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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) .

1001.

The situation in which the same tax base is taxed more than once is called:

A. Direct Taxation
B. Double Taxation
C. Indirect Taxation
D. None of the above
Answer» B. Double Taxation
1002.

A daily index of prices on the principal stock exchange in New York is called:

A. Dow Jones industrial average
B. Equity market indexl
C. Both of the above
D. None of the above
Answer» A. Dow Jones industrial average
1003.

Large-scale shedding of employees by major corporations sometimes referred to the disposal of subsidiaries and other unwanted activities is called:

A. Downsizing
B. Rightsizing
C. Both of the above
D. None of the above
Answer» C. Both of the above
1004.

Two sellers only of a good or service in a market. This situation is:

A. Monopoly
B. Duopoly
C. Oligopoly
D. None of the above
Answer» B. Duopoly
1005.

Consumer goods that yield services or utility over time rather than being used up instantly are termed as

A. Durable Goods
B. Undurable Goods
C. Both of the above
D. None of the above
Answer» A. Durable Goods
1006.

The setting up of mathematical models describing economic relationship testing the validity of such hypotheses is termed as:

A. Econometrics
B. Commerce
C. Trade
D. Finance
Answer» A. Econometrics
1007.

Any physical object, natural or man made, or service renderal: that could command a price in market is called:

A. Consumer Goods
B. Final Goods
C. Economic Goods
D. All of the above
Answer» C. Economic Goods
1008.

The exploitation of developing countries by advanced countries is called:

A. Embargoes
B. Sanctions
C. Economic Imperialism
D. None of the above
Answer» C. Economic Imperialism
1009.

A measure taken in respect of economic activity that has the intention of damage to another country’s economy is called:

A. Economic Exploitation
B. Economic Sanction
C. Both of the above
D. None of the above
Answer» B. Economic Sanction
1010.

Which sector is the largest and fastest growing sector of the world economy, providing more than 60% of global output?

A. Agricultural Sector
B. Service Sector
C. Industrial Sector
D. Forestry
Answer» B. Service Sector
1011.

The non-discrimination principle means treating one’s trading partners equally. It guarantees equal opportunities for suppliers from all World Trade Organization members. It is called:

A. Most-Favoured Nation (MFN)
B. South Asian Free Trade Area (SAFTA)
C. General Agreement on Tariffs and Trade (GATT)
D. None of the above
Answer» A. Most-Favoured Nation (MFN)
1012.

The World Trade Organization (WTO) is the only international body dealing with the rules of trade between nations. The World Trade Organization began life on 1st of

A. January 1993
B. January 1994
C. January 1995
D. January 1996
Answer» C. January 1995
1013.

The main objectives of the World Trade Organization are

A. To help trade flow as freely as possible.
B. To serve as a form for trade negotiations
C. To settle dispute between conflicting trade interests
D. All of the above
Answer» D. All of the above
1014.

The General Agreement on Tariffs and Trade (GATT) is the predecessor of World Trade Organization. It entered into force in.

A. January 1946
B. January 1947
C. January 1948
D. January 1949
Answer» C. January 1948
1015.

In 1947 how many states did take part in the General Agreement on Tariffs and Trade trade round in Geneva?

A. 13
B. 23
C. 33
D. 43
Answer» B. 23
1016.

The first director general of General Agreement on Tariffs and Trade from 1948-68 was

A. Sir Eric Wyndham White (UK)
B. Mike Moore (New Zealand)
C. Don McKinon (New Zeala
Answer» A. Sir Eric Wyndham White (UK)
1017.

In 1999, who became the third director general of World Trade Organization?

A. Olivier Long (Switzerland)
B. Renato Ruggiero (Italy)
C. Peter Sutherland (Irela
Answer» D.
1018.

The General Agreement on Tariffs and Trade trade rounds concentrated on reducing tariffs. Which round was the first major attempt to tackle trade barriers and to improve the system? This eighth round is called:

A. Kennedy Round
B. Tokyo Round
C. Uruguay Round
D. All of the above
Answer» C. Uruguay Round
1019.

Which trade round was the latest and most extensive of all and it finally led to the World Trade Organization and a new set of agreements. It lasted from 1986 to 1994.

A. Kennedy Round
B. Tokyo Round
C. Doha Round
D. Uruguay Round
Answer» D. Uruguay Round
1020.

The 1986-1994 Uruguay Round achieved agrement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Which of the following are the types of intellectual property?

A. Copyrights and related rights
B. Trademarks including service marks
C. Industrial design, patents, layout designs etc
D. All of the above
Answer» D. All of the above
1021.

Topmost authority of World Trade Organization is the ministerial conference which has to meet at least once every

A. 1 year
B. 2 years
C. 3 years
D. 4 years
Answer» B. 2 years
1022.

The “Ouadrilaterals” or the “Quad” are the four largest members. Besides European Union others are

A. United States
B. Canada
C. Japan
D. All of the above
Answer» D. All of the above
1023.

On 9-13 November, 2001 the World Trade Organization’s Fourth Ministerial Conference held in:

A. Istanbul (Turkey)
B. Dubai (U.A.E)
C. Doha (Qatar)
D. Tehran (Iran)
Answer» C. Doha (Qatar)
1024.

The World Trade Organization secretariat is headed by a director-general, has around 500 staff and is based in:

A. New York
B. Rome
C. Geneva
D. Brussels
Answer» C. Geneva
1025.

Which of the following is the website address of the World Trade Organization?

A. http://www.wto.com
B. http://www.wto.org
C. http://www.wtosecretariat.org
D. http://www.wtosecretariat.com
Answer» B. http://www.wto.org
1026.

By the end of June 2002, the World Trade Organization had 144 members and around 34 observer governments. With how many years of becoming observers, these observers must start accession negotiations?

A. 2 years
B. 3 years
C. 4 years
D. 5 years
Answer» D. 5 years
1027.

Which law of economics states that “with given preferences or tastes, the proportion of income spent on food diminishes as income increase”?

A. Common Law
B. Engel’s Law
C. Newton’s Law
D. None of the above
Answer» B. Engel’s Law
1028.

The economic agent who perceives market opportunities and assembles the factors of production to exploit them in a firm is referred to as

A. Broker
B. Entrepreneur
C. Middle Agent
D. Promotor
Answer» B. Entrepreneur
1029.

The residual value of a company’s assets after all outside liabilities have been allowed for is called

A. Capital
B. Annuity
C. Equity
D. Business
Answer» C. Equity
1030.

Enterprise is the controlling unit of a business. The operating unit of a business is called:

A. Firm
B. Establishment
C. Bureaucracy
D. Organization
Answer» B. Establishment
1031.

The difference between the amount produced by a firm and the higher amount that could most efficiently be produced is termed as:

A. Excess Profit
B. Excess Supply
C. Excess Capacity
D. Excess Demand
Answer» C. Excess Capacity
1032.

The control by the state through the banking system of dealings in gold and foreign currencies is called

A. Exchange Control
B. Exchange Economy
C. Autarky
D. None of the above
Answer» A. Exchange Control
1033.

The price at which one currency is exchanged for another currency is known as:

A. Exchange Control
B. Exchange Rate
C. Exchange Economy
D. All of the above
Answer» B. Exchange Rate
1034.

Indirect taxies levied upon goods produced for home consumption are called:

A. Custom duties
B. Excise duties
C. Both of the above
D. None of the above
Answer» B. Excise duties
1035.

Preferential treatment for firms that sell their products abroad, compared with firms that sell to the home market; is called:

A. Export Surplus
B. Export Rebate
C. Export Incentives
D. All of the above
Answer» C. Export Incentives
1036.

The goods and services produced by one country that are sold in exchange for the second country’s own goods and services or for foreign exchange are called

A. Import
B. Export
C. All of the above
D. None of the above
Answer» B. Export
1037.

The ratio of the total increase in a country’s national income to the increment in export revenue generating the increase is called:

A. Export Surplus
B. Export Incentive
C. Export Multiplier
D. All of the above
Answer» C. Export Multiplier
1038.

Goods which are produced for consumption rather than as an intermediate product used in the process of production are referred to as:

A. By Product
B. Final Goods
C. Durable Goods
D. Intermediate Goods
Answer» B. Final Goods
1039.

The provision of money when and where needed is called:

A. Business
B. Economics
C. Finance
D. Trade
Answer» C. Finance
1040.

The period of account used for financial purposes is known as:

A. Financial Year
B. Fiscal Year
C. Both of the above
D. None of the above
Answer» C. Both of the above
1041.

The budgetary stance of central government is called:

A. Trade Policy
B. Fiscal Policy
C. Economic Policy
D. None of the above
Answer» B. Fiscal Policy
1042.

The capital that is not invested in fixed assets but the work in process is called:

A. Floating Change
B. Floating debt
C. Floating Trust.
D. Floating Capital
Answer» D. Floating Capital
1043.

The administered transfer of resources from the advanced countries to the developing countries for the purpose of encouraging economic growth is called:

A. Foreign Exchange
B. Foreign Balance
C. Foreign Aid
D. Foreign Reserves
Answer» C. Foreign Aid
1044.

Claims on another country held in the form of the currency of that country are known as:

A. Foreign Aid
B. Foreign Exchange
C. Both of the above
D. None of the above
Answer» B. Foreign Exchange
1045.

What is meant by foreign investment?

A. The market in which transactions are conducted to effect the transfer of the currency of one country into that of another
B. The transfer of resources from developed to developing countries.
C. The acquistion by governments, institutions or individuals in one country of assets in another.
D. All of the above
Answer» C. The acquistion by governments, institutions or individuals in one country of assets in another.
1046.

The contractual arrangement under which an independent franchisee produces or sells a product or service under the brand name of the franchiser is known as

A. Franchising
B. License
C. Warrant
D. Charter
Answer» A. Franchising
1047.

A market in which supply and demand are not subject to regulation other than normal competition policy is termed:

A. Forward Market
B. Free Market
C. Foreign-exchange Market
D. None of the above
Answer» B. Free Market
1048.

The condition in which the independent flow of goods and services in international exchange is neither restricted nor encouraged by direct government intervention is known as:

A. Free Trade
B. Barter Trade
C. Both of the above
D. None of the above
Answer» A. Free Trade
1049.

Non-wage or salary rewards provided for employees are called:

A. Fringe Benefits
B. Basic Pay
C. Social Security
D. None of the above
Answer» A. Fringe Benefits
1050.

The process of converting short term to long term debt by the sale of long term securities and using the funds raised to pay off short-term debt is called:

A. Funding
B. Debt retirement
C. Borrowing
D. All of the above
Answer» A. Funding

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