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1. The Balance of payment is understood as:

(a) The balance of amount after paying debt

(b) The balance of income and expenditure in the annual

budget

(c) The balance between a nation's expenditure on imports

and its receipts from exports.

(d) None of the above

2. Pinpoint the main objectives of World Trade Organization

(WTO):

(a) Fix a quota for each member country trading in

International Market

(b) To eliminate quota system and promote free competition

in trade.

European goods

(d) To abolish completely custom duties on items of trade

within member countries

3. The number of family welfare centres in Punjab are:

(a) 560

(b) 940

(d) 1503

4. Which of the following statement is not true?

(a) The World Bank has to affiliates, the International

Development Association and the International Finance

Corporation.

(b) The membership of the IMF is the principal condition

for membership of the World Bank.

(c) The World Bank provides loans to such countries whose

balance of payments condition is not favourable

(d) The World Bank finance all kinds of capital

infrastructure such as roads and railways,

telecommunications, seaports and power facilities in the

developing countries.

5. Identify the main functions of IMF:

(a) To provide loans to the members of UNO for

development of Industrial infra structure

(b) To make foreign exchange resources available for those

countries that want to import essential items of food

(c) To make foreign exchange resources available for those

countries facing balance of payments difficulties

(d) None of the above

6. The United Nations celebrated “International Year of

Shelter for the Homeless” in:

(a) 1985

(b) 1987

(d) 1992

7. The Islamic Development Bank would provide half a billion

US dollars in Capital to create—

(a) Private Pan Islamic Bank

(b) International Islamic Foundation for Science and

Technology

(d) None of the above

8. The domestic production of crude oil in the country is

approximately (per day)

(a) 44,300 Barrels

(b) 57,700 Barrels

(d) 70,000 Barrels

9. The regulations of World Trade Organization (WTO) shall be

enforced from:

(a) 1 January 2002

(b) 1 January 2003

(d) 1 January 2005

10. The biggest market of Pakistani exports is:

(a) France

(b) Saudi Arabia

(c) U.S.A

(d) U.K.

11. The biggest market of Pakistani Imports is:

(a) USA

(b) U.K.

(d) Japan

12. The Government has reduced the rate of profit on National

Saving Schemes primarily for the reason of:

(a) Enhancing the level of saving rate

(b) Discouraging the blockage of money in such schemes

active business ventures

(d) To bridge the gap between their profit rate and Bank's

mark up rate on loans

13. Pakistan’s domestic demand for petroleum products in

growing annually with the percentage of:

(a) 3 percent

(b) 5 percent

(d) 15 percent

14. The Women’s Division was created in the Federal

Government in January:

(a) 1974

(b) 1977

(d) 1981

15. The first “World Population Conference” under the United

Nations was held in 1975 at:

(a) Kampala

(b) Bucharest

(d) Ankara

16. Difference between a countrys exports and imports is:

(a) Trade Balance

(b) Trade Deficit

(d) Volume of Trade

17. Cash crop is the crop:

(a) Which gives high profit to the farmers

(b) Which is grown only for sale

(d) None of the above one

18. The lowering of the value of a currency in the internationalmarket or against specific other currencies, which makesexports cheaper and imports expensive is called:

(a) Devaluation

(b) Revolution

(d) Deflation

19. The value of the output of all goods and services producedwithin a nation's borders, normally given as a total for theyear. It thus includes the production of foreign owned firmswithin the country, but excludes the income from

domestically owned firms located abroad, is called:

(a) Gross National Product

(b) Gross Home Products

(c) Gross Domestic Product

(d) General Domestic Production

20. Dow Jones index' is the scale:

(a) For measuring Industrial profit in a year

(b) For measuring the average share price of leading

Japanese companies

(c) For measuring the average share price of major US

industrial companies

(d) None of the above

21. Embargoes are designed to:

(a) Promote trade of prohibited goods

(b) Restrict trade of particular commodities

(d) None of the above

22. When a group of countries have removed all tariffs quotasand export subsidies on trade among themselves – that is called:

(a) Laissez faire

(b) Liberal Trade region

(c) Free Trade zone

(d) All of the above one

23. Which one among the following statements is truly explain the `Laissez Faire' theory?

(a) State should refrain from all intervention in economic

affairs

(b) State should manage every field of economic activities

for the benefit of the public

(d) None of the above one

24. The lowest number of people living below the poverty line

among the SAARC Countries are in:

(a) Bangladesh

(b) Pakistan

(d) Sri Lanka

25. Family Planning in rural areas hampered mainly due to:

(a) Deficiency in planning

(b) Lack of knowledge

(d) Non-availability of devices

26. Both-way trade between two countries is also known

as:

(a) Government Expenditure

(b) Fiscal Revenue

(c) Volume of Trade

(d) Terms of Trade

27. Trade by exchange of Commodities is called:

(a) International Trade

(b) Foreign Exchange

(d) Barter Trade

28. Tax on a Commodity according to its volume

is:

(a) Real tax

(b) Direct Tax

(d) Ad Valorem Tax

29. Who is the first Tax Mohtasib of Pakistan?

(a) Justice (R) Saleem Kazmi

(b) Justice (R) Allah Nawaz

(d) Justice (R) Saleem Akhtar

30. Safety stock of grains held by the government is:

(a) Surplus stock

(b) Overhead stock

(d) Overall stock

31. The lowest price below which a thing will not be sold is

called its:

(a) Floor price

(b) Ceiling price

(d) Average price

32. When no tariffs are imposed on exports and imports, it is

called:

(a) Two way trade

(b) Exchange trade

(c) Free trade

(d) Selective trade

33. An economy when private and government enterprises both

operates, is:

(a) Free economy

(b) Closed economy

(d) Mixed economy

34. Agreement between two countries is:

(a) Multi lateral agreement

(b) Bilateral agreement

(d) Special agreement

35. Family Planning Programme was started in Pakistan in:

(a) 1952

(b) 1955

(d) 1959

36. What percentage of population in Pakistan is under the age

of 15?

(a) 38%

(b) 40%

(c) 45%

(d) 50%

37. A free port is the port where:

(a) Less duties are paid

(b) No duties and no restrictions

(d) Restrictions on imports but not on exports

38. Which country has maximum foreign project investments in

Pakistan?

(a) USA

(b) U.K

(c) China

(d) Japan

39. What do you understand by the term "Kerb" in foreign

currency dealings:

(a) The exchange rate of currencies in the open market

(b) The exchange rate of currencies determined by the State

Bank of Pakistan

within the stock exchange

(d) None of the above one

40. Financial year of USA starts from:

(a) 1st January

(b) 1st March

(c) 1st July

(d) 1st April

41. In the budget 2001-2002, the government has decided to

wind-up one of the following privilege of the new employees:

(a) House rent

(b) Benevolent fund

(d) None of the above

42. In the budget 2001-2002, the largest sector of current

expenditure is allocated on:

(a) Defence

(b) Subsidies

(c) Running of civil government

(d) Debt servicing

43. In the budget 2001, 2002, what amount the government has

allocated to undertake new water projects in the country:

(a) Rs. 2 billion

(b) Rs. 4 billion

(d) Rs. 3 billion

44. General Sales Tax, under the constitution 1973

is a:

(a) Federal Subject

(b) Provincial Subject

d) None of the above one

45. Which of the following country will provide financial aid for the construction of Gwadar Port and Makran Coastal

highway in Balochistan?

(a) China

(b) Canada

(d) Russia

46. The world's most Powerful super computer is called:

(a) ASCI White

(b) ASCI Red

(d) None of the above

47. The outflow of the best and brightest students from

developing countries is called:

(a) Migration of intellectual

(b) Shift of Brain

(c) Brain drain

(d) Transfer of mind

48. Which five year plan of Pakistan is yet to be implemented?

(a) 7th

(b) 8th

(c) 9th

(d) 10^th

49. The per capita income of Pakistan is approximately:

(a) 350 US Dollars

(b) 408 US Dollars

(c) 483 US Dollars

(d) 503 US Dollars

50. Which province has the highest literacy rate?

(a) N.W.F.P.

(b) Balochistan

(d) Sindh

51. According to a recent report of International Labour

Organization (ILO) the number of people in the World living

on two dollars or less a day are:

(a) 2 billion

(b) 3 billion

(d) 4 billion

52. Pinpoint the source, through which budgetary gap is

financed in Pakistan?

(a) External borrowing

(b) Domestic non-Bank borrowing

(d) All the above sources

53. If a country wants to achieve rapid rate of economic

development, it must save at least:

(a) 25% Gross National Products each year

(b) 30% Gross National Products each year

(d) 40% Gross National Products each year

54. Identify the main reason of 'deficit financing' in Pakistan-

(a) Low savings

(b) Rapid growth of Population

(d) All the above one

55. Pakistan's domestic saving rate of GNP is:

(a) 7%

(b) 9%

(c) 11%

(d) 14%

56. Which is the single largest component of GDP of Pakistan?

(a) Industry

(b) Agriculture

(d) None of the above

57. Which of the following sector is the main source of foreign

exchange earnings in Pakistan?

(a) Industry

(b) Agriculture

(d) None of the above one

58. Identify the duration of the First five year plan of Pakistan:

(a) 1948 - 52

(b) 1955 – 60

(d) 1962 – 67

59. What is the share of wheat crop in total cropped area of

Pakistan?

(a) 18.05%

(b) 28.07%

(c) 37.01%

(d) 48.01%

60. The total area of Pakistan is 80 million hectares, out of

which area under forests is:

(a) 3.5%

(b) 4.8%

(d) 9.3%

61. OPEC's largest oil producing country is:

(a) Kuwait

(b) Iran

(c) Saudi Arabia

(d) U.A.E

62. The Aid to Pakistan Consortium now renamed as:

(a) IMF

(b) World Bank

(d) Pakistan Development Forum

63. The ratio of males and females population of Pakistan is

equal in:

(a) Quetta

(b) Peshawar

(d) Rawalpindi

64. United Nations World Food Programme commenced its

operation in Pakistan during:

(a) 1963

(b) 1965

(d) 1972

65. The country with highest ratio of urban population in South

Asia is:

(a) India

(b) Sri Lanka

(c) Pakistan

(d) Nepal

66. The Government of Pakistan has given certain incentives to farmers for growing black tea on experimental basis at:

(a) Peshawar

(b) Mardan

(c) Mansehra

(d) D.G. Khan

67. In which of the following country, population growth rate is lowest?

(a) Japan

(b) India

(d) Indonesia

68. In which of the following country, the population growth

rate is lowest?

(a) Pakistan

(b) China

(d) Bangladesh

69. The largest population density is in:

(a) Pakistan

(b) Bangladesh

(d) Sri Lanka

70. The World's population has now reached on:

(a) 6 billion

(b) 8 billion

(d) 10 billion

71. The study of science of population is called :

(a) Geography

(b) Demography

(d) Sociology

72. The 5th national census recorded the total population of

Punjab with annual growth rate of :

(a) 47.292 million -2.51%

(b) 72.585 million -2.01%

(d) 63.433 million -3.01%

73. The population growth rate in the country is:

(a) 2.01%

(b) 2.61%

(d) 3.61%

74. Identify the total percentage of population in the country, having access to safe and clean water supply.

(a) 40%

(b) 52%

(c) 59%

(d) 68%

75. The population density in Punjab per square kilometer is

approximately : (persons)

(a) 353

(b) 480

(d) 882

76. Identify the member of G-8 organization, which will provide 300 million US dollars to Pakistan in 1999 for certain

development projects?

(a) America

(b) United Kingdom

(d) Japan

77. In the total population of Pakistan, the percentage of income

tax payers is only :

(a) 1.05%

(b) 1.75%

(d) 3.4%

78. What do you understand by the term "deflation"?

(a) Excess circulation of money, causing dearness of goods

(b) Increase in interest rates diverts money into savings

and reduce circulation of money causing prices to fall.

(d) Decline in remittances from abroad, causing economic

hardships for the Government

79. The maximum number of persons populated in one square kilometer of area are in:

(a) Punjab

(b) Sindh

(d) Islamabad

80. The minimum number of persons populated in one square kilometer of area are in:

(a) Islamabad

(b) FATA

(c) Balochistan

(d) N.W.F.P.

81. In the total population of Pakistan, the share of Punjab

province is approximately :

(a) 50%

(b) 55%

(c) 60%

(d) 62%

82. In the total population of Pakistan, the share of Balochistan is approximately :

(a) 3%

(b) 5%

(d) 9%

83. Hydel power Stations of `WAPDA' are generating electricity approximately:

(a) 3500 mw

(b) 4250 mw

(d) 5200 mw

84. The total demand of power (electricity) in the country at

present is approximately:

(a) 7000 mw

(b) 9000 mw

(d) 14000 mw

85. In which of the following districts, the government of

Pakistan has given incentives package to farmers for

growing black tea on experimental basis?

(a) Rawalpindi

(b) Mardan

(c) Mansehra

(d) Noshki

86. UNESCO required one country must spend at least one

percent of its GDP on Science and Technology but Pakistan

is spending only:

(a) 0.02%

(d) 0.05%

(d) 0.08%

87. In which division of Punjab, the ratio of males and females is equal?

(a) Bahawalpur

(b) Faislabad

(d) Rawalpindi

88. Which of the continents has the lowest population growth

rate?

(a) Asia

(b) Australia

(d) Europe

89. With the present population growth rate, Pakistan would

become world’s 3rd most populated country by the year:

(a) 2020

(b) 2025

(d) 2050

90. In which Division of Punjab, the ratio of females in

population is 10% more than males?

(a) Multan

(b) D.G. Khan

(d) Lahore

91. Which is the most urbanized division of Punjab?

(a) Multan

(b) Rawalpindi

(d) Lahore

92. In the ten (10) most populated cities of Pakistan, Sialkot is

on number :

(a) Four

(b) Six

(d) Nine

93. In the ten most populated cities of Pakistan, Rawalpindi is on number:

(a) Three

(b) Four

(d) Six

94. Which region of Punjab is free from water-logging Problem?

(a) Gujranwala

(b) Lahore

(c) Rawalpindi

(d) Multan

95. What is the main reason of the flour crisis in the country?

(a) Wheat sowing area has been replaced with sugar cane

crop by the farmers.

(b) A large portion of wheat Crop has been damaged by

pests.

(c) Smuggling of wheat flour to other country

(d) None of the above

96. Identify the length of Islamabad-Peshawar section of

Motorway:

(a) 96 km

(b) 133 km

(d) 154 km

97. Which Division of Punjab produces maximum wheat crop?

(a) Bahawalpur Division

(b) Faislabad Division

(d) Multan Division

98. "Rawal" and "Hajveri" are the two varities of one of the

following crops.

(a) Rice

(b) Cotton

(d) Wheat

99. The share of Cotton crop in the total cropped area of Punjab is approximately.

(a) 16.0%

(b) 18.0%

(d) 39.0%

100. Which division of the Punjab Produces maximum Sugarcane crop?

(a) Faisalabad

(b) Bahawalpur

(d) Multan

101. Out of total wheat production in Pakistan, Punjab

contributes around :

(a) 65%

(b) 73%

(d) 83%

102. The largest portion of saline area of land in Punjab is in:-

(a) Faisalabad Divisional

(b) D.G. Khan Division

(d) Bahawalpur Division

103. The total area Pakistan has under forestation is estimated at:

(a) 5,062 million acres

(b) 8,095 million acres

(d) 12,300 million acres

104. National income is the sum of:

(a) Income of all the rich people of the country

(b) Income of all industrialists of the country

(d) Income of all the people in the country during a year

105. G.D.P. (Gross Domestic Product) is the value of all goods

and services:

(a) Produced in the country with foreign resources during a

year

(b) Produced within the geographical boundaries of a

country during a year

working in or outside the country

(d) None of the above

106. G.N.P. (Gross National Product) is the total value of goods and services:

(a) Produced in a country with domestic or foreign factors

(b) Produced by the factors belonging to the country

working in or out of the country

working abroad

(d) None of the above

107. National income is essentially composed of:

(a) Annual income of Central Government

(b) Total wealth of a Nation

(d) Annual income of citizens of a country

108. Which of the following of Punjab has the lowest population

density?

(a) Rajanpur

(b) Bahawalpur

(d) D.G. Khan

109. National income is essentially composed of:

(a) All wealth of a nation

(b) Annual income of the central government

(c) All incomes of the people of the country in a year

(d) Income derived from taxes by the central government

110. The value of the vegetables a retired school teacher grows in his lawn is excluded from the calculation of national income

because:

(a) Retired person's activities are not included in

calculating national income

(b) The goods are not exchanged through the market

mechanism

(d) There is no way of imputing the value of such goods.

111. Which of the following activity will be considered as

investment?

(a) Construction of a new house

(b) Purchasing a newly floated share of a joint stock

company

(d) All the above

112. Real national income increases if:

(a) Volume of goods and services increases

(b) Prices of goods and services increase

(d) None of the above one

113. Identity the false statement among the followings:

(a) If prices rise, real income also rises

(b) In calculating national income, retirement pension are

excluded

16 General Knowledge – MCQs

GNP

(d) None of the above one

114. Per capita income is:

(a) Average income of the working class

(b) Average income of the people of a country during a year

(d) None of the above one

115. Which of the following is a real cause for low per capita

income of Pakistan?

(a) There is lack of Natural resources

(b) These is over-population

(d) All of the above

116. Economic development means:

(a) Increase in agricultural production of a country

(b) Increase in mineral resources of the country

(c) Increase in real national income and standard of the

living of the people of country

(d) Increase in consumption expenditure of the country

117. Which of the following statement is false?

(a) Economic development is a process whereby an economy

real national income increases over a long period of time

(b) Economic development is measured by the rate of

population increases

share of industrial sector in the national income

increases

(d) Per capita income is a better measure of economic

development than the national income.

118. Which of the changes below is most likely to lead directly to an increase in the income growth rate?

(a) An increase in wages

(b) An increase in interest rates

(d) An increase in capital investment

119. Economic planning means:

(a) Planning family size by limiting the number of children

(b) Making decisions as to what is to be produced, how

when and where it is to be produced and to whom it is to

be allocated on the basis of comprehensive survey of the

economic system as a whole

production

(d) None of the above

120. How much of GDP is spent on Agricultural Research in

Pakistan?

(a) 0.02 percent

(b) 0.6 percent

(c) 1.5 percent

(d) 1.9 percent

121. 11 July every year is being celebrated under United Nations as “World Population Day” since:

(a) 1985

(b) 1987

(d) 1991

122. The main reason why cheques can be regarded as money is that:

(a) They are accepted by most people

(b) They act as receipts

(d) They can be sent safely by post

123. Of all methods of payment, the recognized legal tender is:-

(a) Cheques

(b) Bank notes/metalic coins

(d) Promissory notes

124. Token coins are:

(a) Not legal tender

(b) Valueless

(d) Worth more than the value of the metal they contain

125. Who issues one-rupee coin in Pakistan?

(a) Government of Pakistan

(b) State Bank of Pakistan

(d) None of the above

126. Who issue two-rupee note in Pakistan?

(a) Government of Pakistan

(b) State Bank of Pakistan

(d) None of the above

127. Who issue ten-rupee note in Pakistan?

(a) Government of Pakistan

(b) State Bank of Pakistan

(d) None of the above

128. Which of the following statement is true?

(a) In barter system, goods are exchanged with goods

(b) Token money has its face value equal to the value of the

metallic content

(d) Silver and gold full-bodied coins circulated these days.

129. Which of the following statement is true?

(a) Only the person in whose favour a bearer cheque is

written can cash this cheque

(b) Crossed cheque can be got cashed by any one

(c) Order cheque can be got cashed on identification

(d) If the money unit is not scarce, it ceases to be used as

money.

130. Which of the following statement is false?

(a) There is no difference in bearer and order cheque

(b) Payment of Bill of Exchange (sight) is made

immediately

(d) A cheque is a form of currency note

131. By value of money is meant?

(a) Power of a good to command other things in exchange

(b) Power of money to command goods and services in

exchange

(d) Power of money to command foreign currency.

132. According to "Tausing":

(a) Double the quantity of money and other things, being

equal, the prices will be twice as high as before and

value of money one half

(b) Double the quantity of money and value of money will

double

remaining the same the prices will be half of what they

were before and value of money will be double as before

(d) None of the above

133. "Inflation" means that money:

(a) Rises in value

(b) Falls in value

(c) Become scarce

(d) becomes larger in denomination

134. "Inflation" may be defined as:

(a) Rapidly increasing prices in a certain sector or industry

(b) A temporary increases in the prices of several goods

economy

(d) Too little money choosing too many goods

135. Which of the following statement is true?

(a) Devaluation causes an increase in the value of money

(b) Fixed income groups are benefited by increase in prices

(c) A decrease in production brings a decrease in the value

of money

(d) None of the above

136. Which of the following groups is most likely to benefit from inflation?

(a) Exporters

(b) Debtors

(d) Creditors

137. Which of the following must be a result of inflation?

(a) Higher interest rates

(b) A rise in the exchange rate

(d) A reduction in the value of money

138. Can money perform the following functions?

(a) To compare the value of goods

(b) To act as medium of exchange

(c) Both of the above

(d) None of the above

139. Which of the following will be described as "cost push"

inflation?

(a) An increase in imported oil prices

(b) An increase in money supply

(c) An increase in unemployment allowances

(d) A reduction in income tax.

140. Which of the following statement is false?

(a) Inflation brings an increase in production

(b) Inflation makes savings increase

financing and excessive increase in money supply

(d) None of the above

141. Will the following benefit in real terms during a period of high and rising inflation:

(a) Someone who hoards money

(b) Someone whose income comes from securities with a

fixed rate of interest

(c) Some one who owes money and is repaying the debt

(d) None of the above

142. A stock exchange is:

(a) A central market for buying and selling all kind of goods

(b) A place where any businessman can borrow money from

the members

limited companies

(d) A central market for buying and selling all kinds of

Securities

143. Which one of the following is not a function of a commercial bank?

(a) Acting as banker to the state

(b) Managing government borrowings

(d) All of the above

144. The World’s most populous city:

(a) Mexico

(b) Beijing

(d) Tokyo

145. In Asia, the highest density of population (5516 persons per sq. km.) was recorded in:

(a) Singapore

(b) Bangladesh

(d) North Korea

146. Which of the following is regarded as a liability by choosing banks?

(a) Overdrafts

(b) Personal loans

(d) Deposits of customers

147. Which of the following policies would be most appropriate for the State Bank of Pakistan to follow if it wished to make

it more difficult for the commercial banks to grant loans?

(a) Buying long-term securities in the open market

(b) Raise the percentage of special deposits required

(d) Borrow through treasury bills rather than long term

Bonds

148. Which of the following items in the balance of payments accounts are invisible?

(a) Aviation

(b) Tourism

(d) All of the above

149. "Free Trade" means:

(a) No restriction on the movement of goods from one part

of the country to the other

(b) No ban on the import or export of a commodity between

countries

currency

(d) None of the above

150. "Protection" means:

(a) Safeguard of goods and services of a country from being

spoiled at the time of export

(b) Safeguard of assets of a country from being destroyed by

military attack

(c) Policy of a country to discourage import of certain

commodities so as to save the domestic industries from

competition with foreign firms

(d) None of the above

151. 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

efficient

(d) All of the above

152. 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

current account, capital account and monetary account

(d) All of the above

153. 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

(d) Value of goods imported and exported

154. 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

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

(a) Petroleum

(b) Machinery

(c) Surgical goods

(d) Tea

156. 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

157. 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

(d) Resources in both public and private finance are limited

in relation to demand for expenditure

158. Which of the following is not correct?

(a) Tax is a general purpose compulsory contribution

(b) Tax payment is optional

tax

(d) None of the above

159. Taxes which may be shifted from the person upon whom

they are originally imposed to another person are:

(a) Special taxes

(b) Double taxes

(d) Indirect taxes

160. "Sales Tax" is ultimately paid by:

(a) The shopkeepers

(b) The producers

(c) The customers

(d) The wholesalers

161. An example of indirect tax is:

(a) Corporation tax

(b) Income tax

(d) Tobacco tax

162. Which of the following is true statement?

(a) Income tax is a progressive tax

(b) Excise duty is an indirect tax

(d) All of the above

163. 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

(d) A plan for purchasing the best quality goods at the

lowest prices

164. 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

revenue

(d) Where the budget leaves most tax payers with less

disposable income

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

(a) Sell government securities

(b) Sell bills of exchange

(d) Buy treasury bills

166. Which of the following is false statement?

(a) Federal government receives land revenue

(b) Motor vehicles tax is received by Federal Government

(d) All of the above

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

(a) Private entrepreneurs only

(b) Government only

(d) The government in public enterprise and private

entrepreneurs in private enterprises

168. 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

(d) All the above

169. 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

(d) All of the above

170. 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

industry

(d) All of the above

171. Pakistan’s largest export market is:

(a) USA

(b) Germany

(d) Saudi Arabia

172. 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

(d) All of the above

173. 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

174. The World’s most populous city is:

(a) Mexico City

(b) Beijing

(d) Tokyo

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

(a) Islamabad

(b) Lahore

(d) Peshawar

176. 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.

177. 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

178. 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.

179. In Punjab, the lowest density of population is in:

(a) Multan Division

(b) Rawalpindi Division

(c) Bahawalpur Division

(d) D.G. Khan Division

180. Which of the following is a cash crop?

(a) Wheat

(b) Rice

(c) Cotton

(d) None of the above

181. Which of the characteristics of Islamic Economic System

is/are true?

(a) An Islamic state is essentially a welfare state

(b) Ensures social justice

values

(d) All of the above

182. "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

(d) All of the above

183. 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 52

½ tolas of silver.

(d) All of the above

184. In Islam, absolute ownership of property lies only with:

(a) Allah

(b) Government

(d) Both government and owner

185. 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

labour

(d) None of the above

186. From which of the following countries, Pakistan received the

biggest share of workers remittances during the year 2000?

(a) UAE

(b) Kuwait

(d) USA

187. 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.

(d) All of the above.

188. Agricultural income tax in Pakistan will be levied on the

farmers with land holdings of or more than:

(a) 30 acres

(b) 10 acres

(d) 12 ½ acres

189. Which of the following European country has not adopted

Europe currency?

(a) Great Britain

(b) Sweden

(d) All of the above

190. Under the Constitution of Pakistan, National Finance

Commission distribute the amount from federal taxes to

provinces on the basis of:

(a) Area

(b) Population

(d) Equality

191. According to a UN report, the number of hungry people

(starving to death) in the world stands at:

(a) 600 million

(b) 800 million

(d) 500 million

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

(a) Japan

(b) China

d) USA

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

(a) Japan

(b) Canada

(c) China

(d) U.K.

194. 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

195. 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

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

(a) Lapis Lazuli

(b) Topaz

(d) All of the above.

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

(a) Mobilinks

(b) Paktel

(d) All of the above

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

(a) D.G. Khan

(b) Lahore

(d) Jhelum

199. Under the Zakat fund, the amount being given to the

deserving people is:

(a) Rs. 300

(b) Rs. 500

(d) Rs. 700

200. 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

201. Which of the following countries could most aptly be

described as having a fully centrally planned economy?

(a) U.K.

(b) USA

(c) Cuba

(d) 144

202. How many countries have joined WTO till September 2002:

(a) 111

(b) 122

(d) 144

203. In which of the South Asian Countries, the infant mortality

rate is highest?

(a) Pakistan

(b) India

(d) Sri Lanka

204. ‘Naryab Dam’ in NWFP is being constructed in the district

of:

(a) Hazro

(b) Ghazo

(c) Hangu

(d) Kohat

205. According to a UN report, the number of people in the world

having no access to clean drinking water are:

(a) 70.4 million

(b) 90.2 million

(c) 1.1 billion

(d) 1.8 billion

206. In this passage “gestures” mean:

(a) Verbal expression

(b) Looks

(c) Expressive movements of the body

(d) Jesting.

207. Who was appointed Caretaker Prime Minister when

National Assembly was dissolved on April 18, 1993?

(a) Malik Meraj Khalid

(b) Moen Qureshi

(d) Balkh Sher Mazari

208. The government in Pakistan has recently withdrew sales tax

on one of the following items:

(a) Mobile phone cards

(b) Medicine

(c) Edible oil

(d) Tea

209. The demand of electricity is rising in Pakistan at the rate of:

(a) 14 percent annually

(b) 17 percent annually

(d) 21 percent annually

210. Which part of Pakistan has lowest urban population?

(a) Islamabad

(b) Balochistan

(d) FATA

211. Which of the following countries first introduced paper

currency in the world?

(a) USA

(b) Greece

(c) China

(d) France

212. The 6th National Finance Commission Award the share of

provinces from the federal revenue has been increased from

37.5 percent to:

(a) 2002-2003

(b) 2003-2004

(d) 2005-2006

213. The World’s largest copper producer is:

(a) China

(b) Chile

(d) Russia

214. The World’s largest producer of silk is:

(a) Malaysia

(b) Bangladesh

(c) China

(d) India

215. Under the 6th National Finance Commission Award the

share of provinces from the federal revenue has been

increased from 37.5 percent to:

(a) 38%

(b) 39%

(c) 40%

(d) 42%

216. The share from federal revenue is given to the provinces

according to their:-

(a) Backwardness

(b) Population

(d) None of the above

217. Identify the world’s richest man and his organization:

(a) John Walton - Wal – Mart stores – USA

(b) Bill Gates – Microsoft - USA

(d) None of the above

218. The people live below the poverty line earn less then:

(a) 1 US dollar daily

(b) 2 US dollar daily

(d) 5 US dollar daily

219. Identify Pakistan’s largest gas fired power plant:

(a) Faisalabad Gas Turbine Power Plant

(b) Uch Power Plant

(d) Malakand the Dargai Power Plant

220. After independence, the first industrial unit inaugurated by

Quaid-i-Azam was:

(a) Adamjee Paper Mills

(b) Valika Textile Mills

(d) Pakistan Jute Mills

221. An arrangement between a seller and buyer under which a

period of credit is allowed before payment is called:

(a) Account

(b) Advertising

(d) Annuity

222. The prices that are set by government rather than by

negotiation between a seller and a buyer are known as

(a) Market Prices

(b) Management Prices

(c) Administered Prices

(d) None of the above

223. What is the term for paid announcements to persuade and

inform public?

(a) Campaign

(b) Advertising

(d) Publicity

224. The inefficiencies associated with employing a

representative to carry out a task for you rather than

carrying it out yourself are known as in economical terms as

(a) Agency Cost

(b) Total Cost

(d) None of the above

225. In terms of economics a constant annual payment is called:

(a) Asset

(b) Annuity

(d) None of the above

226. The transaction in which the buyer of an item is selected

after a number of buyers have made some willingness to pay

for that item; is marked as

(a) Sale

(b) Bargaining

(d) Auction

227. The national economic self-sufficiency i.e., exclusion from

international trade pursued as a national policy is called:

(a) Autarky

(b) Self-sufficiency

(d) All of the above

228. A check of accounting records conducted by a professional

accountant to find out any fraud or discrepancies is termed

as:

(a) Audit

(b) Scrutiny

(d) Checking

229. What is the term for total sales value divided by the number

of units sold and thus equals to average price is?

(a) Average Cost

(b) Average Sale

(c) Average Revenue

(d) None of the above

230. The statement of the wealth of a business organization or

individual on a given date usually the last day of the fiscal

year is termed as:

(a) Balance Sheet

(b) Balance list

(d) None of the above

231. What is the business of accepting deposits and lending

money called?

(a) Stock market

(b) Trading

(d) Banking

232. The declaration by a court of law that a company or

individual is insolvent, i.e., it cannot pay its debts on the

due dates is known as

(a) Bankruptcy

(b) Penury

(d) None of the above

233. The fixed interest security issued by governments, banks or

other financial institutions is also termed

(a) Bargain

(b) Bond

(d) Contract

234. The first class equity share, the purpose of which entails

little risk in earnings in recession is called:

(a) Blue disc

(b) Blue chip

(d) None of the above

235. Underground economic activity that is not declared for

taxation purposes is called

(a) Black Trade

(b) Black Country

(c) Black Economy

(d) Black List

236. A trade of goods and services in the exchange for other goods

or services rather than for money is known as:

(a) Foreign Trade

(b) Free Trade

(c) Barter Trade

(d) Limited Trade

237. In an organized market, an intermediary between a buyer

and a seller is called:

(a) Broker

(b) Stockbroker

(d) Negotiator

238. What is called if estimate of income and expenditure are for

future as opposed to an account that records financial

transaction?

(a) Quota

(b) Allocation

(c) Budget

(d) Estimate

239. The output from a process designed for the production of

some other product. is called

(a) By product

(b) Main product

(d) None of the above

240. The asset that is capable of generating income and that have

itself been produced is termed

(a) Credit

(b) Capital

(d) Premium

241. The production of a commodity in which a higher proportion

of capital is used is known as

(a) Labour Intensive

(b) Capital Intensive

(d) None of the above

242. The market for long term loanable funds as different from

the market that deals in short term loans is called:

(a) Capital Market

(b) Capital Stock

(d) None of the above

243. The total amount of physical capital in the economy or in a

firm or industry is termed as

(a) Capital Market

(b) Capital Gains

(c) Capital Stock

(d) None of the above

244. An association of producers to regulate prices by restricting

output and competition is called

(a) Cartel

(b) Monopoly

(d) None of the above

245. The most common example of an international cartel is the

(a) South Asian Association for Regional Corporation.

(SAARC)

(b) Organization of Petroleum Exporting Countries (OPEC)

(d) International Monetary Fund (IMF)

246. The flow of money payments to or from a firm is called

“Cash Flow”. Expenditure is sometimes referred to as:

(a) Gross Cash Flow

(b) Negative Cash Flow

(d) All of the above

247. The banker’s bank and lender of last resort is the

(a) Commercial Bank

(b) Investment Bank

(c) Central Bank

(d) All of the above

248. A certificate that specifies the country of origin of an export

or import is called

(a) Certificate of Deposit

(b) Certificate of Origin

(d) None of the above

249. The order written by the drawer to a commercial bank or

central bank to pay on demand a particular sum to a bearer

is referred to as

(a) Pay check

(b) Cheque

(d) Money order

250. A measurement of unemployment based on the number of

people out of work and claiming unemployment benefits is

called in terms of economic theory

(a) Employment Count

(b) Claimant Count

(d) None of the above

251. 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

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

(a) Open economy

(b) Autarky

(c) Close economy

(d) All of the above

253. 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

(d) All of the above

254. A percentage of the value of a transaction taken by an

intermediary as payment for his services is called:

(a) Profit

(b) Commission

(d) Fee

255. 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

256. Which of the following is an example of common market?

(a) European Union

(b) Mercosur

(d) All of the above

257. 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

258. 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

259. 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

(d) None of the above

260. 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

(d) None of the above

261. 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

262. An economic good or commodity purchased by households for

final consumption is called:

(a) Consumer good

(b) Consumption good

(d) All of the above

263. 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

264. The use of resources to satisfy current needs and wants is

called:

(a) Depletion

(b) Dissipation

(c) Consumption

(d) Destruction

265. 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

266. 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

(d) None of the above

267. 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

268. 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

(d) None of the above

269. 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

(d) All of the above

270. 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

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

(a) Creditor

(b) Debtor

(d) None of the above

272. 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

(d) Dinar

273. 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

(d) Profit and Loss Account

274. Prices unadjusted for changes in the purchasing power of

money are called:

(a) Historic Prices

(b) Current Prices

(d) None of the above

275. 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.

276. A cartel is an organization formed by producers. Its

objectives are:

(a) To allocate market shares

(b) To control production

(d) All of the above

277. A loss in social welfare deriving from a policy or action that

has no corresponding gain is called:

(a) Deadweight Waste

(b) Deadweight Loss

(d) None of the above

278. The number of deaths occurring in any year for every 1000

of the population is referred to as

(a) Death Ratio

(b) Death Rate

(d) None of the above

279. A sum of money or other property owed by one person or

organization to another is called

(a) Credit

(b) Debt

(d) All of the above

280. One who owes money to another is known as

(a) Creditor

(b) Debtor

(d) None of the above

281. 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

282. The excess of an expenditure flow over an income flow is

termed as:

(a) Loss

(b) Deficit

(d) Shortage

283. The use of borrowing to finance an excess of expenditure

over income is known as:

(a) Deficit Financing

(b) Debt Retirement

(d) None of the above

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

(a) Inflation

(b) Deflation

(d) Both B and C

285. A decline in the share of manufacturing sector in national

income is termed as:

(a) Industralization

(b) Privatization

(d) Deindustralization

286. 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

(d) Incentive

287. 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

(d) All of the above

288. 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

289. Money placed in an account at a financial institution and

constituting a claim on it is known as

(a) Deposit

(b) Credit

(d) Hoarding

290. 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

(d) None of the above

291. 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

292. A downturn in the business cycle in which there is a

sustained high level of unemployment is called

(a) Inactivity

(b) Depression

(d) Decline

293. 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

294. 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

295. 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

(d) None of the above

296. 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

297. A deduction from face value is referred to as:

(a) Premium

(b) Discount

(d) None of the above

298. 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.

299. 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

(d) Capital

300. 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

(d) None of the above

301. The situation in which the same tax base is taxed more than

once is called:

(a) Direct Taxation

(b) Double Taxation

(d) None of the above

302. A daily index of prices on the principal stock exchange in

New York is called:

(a) Dow Jones industrial average

(b) Equity market indexl

(d) None of the above

303. 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

304. Two sellers only of a good or service in a market. This

situation is:

(a) Monopoly

(b) Duopoly

(d) None of the above

305. Consumer goods that yield services or utility over time

rather than being used up instantly are termed as

(a) Durable Goods

(b) Undurable Goods

(d) None of the above

306. The setting up of mathematical models describing economic

relationship testing the validity of such hypotheses is

termed as:

(a) Econometrics

(b) Commerce

(d) Finance

307. 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

308. The exploitation of developing countries by advanced

countries is called:

(a) Embargoes

(b) Sanctions

(c) Economic Imperialism

(d) None of the above

309. 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

(d) None of the above

310. 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

(d) Forestry

311. 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)

(d) None of the above

312. 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

313. 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

(d) All of the above

314. 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

315. In 1947 how many states did take part in the General

Agreement on Tariffs and Trade trade round in Geneva?

(a) 13

(b) 23

(d) 43

316. 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)

(d) Kofi Annan (Ghana)

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

(a) Olivier Long (Switzerland)

(b) Renato Ruggiero (Italy)

(d) Mike Moore (New Zealand)

318. The General Agreement on Tariffs and Trade trade rounds concentrated on reducing tariffs. Which round was the firstmajor 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

319. 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

(d) Uruguay Round

320. 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

(d) All of the above

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

(a) 1 year

(b) 2 years

(d) 4 years

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

(a) United States

(b) Canada

(d) All of the above

323. 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)

324. 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

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

(a) http://www.wto.com

(b) http://www.wto.org

(d) http://www.wtosecretariat.com

326. 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

(d) 5 years

327. 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

(d) None of the above

328. 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

(d) Promotor

329. 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

330. Enterprise is the controlling unit of a business. The

operating unit of a business is called:

(a) Firm

(b) Establishment

(d) Organization

331. 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

332. The control by the state through the banking system of

dealings in gold and foreign currencies is called

(a) Exchange Control

(b) Exchange Economy

(d) None of the above

333. The price at which one currency is exchanged for another

currency is known as:

(a) Exchange Control

(b) Exchange Rate

(d) All of the above

334. Indirect taxies levied upon goods produced for home

consumption are called:

(a) Custom duties

(b) Excise duties

(d) None of the above

335. 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

336. 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

(d) None of the above

337. 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

338. 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

(d) Intermediate Goods

339. The provision of money when and where needed is called:

(a) Business

(b) Economics

(c) Finance

(d) Trade

340. 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

341. The budgetary stance of central government is called:

(a) Trade Policy

(b) Fiscal Policy

(d) None of the above

342. The capital that is not invested in fixed assets but the work

in process is called:

(a) Floating Change

(b) Floating debt

(d) Floating Capital

343. 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

344. Claims on another country held in the form of the currency

of that country are known as:

(a) Foreign Aid

(b) Foreign Exchange

(d) None of the above

345. 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

346. 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

(d) Charter

347. 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

(d) None of the above

348. 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

(d) None of the above

349. Non-wage or salary rewards provided for employees are

called:

(a) Fringe Benefits

(b) Basic Pay

(d) None of the above

350. 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

(d) All of the above

351. The branch of the social science that covers the study of the

production, distribution and consumption of wealth in

human society is known as:

(a) Law

(b) Political Science

(d) Economics

352. Which British philosopher and economist is regarded as

“founder of modern Economics”?

(a) Thomas Malthus (1766 – 1834)

(b) Adam Smith (1723 – 1790)

(d) All of the above

353. Which famous thinker and economic philosopher said,

“Religion … is the opium of the people.”?

(a) Adam Smith

(b) Thomas Malthus

(c) Karl Marx

(d) John Maynard Keynes

354. Who was awarded Nobel Prize of Economics in 1998?

(a) Ragnar Frisch

(b) Jan Tinbergen

(c) Amartya Sen

(d) Paul Anthony Samuelson

355. Who got the first Nobel Prize in Economics in 1969?

(a) Jan Tinbergren

(b) Ragnar Frisch

(d) Both a and b

356. What is Game Theory?

(a) The branch of economics concerned with representing

economic interactions in a highly stylized form with

players pays-off and strategies.

(b) The branch of economics that uses mathematical

methods and models e.g., calculus: statistics, probability

etc

overall, economy.

(d) The branch of economics that deals with small units,

including individual companies and small group of

consumers

357. A commodity for which demand increases at higher prices

and falls at lower prices is termed as:

(a) Consumer goods

(b) Giffen goods

(d) Durable goods

358. The geographical shifts in domestic economic activity around

the world and away from nation states is called:

(a) Foreign Trade

(b) Commerce

(c) Globalization

(d) Business

359. The stocks of gold and foreign currencies held by a country

to finance any calls that may be made from its creditors for

the debt settlement are known as

(a) Foreign exchange reserves

(b) Gold reserves

(c) Gold and foreign exchange reserves

(d) None of the above

360. The measure of the total flow of goods and services produced

by the economy over a specified time period, normally a year

or a quarter is referred to as

(a) Gross national product (GNP)

(b) Gross domestic product (GDP)

(d) None of the above

361. The currency traded in a foreign exchange market for which

demand is persistently high relative to supply is called:

(a) Soft currency

(b) Bad currency

(c) Hard currency

(d) Hot currency

362. The action taken by a buyer or seller to product his business

or assets against a change in prices is called

(a) Hedge

(b) Interest

(d) Loan

363. The theory that all human action is motivated by pleasure

and the avoidance of pain or the ethic that it should be so

motivated. Such theory is termed as

(a) Sadism

(b) Hedonism

(d) Spiritualism

364. The accumulation of idle money balances or inactive money

is called:

(a) Wealth

(b) Hoarding

(d) Investment

365. Funds that flow into a country to take advantage of

favourable rates of interest in that country are known as

(a) Hard currency

(b) Hot money

(d) Bad money

366. The skills and knowledge embodied in the labour force are

termed as:

(a) Investment

(b) Labour Capital

(d) Human Capital

367. What is the term used for the flow of goods and services that

enter for sale into one country and which is product of

another country?

(a) Exports

(b) Imports

(d) Gross Domestic Product (GDP)

368. The flow of goods or services to any economic agent or unit is

called:

(a) Income

(b) Import

(d) None of the above

369. The persistent increases in the general level of prices is

known as:

(a) Hyperinflation

(b) Inflation

(d) Recession

370. What is the term used for airports, roads, railways, sewage,

telephone and other public utilities?

(a) Understructure

(b) Substructure

(c) Infrastructure

(d) Superstructure

371. The contract to pay a premium for which the insurer will

pay compensation in certain happenings e.g., fire theft or

motor accident is termed as:

(a) Insurance

(b) Warranty

(d) Safeguard

372. The charge made for the use of borrowed money levied as a

percentage of the amount of debt is refered to as:

(a) Credit

(b) Interest

(d) Insurance

373. The amount of gold reserve, currencies and special drawing

rights available for the finance of international trade is

called:

(a) Foreign Reserves

(b) International Liqiudity

(d) None of the above

374. What is the term for stocks of raw materials work in

progress and finished goods?

(a) Inventory

(b) Checklist

(d) Statement

375. The real capital formation e.g., the production or

maintenance of machinary or construction that will produce

a stream of goods and services is called

(a) Capital

(b) Investment

(d) Property

376. The demand for two or more commodities or factor of

production that are used together so that a change in

demand for one will be reflected in a change in demand for

other e.g., cloth and thread is called

(a) Joint Demand

(b) Complementary Demand

(d) Both a and b

377. The business arrangement in which two companies invest in

a project over which both have partial control is termed as:

(a) Joint Ventrue

(b) Speculation

(d) Undertaking

378. The total number of people in a country who are in work or

unemployed but looking for work, is called:

(a) Labour Demand

(b) Labour force

(d) None of the above

379. An agreement between the owner of a property to grant use

of it to another party for a specified period at specified rent

payable annually is called:

(a) Charter

(b) Contract

(c) Lease

(d) Compact

380. In 1971, United Nations Conference on Trade and

Development (UNCTAD) drew up a list of 24 countries

having a GDP of 100 or less literacy rate of 20% or less and

a share of manufacturing of 10% or less of GDP. These

countries were referred to as:

(a) Developing Countries

(b) Advanced Cuntries

(c) Least Developed Countries

(d) None of the above

381. A non-negotiable order of a bank to a foreign bank

authorizing payment to a person designated of a particular

sum of money is known as:

(a) Letter of Credit

(b) Circular Letter of Credit

(d) None of the above

382. Sums of money for which account has to be made are called:

(a) Obligation

(b) Liabilities

(d) Burden

383. The degree to which an asset can be quickly and cheaply

turned into money, is termed as:

(a) Insolvency

(b) Liquidity

(d) All of the above

384. The borrowing of a sum of money by one person, company,

government or other organization from another is called:

(a) Usury

(b) Finance

(c) Loan

(d) Collateral

385. The study of whole economic systems aggregating over the

functioning of individual units. Specifically, it is study of

national economies and the determination of national

income. It is known as

(a) Microeconomics

(b) Keynesian Economics

(c) Macroeconomics

(d) Mathematical Economics

386. The degree to which a firm exercise influence over the price

and output in a particular market is called:

(a) Market Force

(b) Market Share

(c) Market Power

(d) Market Failure

387. Thomas Robert Malthus (1766 – 1834) was a British

economist who is remembered for his essays on population.

In his which famous work he said, “Population, when

unchecked, increases in a geometrical ratio. Subsistence

only increases in an arithmetical ratio.”?

(a) Principles of Political Economy

(b) An Inquiry into the Nature and Progress of Rent

(c) An Essay on the Principle of Population

(d) Illustrations of Political Economy

388. Adam Smith (1723 – 1790) was a British economist and

philosopher. Which treatise of Adam Smith is considered the

first serious attempt in the history of economics to divorce

the study of political economy from the related fields of

political science, ethics and jurisprudence?

(a) Theory of Moral Sentiments

(b) The Wealth of Nations

(d) Illustrations of Political Economy

389. Karl Marx (1818 – 1883) was a German political philosopher

and economist. He is one of the most influential thinkers of

all times. Which of the following is his work?

(a) The Communist Manifesto

(b) Critique of Political Economy

(d) All of the above

390. The Communist Manifesto appeared in 1848. It is regarded

as a classic exposition of modern Communist views and it

influenced all subsequent Communist literature. Karl Marx

completed it alongwith

(a) Friedrich Engels

(b) Thomas Mathus

(d) Vladimir Illich Lenin

391. The first volume of Karl Marx’s greatest work Das kapital

was published in 1887. The next two volumes were

published posthumously. Who edited those volumes?

(a) Adam Smith

(b) Thomas Malthus

(c) Friendrich Engles

(d) Josphe Stalin

392. The branch of economics concerned with how businesses

raise and spend their money is known as

(a) Econometrics

(b) Finance

(d) Corporate Finance.

393. The branch of economics concerned with providing funds to

individuals, business and governments is called:

(a) Econometrics

(b) Microeconomics

(d) Finance

394. The fusion of two or more separate companies into one is

referred to as:

(a) Alliance

(b) Merger

(d) Disintegration

395. Legislation prohibiting the paying of wages below some

specified level is known as

(a) Standard Wage

(b) Minimum Wage

(d) Optimum Wage

396. The market economy in which both private and public

enterprises participate in economic activity is called:

(a) Mixed Economy

(b) Open Economy

(d) All of the above

397. The theory of macroeconomics which holds that increases in

the money supply are a necessary and sufficient condition

for inflation, is called

(a) Capitalism

(b) Socialism

(c) Monetarism

(d) Communism

398. The functions of sales, distribution, advertising and sales

promotion, product planning and market research are

termed as:

(a) Finance

(b) Marketing

(d) All of the above

399. European Recovery Program (ERP) was a United States

program of financial assistance that helped to rebuild

European nations devastated by World War II. This

program is commonly called

(a) George Plan

(b) Catlett Plan

(c) Marshall Plan

(d) Colombo Plan

400. An early modern European economic theory that trade

generates wealth of bullion which a government should

encourage by promoting exports and restricting imports is

called:

(a) Imperialism

(b) Colonialism

(c) Mercantilism

(d) Socialism

401. The branch of economics at the level of individual consumers

groups of consumers or firms is known as:

(a) Macroeconomics

(b) Econometrics

(c) Microeconomics

(d) Keynesian Economics

402. The economic situation in which only a single seller or

producer supplies a commodity or a service is called:

(a) Monopoly

(b) Possession

(d) Trust

403. The legal instrument that pledges a house or other real

estate as security for repayment of a loan is called:

(a) Mortgage

(b) Bond

(d) Lien

404. The international trade and exchange between more than

two countries without discrimination between those involved

is called:

(a) Unilateralism

(b) Bilateralism

(c) Multilateralism

(d) None of the above

405. An industry in which technical factors preclude the efficient

existence of more than one producer. This situation is called:

(a) Natural Monopoly

(b) Monopoly

(d) Duopoly

406. Commodities or assets with some economic value which

exist without any effort of mankind, are called:

(a) Minerals

(b) Natural resources

(d) Consumer resources

407. 1994 Nobel Prize for Economics was awarded to a American

mathematician for his most important concept of

equilibrium as applied to game theory. His name was

(a) John Nash

(b) Reinhard Selten

(d) All of the above

408. The reduction in the useful life of a capital good or consumer

good through economic or technological change as distinct

from physical deterioration in use is termed as:

(a) Depreciation

(b) Devaluation

(c) Obsolesience

(d) All of the above

409. A market that is dominated by a few large suppliers is

known as:

(a) Oligopoly

(b) Monopoly

(d) None of the above

410. A loan facility on the customer’s current account at a bank

permitting him to withdraw up to a certain agreed limit for

an agreed period, is referred to as:

(a) Personal Loan

(b) Mortgage

(c) Overdraft

(d) Credit

411. The situation in which aggregate demand in the economy is

growing at a rate reliable to lead to inflation is called:

(a) Overdraft

(b) Overheating

(d) None of the above

412. An unincorporated business formed by the association of two

or more persons who share risks and profits is called:

(a) Merger

(b) Alliance

(c) Partnership

(d) Corporation

413. The period over which the cumulative net revenue from an

investment project equals the original investment is known

as:

(a) Payback

(b) Paycheck

(d) None of the above

414. Sums of money laid aside and normally invested to provide a

regular income on retirement or in compensation for

disablement for the remainder of a person’s life is called:

(a) Provident Funds

(b) Pension Funds

(d) None of the above

415. A bank loan made without collateral security to a private

customer for specific purposes is called:

(a) Personal Loan

(b) Credit

(d) Lien

416. What is the informal name for annual publication “United

Kingdom Balance of Payments”?

(a) Green Book

(b) Red Book

(c) Pink Book

(d) Blue Book

417. The system of agricultural support by which market prices

are fixed at above free market levels and government buys

surpluses, thus supporting prices and raising farmer’s

income is called:

(a) Price Regulation

(b) Price Support

(d) None of the above

418. The part of the economy in which economy activity is carried

on by private enterprise is termed:

(a) Personal Sector

(b) Corporate Sector

(c) Private Sector

(d) Public Sector

419. The sale of government owned equity in nationalized

industries or other commercial enterprises to private

investors is called:

(a) Nationalization

(b) Privatization

(d) Both b and c

420. The sale of shares on the stock exchange in order to realize

capital appreciation is known as:

(a) Profit Sharing

(b) Profit Taking

(d) Equity

421. A legal document between a lender and a borrower whereby

the later agrees to certain conditions for the repayment of

the sum of money borrowed; is called:

(a) Promissory Note

(b) Bill of exchange

(d) None of the above

422. The proportion of a sum of money that is paid over a

specified time period in payment for its loan is called:

(a) Rate of interest

(b) Rate of substitution

(d) None of the above

423. The net profit after depreciation as a percentage of average

capital employed in a business is known as:

(a) Rate of Substitution

(b) Rate of Interest

(c) Rate of Return

(d) None of the above

424. The term used to describe a sharp slowdown in the rate of

economic growth or a modest decline in economic activity is

called:

(a) Depression

(b) Slump

(c) Recession

(d) None of the above

425. Scarce inputs that can yield utility through production or

provision of goods and services are referred to as:

(a) Resources

(b) Assets

(d) Capabilities

426. A tax levied as a proportion of the retail price of a

commodity at the point of sale is called:

(a) Income tax

(b) Wealth tax

(c) Sales tax

(d) Property tax

427. What is the term for generating capital from income?

(a) Self-financing

(b) Self-sufficiency

(d) None of the above

428. The total increase in the welfare of society from an economic

action is called:

(a) Fringe Benefits

(b) Social Benefits

(d) None of the above

429. A loan bearing either no rate of interest or an interest rate

which is below the true cost of capital lent is known as:

(a) Soft Loan

(b) Personal Loan

(d) Credit

430. Buying and selling with a view to buying and selling at a

profit later when the prices have changed is termed:

(a) Surmising

(b) Speculation

(d) Estimate

431. The quantity of goods and services consumed by an

individual or a household is called:

(a) Standard of living

(b) Standard of success

(d) Gross National Product

432. What is the name given to companies legally controlled by

other companies?

(a) Franchise

(b) Consortium

(c) Subsidiaries

(d) Merger

433. Government grants to suppliers of goods and services is

called:

(a) Subsidy

(b) Support

(d) Grant

434. The notion that economic development should proceed at a

pace and in a manner that will conserve the environment

and depletible natural resources is called:

(a) Sustainable development

(b) Rural development

(d) None of the above

435. Arranging one’s financial affairs within the law so as to

minimize taxation liabilities is known as

(a) Tax evasion

(b) Tax avoidance

(d) Tax expenditures

436. The compulsory transfer of money from private individuals,

institutions or groups to the government is called:

(a) Tax burden

(b) Tax evasion

(c) Taxation

(d) Tax yield

437. A trade barrier is any government limitation on the free

international exchange of merchandise. Which of these is an

instance of trade barrier?

(a) Tariffs

(b) Quotas

(d) All of the above

438. The excess of the value of imports of goods and services over

the value of exports of goods and services is called:

(a) Trade Cycle

(b) Trade Credit

(c) Trade Gap

(d) Trade investment

439. In UK, who is the first Lord of the Treasury?

(a) Queen

(b) King

(c) Prime Minister

(d) Finance Minister

440. Instruments for short-term borrowing by the government

are called:

(a) Treasury Bills

(b) Treasury Notes

(d) Promissory Notes

441. The total sales revenue of a business is called:

(a) Flow

(b) Turnover

(d) None of the above

442. Variable costs are those that vary directly with the rate of

output e.g., labour costs, fuel and power etc., These are also

known as:

(a) Prime costs

(b) Direct costs

(d) All of the above

443. The part of current assets financed from long term funds is

called:

(a) Working Capital

(b) Investment

(d) Working Equity

444. In economics, Gold Standard is the monetary system where

in all form of legal tender may be converted on demand, into

fixed quantities of gold. In 1816, the first country to go on

the gold standard was:

(a) United States

(b) United Kingdom

(d) France

445. A type of association usually formed by banks or railroads as

a central agency where members can settle accounts is

known as:

(a) Clearing House

(b) Pawnbroking

(d) All of the above

446. The type of currency issued by government as legal tender

the value of which is based solely on decree or law rather

than actual coin or precious metal reserves is termed as:

(a) Soft money

(b) Hard money

(c) Fiat money

(d) None of the above

447. Bimetallism is the monetary policy based on the use of two

metals, as legal tender without limit and equalized by law in

a fixed ratio. Which are these two metals?

(a) Platinum and Gold

(b) Gold and Silver

(d) All of the above

448. An association of individuals or corporations formed to

conduct a specific financial transaction such as buying a

business is known as:

(a) Merger

(b) Joint Venture

(c) Syndicate

(d) Franchise

449. The sixth Nobel Prize for Economics was introduced in 1969

in memory of Alfred Nobel. It is financed by

(a) Asian Development Bank

(b) Swedish National Bank

(d) International Monetary fund

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