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1140+ Economics (GK) Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: General Knowledge (GK) , Union Public Service Commission (UPSC) .

851.

Which of the following is not true?

A. Tariffs can help new industries to become established
B. Tariffs may divert demand to home industry and so encourage employment
C. Tariffs encourage home industries to become more efficient
D. All of the above
Answer» A. Tariffs can help new industries to become established
852.

Which of the following is false statement?

A. There is no difference between balance of payment and balance of trade
B. Balance of trade is also known as balance of visible trade
C. Balance of repayment consists of three accounts namely current account, capital account and monetary account
D. All of the above
Answer» A. There is no difference between balance of payment and balance of trade
853.

A country's visible balance is the difference between the:

A. Volume of goods imported and exported
B. Value of capital goods exported and imported
C. Volume of consumer goods imported and exported
D. Value of goods imported and exported
Answer» D. Value of goods imported and exported
854.

Which of the following items are not exports of Pakistan?

A. Wheat
B. Sports goods
C. Both of the above
D. None of the above
Answer» C. Both of the above
855.

Which of the following is not Pakistan's major imports?

A. Petroleum
B. Machinery
C. Surgical goods
D. Tea
Answer» C. Surgical goods
856.

Which of the following statement is not false?

A. Pakistan's balance of payments is mostly favourable
B. Terms of trade of Pakistan are favourable
C. Devaluation makes the exports to increase
D. Pakistan imports cotton and exports wheat
Answer» C. Devaluation makes the exports to increase
857.

Which of the following statement is false?

A. Public finance and private finance differ from each other in many respects
B. In private finance, expenditure is first estimated and then resources are made available to meet this expenditure
C. Budget period for the public finance is one year
D. Resources in both public and private finance are limited in relation to demand for expenditure
Answer» B. In private finance, expenditure is first estimated and then resources are made available to meet this expenditure
858.

Which of the following is not correct?

A. Tax is a general purpose compulsory contribution
B. Tax payment is optional
C. A tax payment cannot claim a direct service in lien of tax
D. None of the above
Answer» B. Tax payment is optional
859.

Taxes which may be shifted from the person upon whom they are originally imposed to another person are:

A. Special taxes
B. Double taxes
C. Proportional taxes
D. Indirect taxes
Answer» D. Indirect taxes
860.

"Sales Tax" is ultimately paid by:

A. The shopkeepers
B. The producers
C. The customers
D. The wholesalers
Answer» C. The customers
861.

An example of indirect tax is:

A. Corporation tax
B. Income tax
C. Rates
D. Tobacco tax
Answer» D. Tobacco tax
862.

Which of the following is true statement?

A. Income tax is a progressive tax
B. Excise duty is an indirect tax
C. Wealth tax is a direct tax
D. All of the above
Answer» D. All of the above
863.

A budget is best described as:

A. A list of expenditure made during the previous year
B. An estimate of expected income and a plan for expenditure
C. A means of raising money for necessary expenditure
D. A plan for purchasing the best quality goods at the lowest prices
Answer» B. An estimate of expected income and a plan for expenditure
864.

A budget of deficit is one:

A. Where public spending is less than the amount of revenue
B. Where public spending is greater than the amount of revenue
C. Where public spending is equal to the amount of revenue
D. Where the budget leaves most tax payers with less disposable income
Answer» B. Where public spending is greater than the amount of revenue
865.

Which of the following measures would the government take to finance its borrowing requirements?

A. Sell government securities
B. Sell bills of exchange
C. Sell ordinary shares
D. Buy treasury bills
Answer» A. Sell government securities
866.

Which of the following is false statement?

A. Federal government receives land revenue
B. Motor vehicles tax is received by Federal Government
C. Court fees are received by Federal Government
D. All of the above
Answer» D. All of the above
867.

In a fully planned economy, who decided what would be produced:

A. Private entrepreneurs only
B. Government only
C. Consumers only
D. The government in public enterprise and private entrepreneurs in private enterprises
Answer» B. Government only
868.

Which of the following is/are characteristics of mixed economics?

A. Subsidies for some industries
B. The operation of the market economy in parts of the economy
C. Government control of some industries
D. All the above
Answer» D. All the above
869.

Which of the following is/are true for a capitalist society?

A. People have the right to own private property
B. There is freedom of enterprise
C. Freedom of choice for the consumers
D. All of the above
Answer» D. All of the above
870.

Which one of the following arguments can be used in favour of the market economy?

A. It guarantees full employment of labour
B. It leads to equality of wealth
C. It allows the government to plan investment in each industry
D. All of the above
Answer» A. It guarantees full employment of labour
871.

Pakistan’s largest export market is:

A. USA
B. Germany
C. Japan
D. Saudi Arabia
Answer» A. USA
872.

Which of the following programmes was financially supported by UNICEF in Pakistan during 1982-1986?

A. To reduce infant mortality
B. To reduce maternal mortality
C. To double the literacy rate among women
D. All of the above
Answer» D. All of the above
873.

Under a capitalist system, the economic problem of "what goods" shall be produced is solved primarily by:

A. People advertising their wants
B. Direction by the government
C. The pattern of consumer's spending
D. People producing directly to satisfy their own wants
Answer» C. The pattern of consumer's spending
874.

The World’s most populous city is:

A. Mexico City
B. Beijing
C. New York
D. Tokyo
Answer» D. Tokyo
875.

Pakistan’s biggest and most powerful ‘Radio Station’ is:

A. Islamabad
B. Lahore
C. Karachi
D. Peshawar
Answer» A. Islamabad
876.

One advantage for the capitalist system for allocating resources in economy is that it:

A. Avoids unemployment
B. Reduces inequality of incomes
C. Affords the fullest opportunity for individuals to indicate their preferences for goods within the limits of their spending power
D. Always results in goods being produced at the lowest possible cost.
Answer» C. Affords the fullest opportunity for individuals to indicate their preferences for goods within the limits of their spending power
877.

Which of the following countries could most aptly be described as having a fully centrally planned economy?

A. U.K.
B. U.S.A.
C. Former U.S.S.R.
D. Germany
Answer» C. Former U.S.S.R.
878.

Which of the following statement is true?

A. Most of the developing countries like Pakistan have planned economies
B. In a market economy, there is most equal distribution of income
C. In a mixed economy, the government interferes with the price system to overcome its disadvantages
D. In a centrally planned economy, society will always get the goods it wants.
Answer» C. In a mixed economy, the government interferes with the price system to overcome its disadvantages
879.

In Punjab, the lowest density of population is in:

A. Multan Division
B. Rawalpindi Division
C. Bahawalpur Division
D. D.G. Khan Division
Answer» C. Bahawalpur Division
880.

Which of the following is a cash crop?

A. Wheat
B. Rice
C. Cotton
D. None of the above
Answer» C. Cotton
881.

Which of the characteristics of Islamic Economic System is/are true?

A. An Islamic state is essentially a welfare state
B. Ensures social justice
C. All economic problems are solved in the light of moral values
D. All of the above
Answer» D. All of the above
882.

"Zakat" is a charity on:

A. Wealth/income which stays with a Muslim for at least one year
B. Levied on a Muslim who is Sahib-e-Nisab
C. Deducted at the rate of 2 ½ % of the income
D. All of the above
Answer» D. All of the above
883.

Which of the following is correct? A Sahib-e-Nisab is a person who owns:

A. 7 ½ tolas of gold or 52 ½ tolas of silver
B. Trading goods or cash equal to 7 ½ tolas of gold or 52½ tolas of silver.
C. 5 camels or 30 cows (buffaloes) or 40 sheep (goats)
D. All of the above
Answer» D. All of the above
884.

In Islam, absolute ownership of property lies only with:

A. Allah
B. Government
C. Owner of the property
D. Both government and owner
Answer» A. Allah
885.

Which of the following statement is wrong?

A. Islamic economic system allows the use of only "halal" things
B. Islamic laws cannot be changed by majority decision
C. Islamic economic system brings an end to exploitation of labour
D. None of the above
Answer» D. None of the above
886.

From which of the following countries, Pakistan received the biggest share of workers remittances during the year 2000?

A. UAE
B. Kuwait
C. Saudi Arabia
D. USA
Answer» C. Saudi Arabia
887.

World Trade Organization (WTO) was established in 1995 with the objective:

A. To promote free trade in the World.
B. To protect intellectual property rights.
C. To remove quota restrictions in foreign trade.
D. All of the above.
Answer» D. All of the above.
888.

Agricultural income tax in Pakistan will be levied on the farmers with land holdings of or more than:

A. 30 acres
B. 10 acres
C. 6 acres
D. 12 ½ acres
Answer» D. 12 ½ acres
889.

Which of the following European country has not adopted Europe currency?

A. Great Britain
B. Sweden
C. Denmark
D. All of the above
Answer» D. All of the above
890.

Under the Constitution of Pakistan, National Finance Commission distribute the amount from federal taxes to provinces on the basis of:

A. Area
B. Population
C. Natural Resources
D. Equality
Answer» B. Population
891.

According to a UN report, the number of hungry people (starving to death) in the world stands at:

A. 600 million
B. 800 million
C. 700 million
D. 500 million
Answer» B. 800 million
892.

Kohat Tunnel Project is being completed with the financial aid of:

A. Japan
B. China
C. Turkey
D. USA
Answer» A. Japan
893.

“Mukran Coastal Highway” project is being completed with the assistance of:

A. Japan
B. Canada
C. China
D. U.K.
Answer» C. China
894.

Which is the highest economic decision making organ in Pakistan?

A. National Finance Commission
B. Ministry of Economic Affairs
C. National Economic Council
D. None of the above
Answer» C. National Economic Council
895.

What is “Jingoism”?

A. Political Philosophy of State Control over all means of production
B. Injustice done to the poor segment of society
C. Extreme nationalism and patriotism
D. Promotion of peace in the World
Answer» C. Extreme nationalism and patriotism
896.

Which of the following “Gemstones” is found in Pakistan?

A. Lapis Lazuli
B. Topaz
C. Ruby
D. All of the above.
Answer» D. All of the above.
897.

Which of the following mobile phone company is in private sector?

A. Mobilinks
B. Paktel
C. Insta Phone
D. All of the above
Answer» D. All of the above
898.

President General Pervaiz Musharraf inaugurated the first branch of Micro Finance Bank on August 11, 2000 at:-

A. D.G. Khan
B. Lahore
C. Multan
D. Jhelum
Answer» A. D.G. Khan
899.

Under the Zakat fund, the amount being given to the deserving people is:

A. Rs. 300
B. Rs. 500
C. Rs. 600
D. Rs. 700
Answer» B. Rs. 500
900.

The government has prepared a programme to increase the textile exports of the country by the name of:

A. Textile vision 2003
B. Textile promotion 2004
C. Textile vision 2005
D. None of the above
Answer» C. Textile vision 2005

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