Economics Test 3

Total Questions: 25

2 - On the basis of earnings,order of Pakistan's exports is

A ) Rice, cotton yarn,carpets
B ) Rice,carpets, cotton yarn
C ) Cotton yarn,rice, carpets ✅
D ) Cotton yarn,carpets,rice

3 - On the basis of value,order of Pakistan's imports is

A ) Oil, chemicals,machinery
B ) Oil, machinery, chemicals ✅
C ) Machinery,oil, chemicals
D ) Machinery,chemicals,oil

5 - What could a government do to correct the current account deficit.

A ) Reduce the deficit in the balance of trade ✅
B ) Reduce the repayment of loans
C ) Reduce the surplus on the capital account
D ) Reduce the volume of exports

6 - Whom of the following propounded principles of taxation;

A ) Keynes
B ) Marshall
C ) Adam Smith ✅
D ) Al Ghazali

7 - Taxes on commodities are

A ) Direct taxes
B ) Indirect taxes ✅
C ) Progressive taxes
D ) Proportional taxes

8 - It is direct tax

A ) Excise tax
B ) Sales tax
C ) Income tax ✅
D ) Custom duty

9 - Which of the following tax is best example of ability to pay principle of taxes

A ) Excise tax on cigarettes
B ) Highway tool tax
C ) Proportional sales tax
D ) Personal income tax ✅

10 - In Pakistan government budget is prepared by

A ) National Assembly
B ) President of Pakistan
C ) Ministry of Finance ✅
D ) State Bank of Pakistan

11 - Which of the following would cause income to become more unequal.

A ) Increased employment
B ) Increased unemployment allowance
C ) More progressive taxes
D ) More regressive taxes ✅

12 - Pakistan's public debt is:

A ) Larger than GNP
B ) Approximately equal to GNP
C ) Small than GNP ✅
D ) Smaller than our exports

13 - Pakistan's fiscal year starts from

A ) 1st September
B ) 1st January
C ) 1st April
D ) 1st July ✅

14 - Exchange rate of which of the following currencies falls because of president balance of payments deficit?

A ) Gold currency
B ) Hard currency
C ) Silver currency
D ) Soft currency ✅

16 - 'From each according to his ability, to each according to his need' is the theoretical slogan of

A ) Feudal System
B ) Capitalist System
C ) Fascist System
D ) Communist System ✅

17 - Development means economic growth plus

A ) Inflation
B ) Deflation
C ) Social change ✅
D ) Price stability

18 - GATT is the abbreviation of which of the following:

A ) General Arrangement of Transport on Trade
B ) Government of America's Treaty on Trade
C ) General Arrangement on Tariffs and Trade ✅
D ) Global Arrangement of Transport and Trade

19 - Which of the following is a valid currency?

A ) Promissory note
B ) Currency note ✅
C ) Exchange rate
D ) Bank cheque

20 - When aggregate supply exceeds aggregate demand

A ) Business inventory accumulates ✅
B ) Unemployment exists
C ) Price of consumer goods rise
D ) People save money than they intended to save

21 - 'Coal' is considered as a

A ) Consumer good
B ) Consumer durable
C ) Social good
D ) Capital single use good ✅

22 - A monopolist maximises his profit when

A ) Price=average cost
B ) Marginal cost=marginal revenue ✅
C ) Average cost=marginal cost
D ) Marginal revenue=average cost

23 - According to Lord Keynes,interest rate is determined by the supply and demand for

A ) Savings
B ) Loanable funds
C ) Money ✅
D ) Capital goods

24 - If tea and coffee are substitutes, a reduction in the price of coffee will

A ) Increase the sale of tea
B ) Decrease the sale of coffee
C ) Increas the sale of coffee ✅
D ) Decrease the price of tea

25 - A 'hard currency' is the one

A ) Whose external value is increasing
B ) Which can be acquired only with official permission
C ) Which can be obtained only against sale of gold.m
D ) Which is really accepted in international transactions ✅