Quiznetik

Economics (GK) | Set 9

1. Out of total wheat production in Pakistan, Punjab contributes around :

A. 65%

B. 73%

C. 79%

D. 83%

Correct : B. 73%

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

A. Faisalabad Divisional

B. D.G. Khan Division

C. Multan Division

D. Bahawalpur Division

Correct : D. Bahawalpur Division

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

A. 5,062 million acres

B. 8,095 million acres

C. 9,900 million acres

D. 12,300 million acres

Correct : B. 8,095 million acres

4. National income is the sum of:

A. Income of all the rich people of the country

B. Income of all industrialists of the country

C. Income of all the agriculturists in the country

D. Income of all the people in the country during a year

Correct : D. Income of all the people in the country during a year

5. 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

C. Produced by the factors belonging to the country working in or outside the country

D. None of the above

Correct : B. Produced within the geographical boundaries of a country during a year

6. 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

C. Produced by the factors belonging to the country working abroad

D. None of the above

Correct : B. Produced by the factors belonging to the country working in or out of the country

7. National income is essentially composed of:

A. Annual income of Central Government

B. Total wealth of a Nation

C. Income derived from taxes by the Central Government

D. Annual income of citizens of a country

Correct : B. Total wealth of a Nation

8. Which of the following of Punjab has the lowest population density?

A. Rajanpur

B. Bahawalpur

C. Layyah

D. D.G. Khan

Correct : A. Rajanpur

9. 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

Correct : C. All incomes of the people of the country in a year

10. 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

C. It would involve double counting

D. There is no way of imputing the value of such goods.

Correct : D. There is no way of imputing the value of such goods.

11. 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

C. Building a new factory

D. All the above

Correct : D. All the above

12. Real national income increases if:

A. Volume of goods and services increases

B. Prices of goods and services increase

C. Consumer's real income decrease

D. None of the above one

Correct : A. Volume of goods and services increases

13. Identity the false statement among the followings:

A. If prices rise, real income also rises

B. In calculating national income, retirement pension are excluded

C. Stock of goods not sold by the producer, is excluded from GNP

D. None of the above one

Correct : A. If prices rise, real income also rises

14. Per capita income is:

A. Average income of the working class

B. Average income of the people of a country during a year

C. Average income of labourers only

D. None of the above one

Correct : B. Average income of the people of a country during a year

15. 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

C. Unfavourable climatic conditions

D. All of the above

Correct : D. All of the above

16. 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

Correct : C. Increase in real national income and standard of the living of the people of country

17. 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

C. As a result of economic development of a country, the share of industrial sector in the national income increases

D. Per capita income is a better measure of economic development than the national income.

Correct : B. Economic development is measured by the rate of population increases

18. 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

C. An increase in the balance of payments deficit

D. An increase in capital investment

Correct : D. An increase in capital investment

19. 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

C. Planning to increase agricultural and industrial production

D. None of the above

Correct : 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

20. 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

Correct : C. 1.5 percent

21. 11 July every year is being celebrated under United Nations as “World Population Day” since:

A. 1985

B. 1987

C. 1989

D. 1991

Correct : B. 1987

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

A. They are accepted by most people

B. They act as receipts

C. They can be written for any amount

D. They can be sent safely by post

Correct : A. They are accepted by most people

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

A. Cheques

B. Bank notes/metalic coins

C. Bills of exchange

D. Promissory notes

Correct : B. Bank notes/metalic coins

24. Token coins are:

A. Not legal tender

B. Valueless

C. Worthless than the value of the metal they contain

D. Worth more than the value of the metal they contain

Correct : A. Not legal tender

25. Who issues one-rupee coin in Pakistan?

A. Government of Pakistan

B. State Bank of Pakistan

C. Both of the above

D. None of the above

Correct : A. Government of Pakistan

26. Who issue two-rupee note in Pakistan?

A. Government of Pakistan

B. State Bank of Pakistan

C. Both of the above

D. None of the above

Correct : B. State Bank of Pakistan

27. Who issue ten-rupee note in Pakistan?

A. Government of Pakistan

B. State Bank of Pakistan

C. Both of the above

D. None of the above

Correct : B. State Bank of Pakistan

28. 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

C. One rupee note is convertible paper money

D. Silver and gold full-bodied coins circulated these days.

Correct : A. In barter system, goods are exchanged with goods

29. 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.

Correct : C. Order cheque can be got cashed on identification

30. 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

C. Pakistan has a strong stock exchange market

D. A cheque is a form of currency note

Correct : A. There is no difference in bearer and order cheque

31. 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

C. Power of a currency note to command coins in exchange

D. Power of money to command foreign currency.

Correct : B. Power of money to command goods and services in exchange

32. 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

C. Double the quantity of money and other things 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

Correct : 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

33. "Inflation" means that money:

A. Rises in value

B. Falls in value

C. Become scarce

D. becomes larger in denomination

Correct : B. Falls in value

34. "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

C. A general and consistent increase in prices in an economy

D. Too little money choosing too many goods

Correct : B. A temporary increases in the prices of several goods

35. 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

Correct : C. A decrease in production brings a decrease in the value of money

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

A. Exporters

B. Debtors

C. Pensioners

D. Creditors

Correct : B. Debtors

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

A. Higher interest rates

B. A rise in the exchange rate

C. An increase in the value of money

D. A reduction in the value of money

Correct : D. A reduction in the value of money

38. 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

Correct : C. Both of the above

39. 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.

Correct : C. An increase in unemployment allowances

40. Which of the following statement is false?

A. Inflation brings an increase in production

B. Inflation makes savings increase

C. The main cause of inflation in Pakistan is deficit financing and excessive increase in money supply

D. None of the above

Correct : B. Inflation makes savings increase

41. 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

Correct : C. Some one who owes money and is repaying the debt

42. 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

C. A place where a register is kept of all public and private limited companies

D. A central market for buying and selling all kinds of securities

Correct : D. A central market for buying and selling all kinds of securities

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

A. Acting as banker to the state

B. Managing government borrowings

C. Controlling the money supply

D. All of the above

Correct : D. All of the above

44. The World’s most populous city:

A. Mexico

B. Beijing

C. Kolcatta

D. Tokyo

Correct : D. Tokyo

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

A. Singapore

B. Bangladesh

C. India

D. North Korea

Correct : A. Singapore

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

A. Overdrafts

B. Personal loans

C. Money at call

D. Deposits of customers

Correct : D. Deposits of customers

47. 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

C. Reduce the liquidity ratio

D. Borrow through treasury bills rather than long term bonds

Correct : D. Borrow through treasury bills rather than long term bonds

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

A. Aviation

B. Tourism

C. Interest, profits and dividends

D. All of the above

Correct : D. All of the above

49. "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

C. Goods exchange between countries with out any currency

D. None of the above

Correct : B. No ban on the import or export of a commodity between countries

50. "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

Correct : C. Policy of a country to discourage import of certain commodities so as to save the domestic industries from competition with foreign firms

51. 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

C. Tariffs encourage home industries to become more efficient

D. All of the above

Correct : A. Tariffs can help new industries to become established

52. 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

C. Balance of repayment consists of three accounts namely current account, capital account and monetary account

D. All of the above

Correct : A. There is no difference between balance of payment and balance of trade

53. 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

C. Volume of consumer goods imported and exported

D. Value of goods imported and exported

Correct : D. Value of goods imported and exported

54. 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

Correct : C. Both of the above

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

A. Petroleum

B. Machinery

C. Surgical goods

D. Tea

Correct : C. Surgical goods

56. 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

Correct : C. Devaluation makes the exports to increase

57. 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

C. Budget period for the public finance is one year

D. Resources in both public and private finance are limited in relation to demand for expenditure

Correct : B. In private finance, expenditure is first estimated and then resources are made available to meet this expenditure

58. Which of the following is not correct?

A. Tax is a general purpose compulsory contribution

B. Tax payment is optional

C. A tax payment cannot claim a direct service in lien of tax

D. None of the above

Correct : B. Tax payment is optional

59. Taxes which may be shifted from the person upon whom they are originally imposed to another person are:

A. Special taxes

B. Double taxes

C. Proportional taxes

D. Indirect taxes

Correct : D. Indirect taxes

60. "Sales Tax" is ultimately paid by:

A. The shopkeepers

B. The producers

C. The customers

D. The wholesalers

Correct : C. The customers

61. An example of indirect tax is:

A. Corporation tax

B. Income tax

C. Rates

D. Tobacco tax

Correct : D. Tobacco tax

62. Which of the following is true statement?

A. Income tax is a progressive tax

B. Excise duty is an indirect tax

C. Wealth tax is a direct tax

D. All of the above

Correct : D. All of the above

63. 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

C. A means of raising money for necessary expenditure

D. A plan for purchasing the best quality goods at the lowest prices

Correct : B. An estimate of expected income and a plan for expenditure

64. 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

C. Where public spending is equal to the amount of revenue

D. Where the budget leaves most tax payers with less disposable income

Correct : B. Where public spending is greater than the amount of revenue

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

A. Sell government securities

B. Sell bills of exchange

C. Sell ordinary shares

D. Buy treasury bills

Correct : A. Sell government securities

66. Which of the following is false statement?

A. Federal government receives land revenue

B. Motor vehicles tax is received by Federal Government

C. Court fees are received by Federal Government

D. All of the above

Correct : D. All of the above

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

A. Private entrepreneurs only

B. Government only

C. Consumers only

D. The government in public enterprise and private entrepreneurs in private enterprises

Correct : B. Government only

68. 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

C. Government control of some industries

D. All the above

Correct : D. All the above

69. 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

C. Freedom of choice for the consumers

D. All of the above

Correct : D. All of the above

70. 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

C. It allows the government to plan investment in each industry

D. All of the above

Correct : A. It guarantees full employment of labour

71. Pakistan’s largest export market is:

A. USA

B. Germany

C. Japan

D. Saudi Arabia

Correct : A. USA

72. 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

C. To double the literacy rate among women

D. All of the above

Correct : D. All of the above

73. 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

Correct : C. The pattern of consumer's spending

74. The World’s most populous city is:

A. Mexico City

B. Beijing

C. New York

D. Tokyo

Correct : D. Tokyo

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

A. Islamabad

B. Lahore

C. Karachi

D. Peshawar

Correct : A. Islamabad

76. 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.

Correct : C. Affords the fullest opportunity for individuals to indicate their preferences for goods within the limits of their spending power

77. 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

Correct : C. Former U.S.S.R.

78. 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.

Correct : C. In a mixed economy, the government interferes with the price system to overcome its disadvantages

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

A. Multan Division

B. Rawalpindi Division

C. Bahawalpur Division

D. D.G. Khan Division

Correct : C. Bahawalpur Division

80. Which of the following is a cash crop?

A. Wheat

B. Rice

C. Cotton

D. None of the above

Correct : C. Cotton

81. Which of the characteristics of Islamic Economic System is/are true?

A. An Islamic state is essentially a welfare state

B. Ensures social justice

C. All economic problems are solved in the light of moral values

D. All of the above

Correct : D. All of the above

82. "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

C. Deducted at the rate of 2 ½ % of the income

D. All of the above

Correct : D. All of the above

83. 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 52½ tolas of silver.

C. 5 camels or 30 cows (buffaloes) or 40 sheep (goats)

D. All of the above

Correct : D. All of the above

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

A. Allah

B. Government

C. Owner of the property

D. Both government and owner

Correct : A. Allah

85. 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

C. Islamic economic system brings an end to exploitation of labour

D. None of the above

Correct : D. None of the above

86. From which of the following countries, Pakistan received the biggest share of workers remittances during the year 2000?

A. UAE

B. Kuwait

C. Saudi Arabia

D. USA

Correct : C. Saudi Arabia

87. 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.

C. To remove quota restrictions in foreign trade.

D. All of the above.

Correct : D. All of the above.

88. Agricultural income tax in Pakistan will be levied on the farmers with land holdings of or more than:

A. 30 acres

B. 10 acres

C. 6 acres

D. 12 ½ acres

Correct : D. 12 ½ acres

89. Which of the following European country has not adopted Europe currency?

A. Great Britain

B. Sweden

C. Denmark

D. All of the above

Correct : D. All of the above

90. Under the Constitution of Pakistan, National Finance Commission distribute the amount from federal taxes to provinces on the basis of:

A. Area

B. Population

C. Natural Resources

D. Equality

Correct : B. Population

91. According to a UN report, the number of hungry people (starving to death) in the world stands at:

A. 600 million

B. 800 million

C. 700 million

D. 500 million

Correct : B. 800 million

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

A. Japan

B. China

C. Turkey

D. USA

Correct : A. Japan

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

A. Japan

B. Canada

C. China

D. U.K.

Correct : C. China

94. 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

Correct : C. National Economic Council

95. 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

Correct : C. Extreme nationalism and patriotism

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

A. Lapis Lazuli

B. Topaz

C. Ruby

D. All of the above.

Correct : D. All of the above.

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

A. Mobilinks

B. Paktel

C. Insta Phone

D. All of the above

Correct : D. All of the above

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

A. D.G. Khan

B. Lahore

C. Multan

D. Jhelum

Correct : A. D.G. Khan

99. Under the Zakat fund, the amount being given to the deserving people is:

A. Rs. 300

B. Rs. 500

C. Rs. 600

D. Rs. 700

Correct : B. Rs. 500

100. 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

Correct : C. Textile vision 2005