MCQs | Economics/Economics World Economy Sample Test,Sample questions

Question:
The cause of high inflation is

1.High prices

2.Black-market

3.Shortage of goods

4.Superior quality of goods


Question:
What is the main function of money?

1.To buy eatables from the market

2.To serve as a medium of exchange

3. To earn interest from a bank:

4.To buy luxurious goods


Question:
Devaluation means

1.Change in the currency of a country

2.Decrease in the value of gold

3.Decrease in the value of money in terms of foreign currency

4.Decrease in the value of money internally


Question:
Economics is

1.Creating maximum production

2.Producing buying and selling for maximum profit

3.Producing good at minimum cost

4.The science of planning and arranging the production, distribution and consumption of goods and services for the material welfare of mankind


Question:
Supply usually lags behind in the case of

1.Personal service

2.Entertainment

3.Luxuries

4. Necessities


Question:
The largest automobile manufacturing centre in the world is at:

1.Birmingham

2.Detroit

3.Paris

4.Tokyo


Question:
The law of demand states that other things being equal there is:

1.An inverse relationship between the quantity demanded and income of the consumer

2.A positive relationship between the quantity demanded and its price

3.An inverse relationship between the rate of change in the quantity demanded and the price of the commodity

4.An inverse relationshhip between the quantity demanded and its average cost of production. (188)


Question:
The National Rural Employment Programme focuses particularly on:

1.Beautification of rural areas

2.Creation of community assets

3.Famine relief

4.Reduction of unemployment


Question:
The sum of money paid on shares to a shareholder by a public limited company out of its profits is called

1.Annuity

2.Bonus

3.Interest

4.Dividend


Question:
Which of the following world be a fixed cost to a manufacturing firm?

1.Wages

2.Raw material

3.Replacement of loan

4.Machinery and plant


Question:
Who among the following is a famous economist?

1.Henry Francis Carry

2.Gunnar Myrdal

3.Max Muller

4.Macaulay


Question:
Banks charge higher rate of interest on the score of

1.Risk involved

2.Purpose of loan

3.Nature of goods

4.Type of customer


Question:
Changes in the standard of living of the people in a country are indicated best by changes in the

1.Per capita income

2.Wholesale price index

3.Cost of living index

4.Index of industrial productivity


Question:
Elasticity of Demand explains the relationship between

1.Price of substitutes arid quantity demanded

2.Utility of the commodity and quantity demanded

3.Income and quantity demanded

4.Price of a commodity and quantity demanded.


Question:
In Poland the demand of Solidrity is for

1.Holding of price level for common people

2.Right to make trade unions

3.Higher pays scales for labourers

4.Religious freedom


Question:
The currency of Bangladesh is the

1.Rial

2.Takka

3.Rupee

4.Rupiah


Question:
The economy of Brazil is mostly dependent on

1.Tea

2.Coffee

3.Tobacco

4.Sugar


Question:
The entrepreneur

1.Benefits at the expense of the other people

2.Formulates the policy

3.Organizes and takes all responsibility for the business bearing the risks it entails

4.Provides the capital for the business


Question:
The first railway line in India was laid between:

1.Calcutta and Madras

2.Bombay and Madras

3.Calcutta and Ranchi

4.Bombay and Thane


Question:
The Law of Diminishing Returns applies to

1.Merchandising

2.Production

3.Land

4.Perishable goods


Question:
The price of a commodity is fixed

1.By demand and supply of a commodity

2.By the government

3.By supply of a commodity

4.By demand of a commodity


Question:
The theory of surplus value is associated with

1.Communism

2.Guild socialism

3.Socialism

4.Fabian socialism


Question:
The workers real wage depends on

1.His gross earnings

2.His ability to increase production

3.His ability to save

4.The purchasing power of his earnings


Question:
What is the complete name of the World Bank?

1.International Finance Corporation

2.International Bank for Reconstruction and Development

3.International Monetary Fund

4.International Development Authority


Question:
What is the currency of Bangladesh?

1.Dinar

2.Takka

3.Rial

4.Rupee


Question:
What is the currency of Myanmar?

1.Pound

2.Takka

3.Kyat

4.Rupee


Question:
When prices are rising, one of the ways of bringing about reduction in prices would be to:

1.Increase the availability of goods

2.Reduce the rate of personal income tax

3.Lower interest rate

4.Increase government spending


Question:
Where is the headquarters of the European Economic Community?

1.London

2.Vatican City

3.Berlin

4.Brussels


Question:
Which of the following is a non-economic activity?

1.Sweeper cleaning the streets

2.Mother tending her sick child

3.Danseuse performing at a theatre

4.Professor instructing his students


Question:
Which of the following is the currency of Nepal?

1.France

2.Peso

3.Sikka

4.Taka


Question:
With which activity is the Wall street in New York, U.S.A. associated?

1.Banking and Finance

2.Literary arts

3.Defence

4.Films


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