1. The branch of economics at the level of individual consumers
groups of consumers or firms is known as:
Correct : C. Microeconomics
2. The economic situation in which only a single seller or
producer supplies a commodity or a service is called:
Correct : A. Monopoly
3. The legal instrument that pledges a house or other real
estate as security for repayment of a loan is called:
Correct : A. Mortgage
4. The international trade and exchange between more than two countries without discrimination between those involved is called:
Correct : C. Multilateralism
5. An industry in which technical factors preclude the efficient
existence of more than one producer. This situation is called:
Correct : A. Natural Monopoly
6. Commodities or assets with some economic value which exist without any effort of mankind, are called:
Correct : B. Natural resources
7. 1994 Nobel Prize for Economics was awarded to a American mathematician for his most important concept of equilibrium as applied to game theory. His name was
Correct : A. John Nash
8. The reduction in the useful life of a capital good or consumer good through economic or technological change as distinct from physical deterioration in use is termed as:
Correct : C. Obsolesience
9. A market that is dominated by a few large suppliers is known as:
Correct : A. Oligopoly
10. A loan facility on the customer’s current account at a bank permitting him to withdraw up to a certain agreed limit for an agreed period, is referred to as:
Correct : C. Overdraft
11. The situation in which aggregate demand in the economy is growing at a rate reliable to lead to inflation is called:
Correct : B. Overheating
12. An unincorporated business formed by the association of two
or more persons who share risks and profits is called:
Correct : C. Partnership
13. The period over which the cumulative net revenue from an investment project equals the original investment is known as:
Correct : A. Payback
14. Sums of money laid aside and normally invested to provide a regular income on retirement or in compensation for disablement for the remainder of a person’s life is called:
Correct : B. Pension Funds
15. A bank loan made without collateral security to a private customer for specific purposes is called:
Correct : A. Personal Loan
16. What is the informal name for annual publication “United Kingdom Balance of Payments”?
Correct : C. Pink Book
17. The system of agricultural support by which market prices are fixed at above free market levels and government buys surpluses, thus supporting prices and raising farmer’s income is called:
Correct : B. Price Support
18. The part of the economy in which economy activity is carried
on by private enterprise is termed:
Correct : C. Private Sector
19. The sale of government owned equity in nationalized industries or other commercial enterprises to private investors is called:
Correct : B. Privatization
20. The sale of shares on the stock exchange in order to realize
capital appreciation is known as:
Correct : B. Profit Taking
21. A legal document between a lender and a borrower whereby the later agrees to certain conditions for the repayment of the sum of money borrowed; is called:
Correct : A. Promissory Note
22. The proportion of a sum of money that is paid over a
specified time period in payment for its loan is called:
Correct : A. Rate of interest
23. The net profit after depreciation as a percentage of average capital employed in a business is known as:
Correct : C. Rate of Return
24. The term used to describe a sharp slowdown in the rate of economic growth or a modest decline in economic activity is called:
Correct : C. Recession
25. Scarce inputs that can yield utility through production or provision of goods and services are referred to as:
Correct : A. Resources
26. A tax levied as a proportion of the retail price of a commodity at the point of sale is called:
Correct : C. Sales tax
27. What is the term for generating capital from income?
Correct : A. Self-financing
28. The total increase in the welfare of society from an economic action is called:
Correct : B. Social Benefits
29. A loan bearing either no rate of interest or an interest rate which is below the true cost of capital lent is known as:
Correct : A. Soft Loan
30. Buying and selling with a view to buying and selling at a profit later when the prices have changed is termed:
Correct : B. Speculation
31. The quantity of goods and services consumed by an individual or a household is called:
Correct : A. Standard of living
32. What is the name given to companies legally controlled by
other companies?
Correct : C. Subsidiaries
33. Government grants to suppliers of goods and services is called:
Correct : A. Subsidy
34. The notion that economic development should proceed at a pace and in a manner that will conserve the environment and depletible natural resources is called:
Correct : A. Sustainable development
35. Arranging one’s financial affairs within the law so as to
minimize taxation liabilities is known as
Correct : B. Tax avoidance
36. The compulsory transfer of money from private individuals,
institutions or groups to the government is called:
Correct : C. Taxation
37. A trade barrier is any government limitation on the free international exchange of merchandise. Which of these is an instance of trade barrier?
Correct : D. All of the above
38. The excess of the value of imports of goods and services over the value of exports of goods and services is called:
Correct : C. Trade Gap
39. In UK, who is the first Lord of the Treasury?
Correct : C. Prime Minister
40. Instruments for short-term borrowing by the government are called:
Correct : A. Treasury Bills
41. The total sales revenue of a business is called:
Correct : B. Turnover
42. Variable costs are those that vary directly with the rate of output e.g., labour costs, fuel and power etc., These are also known as:
Correct : D. All of the above
43. The part of current assets financed from long term funds is
called:
Correct : A. Working Capital
44. In economics, Gold Standard is the monetary system where in all form of legal tender may be converted on demand, into fixed quantities of gold. In 1816, the first country to go on the gold standard was:
Correct : B. United Kingdom
45. A type of association usually formed by banks or railroads as a central agency where members can settle accounts is known as:
Correct : A. Clearing House
46. The type of currency issued by government as legal tender the value of which is based solely on decree or law rather than actual coin or precious metal reserves is termed as:
Correct : C. Fiat money
47. Bimetallism is the monetary policy based on the use of two metals, as legal tender without limit and equalized by law in a fixed ratio. Which are these two metals?
Correct : B. Gold and Silver
48. An association of individuals or corporations formed to conduct a specific financial transaction such as buying a business is known as:
Correct : C. Syndicate
49. The sixth Nobel Prize for Economics was introduced in 1969 in memory of Alfred Nobel. It is financed by