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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) .

951.

The dominant body of economic thinking, economic method and economic style in the period from 18th to 19th century is termed as

A. Modern Economics
B. Mathematical Economics
C. Classical Economics
D. None of the above
Answer» C. Classical Economics
952.

The economic system with little or no external trade is called:

A. Open economy
B. Autarky
C. Close economy
D. All of the above
Answer» C. Close economy
953.

Privately owned banks operating cheque current accounts, receiving deposits, taking in and paying out notes and coins and making loans are generally called

A. Central Banks
B. Commercial Banks
C. State Banks
D. All of the above
Answer» B. Commercial Banks
954.

A percentage of the value of a transaction taken by an intermediary as payment for his services is called:

A. Profit
B. Commission
C. Percentage
D. Fee
Answer» B. Commission
955.

In economic theory, a tangible good or service resulting from the process of production is known as

A. Product
B. Article
C. Commodity
D. Item
Answer» C. Commodity
956.

Which of the following is an example of common market?

A. European Union
B. Mercosur
C. Andean Pact
D. All of the above
Answer» D. All of the above
957.

The law governing the establishment and conduct of incorporated business enterprise is called

A. Civil Law
B. Natural Law
C. Company Law
D. Cyber Law
Answer» C. Company Law
958.

The profits retained in the business and set aside for specified purposes are known as

A. Company Shares
B. Company Assets
C. Company Reserves
D. Company Gains
Answer» C. Company Reserves
959.

Pairs of goods for which consumption is interdependent e.g., cars and petrol or cups and saucers are known as:

A. Complementary Goods
B. Finished Goods
C. Both of the above
D. None of the above
Answer» A. Complementary Goods
960.

The interest due by applying the rate to the sum of the capital invested plus the interest previously earned and reinvested is referred to as

A. Simple Interest
B. Compound Interest
C. Both of the above
D. None of the above
Answer» B. Compound Interest
961.

Short-term loans to the public for the purchase of specific goods is called:

A. Commercial Credit
B. Public Credit
C. Consumer Credit
D. None of the above
Answer» C. Consumer Credit
962.

An economic good or commodity purchased by households for final consumption is called:

A. Consumer good
B. Consumption good
C. Final good
D. All of the above
Answer» D. All of the above
963.

An index (index number) of the prices of goods and services purchased by consumers to measure the inflation rate or the cost of living is called

A. Consumer Price Index
B. Retail Price Index
C. Both of the above
D. None of the above
Answer» C. Both of the above
964.

The use of resources to satisfy current needs and wants is called:

A. Depletion
B. Dissipation
C. Consumption
D. Destruction
Answer» C. Consumption
965.

A statement of the rights and obligations of each party to a transaction or transactions is called:

A. Treaty
B. Compact
C. Contract
D. Covenant
Answer» C. Contract
966.

A business function concerned with the formulation of long term objectives and the development of plans to achieve them is called:

A. Business Planning
B. Corporate Planning
C. Both of the above
D. None of the above
Answer» B. Corporate Planning
967.

A piece of paper entitling the owner to money payments, cutprice or free goods or rations is called

A. Cheque
B. Note
C. Coupon
D. Bond
Answer» C. Coupon
968.

A measure of the expectation of the population that the government, or monetary authorities will adhere to policies delivering low inflation is called

A. Credibility
B. Faith
C. Integrity
D. None of the above
Answer» A. Credibility
969.

Credit is the use or possession of goods without immediate payment. Which of the following is a type of credit?

A. Consumer credit
B. Bank credit
C. Trade credit
D. All of the above
Answer» D. All of the above
970.

A plastic, personal magnetized card with the name and account number of the holder and the expiry date embossed is referred to as:

A. Master Card
B. Visa Card
C. Credit Card
D. Green Card
Answer» C. Credit Card
971.

One to whom an amount of money is due is called:

A. Creditor
B. Debtor
C. Both of the above
D. None of the above
Answer» A. Creditor
972.

Which of the following is referred to as international currency because it is regarded as acceptable for the settlement of international debts?

A. Yen
B. Dollar
C. Rupee
D. Dinar
Answer» B. Dollar
973.

The bank account on which deposits do not earn interest, but can be with drawn by cheque at any time is called:

A. Demand Account
B. Current Account
C. Fixed Account
D. Profit and Loss Account
Answer» B. Current Account
974.

Prices unadjusted for changes in the purchasing power of money are called:

A. Historic Prices
B. Current Prices
C. Market Prices
D. None of the above
Answer» B. Current Prices
975.

The practice of searching for correlation in data with the purpose of generating theoretical hypotheses is called

A. Data Collection
B. Data Communication
C. Data Mining
D. Data Compression.
Answer» C. Data Mining
976.

A cartel is an organization formed by producers. Its objectives are:

A. To allocate market shares
B. To control production
C. To regulate prices
D. All of the above
Answer» D. All of the above
977.

A loss in social welfare deriving from a policy or action that has no corresponding gain is called:

A. Deadweight Waste
B. Deadweight Loss
C. Both of the above
D. None of the above
Answer» B. Deadweight Loss
978.

The number of deaths occurring in any year for every 1000 of the population is referred to as

A. Death Ratio
B. Death Rate
C. Both of the above
D. None of the above
Answer» B. Death Rate
979.

A sum of money or other property owed by one person or organization to another is called

A. Credit
B. Debt
C. Obligation
D. All of the above
Answer» B. Debt
980.

One who owes money to another is known as

A. Creditor
B. Debtor
C. Both of the above
D. None of the above
Answer» B. Debtor
981.

The rebate or discount where ordinary share on a purchase that is accumulated for a particular period to encourage customers to remain with a specific supplier is called:

A. Deferred Rebate
B. Aggregated Rebate
C. Both of the above
D. None of the above
Answer» C. Both of the above
982.

The excess of an expenditure flow over an income flow is termed as:

A. Loss
B. Deficit
C. Surplus
D. Shortage
Answer» B. Deficit
983.

The use of borrowing to finance an excess of expenditure over income is known as:

A. Deficit Financing
B. Debt Retirement
C. Both of the above
D. None of the above
Answer» A. Deficit Financing
984.

A sustained reduction in the general level of prices is called:

A. Inflation
B. Deflation
C. Disinflation
D. Both B and C
Answer» D. Both B and C
985.

A decline in the share of manufacturing sector in national income is termed as:

A. Industralization
B. Privatization
C. Nationalization
D. Deindustralization
Answer» D. Deindustralization
986.

The desire for a particular good or service supported by the possession of the necessary means of exchange to effect ownership is called:

A. Supply
B. Demand
C. Loss
D. Incentive
Answer» B. Demand
987.

The scenario that western countries face a crisis in the next few decades caused by the aging of their populations is termed as:

A. Demographic Time Bomb
B. Green House Effect
C. Population Explosion
D. All of the above
Answer» A. Demographic Time Bomb
988.

The branch of economics concerned with the rate at which natural resources are consumed over time is called

A. Marxism
B. Capitalism
C. Depletion theory
D. Game Theory
Answer» C. Depletion theory
989.

Money placed in an account at a financial institution and constituting a claim on it is known as

A. Deposit
B. Credit
C. Debt
D. Hoarding
Answer» A. Deposit
990.

The account with a bank or other financial institution in which deposits earn interest and withdraws from which require notice is referred to as:

A. Deposit Account
B. Current Account
C. Profit-Loss Account
D. None of the above
Answer» A. Deposit Account
991.

The reduction in value of an asset as reduction in the value of currency is known as:

A. Appreciation
B. Devaluation
C. Depreciation
D. All of the above
Answer» C. Depreciation
992.

A downturn in the business cycle in which there is a sustained high level of unemployment is called

A. Inactivity
B. Depression
C. Paralysis
D. Decline
Answer» B. Depression
993.

The process of invigorating activity in a sector of the economy by reducing the government controls that have the effect of creating barriers to entry is called

A. Privatization
B. Regulation
C. Deregulation
D. All of the above
Answer» C. Deregulation
994.

The reduction of the fixed official rate at which one currency is exchanged for another in a fixed exchange rate regime is termed:

A. Appreciation
B. Depreciation
C. Devaluation
D. None of the above
Answer» C. Devaluation
995.

Investment in the foreign operations of a company through acquisition of a foreign operation, or establishment of a new site is called:

A. Direct Investment
B. Installation
C. Indirect Investment
D. None of the above
Answer» A. Direct Investment
996.

Taxation on the income and resources of individuals or organization is known as:

A. Double Taxation
B. Indirect Taxation
C. Direct Taxation
D. All of the above
Answer» C. Direct Taxation
997.

A deduction from face value is referred to as:

A. Premium
B. Discount
C. Reward
D. None of the above
Answer» B. Discount
998.

The extension in the range of goods and services in a firm or geographic region is called:

A. Reduction
B. Expansion
C. Diversification
D. Modification.
Answer» C. Diversification
999.

The amount of a company’s profit that the board of directors decides to distribute to ordinary shareholders is known as:

A. Deficit
B. Dividend
C. Loss
D. Capital
Answer» B. Dividend
1000.

The allocation of labour such that each worker specializes in one or a few functions in the production process is known as:

A. Division of Labour
B. Distribution of Wealth
C. Efficient Worker
D. None of the above
Answer» A. Division of Labour

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