Economics & Trade Terms MCQs with Answers

What is the most commonly used measure of economic activity in a country?

• A.CPI
• B.GNP
• C.HDI
• D.GDP

Which among the following are economic growth indicators?

• A.The Consumer Price Index (CPI), Gross Domestic Product (GDP), Unemployment Figures
• B.Literacy Rate, Infant Mortality Rate, Life Expectancy
• C.Foreign Exchange Reserves, Balance of Trade, Fiscal Deficit
• D.None of these

Which Economist is known as the father of economics?

• A.Adam Smith
• B.John Maynard Keynes
• C.Karl Marx
• D.David Ricardo

Which one of the following arguments can be used in favor of the market economy?

• A.It prevents monopolies from forming
• B.It ensures equal distribution of income
• C.It eliminates economic fluctuations
• D.It guarantees full employment of labor

Past Paper MCQ

The concept of 'invisible hand' was introduced by _?

• A.Adam Smith
• B.John Maynard Keynes
• C.Karl Marx
• D.David Ricardo

Which of the following could cause the aggregate demand curve to shift to the left?

• A.Expansionary fiscal policy
• B.Contractionary demand management policies
• C.Increase in consumer confidence
• D.Rise in net exports

In model services like online banking, travel and health information

• A.B2B
• B.B2C
• C.C2C
• D.G2C

Deficit Financing means ?

• A.Spending exceeds revenues
• B.Revenues exceed spending
• C.Exports exceed imports
• D.Imports exceed exports

Which measures taken by a government would be intended to raise the price of imports?

• A.Subsidies
• B.Tariffs
• C.Quotas
• D.Tax rebates

Broad Money (M2) — on the liability side, is measured as a ?

• A.A + total deposits of non-government sector
• B.Currency in circulation only
• C.Government securities plus foreign reserves
• D.None of these