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320+ Business Economics Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .

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201.

An international trading company of the Government of India _.

A. State Transport Corporation
B. State Service Corporation
C. State Trading Corporation
D. All of the above
Answer» C. State Trading Corporation
202.

Consular documents include _ _.

A. Certificate of origin
B. Export certificates
C. Uncertified consular invoices
D. Bills of exchange
Answer» A. Certificate of origin
203.

Trade barriers are often called _ _.

A. Free trade
B. Protection
C. Trade wars
D. Economic integration
Answer» B. Protection
204.

Redistribution effect is called _ .

A. Revenues effect
B. Consumption effect
C. Productive effect
D. Transfer effect
Answer» D. Transfer effect
205.

Imposing of tariff, raises domestic prices causing fall in consumption of domestic goods is     _ .

A. Protective effect
B. Revenue effect
C. Consumption effect
D. Terms of trade effect
Answer» C. Consumption effect
206.

_ _ is the World’s largest single market area.

A. European Union
B. India
C. Pakisthan
D. Srilanka
Answer» A. European Union
207.

At present, European Union consist of     _ member countries.

A. 26
B. 27
C. 28
D. None of these above
Answer» C. 28
208.

When an economy union involves unifying currency it becomes _ .

A. Customs Union
B. Trade Union
C. Economic and Monetary Union
D. Trade area
Answer» C. Economic and Monetary Union
209.

    _ _ is an official institution of the European Union.

A. European Council
B. European Parliament
C. European Commission
D. European Investment Bank
Answer» A. European Council
210.

Euro is the official currency for _ _ member countries of European Union.

A. 16
B. 17
C. 18
D. 19
Answer» D. 19
211.

The is the single currency of the European Union.

A. dollar
B. euro
C. yen
D. pound
Answer» B. euro
212.

    _ _ is the second largest currency in the world.

A. Dollar
B. Euro
C. Yen
D. Pound
Answer» B. Euro
213.

    _ _ became an ASEAN dialogue partner in 1995.

A. India
B. Pakisthan
C. Srilanka
D. USA
Answer» A. India
214.

Look East Policy has now transformed into a     _ _.

A. Act European Policy
B. Act East Policy
C. Act West Policy
D. East Asia Policy
Answer» B. Act East Policy
215.

The referendum for Brexit was held on _ .

A. 2023-06-16 00:00:00
B. 2023-06-17 00:00:00
C. 2023-08-17 00:00:00
D. 2023-06-18 00:00:00
Answer» A. 2023-06-16 00:00:00
216.

ASEAN was formed in .

A. 1947
B. 1967
C. 1977
D. 1987
Answer» A. 1947
217.

    _ is a statement of a systematic record of all economic transactions between one country and the rest of the world.

A. Deficit
B. Surplus
C. Balance of payments
D. Budget
Answer» C. Balance of payments
218.

Pick out the wrong statement.

A. Tariff restricts t
B. Import quotas have a direct effect in reducing imports
C. Voluntary export restraint is an example of tariff barriers.
D. An export subsidy is a government grant given to an export firm
Answer» C. Voluntary export restraint is an example of tariff barriers.
219.

The consumption effect of tariffs forces consumers to _ _.

A. increase their consumption due to tariffs.
B. pay lower price due to tariffs.
C. reduce their consumption due to tariffs.
D. depend on imports for consumption
Answer» C. reduce their consumption due to tariffs.
220.

Import embargo is an important retaiatory measure against_ _.

A. dumping
B. exports
C. domestic producer
D. domestic farmers
Answer» A. dumping
221.

Which of the following Non – Tariff Barriers prevents free movement of capital between countries?

A. preferential government procurement
B. Exchange Controls
C. Domestic subsidie
D. Local content requirement
Answer» B. Exchange Controls
222.

    _ is a measure under which a commodity of a specific volume or value is allowed to be imported in the country.

A. Voluntary Export Restraints
B. Combined duty
C. Import quota
D. Revenue tariff
Answer» C. Import quota
223.

Which of these are objectives of import quotas?

A. Correcting disequilibrium in the balance of payment
B. To allow dumping
C. To allow speculative activities
D. To allow excess supply in the domestic economy
Answer» A. Correcting disequilibrium in the balance of payment
224.

In the _ account, only transactions relating to goods are entered.

A. invisible account
B. Capital account
C. trade
D. Current account
Answer» C. trade
225.

    _ means a decline in the rate of exchange of one country in terms of another’s.

A. Deflation
B. Tariff
C. Exchange Depreciation
D. exchang devaluation
Answer» C. Exchange Depreciation
226.

Restrictions on the use of foreign exchange by the Central bank are called _ .

A. exchange controls
B. Official transfers
C. Foreign exchange reserves
D. LAF
Answer» A. exchange controls
227.

    _ are duties levied on imports.

A. Tariffs
B. Deflation
C. Exchange control
D. Qoutas
Answer» A. Tariffs
228.

Restrictions imposed on the quantity of imports is     _ .

A. Surplus
B. Quotas
C. Balance
D. Tariffs
Answer» B. Quotas
229.

Balance of payment always _ __.

A. Deficit
B. balances
C. Surplus
D. Equal
Answer» B. balances
230.

    _ term long run disequilibrium as fundamental disequilibrium.

A. Tariff
B. IMF
C. trade
D. WTO
Answer» B. IMF
231.

WTO replaced _ in 1995.

A. GATT
B. WTO
C. UN
D. UNESCO
Answer» A. GATT
232.

TRIPs deals with _ .

A. intellectual property rights
B. Foreign investment
C. Foreign aid
D. Agriculture
Answer» A. intellectual property rights
233.

Protection is made available for _ years for patents.

A. 20
B. 30
C. 10
D. 40
Answer» A. 20
234.

The terms of _ is 50 years.

A. copyright
B. Services
C. patent
D. Trademarks
Answer» A. copyright
235.

The current account of balance of payment does not include :

A. Balance of visible trade
B. Import of services
C. Unilateral services
D. Foreign investment
Answer» D. Foreign investment
236.

Pick out the item which is not a part of unilateral transfers.

A. Gifts
B. Grants
C. Loan
D. Donation
Answer» C. Loan
237.

Donations, grants, gifts and such other payments which do not have counter obligations are known as :

A. Grants
B. Aid
C. Unilateral flows
D. Bilateral flow
Answer» C. Unilateral flows
238.

If the deficits in a country’s BOP persists for a long time it is a case of :

A. Structural disequilibrium
B. Fundamental disequilibrium
C. Cyclical disequilibrium
D. temporary disequilibrium
Answer» B. Fundamental disequilibrium
239.

Disequilibrium in the BOP caused by changes in the demand or supply relations of exports or imports or both refer to :

A. Cyclical disequilibrium
B. Short Run disequilibrium
C. Structural disequilibrium
D. Fundamental disequilibrium
Answer» C. Structural disequilibrium
240.

Which of the following is not a non monetary measure to correct the disequilibrium in BOP ?

A. Tariff
B. Import quotas
C. Export promotion
D. Devaluation
Answer» D. Devaluation
241.

TRIMS include measures to :

A. Treat foreign investment on par with domestic income
B. Remove quantitative restrictions
C. Treat foreign investment on par with domestic investment
D. Remove qualitative retrictions
Answer» C. Treat foreign investment on par with domestic investment
242.

Pick out the one which is not true of GATS :

A. Services and service activities are covered under GATS
B. National treatment to members
C. No market access to service supplier’s
D. No discrimination between service suppliers
Answer» C. No market access to service supplier’s
243.

Pick out the feature which is not true of the Agreement on Agriculture.

A. Reduce domestic subsidies
B. reduce export subsidies
C. Increase tariffs
D. Increase trade in agricultural goods
Answer» C. Increase tariffs
244.

In balance of payment account, all goods exported and imported are recorded in _ .

A. Capital account
B. Merchandise account
C. Invisible account
D. Current account
Answer» C. Invisible account
245.

Gifts and charities account are also known as :

A. Export
B. Unilateral transfer
C. Import
D. Long–term borrowing
Answer» B. Unilateral transfer
246.

In BOP, total receipts must be equal to total     _ .

A. payment
B. deficit
C. income
D. revenue
Answer» A. payment
247.

Reducing the value of domestic currency in term of foreign currency :

A. Deflation
B. Exchange control
C. Tariff
D. Devaluation
Answer» D. Devaluation
248.

The current account in the balance of payments     _ .

A. is a total of all the visible items of trade
B. includes merchandise trade and services
C. always shows a surplus
D. includes autonomous and accommodating flows
Answer» B. includes merchandise trade and services
249.

Good performance on _ has helped India to improve its current account balance in recent times.

A. trade account
B. invisible account
C. Capital account
D. reserves account
Answer» B. invisible account
250.

After covering deficits on current account, excess capital account receipts are added to _.

A. IMF account
B. Official transfers
C. Foreign exchange reserves
D. Bank capital
Answer» C. Foreign exchange reserves

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