Best 100 MCQs Of Economics

1: Utility” in economics means the capacity to:

  • Provide comforts
  • Satisfy human wants
  • Earn an income
  • Satisfy human motives

2: Debt service ratio implies ratio between:

  • Import and debt
  • Export and principal plus interest payment on debt
  • Domestic savings and import
  • Domestic savings and export

3: With what expect of commerce are Bull” and bear associated?

  • Banking
  • Stock exchange
  • Foreign exchange
  • None of these

4: A deflator is a technique of:

  • Adjusting for changes in price level
  • Adjusting for changes in commodity
  • Accounting for higher increase of GNP
  • Accounting for decline GNP

5: Recession is that economic state of a country when there is:

  • Accumulation of unsold stock
  • Slump in trade and industry
  • Fall in consumer demand
  • None of these

6: Income that is saved but not invested is known as:

  • Capital
  • Deposit
  • Hoarding
  • None of these

7: A loan bearing low rate of interest is known as:

  • Hard loan
  • Soft loan
  • Capital loan
  • Riel loan

8: Closed economy means an economy having:

  • Exports only
  • No exports or imports
  • Imports only
  • None of these

9: White goods are:

  • Basic raw materials
  • Durable consumption goods
  • Cosmetics articles
  • Goods imported from western countries

10: Mixed Economy’ means

  • Co-existence of small scale and large scale industries
  • Co-existence of private and public sector
  • Co-existence of the rich and the poor
  • None of these

11: Unemployment which occurs when workers move from one job to another job is known as:

  • Frictional unemployment
  • Seasonal unemployment
  • Cyclical unemployment
  • Technological unemployment

12: GNP is the money value of:

  • Final goods and services produced annually in the economy
  • Annual service generation in the economy
  • Tangible goods available in the economy
  • None of these

13: Development means economic growth plus:

  • Deflation
  • Inflation
  • Social change
  • Price stability

14: “Dear money” means:

  • Low rate of interest
  • High rate of interest
  • Inflation
  • Depression

15: Demand means:

  • Willingness and ability of an individual to buy goods and services at a given price and time
  • The desire of an individual for goods and services needed by him
  • Ability of the society to buy goods and services
  • None of these

16: A multinational is:

  • A Company operating is several countries
  • A company having shareholders from more than one country
  • A company which does charitable work in poor countries
  • A company that operates only in those countries that do not have import restrictions

17: Temporary tax levied to obtain additional revenue is called:

  • Cess
  • Rate
  • Surcharge
  • Fee

18: The balance of payment comprises:

  • Official settlement of accounts
  • A current account of goods and services
  • A capital account of financial assets
  • All of the above

19: Black money is:

  • Income on which payment of tax is usually evaded
  • It is a study of needs verses affluence
  • The want of human beings
  • None of these

20: Who said, “Where health accumulates, men decay”?

  • Goldsmith
  • Abraham Lincoln
  • Gandhi
  • Quaid-e-Azam

21: The balance of payment is understood as:

  • The balance between a country’s expenditure on imports and its receipts from exports
  • The balance of amount after paying debt
  • The balance of income and expenditure in the annual budget
  • None of these

22: The biggest market of Pakistan import is:

  • Russia
  • US
  • Switzerland
  • Italy

23: The biggest market of Pakistani exports is:

  • US
  • Germany
  • Japan
  • Korea

24: Cash crop is the crop:

  • Which is grown only for sale
  • Which gives high profit to the farmers
  • Which is grown after taking cash loan banks
  • None of these

25: Embargoes are designed to:

  • Promote trade of prohibited goods
  • Restrict trade of particular commodities
  • Restrict trade of drugs
  • None of these

26: A free port is a port where:

  • Less duties are paid
  • No duties and no restrictions are imposed
  • Selective duties are paid
  • None of these

27: Which country has maximum foreign projects investment in Pakistan?

  • US
  • China
  • UK
  • Russia

28: General sales tax, under the constitution of 1973 is a:

  • Provincial subject
  • Federal subject
  • Concurrent subject
  • None of these

29: which five year of plan of Pakistan is yet to be implemented?

  • 7th
  • 9th
  • 10th
  • 5th

30: Which is the single largest component of GDP of Pakistan?

  • Industry
  • Agriculture
  • Foreign remittances
  • None of these

31: OPEC’s largest off producing country is:

  • Kuwait
  • Saudi Arabia
  • Iran
  • UAE

32: Per capita income is:

  • Average income of the people of a country during a year
  • Average income of a working class
  • Average income of laborers only
  • None of these

33: Inflation means that:

  • Money falls in value
  • Rises in value
  • Money become scarce
  • None of these

34: A stoke exchange is:

  • A central market for buying and selling of all kinds of securities
  • A place where any businessman can borrow many from the members
  • A place where a register is kept of all public and private limited companies
  • None of these

35: Which of the following deals with economic offences?

  • COFEPOSA
  • NSA
  • TADA
  • MISA

36: “Sale tax” is ultimately paid by:

  • Shopkeepers
  • Consumers
  • Producers
  • Wholesalers

37: Which is the highest economic decision-making body in Pakistan?

  • National Economic Council
  • Ministry of Economic Affairs
  • National Finance Commission
  • None of these

38: The exploitation of developing countries by advanced countries is called:

  • Embargoes
  • Economic imperialism
  • Sanctions
  • None of these

39: The sixth noble prize for economics was introduced in 1969 in memory of Alfred Noble. It is financed by:

  • Swedish National Bank
  • World Bank
  • Asian development Bank
  • None of these

40: The total sale revenue of a business is called:

  • Flow
  • Turnover
  • Business
  • None of these

41: Government grants to suppliers of goods and services are called:

  • Tax
  • Subsidy
  • Support
  • None of these

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

  • Oligopoly
  • Monopoly
  • Duopoly
  • None of these

43: Who among the following is associated with the theory of ‘Laissez Farie’?

  • Adam Smith
  • Marshal
  • Keynes
  • Max Muller

44: Which of the following is not a characteristic of capitalism?

  • Equality
  • Monopoly
  • Privatization
  • Maximum Profit

45: Which of the following is not common between socialization and communism?

  • Violence
  • Removal of inequality
  • Equality of opportunities
  • None of these

46: What is laissez-faire?

  • Mixed economy
  • Non-interference of government in economic affairs
  • Controlled economy
  • None of these

47: ‘Fabian Socialism’ first emerged in:

  • Russia
  • Great Britain
  • Germany
  • India

48: The Asian Development Bank has its headquarters in:

  • Tokyo
  • Manila
  • Colombo
  • Kathmandu

49: The book “Wealth of Nations” was written by:

  • Adam Smith
  • Eric Roll
  • J. K. Marshal
  • Laski

50: The law of diminishing returns is applicable to:

  • Manufacturing
  • Agriculture
  • Mining
  • None if these

51: Which of the following is one of the features of Marxism?

  • Dialectic materialism
  • Profit motive
  • Freedom occupation
  • None of these

52: Theory of “vicious circle” is related to:

  • Nationalization
  • Economic control
  • Cooperation
  • Progressive taxation

53: Who is the father of economics?

  • Max Muller
  • Karl Marx
  • Adam Smith
  • None of these

54: The theory that population increases in geometric progression while food production increases in arithmetical progression, is associated with:

  • Gresham
  • Malthus
  • Keynes
  • Engels

55: Evils of capitalism may be minimized by adopting the principle of:

  • Economic control
  • Nationalization
  • Cooperation
  • Progressive taxation

56: In a free economy, inequalities of income are mainly due to:

  • Private property
  • Free competition
  • Private property and inheritance
  • None of these

57: The term “Paper Gold” is associated with:

  • Deficit budgeting
  • Special drawing rights of IMF
  • Special facility of World Bank
  • Gold standard

58: “Interest Rate Policy” is a component of:

  • Fiscal Policy
  • Monetary policy
  • Trade Policy
  • Direct policy

59: Fiscal policy means the:

  • Credit policy
  • Planning policy
  • Taxation policy
  • Policy of expenditure

60: WTO headquarters is located at:

  • Washington
  • Geneva
  • Paris
  • The Hague

61: From the view of international economy, Third World implies:

  • The developing countries
  • Developed countries
  • Blocked by US and UK
  • None of these

62: Which of the following statements is true about Asian Development Bank?

  • It was sponsored by UN
  • It is a commercial bank
  • It is a subsidiary of World Bank
  • It gives loan only

63: The IMF headquarters of is located in:

  • London
  • Washington
  • New York
  • Tokyo

64: The developing countries have only a minor share of the world trade because:

  • They produce primary goods
  • They lack the necessary infrastructure
  • They face fierce competition
  • None of these

65: The purpose of World Bank is to:

  • Meet balance of payments position
  • Give international loans for development purpose
  • Help to solve balance of payments problems
  • None of these

66: The World Bank is based in:

  • New York
  • Washington
  • Paris
  • London

67: The World Trade Organization (WTO) is a setup to take over functions of which of the following?

  • GATT
  • IMP
  • ECA
  • ECOSOC

68: World Bank is a body:

  • Of non-official, generous individuals
  • That controls worldwide foreign exchange operation
  • That gives aid to developing countries
  • None of these

69: What is the full name of World Bank?

  • International Finance Corporation
  • International Development Authority
  • International Bank for Reconstruction and Development
  • None of these

70: A common currency for the members of the common market in Europe is known as:

  • Franc
  • Dollar
  • Euro
  • Pound

71: The latest regional economic bloc to be formed is:

  • NAFTA
  • ECO
  • SAARC
  • SEO

72: The main watching of international trade is:

  • IMF
  • GATT
  • IFC
  • World Bank

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