Economics & Trade Terms MCQs with Answers

What is the primary objective of a central bank's monetary policy?

• A.Managing foreign diplomatic relations
• B.Maximizing government tax revenue
• C.Achieving price stability and controlling inflation
• D.Regulating stock market trading

The monetary base consists of the?

• A.Currency in circulation plus demand deposits
• B.Reserves plus currency in circulation
• C.Reserves plus time deposits
• D.Currency in circulation plus government bonds

What is meant by 'overpopulation is dangerous'?

• A.High population increases employment opportunities
• B.High population strengthens the economy
• C.High population leads to a crisis of resources
• D.High population increases defense power

Past Paper MCQ

Which country was the first to implement the Goods and Services Tax (GST)?

• A.Canada
• B.Australia
• C.France
• D.New Zealand

Past Paper MCQ

What is the name of the financial record that lists an organization's assets and the claims against those assets?

• A.Income Statement
• B.Balance Sheet
• C.Cash Flow Statement
• D.Trial Balance

Past Paper MCQ

Which of the following is the modern work of IPE?

• A.Power and Interdependence
• B.Politics Among Nations
• C.The Wealth of Nations
• D.Theory of International Politics

Past Paper MCQ

What is a subsidy?

• A.A tax imposed on imported goods
• B.A benefit given to individuals or businesses by the government
• C.A loan provided by the central bank to commercial banks
• D.A penalty charged for late payment of taxes

Past Paper MCQ

What does a trade surplus mean?

• A.No trade takes place
• B.Imports are greater than exports
• C.Exports and imports are equal
• D.Exports are greater than imports

Past Paper MCQ

Which form of business has unlimited liabilities?

• A.Sole proprietorship
• B.General partnership
• C.Joint stock company
• D.Limited liability company

Past Paper MCQ

A buyer's perception of value is considered a trade-off between

• A.Customer satisfaction and competitor offerings
• B.Product quality and product price
• C.Brand image and market demand
• D.Total customer value and total customer cost