Quiz on Basic Economics

economics questions / answers

Economics Quiz:

Ques. In economics, it is generally believed that the main objective of a bank, is to
(a) Employ more and more people
(b) Maximize total profits
(c) Maximize total production
(d) Provide financial services to the people across the country

Ans. (d)

Ques. Sellers market denotes a situation where
(a) Commodities are available at competitive rates
(b) Demand exceeds supply
(c) Supply exceeds demand
(d) Supply and demand are equal

Ans. (b)

Ques. To achieve high rates of growth of national output, the economy has to
(a) Reduce the rate of growth of population
(b) Borrow foreign capital
(c) Step up the rate of savings
(d) Increase the rate of investment and reduce the capital output ratio

Ans. (d)

Ques. The fundamental cause for the collapse of the Bretton woods system was:
(a) Liquidity problem
(b) The Adjustment problem
(c) The Confidence problem
(d) All of these

Ans. (d)

Ques. Development means economic growth plus
(a) Inflation
(b) Deflation
(c) Price stability
(d) Social change

Ans. (d)

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Ques. The direction of trade indicates:
(a) The nature of goods that are exported and imported
(b) The value of goods that are exported and imported
(c) The countries to which commodities are exported and the countries from which commodities are imported
(d) The terms at which exports exchanges for imports

Ans. (c)

Ques. Relative poverty is basically related with
(a) Poor
(b) Rich
(c) Both
(d) None

Ans. (b)

Ques. Which among the following countries has the maximum amount of external debt?
(a) USA
(b) Mexico
(c) Brazil
(d) Japan

Ans. (a)

Ques. Which of the following theories was given by Karl Marx ?
(a) Functional theory
(b) Evolutionary theory
(c) Theory of class struggle
(d) None of these

Ans. (c)

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Ques. Mixed economy envisages:
(a) Co-existence of capitalists and labourers
(b) Integrated economic development
(c) Development of agriculture and industry simultaneously
(d) Private and Public sectors

Ans. (d)

Ques. Which of the following terms is used in Economics ?
(a) Keynesian
(b) Adsorption
(c) Affinity Matrix
(d) Gene Flow

Ans. (a)

Ques. The important objectives of the development of cooperative sector are:
(a) Prevention of concentration of economic power
(b) Wider dispersal of ownership of productive resources
(c) Active involvement of  people  in the development programmes
(d) all of these

Ans. (d)

Ques. Which of the following terms is not used in Economics ?
(a) Demand and Supply
(b) Ad Valoram Tax
(c) Break even
(d) HIV positive

Ans. (d)

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Ques. Who is called the Father of Economics?
(a) Nelson Mandela
(b) Vasco de Gama
(c) Adam Smith
(d) Niels Bohr

Ans. (c)

Ques. When too much money is chasing too few goods, the situation is __
(a) Deflation
(b) Inflation
(c) Recession
(d) Stagflation

Ans. (b)

Ques. Globalization promotes
(a) cultural industry
(b) environment
(c) economy
(d) taxes

Ans. (c)

Ques. Marx belonged to—
(a) Germany
(b) Holland
(c) France
(d) Britain

Ans. (a)

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Ques. The economic development is in two ways. Which is that way?
(a) Urbanization and Industrialization
(b) Modernization and Industrialization
(c) Urbanization and Modernisation
(d) Secularism and Liberalism

Ans. (a)

Ques.  The terms ‘Micro Economics’ and ‘Macro Economics’ were coined by—
(a) Alfred Marshall
(b) Ragner Nurkse
(c) Ragner Frisch
(d) J.M. Keynes

Ans. (c)

Ques. The economic doctrine Laissez faire simply means
(a) Let things alone
(b) Regulated Trade
(c) State intervention in Trade
(d) None of these

Ans. (a)

Ques. During period of inflation, tax rates should—
(a) Increase
(b) Decrease
(c) Remain constant
(d) Fluctuate

Ans. (a)

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Ques. As an economic doctrine, mercantilism was characterized by
(a) Control of economic activities
(b) free trade
(c) Price mechanism by demand and supply
(d) open market

Ans. (a)

Ques. ‘Closed Economy’ is that economy in which ____
(a) Only export takes place
(b) Money supply is fully con-trolled
(c) Deficit financing takes place
(d) Neither export nor import takes place

Ans. (d)

Ques. The first phase of capitalism is generally known as
(a) Industrial capitalism
(b) Finance Capitalism
(c) Merchant capitalism
(d) MNC capitalism

Ans. (c)

Ques. Lack of access to financial services is technically known as
(a) Financial Instability
(b) Financial Stability
(c) Financial Inclusion
(d) Financial Exclusion

Ans. (d)

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Ques. Money is
(a) Constant in purchasing power
(b) Acceptable only when it has intrinsic value
(c) The most Liquid of all assets
(d) None of these

Ans. (c)

Ques. Which of the following is generally free from trade barriers and where exports and imports from a large percentage of GDP ?
(a) Modern Economy
(b) Open Economy
(c) Closed Economy
(d) Macro Economics

Ans. (b)

Ques. Who is the father of capitalism?
(a) Adam Smith
(b) Vladimir Lenin
(c) Jean-Jacques Rousseau
(d) Martin Luther King Jr

Ans. (a)

Ques. GDP in a country is usually calculated by
(a) International Monetary Fund
(b) System of National Accounts
(c) Finance Minister
(d) National Statistical Agency

Ans. (d)

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Ques. Economic activities, though, are grouped into different categories are highly
(a) independent
(b) autonomous
(c) unconnected
(d) interdependent

Ans. (d)

Ques. WTO prescribes export subsidies as:
(a) Competition
(b) Unfair competition
(c) Monopolistic competition
(d) Exploitation

Ans. (b)

Ques. Demand in Economics means
(a) Aggregate demand
(b) Market demand
(c) individual demand
(d) Demand backed by purchasing power

Ans. (d)

Ques. Each member of IMF is assigned a quota expressed in:
(a) Member country’s currency
(b) Dollar
(c) Special Drawing Rights
(d) None of the above

Ans. (c)

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Ques. The market value of all final goods and services produced and/or made with the geographical boundaries of a country in a year is known as __
(a) Gross Domestic Product
(b) Gross National Saving
(c) Gross Fiscal Deficit
(d) Gross Domestic Capital Formation

Ans. (b)

Ques. Industrial Revolution first began in
(a) Germany
(b) England
(c) Italy
(d) France

Ans. (b)

Ques. Generally people engaged in which activity face seasonal and disguised unemployment?
(a) Agriculture
(b) Manufacturing
(c) Construction
(d) Service

Ans. (a)

Ques. Which among the following is not an impact of Unemployment?
(a) Wastage of manpower resources
(b) Increase in economic overload
(c) Hamper the overall growth of an economy
(d) Increase in per capita income

Ans. (d)

Ques. What happens when an economy goes in the grip of ‘recession’ ?
1. GDP growth slows down.
2. People lose their jobs.
3. Foreign exchange reserve goes up substantially as lot of loans/grants start pouring in.
(a) Only 1
(b) Only 2
(c) Only 3
(d) Only 1 and 2

Ans. (d)

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Ques. Gross domestic product is a measure of _
(a) A country’s international economic activities
(b) A country’s domestic economic activities
(c) A country’s financial position
(d) A country’s industrial output

Ans. (b)

Ques. The norms of behaviors which satisfy the requirements of social rationality of economic activity are established by
(a) positive economics
(b) normative economics
(c) business economics
(d) mathematical economics

Ans. (b)

Ques. Under perfect competition, supply curve is identified as which one of the following?
(a) rising portion of marginal cost curve
(b) rising portion of average total cost curve
(c) rising portion of average variable cost curve
(d) portion of marginal cost curve above the average variable cost curve

Ans. (a)

Ques. Paper currency is known as ‘fiat money’
(a) because only a fraction of total currency is in coins
(b) because it is decreed legal tender
(c) because it cannot be used as payment for debts
(d) none of these

Ans. (a)

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