1. Which of the following countries could most aptly be
described as having a fully centrally planned economy?
Correct : C. Cuba
2. How many countries have joined WTO till September 2002:
Correct : D. 144
3. In which of the South Asian Countries, the infant mortality
rate is highest?
Correct : A. Pakistan
4. ‘Naryab Dam’ in NWFP is being constructed in the district
of:
Correct : C. Hangu
5. According to a UN report, the number of people in the world
having no access to clean drinking water are:
Correct : C. 1.1 billion
6. In this passage “gestures” mean:
Correct : C. Expressive movements of the body
7. Who was appointed Caretaker Prime Minister when
National Assembly was dissolved on April 18, 1993?
Correct : D. Balkh Sher Mazari
8. The government in Pakistan has recently withdrew sales tax
on one of the following items:
Correct : C. Edible oil
9. The demand of electricity is rising in Pakistan at the rate of:
Correct : B. 17 percent annually
10. Which part of Pakistan has lowest urban population?
Correct : D. FATA
11. Which of the following countries first introduced paper
currency in the world?
Correct : C. China
12. The 6th National Finance Commission Award the share of provinces from the federal revenue has been increased from 37.5 percent to:
Correct : B. 2003-2004
13. The World’s largest copper producer is:
Correct : B. Chile
14. The World’s largest producer of silk is:
Correct : C. China
15. Under the 6th National Finance Commission Award the share of provinces from the federal revenue has been increased from 37.5 percent to:
Correct : C. 40%
16. The share from federal revenue is given to the provinces
according to their:-
Correct : B. Population
17. Identify the world’s richest man and his organization:
Correct : B. Bill Gates – Microsoft - USA
18. The people live below the poverty line earn less then:
Correct : A. 1 US dollar daily
19. Identify Pakistan’s largest gas fired power plant:
Correct : B. Uch Power Plant
20. After independence, the first industrial unit inaugurated by
Quaid-i-Azam was:
Correct : B. Valika Textile Mills
21. An arrangement between a seller and buyer under which a
period of credit is allowed before payment is called:
Correct : A. Account
22. The prices that are set by government rather than by
negotiation between a seller and a buyer are known as
Correct : C. Administered Prices
23. What is the term for paid announcements to persuade and inform public?
Correct : B. Advertising
24. 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
Correct : A. Agency Cost
25. In terms of economics a constant annual payment is called:
Correct : B. Annuity
26. 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
Correct : D. Auction
27. The national economic self-sufficiency i.e., exclusion from international trade pursued as a national policy is called:
Correct : A. Autarky
28. A check of accounting records conducted by a professional accountant to find out any fraud or discrepancies is termed as:
Correct : A. Audit
29. What is the term for total sales value divided by the number
of units sold and thus equals to average price is?
Correct : C. Average Revenue
30. 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:
Correct : A. Balance Sheet
31. What is the business of accepting deposits and lending money called?
Correct : D. Banking
32. 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
Correct : A. Bankruptcy
33. The fixed interest security issued by governments, banks or other financial institutions is also termed
Correct : B. Bond
34. The first class equity share, the purpose of which entails little risk in earnings in recession is called:
Correct : B. Blue chip
35. Underground economic activity that is not declared for taxation purposes is called
Correct : C. Black Economy
36. A trade of goods and services in the exchange for other goods or services rather than for money is known as:
Correct : C. Barter Trade
37. In an organized market, an intermediary between a buyer and a seller is called:
Correct : A. Broker
38. What is called if estimate of income and expenditure are for future as opposed to an account that records financial transaction?
Correct : C. Budget
39. The output from a process designed for the production of some other product. is called
Correct : A. By product
40. The asset that is capable of generating income and that have itself been produced is termed
Correct : B. Capital
41. The production of a commodity in which a higher proportion
of capital is used is known as
Correct : B. Capital Intensive
42. The market for long term loanable funds as different from the market that deals in short term loans is called:
Correct : A. Capital Market
43. The total amount of physical capital in the economy or in a firm or industry is termed as
Correct : C. Capital Stock
44. An association of producers to regulate prices by restricting output and competition is called
Correct : A. Cartel
45. The most common example of an international cartel is the
Correct : B. Organization of Petroleum Exporting Countries (OPEC)
46. The flow of money payments to or from a firm is called “Cash Flow”. Expenditure is sometimes referred to as:
Correct : B. Negative Cash Flow
47. The banker’s bank and lender of last resort is the
Correct : C. Central Bank
48. A certificate that specifies the country of origin of an export
or import is called
Correct : B. Certificate of Origin
49. 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
Correct : B. Cheque
50. A measurement of unemployment based on the number of people out of work and claiming unemployment benefits is called in terms of economic theory
Correct : B. Claimant Count
51. The dominant body of economic thinking, economic method and economic style in the period from 18th to 19th century is termed as
Correct : C. Classical Economics
52. The economic system with little or no external trade is called:
Correct : C. Close economy
53. Privately owned banks operating cheque current accounts, receiving deposits, taking in and paying out notes and coins and making loans are generally called
Correct : B. Commercial Banks
54. A percentage of the value of a transaction taken by an intermediary as payment for his services is called:
Correct : B. Commission
55. In economic theory, a tangible good or service resulting from the process of production is known as
Correct : C. Commodity
56. Which of the following is an example of common market?
Correct : D. All of the above
57. The law governing the establishment and conduct of
incorporated business enterprise is called
Correct : C. Company Law
58. The profits retained in the business and set aside for
specified purposes are known as
Correct : C. Company Reserves
59. Pairs of goods for which consumption is interdependent e.g.,
cars and petrol or cups and saucers are known as:
Correct : A. Complementary Goods
60. 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
Correct : B. Compound Interest
61. Short-term loans to the public for the purchase of specific
goods is called:
Correct : C. Consumer Credit
62. An economic good or commodity purchased by households for
final consumption is called:
Correct : D. All of the above
63. 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
Correct : C. Both of the above
64. The use of resources to satisfy current needs and wants is called:
Correct : C. Consumption
65. A statement of the rights and obligations of each party to a transaction or transactions is called:
Correct : C. Contract
66. A business function concerned with the formulation of long term objectives and the development of plans to achieve them is called:
Correct : B. Corporate Planning
67. A piece of paper entitling the owner to money payments, cutprice or free goods or rations is called
Correct : C. Coupon
68. A measure of the expectation of the population that the government, or monetary authorities will adhere to policies delivering low inflation is called
Correct : A. Credibility
69. Credit is the use or possession of goods without immediate payment. Which of the following is a type of credit?
Correct : D. All of the above
70. A plastic, personal magnetized card with the name and account number of the holder and the expiry date embossed is referred to as:
Correct : C. Credit Card
71. One to whom an amount of money is due is called:
Correct : A. Creditor
72. Which of the following is referred to as international currency because it is regarded as acceptable for the settlement of international debts?
Correct : B. Dollar
73. The bank account on which deposits do not earn interest, but can be with drawn by cheque at any time is called:
Correct : B. Current Account
74. Prices unadjusted for changes in the purchasing power of money are called:
Correct : B. Current Prices
75. The practice of searching for correlation in data with the purpose of generating theoretical hypotheses is called
Correct : C. Data Mining
76. A cartel is an organization formed by producers. Its
objectives are:
Correct : D. All of the above
77. A loss in social welfare deriving from a policy or action that
has no corresponding gain is called:
Correct : B. Deadweight Loss
78. The number of deaths occurring in any year for every 1000
of the population is referred to as
Correct : B. Death Rate
79. A sum of money or other property owed by one person or organization to another is called
Correct : B. Debt
80. One who owes money to another is known as
Correct : B. Debtor
81. 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:
Correct : C. Both of the above
82. The excess of an expenditure flow over an income flow is
termed as:
Correct : B. Deficit
83. The use of borrowing to finance an excess of expenditure
over income is known as:
Correct : A. Deficit Financing
84. A sustained reduction in the general level of prices is called:
Correct : D. Both B and C
85. A decline in the share of manufacturing sector in national
income is termed as:
Correct : D. Deindustralization
86. The desire for a particular good or service supported by the possession of the necessary means of exchange to effect ownership is called:
Correct : B. Demand
87. The scenario that western countries face a crisis in the next few decades caused by the aging of their populations is termed as:
Correct : A. Demographic Time Bomb
88. The branch of economics concerned with the rate at which natural resources are consumed over time is called
Correct : C. Depletion theory
89. Money placed in an account at a financial institution and
constituting a claim on it is known as
Correct : A. Deposit
90. The account with a bank or other financial institution in which deposits earn interest and withdraws from which require notice is referred to as:
Correct : A. Deposit Account
91. The reduction in value of an asset as reduction in the value
of currency is known as:
Correct : C. Depreciation
92. A downturn in the business cycle in which there is a
sustained high level of unemployment is called
Correct : B. Depression
93. 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
Correct : C. Deregulation
94. The reduction of the fixed official rate at which one currency is exchanged for another in a fixed exchange rate regime is termed:
Correct : C. Devaluation
95. Investment in the foreign operations of a company through acquisition of a foreign operation, or establishment of a new site is called:
Correct : A. Direct Investment
96. Taxation on the income and resources of individuals or organization is known as:
Correct : C. Direct Taxation
97. A deduction from face value is referred to as:
Correct : B. Discount
98. The extension in the range of goods and services in a firm or geographic region is called:
Correct : C. Diversification
99. The amount of a company’s profit that the board of directors decides to distribute to ordinary shareholders is known as:
Correct : B. Dividend
100. The allocation of labour such that each worker specializes in one or a few functions in the production process is known as: