Economics & Trade Terms MCQs with Answers

Anything that can be used to earn a living is called:

• A.Asset
• B.Resource
• C.Capital
• D.Wealth

Emerging markets are also called:

• A.Developing economies
• B.Advanced economies
• C.Transition economies
• D.Frontier economies

Past Paper MCQ

In business terminology, how is the selling of old newspapers classified?

• A.Revenue receipt
• B.Capital receipt
• C.Deferred revenue expenditure
• D.Capital expenditure

The excess of current assets over current liabilities is called:

• A.Working Capital
• B.Fixed Capital
• C.Capital Employed
• D.Share Capital

Which one of the following is not true about socialism?

• A.It emphasizes individual profit maximization as the primary economic motive
• B.It advocates for collective or state ownership of the means of production
• C.It aims to reduce economic inequality through redistribution of wealth
• D.It prioritizes social welfare over private profit

The Phillips curve illustrates the relationship between?

• A.Exchange rates and trade balance
• B.Interest rates and investment
• C.Tax rates and government revenue
• D.Inflation and unemployment

The mixing of Equity and Debt is called?

• A.Liquidity Ratio
• B.Working Capital
• C.Capital Budgeting
• D.Capital Structure

All of the following are parts of the business cycle except?

• A.Recovery
• B.Recession
• C.Acceleration
• D.Boom

National income is essentially composed of _

• A.Revenue from exports only
• B.Annual income of the government
• C.Income of all citizens
• D.All wealth of nation

Which of the following situations represents demand-pull inflation?

• A.Rising production costs causing firms to increase prices
• B.Excess demand in the economy leading to rising prices
• C.A decrease in the money supply reducing overall spending
• D.Supply shocks due to natural disasters raising prices