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Basic of Economics – MCQs
428 questions. Click to practice.
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Correct options are highlighted when revealed.
1.
What term describes a price that matches the nominal value of a financial instrument?
Equilibrated
Market Value
At Par
No Correct Option
Face Price
2.
What does the term 'Working Capital' signify in a business context?
Resources owned by the company that are used in its daily operations
The surplus of current assets over current liabilities
Both of the above definitions
Neither of the above
3.
Which of the following best defines the role of an underwriter?
To accept financial risk on behalf of the grantee in case of default
To sign an agreement taking on liability for certain specified losses
To ensure the sale by agreeing to purchase any remaining shares at a predetermined time and price
All of the above
4.
What is the name of the government borrowing method where a promissory note is issued, promising repayment to the holder after a specified number of days?
Debenture
Treasury bill
Fixed-term loan
Government securities
Certificate of deposit
5.
What does the term 'trade name' refer to?
A name used to distinguish a product or service in the market
The designation by which a product, service, or process is recognized in commerce
The official name under which a company conducts its business
All of the above
6.
What is the name of a bank deposit that cannot be withdrawn until the predetermined maturity date?
Bond investment
Term deposit
Timed deposit
Fixed asset
Locked savings
7.
What is the name of the tax imposed by the government on goods that are imported or exported?
Customs duty
Excise tax
Tariff
Shipping charge
Value-added tax
8.
Which economic theory emphasizes boosting production by lowering taxes?
Classical liberalism
Market-driven economics
Supply-side economics
Regulated market system
Keynesian economics
9.
A subsidy is defined as financial aid provided by the government to an individual or group to support an activity considered beneficial to the public. Which of the following best represents an example of a subsidy?
Monetary support offered by a government or individual to another party
Funds given specifically to economically disadvantaged individuals
Financial help provided to elderly citizens
Capital assistance granted to small-scale businesses
10.
What is the term for participating in a high-risk venture with the goal of earning substantial profits quickly?
Optimism
Gambling blindly
Speculation
Risk mitigation
Safe investment
11.
What best describes the social security program offered by the government?
Financial support given through social security
Monetary aid for individuals experiencing unemployment, disability, or old age, funded by contributions from both employers and employees
Both A and B
Neither A nor B
12.
What is the term for a nation's stock of officially approved payment instruments?
Assets
Reserves
Foreign exchange
Wealth
Capital
13.
How is the exchange rate defined?
The ability to purchase foreign currency
Possession of foreign money
The proportion at which one nation's currency unit is traded for another nation's currency unit
None of the above
14.
Which entities are included within the public sector?
Government-owned corporations
Local and central government bodies
Industries that have been nationalized
All of the above
15.
What term describes the practice of shielding local manufacturers by restricting or controlling the entry of imported foreign products and services?
Domestication
Protectionism
Localization
National interest
16.
What do you call a written commitment to repay a certain amount of money either on demand or at a specified date?
Promissory Note
Note of Hand
Either of the above
Neither of these
17.
What does the term 'price support' refer to?
Artificially raising the price
Sustaining prices via government aid or public subsidies
Boosting the price value
Keeping the price fixed at a certain point
18.
Which of the following best describes the concept of price fixing?
Illegal pact among producers to establish and uphold a fixed price for usually rival products
Government-imposed artificial pricing of goods
Both of the above
Neither of the above
19.
What defines a planned economic system?
An economy where economists oversee production activities
A system where the government manages the production and allocation of resources
An economy controlled by technical experts in production decisions
A system where the government regulates the distribution of goods
20.
What term describes the principle of equal trading opportunities without granting exclusive privileges or monopolies to any single nation?
Open door market
Open door country
Open sky market
Free economy
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