Top 550+ Solved Economics (GK) MCQ Questions Answer
Q. Floating Exchange Rate is also referred to as -
a. Flexible Exchange Rate
b. Fixed Exchange Rate
c. Real Exchange Rate
d. Controlled Exchange Rate
Q. Countries that depend mainly on the export of primary products for their income, are prone to -
a. inflation
b. economic instability
c. increasing unemployment
d. stable economic growth
Q. Bank deposits that can be withdrawn without notice are called -
a. account payee deposits
b. fixed deposits
c. variable deposits
d. demand deposits
Q. What does ECS in banking transactions stand for?
a. Excess Credit Supervisor
b. Extra Cash Status
c. Exchange Clearing Standard
d. Electronic Clearing Service
Q. Which one is not a function of money?
a. Transfer of value
b. Store of value
c. Price stabilization
d. Value measurement
Q. Inflation is caused by -
a. increase in money supply and decrease in production
b. increase in money supply
c. increase in production
d. decrease in production
Q. State which of the following is correct? The Consumer Price Index reflects -
a. the standard of living
b. the extent of inflation in the prices of consumer goods
c. the increasing per capita income
d. the growth of the economy
Q. What are the main components of basic social infrastructure of an economy?
a. Education, Industry and Agriculture
b. Education, Health and Civil amenities
c. Transport, Health and Banks
d. Industry, Trade and Transport
Q. The tax levied on gross sales revenue from business transactions is called -
a. Turnover Tax
b. Sales Tax
c. Capital Gains Tax
d. Corporation Tax
Q. Ad Valorem tax is levied -
a. according to value added by the Government.
b. according to value addition to a commodity
c. according to value given by producers
d. according to value added by the finance ministry
Q. Equilibrium price means -
a. Price determined by demand and supply
b. Price determined by Cost and Profit
c. Price determined by Cost of production
d. Price determined to maximize profit
Q. Opportunity cost of production of a commodity is -
a. the cost that the firm could have Incurred when a different technique was adopted
b. the cost that the firm could have incurred under a different method of production
c. the actual cost incurred
d. the next best alternative output
Q. Surplus earned by a factor other than land in the short period of referred to as-
a. economic rent
b. net rent
c. quasi-rent
d. super-normal rent
Q. If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is -
a. perfectly inelastic
b. elastic
c. perfectly elastic
d. inelastic
Q. Which of the following are not fixed costs?
a. Rent on land
b. Municipal taxes
c. Wages paid to workers
d. Insurance charges