, usually because of insufficient funds ?

Bounce

212 - Rules and Particles that govern the management of an organization are called ?

By laws

213 - In the context of equities What is called a firm with two divisions that may split into two companies and issue original shareholders two shares for every old share they have ?

Butterfly

214 - Blue chip company is used in the context of general equities. What does it refer ?

Large and creditworthy company

215 - Quoted bid or highest price on inventor in willing to pay to buy a security is called ?

Bid price

216 - Mention an international trade policy competitive devaluation and increased protective barriers that one country institute to gain at the expense of its trading partners ?

Beggar-thy-beighbour

217 - What is called an internet strategy of dealing directly with business rather than consumer ?

B2B

218 - Which of the following is a price that is equal to the face value of a security ?

At Par

219 - What is referred by the Working capital ?

Both of them

220 - What is underwriter ?

All of them

221 - Government borrows in the form of promissory note to repay the bearer after some fixed days from the date of issue. How is called such borrowing ?

Treasury bill

222 - Trade name is ?

All of them

223 - A bank deposit, that cannot be withdrawn before the date which is specified at the time of deposit, is called ?

term deposit

224 - Government levy tax on imports and exports What this tax is called ?

Tariff

225 - Which theory of economic management focuses on encouraging product through tax reduction ?

Supply-side economics

226 - Government granted monetary assistance to a person or a group in support of an enterprise regarded as being in public interest. This is called subsidy. Point out the statement which is also a subsidy ?

Financial assistance given by one person or government to another

227 - Which term is used for an engagement in risky business with the idea of making a large profit in short time ?

Speculation

228 - A government program, social security is ?

Both a & b

229 - Which term is used for a country's holdings of intentionally acceptable means of payment ?

Reserves

230 - What is the rate of exchange or exchange rate ?

Ratio at which unit of one country's currency is exchanged for unit of another country currency

231 - What is comprised by public sector ?

All of them

232 - What is called the advocacy of protecting domestic producers by impeding or limiting the importation of foreign goods and services ?

Protectionism

233 - How is termed a written promise to pay back a specified sum of money at a stated time or on demand ?

Both of them

234 - What is price support ?

Maintenance of price through public subsidy or government intervention

235 - Point out the use of the term price fixing ?

Both of them

236 - The economics system planned economy is ?

In which production and distribution of wealth is under government's control

237 - How is termed equal rights of trade of trade without giving monopolies or preferences to an individual country ?

Open door market

238 - Which term is used for the total net value of all goods and services produced in a country in specified period of time ?

National income

239 - How is known the process in which an investment company continually offers new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies ?

Mutual fund

240 - A company or corporation which was subsidiaries, investments or operation in more than one country is known as ?

Both of them

241 - Monoculture is ?

Farming practice of growing a single crop

242 - What is called the market in which forces of demand and supply are not in the control of government ?

Both of them

243 - What is called the overall study of aspects and working of a national economy ?

Macroeconomics

244 - The term liquidate refers to pay off a debt, a claim or an obligation or to settle the affairs by determining liabilities and applying assets to their discharge. What is also converted by the term?

Both of them

245 - What is referred by the by economic theory "Liberalism" ?

All of these

246 - Bank issued a document that authorizes the bearer to receive money from one of its foreign branches or from another bank abroad. What such document is called ?

letter of Credit

247 - Total number of adults currently employed or actively seeking work in all economic sectors is known as ?

Labor force

248 - A detailed, itemized list, report or record or things in one's possession or the process of making such a list, or items listed in this list, or the stock, is called inventory. Which of the following is also inventory ?

An evaluation or a survey, as of abilities or resources

249 - Inflation is ?

Increase in the amount of circulating money

250 - Because of the decrease in the value of money, there comes exaggerated increase in incomes and prices. How is termed this system ?

Hyperinflation

251 - What is referred by the hard currency ?

Both of them

252 - Unlike a black market, what is called a system of secretly selling or trading commodities which is not necessarily illegal ?

Grey market

253 - There are certain products which are sold without brand name or trademark What these products are called ?

Generic

254 - Term the interchange of commodities across political frontiers without restriction such as tariffs, quotas, or foreign exchange controls ?

Free trade

255 - Free port is ?

Where no expert or import duties are levied

256 - How is termed the group which consists of Singapore, Hong kong, Taiwan, and south Korea ?

Four Tigers

257 - Which of the following is known as foreign exchange ?

Both of them

258 - Mention the penalty by which a person loses title of his property, that is a result of some illegal act ?

Forfeiture

259 - An organization plans the use of its fund during a 12-month period. What is this period called ?

Fiscal year (FY)

260 - In Western Europe in 9th C, originated military and social system in which a nobleman would grant the use of land to servant in return for service which is often military, and duty, Name the system ?

Feudal system

261 - What meant by excise ?

Both of these

262 - Beyond any mortgage thereon and liability therein, the residual value of a business or property is called equity. Which of the following are also included by term equity ?

Both of them

263 - How is termed the government's order to prevent the arrival or departure of merchant ships or to restrict import or export of specified or all goods with a foreign nation ?

Embargo

264 - What is Dumping ?

Scale of goods in large quantities and at low price

265 - Name the scale for measuring the average share price and percentage change of 30 major US industrial companies ?

Dow Jones Index

266 - Term the shared of profits of a joint stock company ?

Dividend

267 - Which term is used for fine that is payable for failing to clear goods from a storehouse with in a specific period of time ?

Demurrage

268 - Mention the term for an official act of reducing the rate in which one currency is exchanged for another in international currency markets ?

Devaluation

269 - What is called increased demand for a limited supply of goods and service result of which is increase in consumer prices ?

Demand pulls

270 - Interest payments and any principal repayments which are due on a country's external debt are known as ?

Debt service

271 - What is referred by cost push inflation ?

increased production costs drive prices up

272 - An adjustment is made in wages that corresponds with the change in the cost of living. What this adjustment is called ?

Cost of living adjustment

273 - Amount of money needed to purchase the goods and services required to maintain a certain standard of living called ?

Cost of living

274 - The sole legal right to print or publish anything which belongs to the author or his assignees is called ?

Copyright

275 - How I measured the change in the cost of basic goods and services in comparison with a fixed base period ?

Complete Price Index (CPI)

276 - The comparative advantage comes if each trading partners has a product that will bring a better price in another country than it will at home. Which economist proposed the principle of comparative advantage ?

David Ricardo

277 - A borrower gives to creditor a security to grantee repayment of a loan. What is this security called ?

Collateral

278 - Which of the following is the Pakistan's central bank ?

State Bank

279 - What is called the crop which is grown for sale rather than the farmer's own use ?

Cash crop

280 - Name the system in which the means of production and distribution are privately or corporate owned and development is proportionate to the accumulation and reinvestment of profits which are gained in a free market ?

Capitalism

281 - Mention the term which is used for the large-scale removal of individual and corporate investment capital and income from a country ?

Capital flight

282 - A long-term asset, such as land or building is termed as ?

capital asset

283 - What is called the rules of laws which governs the internal affairs of an organization ?

By laws

284 - The intermediary agent in the purchase and sale of any good is known as ?

Broker

285 - The amount value of an asset in business records is not necessarily identical to the amount that the asset could bring on the open market. What is it called ?

Book value

286 - Governments and corporations sell interest bearing certificates to raise money for expansion or trade. What is called these certificates ?

Bond

287 - Term the written order which directs that a specified sum of money be paid to a specified person ?

Bill of Exchange BE

288 - Bearer cheque is ?

payable to person holding it

289 - Balance of sheet is understood as ?

Statements of accounts that shows debit and credit accounts under the broad heads

290 - The balance of payment is ?

Balance between a nation's expenditure on imports and its receipts from exports

291 - What is called an arrangement of workers machines, and equipment in which the product being assembled passes consecutively from operation to operation or the process in which finished products are turned out in a mechanically efficient, though impersonal,

Both of them

292 - National Income is essentially composed of ?

All income of the people on a year

293 - Government policy about exports and imports is called ?

Commercial policy

294 - When aggregate supply exceeds aggregate demand ?

Business inventory accumulate

295 - Development means economics growth plus ?

Social change

296 - Which of the following terms refers to income that is saved and not invested ?

Hoarding

297 - What term is given to unemployment caused by a downturn in the business cycle ?

Cyclical unemployment

298 - Devaluation of currency can help to increase exports if elasticity of demand of exportable items in other countries is ?

Equal to one

299 - Which of the following must always balance ?

Balance of invisible trade

300 - If GNP of Pakistan rises. it will encourage ?

Both

301 - The branch banking system is in vogue in most countries of the world. In which country was it first developed?

UK

302 - Theory of comparative advantages was presented by ?

Ricardo

303 - Open market Operation is ?

Buying and Selling govt. securities

304 - Central bank's rate of lending to commercial banks is called ?

Control rate

305 - Which is the most widely used tool of monetary policy ?

Open-market operations

306 - In which capacity does a person stand to gain from deflation ?

As a pensioner

307 - Which of the following is not an instrument of monetary policy ?

Taxation

308 - When banks prepare their balance sheets. They show the money lent in ?

Assets

309 - Which of the following would cause income to become more unequal ?

More regressive taxes

310 - Trade between two countries can be useful if cost ratios of goods are ?

Different

311 - Which property the paper money does not process ?

Durability

312 - The govt. can control inflation by______________?

Increasing supply of goods

313 - When stock market is falling it is_______________?

Bearish

314 - What could a government do to correct the current account deficit ?

Reduce the deficit on the balance of trade

315 - Pakistan follows the policy of_______________?

Flexible exchange rate

316 - ‘Forex' stands for ?

Foreign exchange

317 - National income refers to ?

Money value of goods and and services produced in a country during a year.

318 - Fiscal deficit in the budget means ?

Budgetary deficits plus the net borrowings of the government

319 - The sum of total income received for the services of labor, land or capital in a country is called?

National income

320 - Which is most likely to cause a more even distribution of income ?

An increase in progressive taxation

321 - Which of the following would increase national income ?

Increase in govt. spending

322 - Market value of all final goods and services produced in a country during a year is definition of ?

GNP

323 - GNP includes ?

A broker's commission

324 - The term "Dumping" means ?

Sale in a foreign market of a commodity at a price below marginal cost

325 - To determine the correct level of GNP, it is necessary to ?

To add up the values of goods and services for one year

326 - What can a government do to increase demand in its economy ?

Cut taxes

327 - Which situation will a country face, if the birth rate falls sharply, while the death rate remains unchanged ?

an ageing population

328 - Which of the following is not required while computing Gross National Product (GNP) ?

Per capita income of citizens

329 - Rate of growth of an economy is measured in terms of________________?

National income

330 - Debenture holders of a company are its_______________?

Creditors

331 - The smallest unit of ownership of a company is______________?

A share

332 - Which of the following is not rated by credit rating agencies ?

Shares

333 - Which of the following payment instruments introduced by the banks is known as plastic money ?

Credit Cards

334 - Which is the best measure of economic growth of a country ?

GNP

335 - Hard currency is defined as ?

Currency traded in foreign exchange market for which demand is persistently relative to the supply

336 - National income of a country is based on ?

The sum of all factors of income

337 - What is more likely to be found in a free market economy than in a planned economy ?

an incentive to innovate

338 - To what does the phrase terms of trade refer ?

the rate at which exports are exchanged for imports

339 - Which economics term describes the takeover of one textile manufactures by another ?

horizontal integration

340 - Who among the following is most benefited from inflation ?

Debtors

341 - Monetary policy is regulated by ?

Central Bank

342 - A very rapid growth in prices in which money loses its value to the point where even barter may be preferable is known as ?

Hyper-inflation

343 - An essential attribute of inflation is ?

Increase in prices

344 - Which measures. taken by a government would be intended to raise the price of imports ?

Tariffs

345 - The term ‘real wage' means the money wage" ?

allowing for change in prices.

346 - What is a Debenture ?

Certificate issued by a company promising the payment of a specified amount at a fixed rate of interest after a specified period

347 - Inflation means ?

Rise in general price index

348 - Which is the oldest stock exchange of the world ?

London stock exchange

349 - What do you understand by Laissez faire ?

Interference by the state in law and order

350 - What is called a Tax on imports, exports ?

Duty

351 - What is Debt retirement______________?

The complete repayment of debt

352 - Term the rules and particles that govern the management of an organization ?

By laws

353 - What is Tariff ?

Both of them

354 - Economic system in which the government owns and controls the means of production to benefit all the people is called ?

Authoritarianism

355 - What is Remittance_______________?

Both of them

356 - What is called protection of domestic producers by impeding or limiting the importation of foreign goods and services ?

Protectionism

357 - In Planned economy' Production and distribution of Wealth is under control of_____________?

Private sector

358 - Market in which forces of demand and supply are not in the control of government is called ?

Both of them

359 - Interest is______________?

Payment made for the use of another person's money

360 - Term the group of countries that have removed all restrictions on trade among themselves?

Both of them

361 - During a given period how the economic activity of a nation is measured?

Gross National product (GNP)

362 - What is called the trade without restriction of tariffs, quotas, or foreign exchange controls ?

Free trade

363 - Group of Singapore, Hong, Kong, Taiwan, and south Korea is called?

Four Tigers

364 - Minimum price of a commodity fixed by government to save the interest of producer of raw materials is called ?

Floor price

365 - What is meant by excise?

Both of them

366 - Restriction on import or export of specified or all goods with a foreign nation by the Government is called ?

Embargo

367 - Downsizing is ?

to make in a smaller size

368 - Which kind of Tax is Federal subject ?

General Sales Tax

369 - What is called the reduction in the rate of a currency

Devaluation

370 - What is Debt Service ?

Both of them

371 - Term the sole legal right to print or publish anything that belongs to the author ?

property right

372 - What are called goods that satisfy human wants through their direct use ?

consumer goods

373 - 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?

Comparative Advantage

374 - Crop grown for sale is called?

Cash crop

375 - Goods and monies from which future income can be derived is called ?

Capital

376 - Barter is the trade of goods or services with ?

exchange of goods and services

377 - Which country is the chief exporter of Tin ?

Malaysia

378 - Of which mineral's chief exporter is Mexico ?

Silver

379 - China is the chief exporter of_______________?

Rice

380 - Which mineral's chief exporter is Russia?

Manganese

381 - USA is the chief exporter of_________________?

Both of these

382 - Which country is the chief exporter of coffee?

Brazil

383 - Which country is the chief exporter Aluminum?

USA

384 - What is measured by Gross domestic product (GDP)?

Value of all economic activity within nation's border

385 - What is write-Off?

Charging an asset amount to expense of loss

386 - Term a tax that is levied by a country of source on income paid, usually on dividends remitted to the home country of the firm operating in a foreign country?

Withholding tax

387 - Mention the name for economic theory that the support of business that allows them to flourish will eventually benefit middle- and lower-income people in the form of increased economic activity and reduced unemployment?

Trickle down

388 - "Term bond" are bonds whose principle is payable at maturity. What does mean by Term certificate?

A certificate of deposit whose principal is payable at maturity

389 - Which of the following is called a wholly or partially owned company what is the part of the large corporation?

Child company

390 - Name the money of county that is expected to drop in value relative to other currencies?

Soft currency

391 - A central bank or monetary authority hold foreign currency for the purpose of exchange intervention and the settlement of intergovernmental claims. Term the currency ?

Reserve currency

392 - Mention an agreement in which one party sells a security to another party and agrees to repurchase it on a specified date for a specified price ?

Repo

393 - What is called bankruptcy practitioner appointed by secured creditors to oversee the repayment of debts?

Receiver

394 - A piece of land and whatever physical property is on it is called?

Real estate

395 - There is an arrangement which allows a firm to use research from another firm at no cost in exchange for executing all of its trades with the firm that provides the research. What this arrangement is called?

Quid Pro quo

396 - Which of the following is referred by principle ?

Both of them

397 - Possibility of negative events or changes in the business climate of country is called?

Political risk

398 - There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?

Over-the counter (OTC)

399 - Name a market that is characterized by a small number of producers who often act together to control the supply of a particular good and its market price ?

Oligopoly

400 - Mention an electronic quotation system in USA that provides price quotations to market participants about more actively traded common stock issues in OTC market ?

National Association of Securities Dealers Automatic Quotation system (Nasdaq)

401 - Name a gold, silver, or platinum coin than usually traded at slightly more than its current bullion value ?

Maple Leaf

402 - Asset that is easily and cheaply turned into cash-notably, cash itself and short-term securities are known as______________?

Liquid asset

403 - In the context of contracts, what refers to secret payments made to ensure that the contract goes to a specific firm ?

kickback

404 - A seller of goods or services writes a bill that is submitted to a purchaser for payment. What this bill is called?

Invoice

405 - A company's first sale of stock to the public is called ?

Initial Public Offering (IPO)

406 - Name a corporation that owns enough voting stock in another firm to control management and operations by influencing of electing its board of directors ?

Holding company

407 - Mention a mutual fund that is invested primarily in stocks with a history of and future potential for capital gains ?

Growth fund

408 - Term a large payment to a senior employee who is forced into retirement or fired as a result of takeover or similar development ?

Golden handshake

409 - A country's fundamental system of transportation, communications, and other aspects of its physical capabilities are called ?

Infrastructure

410 - What is called the acquisition abroad of physical assets with operating control that resides in parent corporation ?

Foreign Direct Investment (FDI)

411 - What is called a country's decision to allow its currency value to change freely?

Floating exchange rate

412 - A firm owns long-lived property that is used by a firm in the Production of its income. What this property is called ?

Fixed asset

413 - Name the methodology by which members of the EMS maintain their currency exchange rates within an agreed upon range with respect to other member countries ?

Exchange Rate Mechanism (ERM)

414 - What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?

Foreign bank

415 - Investment funds are established for the supports of institutions such as hospitals investment is called ?

Endowment funds

416 - What is called degree of buyer's responsiveness to price changes ?

Demand & Supply

417 - Term a tax or duty rebate on imported goods that are exported at a later date ?

Drawback

418 - Deregulation is the reduction of government's role in controlling markets. Which of the following is result(s) of deregulation ?

Both of them

419 - Mention the theory of inflation or price increase that results from so-called excess demand ?

Demand-pull inflation

420 - What is called when government spending overwhelms government revenue resulting in government borrowing ?

Deficit spending

421 - What is called interest payments plus repayments of principal to creditors ?

Debt service

422 - Name a default on debt and obligations by a major financial institution that disrupts the stability of the economic system ?

Debt bomb

423 - What is called the manipulation of the market by traders to create the illusion of active volume to attract investors ?

Manipulated market

424 - What is called the centers around the ability of a national economy to generate enough interests and principal on its foreign debt ?

Country finance risk

425 - What is referred a group of companies that cooperate and share resources in order to achieve a common objective ?

Consortium

426 - Term a film that is engaged in two or more unrelated businesses ?

Conglomerate

427 - What is called that executive who is brought in to turn a company around and make it profitable ?

Manager doctor

428 - Which of the following is Price of the last transaction of a particular stock completed during a day's trading session on an exchange ?

Closing Price

429 - From the sale of capital assets tax is levied on profits. What this tax is called ?

Capital gains tax

430 - The French term Bourse refers to_________________?

Stock market

431 - Name the price at which the issuer of a bond may retire part of the pond at a specified call date ?

Call price

432 - Term the covering of a short position by purchasing a long contract, usually resulting from the short of a commodity ?

Buyback

433 - Shareholders of a corporation elect individuals to carry out certain tasks that are establishment in the charter. What these individuals are called ?

Board of Directors

434 - Which of the following are bonds that are not registered on the books of the issuer ?

Bearer bond

435 - What is called the price that a potential buyer is willing to pay for a security ?

Bid

436 - Which market is called Bear market ?

Market with a prolonged period of falling stock prices

437 - An outside professional conducts an examination of company's accounting records in order to determine whether the company is maintaining records according to the generally accepted accounting principles. What this examination is called ?

Audit

438 - What is artificial currency ?

A currency substitutes

439 - Estimated value that is added to a product or material to each stage, of its manufacture or distribution, is known as ?

Value added

440 - Which of the following is indicated by the term unemployed ?

All of them

441 - The mark is imposed on goods or wrappers to show that the articles bearing this mark belong to a particular trader. What is this mark called ?

Trade Mark

442 - Which of the following is referred by the phrase trade balance ?

Difference between imports and exports

443 - The term technology refers to______________?

Application of science to achieve a commercial or industrial objective

444 - What is defined as the active management of resources to provide the greatest present benefit without comprising the potential benefits to future generations ?

Sustainable development

445 - When supply exceeds demand, sellers must lower prices to stimulate sales, when demand exceeds supply, prices increase as buyers compete to buy goods. What this theory is called in economics?

Supply and Demand theory

446 - A share or an interest in an enterprise, especially a financial share, is called ?

Stake

447 - Name the political and economic system in which the government owns and controls the means of production to benefit all the people ?

Socialism

448 - What is sales tax_____________?

Levied on the retail price of merchandise and collected by retailer

449 - A payment is made in return for some transference of privilege. What this payment is called ?

Royalty

450 - The term Remittance refers to_______________?

Both of them

451 - How is termed the ability to buy ?

Purchasing power parities (PPP)

452 - By the way of an underwriter, the sale of a new security is issued to the public a transaction that must be registered with the securities and exchange commission. How is know this process ?

Public offering

453 - The term prospectus refers to______________?

Both of them

454 - Which term is used for the period of competition in which each competitor tries to cut retail prices below the others ?

Price war

455 - A number of relating prices of a group of commodities to their prices during an arbitrarily chosen based period is called ?

Price index

456 - Which term is used for the value imprinted on a security ?

Par value

457 - What is called the amount of non-military foreign aid which a country received ?

Official Development Assistance (ODA)

458 - What is called the result of a state's borrowing from its population, from foreign governments or from international institutions ?

Both of them

459 - What is mortgage______________?

Conveyance of property as security for debt

460 - Term the exclusive right of one or more persons to carry on some branch of trade of manufacture It is a sole power of dealing in something ?

Monopoly

461 - The branch of economics ‘Microeconomics' deals with______________?

small units, including individual companies and small group of consumers

462 - The term Mark-up refers to________________?

Both of them

463 - Name the company in which the liability of the shareholders is limited to the amount of their shares ?

Limited company

464 - LIFO (last in, first out) means ?

items are removed in inverse order

465 - Termed the written statement which expresses the intention of undersigned to enter into a formal agreement ?

Letter of intent

466 - Which economics doctrine opposes government regulation or interference in commerce beyond the minimum necessary for a free enterprise system to operate according to its own economics laws and non-interference in affairs of others ?

Laissez faire also Laisser faire

467 - How is termed the economic theories or Maynard Keynes especially those which advocate government monetary and fiscal and stimulate business activity ?

Keynesian

468 - What is referred by interest ?

Payment made for the use of another person's money

469 - Indemnity is_______________?

All of these

470 - Mention the name for that urban and rural region which is closely associated economically with an adjoining town or city. Term is also used to describe the area that is serviced by a port or coastal settlement ?

Hinterland

471 - By Which scale the value of all economic activity produced by a nation during a given period is measured ?

Gross National Product (GNP)

472 - The system under which a country's currency is exchangeable for a fixed weight of gold on demand at central bank is called ?

God standard system

473 - Downsizing is______________?

to make in a smaller size

474 - Different workers or group of workers separate the production works and trade into__________processes. What this separation is called?

Division of Labor

475 - What is referred by the discount rate________________?

Both of them

476 - What does mean by Deed________________?

legal instrument used to grand a right

477 - Depression is a drastic decline in a national or international economy. It's characteristic is_____________?

All of these

478 - What is Demand note ?

Draft payable in lawful money upon demand

479 - Which term is used for a bank account which can be operated at will ?

Current account

480 - Cost of production plus a fixed rate of profit is called ?

cost plus

481 - What is the cost effective ?

Economical in terms of the goods or services received for the money spent

482 - Name the organization in which people are associated together for a common purpose under a common name. This organization is recognized and created by law ?

Corporation

483 - Term the enterprise or organization which is managed by those who use its facilities or services ?

Cooperative

484 - Goods that satisfy human wants though their direct use or consumption are called______________?

consumer goods

485 - 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 ?

Comparative Advantage

486 - What is called a place of work where all workers within a section must belong to a single official recognized trade union ?

Closed shop

487 - Find out the term for the purpose that a buyer must pay for the goods at the time of its delivery ?

Cash on Delivery

488 - The term Cartel refers to ?

All of the above

489 - Point out the term for producer goods such as machinery that is used in production of commodities ?

Capital goods

490 - What is meant by capital stock ___________?

Both of them

491 - Term the body of goods and monies from which future income can be derived ?

Capital

492 - What is called the sequence of economic activity which is typically characterized by recession, fiscal recovery, growth and fiscal decline ?

Business Cycle

493 - How is termed the balance of investment and return; in which investment and return are exactly equal ?

Both of them

494 - Which term is used for an addition to normal payment by a company or extra payment of gratuity to workers ?

Bonus

495 - A stock that sells at a high price because of public confidence in its long record of steady earnings is called ?

All of these

496 - What is called the trade of goods or services without the exchange of money ?

Barter

497 - How is termed the legal proceeding in which debtor remains unable to pay his creditors in full ?

Bankruptcy

498 - What is called the difference in the money value between exports and imports during the specific period of time ?

Balance of trade

499 - The exchange rate is the ratio at which the currency of one country is exchanged for the currency of another. Which method was developed by the World bank to exchange rates ?

Atlas method of exchange rate

500 - Account is format banking, brokerage or business relationship established to provide for regular services. dealings and other financial transactions. Which of the following phenomenon(s) are also referred by term, Account ?

All of these

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