Check Quiz on Basic Economics for practice in our education section on e akhabaar
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)
Related: World Capital quiz
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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