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MCQs 1: An essentially risk free, long term interest rate which is free of the influence of market imperfections?

Pure rate of interest Economic rate of interest Nominal rate of interest None
Answer Explanation

MCQs 2: An interest bearing deposit which normally can be withdrawn by the depositor at any time ?

Saving deposit Fixed deposit Capital deposit None
Answer Explanation

MCQs 3: The use of the resources of an individual or firm, a region, or a nation to produce one or a few goods and services ?

Specialization speculation Fly over Capital flight
Answer Explanation

MCQs 4: An ownership share in a corporation___________________?

Stock Corporation Both None
Answer Explanation

MCQs 5: A payment of funds by a govt. firm or house hold for which it receives no goods or services in return?

Subsidy Tax lump-sum-tax None
Answer Explanation

MCQs 6: Total number of monetary units received by a firm from the sale of a product is called___________________?

Total revenue Nominal profit Both None
Answer Explanation

MCQs 7: To obtain the greates utility consumer should allocate money income so that last dollar spent on each good or service yields the same marginal utility ?

Law of diminishing return Say’ law Law of diminishing marginal utility Say’ law
Answer Explanation

MCQs 8: Increase in the price level at a rate greater than expected ?

Dearness Deflation Stagflation Unanticipated
Answer Explanation

MCQs 9: Building of new factories in particular nation by corporations of other nations ?

Discrimination Direct foreign investment Profit maximization rule Economies of scale
Answer Explanation

MCQs 10: An industry in which economics profits are negative and which will, therefore, decrease its output as firms leave it ?

Increasing cost industry Decreasing cost industry Declining industry None of these
Answer Explanation

MCQs 11: A course of action indented to correct or avoid a problem_________________?

Economic principle Economic policy Economic phenomena Economic rationale
Answer Explanation

MCQs 12: Obtaining the socially optimal amounts of goods and services using minimum necessary resources ?

Economic efficiency Productive efficiency Allocative efficiency All
Answer Explanation

MCQs 13: An accounting item which decreases the value of an asset___________________?

Debit Credit Depreciation None
Answer Explanation

MCQs 14: A labour union which limits its membership to workers with a particular skill ?

Labour union Craft union Credit union None
Answer Explanation

MCQs 15: A federal budget deficit caused by a recession and a consequent decline in tax revenues ?

Annual deficit Cyclical deficit Anticipated deficit None
Answer Explanation

MCQs 16: A schedule showing the amounts households plan to spend for consumer goods at different levels of disposable income is called________________?

Income schedule Saving schedule Consumption schedule None
Answer Explanation

MCQs 17: A firm which engages in in the busyness of banking_________________?

State bank Commercial bank World bank None
Answer Explanation

MCQs 18: A tax which is a constant amount at all levels of GDP is termwd as ?

Fixed tax Surcharge Lump sum tax None
Answer Explanation

MCQs 19: A debit which monitory value, an amount awed by a firm or an individual___________________?

Lockout Logrolling Liability None
Answer Explanation

MCQs 20: A group of firms which produces identical or similar products__________________?

Plant Industry Company Organization
Answer Explanation

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