Economics Test 5

Total Questions: 26

1 - Among SAARC countries.....has the highest per capita income.

A ) India
B ) Pakistan
C ) Sri Lanka ✅
D ) Maldives

2 - The country with the second highest G. N. P. is

A ) France
B ) Germany ✅
C ) Russia
D ) Japan

3 - Which one of the following is not a direct tax?

A ) Wealth Tax
B ) Professional Tax
C ) Income Tax
D ) Sales Tax ✅

4 - 'Mixed Economy ' means

A ) Co-existence of small scale and large -scale industries
B ) Co-existence of private and public sectors ✅
C ) Assigning equal importance to both agriculture and heavy industries
D ) Co-existence of the rich and the poor

5 - National Income is the

A ) Net National Product at market price ✅
B ) Net National Product at factory cost
C ) Net Domestic Product at market price
D ) Net Domestic Product at factory cost

6 - Which of the following is the most important requirements to restrict inflationary pressures in an economy?

A ) An ever-increasing level of productivity ✅
B ) Curbing consumption of goods and services
C ) Increasing supply of consumer goods
D ) Reducing money supply

7 - In the context of international trade,the term "dumping" of a good refers to its

A ) Stockpiling near sale points
B ) Unloading at the port of origin
C ) Unloading at the port of destination
D ) Sale below cost price ✅

8 - Which one of the following is NOT a capital market instrument?

A ) Debentures
B ) Shares
C ) Public Sector Bonds
D ) Treasury Bill ✅

9 - In the local center,the exchange rate between two foreign currencies,is known as

A ) Par value rate
B ) Futures rate
C ) Swap rate
D ) Cross rate ✅

10 - Public Limited Companies try to list their shares with stock exchanges with the objective

A ) Of maintaining the management control
B ) To provide protection to the investors
C ) To keep liquidity for the Directors ✅
D ) All of the above are objectives

12 - Who argued that profit is a payment for rental ability?

A ) Adam Smith
B ) Alfred Marshal
C ) Karl Marx
D ) David Ricardo ✅

15 - Inflation,where price rise makes workers demand higher wages which then again increases the prices,is known as:

A ) Stagflation
B ) Deflation
C ) Spiralling or cost-push inflation ✅
D ) Continuous inflation

16 - Banking retailing, transportation,etc. fall under:

A ) Primary industry
B ) Secondary industry
C ) Tertiary industry ✅
D ) Semi-retailing

17 - "Euro", the new European currency,was launched on

A ) 1 January 1998
B ) 1 July 1998
C ) 1 January 1999 ✅
D ) 1 July 1999

19 - Who wrote Das Capital,the book that gave birth to Communism?

A ) Lenin
B ) J S Mill
C ) Karl Marx ✅
D ) David Ricardo

21 - Who started the Law of Comparative Costs in the context of the theory of International trade?

A ) David Ricardo ✅
B ) Alfred Marshall
C ) F W Taussing
D ) A C Pigou

22 - In which country did th Industrial Revolution first occur?

A ) France
B ) USA
C ) Germany
D ) England ✅

23 - Which of the following bodies is an affiliate of the World Bank?

A ) Asian Development Bank
B ) International Development Association ✅
C ) International Monetary Fund
D ) World Trade Organization

24 - The World Bank normally gives

A ) Short-term Loans
B ) Medium-term loans
C ) Long-term loans
D ) Medium and long-term loans ✅

25 - When was the Uruguay Round of multilateral trade negotiations under the GATT launched?

A ) January 1986
B ) June 1986
C ) September 1986 ✅
D ) December 1986

26 - Where are the headquarters of European Economic Community?

A ) Paris
B ) Brussels ✅
C ) Copenhagen
D ) London