Ntanet Economics

MOST POPULAR AROUND THE WORLD
SUCCESS
PRACTICE BOOK» NOT FOR SALE

SERIES
NTANET ECONOMICS
BOOST YOUR KNOWLEDGE
DESIGNED FOR SURE SUCCESS

MCQ EDITION
NARAYAN CHANGDER
1 + S
7 O N
S
83 STI ER
E W
QU NS
A
USEFUL FOR
4STUDENTS 4
□ □TEACHERS 4
□PARENTS 4□KIDS 4
□QUIZ TEST
□EXAM 4
4 □TRIVIA TEST 4
□COMPETITIVE EXAM 4
□OTHERS
2
Preface:
This book has undergone rigorous scrutiny to ensure its accuracy. I eagerly invite constructive
feedback on its content. Feel free to reach out to me via Facebook at https://www.facebook.
com/narayanchangder. Additionally, you can access all of my books on Google Play Books at
https://play.google.com/store/books/author?id=Narayan+Changder.
JAI SHREE RAM
NARAYAN CHANGDER
This E-book is dedicated to the loving memory of my mother:

my guiding light, my shining star,
forever
It is my deepest gratitude and warmest

affection that I dedicate this Ebook.
To my mother JOYTSNA CHANGDER

who could not see this Ebook.
who has been a constant source of Knowledge and in-

spiration. Mom, Covid did not take you, it took our
many dreams. wherever you are we will meet again.
Disclaimer
The aim of this publication is to sup-

ply information taken from sources be-
lieved to be valid, reliable and authen-
ticate. The author bear no responsibil-
ity for any damage arising from inad-
verent omissions, negligence or inac-
curacies (typographical or factual) that
♣
NARAYAN CHANGDER
may have found their way into this PDF
booklet.
Due care has been taken to ensure that
the information provided in this book
is correct. Author is not responsible
for any errors, omissions or damage
arising out of use of this information.
nt
Importa inter-
s , s e ar ch the de
er to inclu -
i t h t h e answ w a n t
w u au
atisfied . If yo ontact
If not s rrect answers klet, please c t s:
p
net for
co
i n t h is boo F a c e b ook ht
estions on
tact him arayanchangd
er/
new qu a n c o n n
ou c om/
thor. Y acebook.c
. f
//www
CRUCIAL INFORMATION: PLEASE READ BEFORE
CONTINUING:

1. If you require practice sets on various sub-
jects, kindly send us a message on Facebook
with the subject name. Our team will be happy
to create them for you. Message us on Face-
book at https://www.facebook.com/
narayanchangder
2. Additionally, you can access all of my books
with answers on Google Play Books at »>
https://play.google.com/store/books/
author?id=Narayan+Changder
3. Answers are given at the end of every page
to help you identify your strengths and weak-
nesses.
4. It shows you how to build your own techni-
cal and pedagogical skills to enable them to
create their own materials and activities for
students.
5. It helps you to see how you can make the
transition from classroom teaching to blended
and online teaching.
6. It’s the cheapest good quality ebook that you
can buy online on google play books.
NARAYAN CHANGDER
7. The money raised from creating the sales of
the book will help to ensure that I’m able to
produce similar books like this at a compara-
ble price.
8. YOU CAN DOWNLOAD 4000+ FREE PRACTICE
SET PDF EBOOK ON VARIOUS SUBJECTS (NURS-
ERY to UNIVERSITY LEVEL) FROM GOOGLE
DRIVE LINK https://drive.google.com/
drive/u/1/folders/19TbUXltOSN5S7FV3sL
Contents
1 Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 Micro Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Macro Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
1.3 Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
1.4 Econometrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
1.5 Mathematical Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
1.6 International Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
1.7 Public Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301
1.8 Money and Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308
1.9 Growth Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393
1.10 Development Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440
1.11 nvironmental Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484
1.12 Demography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509
1.13 Indian Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527
1.14 Rural Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 569
1.15 Co-operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 587
1.16 Development Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 598
1.17 Development Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629
1.18 Applied Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 677
1.19 Business Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745
1. Economics
NARAYAN CHANGDER
1.1 Micro Economics
1. What is an economic system where only A. demand increases
the government makes the economic deci- B. demand decreases
sions?
C. quantity demanded increases
A. traditional economy
D. quantity demanded decreases
B. free enterprise
C. mixed economy 5. Amount a seller is paid for a good minus
the seller’s cost of providing it
D. command economy
A. Consumer surplus
2. London introduces charge on most pollut- B. Producer surplus
ing vehicles.
C. Total surplus
A. Business news
D. Deadweight tax
B. Economic news
C. Microeconomics 6. Producer surplus is
D. Macroeconomics A. Cost-willingness to pay

B. Price-cost to seller
3. SSEMI 3 a:When the income in households
increases, what is the likely result? C. Cost to seller-price
A. The supply curve will shift to the left. D. Willingness to pay-price
B. The supply curve becomes vertical. 7. Which of the following is considered deter-
C. The demand curve shifts to the right minants of demand?
D. The demand curve shifts to the left. A. Income

B. Price of related goods
4. SSEMI 2 a:If the price of a product in-
creases, which is true regarding the de- C. Tastes and fashion
mand curve? D. all of the above
1. D 2. B 2. C 3. C 4. D 5. B 6. B 7. D 8. A
1.1 Micro Economics 3
8. The study of the economy as a whole 14. Which of the following can cause an in-
A. Macroeconomics crease in supply?

A. a decrease in productivity
B. Microeconomics
B. a decrease in the cost of inputs
C. Economics
C. an increase in taxes
D. none of above
D. fewer sellers in the marketplace
9. Which of the following is NOT a determi-
nant of supply? 15. Land, Labor, Capital, and Entrepreneurship
A. prices of gold A. Diversification

B. Deductions
B. technology
C. Portfolio
C. substitute goods
D. Factors of Production
D. complementary goods
16. ) Scarcity requires that people must
10. The income & substitution effects account
for A. trade
A. the upward sloping supply curve B. compete

C. cooperate
B. the downward sloping demand curve
D. make choices
C. movements along a given supply curve
D. the “other things equal” assumption 17. The law of supply says that at higher
prices,
11. Characteristics of equilibrium include A. sellers will supply more of an eco-
A. where supply and demand intersect nomic good.
B. where QS = QD B. sellers will supply less of an economic
good.
C. no shortage and no surplus
C. buyers will demand less of an eco-
D. all of these nomic good.
12. What is supply? D. buyers will demand more of an eco-
nomic good.
A. Amount that determines what is pur-
chased 18. Short run marginal costs eventually in-
B. Amount producers are willing to sell crease because of the effects of:
C. Amount consumers are willing to buy A. increasing marginal product
D. Amount an item costs B. diminishing marginal product
C. increasing fixed costs
13. A point above the PPF curve represents
D. diseconomies of scale
A. efficiency
19. SSEMI 2 a:Which statement describes the
B. inefficiency
law of demand?
C. Unemployment A. As prices rise, quantity demanded de-
D. Unattainable creases.
9. A 10. B 11. D 12. B 13. D 14. B 15. D 16. D 17. A 18. B 19. A 20. A
B. As prices rise, demand decreases. D. How will goods and services be dis-
C. As prices fall, quantity demanded de- tributed to customers?
creases. 24. When the price of a product increases, a
D. As prices fall, demand decreases. consumer is able to buy less of it with a
given money income. This describes:
20. Does an increase in Variable Costs affect
A. the cost effect
a firm’s output?
B. the inflationary effect
A. Yes
NARAYAN CHANGDER
C. the income effect
B. No
D. the substitution effect
C. Maybe
25. There are two goods, X and Y. If the op-
D. none of above
portunity cost of producing good X is lower
21. Economics is a social sciences study how: for Jack than for Jill, then
A. Managing the business so that it is A. Jack has an absolute advantage in the
profitable. production of X.
B. Avoid scarcity for many different us- B. Jack has a comparative advantage in
ages and competition. the production of X.
C. Creating personal fortunes in the C. Jill has a comparative advantage in the
stock market. production of Y.
D. Allocation of scarce resources for var- D. Jill has an absolute advantage in the
ious usages. production of X.
26. A government payment made to a busi-
22. If the supply of product X is perfectly elas-
ness is a
tic, an increase in the demand for it will
increase: A. tax
A. equilibrium quantity but reduce equilib- B. regulation
rium price C. subsidy
B. equilibrium quantity but equilibrium D. resource
price will be unchanged
27. Which of the following is related to Microe-
C. equilibrium price but reduce equilib- conomics?
rium quantity
A. Jute Industry
D. equilibrium price but equilibrium quan-
B. Unemployment problem
tity will be unchanged
C. National income
23. Which of the following is NOT one of the D. Poverty of the country
three basic questions of economics when
looking at economic systems? 28. If the equation y = 5 + 0.6 x was graphed,
the:
A. What goods and services will be pro-
duced? A. slope would be-5
B. What is the price of the goods? B. slope would be +5
C. Who is responsible for producing C. slope would be +0.6
goods and services? D. vertical intercept would be +0.6
21. D 22. B 23. B 24. C 25. B 26. C 27. A 28. C 29. B

29. Giving a haircut C. decrease; complements

A. example of scarcity D. decrease; substitutes

B. example of a service 35. As the price of a good rises in a market, it
C. example of a good acts as a signal:
D. example of a consumer A. consumers that they should buy a
greater quantity of the good.
30. What is true about normative state-
B. to producers that they should supply a
ments?
greater quantity of the good.
A. They are objective
C. to consumer that they should increase
B. They are objective and testable their demand for the good.
C. They are subjective and not testable D. to producers that they should increase
D. All of the options their supply of the good.
31. Which economic prblm involves selection 36. Which of the following ARE NOT character-
os category of people who will ultimately istics of a perfectly competitive market?
consume the goods A. Many buyers/sellers
A. How to produce B. Identical Products
B. For whom to produce C. Price Makers:firms can set their own
price.
C. What to produce
D. Low barriers of entry
D. None of these
37. A table that lists the quantity of a good
32. SSEMI 4 c:A market structure in which
that a single person will buy at each price
there is only one seller is known as a
in a market.
A. Pure competition A. demand schedule
B. Monopolistic competition B. market demand schedule
C. Oligopoly C. elasticity chart
D. Monopoly D. supply and demand graph
33. Which of the following best describes Pro- 38. Which one of these is NOT a cause of
ductive Efficiency? scarcity?
A. Minimum ATC A. overproduction of time
B. Minimum AVC B. not enough materials
C. Minimum MC C. Poor Distribution of Resources
D. Minimum AFC D. Rapid Increase in Demand
34. An increase in the price of Anadin is likely 39. An equilibrium price will NOT change un-
to be paired with a(n) in the demand less?
for Panadol because the two goods are A. either demand & supply change (or
A. increase; complements both)
B. increase; substitutes B. both demand & supply change
30. C 31. B 32. D 33. A 34. B 35. B 36. C 37. A 38. A 39. A
C. only demand changes 45. Consumer surplus is equal to:

D. only supply changes A. Price-willingness to pay
40. Which of the following is an example of B. Cost-price
Micro Economics study? C. Willingness to pay-price
A. National Income D. Price-cost
B. Consumer behavior 46. Scarcity forces people to
C. Unemployment
NARAYAN CHANGDER
A. Make Choices
D. Foreign trade B. satisfy all their wants and needs
41. If Michael Jordan did advertisements for C. Give up opportunity cost
Steak and Shake, this would cause the D. none of above
curve for Steak and Shake to shift
A. demand right 47. Production Possibility curve is also called
B. demand left A. Production Possibility Boundary
C. supply right B. Transformation Curve
D. supply left C. Production Possibility Frontier

D. All of these
42. The problem of unlimited desires and lim-
ited resources is the problem of 48. Suppose that there is a decrease in number
A. wants of sellers in a market. We would expect
B. marginal benefit A. Supply to remain unchanged
C. scarcity B. Supply could increase or decrease
D. free enterprise C. Supply to increase
D. Supply to decrease
43. The demand for a(n) increases as
money income increases-that is, the de- 49. The concept of opportunity cost is based
mand curve shifts rightward when con- upon the principle of
sumer income increases. A. need
A. normal good B. consumption
B. inferior good C. scarcity
C. superior good D. profit
D. declining good
50. What is the fundamental problem of eco-
44. A monopoly can price discriminate be- nomics?
tween two groups of consumers if each A. How to keep consumers out of debt?
group has
B. How to fulfill our unlimited wants and
A. a large consumer surplus. needs with limited resources?
B. a different willingness to pay. C. How to figure out the way to make the
C. the same willingness to pay. most money?
D. the ability to resell the good to the D. How do we ensure all people get a col-
other group. lege education?
40. B 41. A 42. C 43. A 44. B 45. C 46. A 47. D 48. D 49. C 50. B 51. B
51. The word economics is most closely con- 57. Additional cost associated by producing
nected with the word one additional unit of product.

A. Free A. Fixed Costs
B. Scarcity B. Average Costs
C. Unlimited
C. Marginal Costs
D. Restricted
D. Emplicit Costs
52. A change in quantity supplied is caused by:
58. Which of the following makes economics a
A. a change in technology
science?
B. a change in the cost of an input
A. Systemized body of knowledge
C. the price elasticity of supply
B. Capability of measurement
D. a change in the price of the produced
good C. Cause and effect relationship
53. Alternative name of Microeconomics is D. All of the options

called
59. An increase in the price of aspirin is likely
A. Income Theory to be paired with a(n) in the demand
B. Employment Theory for Tylenol because the two goods are
C. Price Theory A. increase; complements
D. Demand Theory B. increase; substitutes
54. What is the type of business that is owned C. decrease; complements
by two or more people?
D. decrease; substitutes
A. entrepreneurship
B. corporation 60. In an oligopoly, there are
C. partnership A. many firms and barriers to entry.
D. sole proprietorship B. many firms and no barriers to entry.
55. What is it when a large group of suppliers C. few firms and barriers to entry.
all produce the same goods?
D. few firms and no barriers to entry.
A. Perfect Competition
B. Monopolistic COmpetition 61. A technique of reducing or forgoing one or
more desirable outcomes in exchange for
C. Monopoly increasing or obtaining other desirable out-
D. Oligopoly comes in order to maximize the total re-
turn or effectiveness under given circum-
56. A theory which attempts to explain human
stances.
economic behavior.
A. Trade-off
A. Economic Hypothesis
B. Economic Game B. Opportunity cost
C. Economic Event C. PPF
D. Economic Model D. Scarcity
52. D 53. C 54. C 55. A 56. D 57. C 58. D 59. B 60. C 61. A 62. C
62. A shortage causes the 67. The downward slope of a demand curve
A. demand curve to shift leftward A. represents the law of demand
B. supply curve to shift rightward. B. shows that as the price of a good rises,
C. price to rise consumers increase the quantity they de-
mand
D. price to fall
C. indicates how the quantity demanded
63. The vertical distance between a firm’s to- changes when incomes rise and the good
tal cost (TC) and its total variable cost
NARAYAN CHANGDER
is a normal good
(TVC) curves
D. indicates how demand changes when
A. decreases as output decreases incomes rise and the good is a normal
B. is equal to the average variable cost good
(AVC)
68. Choose the example for normative state-
C. is equal to the total fixed cost (TFC)
ment?
D. is equal to the marginal cost (MC)
A. The unemployment rate of Oman is the
64. Public utilities are an example. lowest in GCC
A. Oligopoly B. India is the second largest populated
B. Natural Monopoly country in the world
C. Perfect Competition C. UAE is the richest country in the mid-
D. Monopolistic Competition dle east
D. Saudi Arabia should provide Hajj sub-
65. (5) The nation of Namibia is working hard sidy for poor
to eliminate poverty in the country. The
government has taken ownership of the 69. How would the PPC of India be affected
factors of production, and now everyone when there is inflow of Foreign Direct In-
is guaranteed a job. Which of the follow- vestment in India?
ing most likely represents the type of eco-
A. Shifts to the right
nomic system found in Namibia?
A. Market B. Shifts to the left
B. Command C. Rotates around X-axis

C. Mixed D. None of these
D. Traditional 70. Which of the following are true in
66. Which of the following is true? monopoly?
A. Needs, wants, and resources are all A. The monopolist can set price and out-
unlimited put
B. Needs and wants are unlimited but re- B. The monopolist can make supernormal
sources are limited profits in the short run and long run
C. Needs and wants are limited but re- C. The demand curve for the firm and the
sources are unlimited market are the same
D. Needs, wants, and resources are all D. The monopolist protect their position
limited through barriers to entry
63. C 64. B 65. B 66. B 67. A 68. D 69. A 70. A

71. Macroeconomics focuses on all of the fol- B. National economy

lowing except C. National output

A. Unemployment prblm D. Macroeconomics
B. Inflation in the economy
77. The Law of Supply:
C. Aggregate demand
A. Is the exact replica of the Law Of De-
D. Jute industry mand
72. Every economy faces the economic prob- B. Reflects producers offering more of a
lems like: good as its price increases and less as its
price falls
A. What to produce?
C. Has an inverse relationship with price.
B. How to Produce?
D. Reflects producers offering less of a
C. For whom to produce? good as its price increases and more of
D. All of these as its price falls.
73. Who controls economic activities under 78. Global oil demand to rise despite push for
centrally planned economy? renewables
A. Industrialist A. Business news
B. Private Firms B. Economic news
C. Government C. Microeconomics
D. Consumers D. Macroeconomics
79. SSEMI 4 c:Company X sells a good where
74. Research microeconomics:
there is a lot of competition. Companies
A. Behavioral behavior of economic cells enter and leave the market often. Com-
in market types. pany X stays in business because they con-
B. Activities taking place in the whole stantly use advertising to make their prod-
economy. uct seem different. In which market struc-
ture does Company X operate?
C. Consumer behavior to maximize satis-
faction. A. Pure Competition
D. The overall price of a country. B. Monopolistic Competition
C. Oligopoly
75. Something that people desire such as lux-
ury cars, jewelry, vacations or plastic D. Monopoly
surgery are often called? 80. Natalia uses capital and labour in the pro-
A. Needs duction of cakes. When Natalia doubled
the capital and labour he used, he produced
B. Wants
twice as many cakes.What did Natalia ex-
C. Services perience?
D. Choices A. diminishing returns
76. It is the study of the nations economy as B. coordination costs
a whole. C. decreasing returns to scale
A. Microeconomics D. constant returns to scale
71. D 72. D 73. C 74. A 75. B 76. D 77. B 78. B 78. C 79. B 80. D
81. produce a quantity of goods that max- 86. Which of the following is true about an im-
imizes total surplus perfectly competitive firm’s marginal rev-
A. Government restrictions enue (MR) curve if it has a linear and
downward-sloping demand curve?
B. Taxation
A. MR decreases at an increasing rate.
C. Communism
B. MR increases at first, then decreases.
D. Free markets
C. MR is constant.
NARAYAN CHANGDER
82. This is something that encourages or mo- D. MR decreases and is less than de-
tivates someone to produce a good or ser- mand.
vice:
E. MR is greater than demand.
A. Competition
B. Profit 87. Opportunity cost version of comparative
cost advantage doctrine was introduced by
C. Incentive
A. J.M.Keynes
D. Investment
B. Kindleberger
83. What type of economic system allows pri- C. Haberler
vate businesses to decide what to pro-
duce, how to produce and for whom to pro- D. Karl Marx
duce?
88. What is the framework that places the
A. Market generalized insights of the theory in a
B. Mixed more specific contextual setting?
C. Command A. Economic Model
D. Traditional B. Economic Principle
C. Economic Experiment
84. ) The statement that is a positive
statement D. Economic Theorem
A. the price of gasoline is too high 89. When some resources are shifted from use
B. too many people in the United States 1 to use 2, the marginal rate of transfor-
have no health care insurance mation:
C. the price of sugar in the United States A. increases
is higher than the price in Australia B. decreases
D. more students should study eco- C. remains constant
nomics
D. is zero
85. Increased government regulations can
cause the supply curve to 90. What is the key factor in determining the
type of economy a country has?
A. shift to the left
A. public and private sector
B. shift to the right
B. what will be produced, how it will be
C. increase produced, and for whom it will be pro-
D. decrease duced
81. D 82. C 83. A 84. C 85. A 86. D 87. C 88. A 89. A 90. D
C. the availability of resources and de- B. Law of Demand

mand C. Law of Economics

D. the extent of government involvement D. Law of Net Income
91. If factor prices increase,
96. Which of the following could attract new
A. a firm will move to a lower point on its firm to join an industry?
long-run average cost curve only
A. Normal profits
B. there will be no change in the cost
B. Economic losses
curves in the long run
C. Economic profits
C. there will be a downward shift in the
long-run average cost curve but not in the D. Accounting profits
short-run average cost curve
97. The economic problem arises due to
D. both the long-run and short-run aver-
age cost curves will shift upward A. unlimited wants
B. limited resources
92. Which type of economy is controlled by the
government C. alternative uses of limited resources
A. Command Economy D. all of the above
B. Free Market Economy 98. If the economics is used to describe what

C. Mixed Economy exists and how it works, what approach
is being used?
D. Traditional Economy
A. Positive economics
93. Barriers to entry are highest in which two B. Negative economics
types of markets?
C. Macroeconomics
A. differentiated competition and
oligopoly D. Microeconomics
B. perfect competition and differentiated 99. Which of the following Is the cause of eco-
competition nomic prblm
C. monopoly and differentiated competi- A. Scarcity of resouces
tion
B. Unlimited wants
D. oligopoly and monopoly
C. Alternative users
94. The phrase “a change in demand” most di- D. All of these
rectly implies a
A. movement along the curve 100. Dan has $5, 000. He wants to invest
his money in the type of business that has
B. movement along the price curve the least amount of risk. In which type of
C. change in quantity demanded of a good business should he invest?
D. shift in the demand curve A. Sole Proprietorship
95. The tendency of suppliers to offer more of B. Corporation

a good at a higher price: C. Partnership
A. Law of Supply D. Stockholder
91. D 92. A 93. D 94. D 95. A 96. C 97. D 98. A 99. D 100. B 101. A 101. B
101. C 101. D
101. What are the factors of production? 106. Xiaomi launches $10bn Hong Kong stock
market listing.
A. Labor
A. Business news
B. Land
B. Economic news
C. Capital
C. Microeconomics
D. Entrepreneurship D. Macroeconomics
E. Machines 107. Patent right for invention leads to
NARAYAN CHANGDER
102. What is the fundamental problem of ev- A. Natural monopoly
ery society? B. Fiscal monopoly
A. labor costs C. Legal monopoly
B. scarcity D. Technical monopoly
C. economic interdependence 108. If the quantity supplied is equal to the

quantity demanded, there is
D. market fluctuation
A. equilibrium price
103. The long-run ATC curve: B. break-even point
A. will rise if there are diminishing re- C. surplus
turns D. shortage
B. will fall if there are diminishing returns 109. What is competitive market?
C. will rise if economies of scale are in- A. Market in which there are nay buyers
curred and sellers
D. is based on the assumption that all re- B. Negligible impact on market price
sources are variable C. Price and Quantity are determined by
all buyers and sellers
104. The study of an entire economy. D. All of the above
A. macroeconomics 110. The Quantity of goods that a producer is
B. microeconomics able and willing to sell at a certain price in
a given period of time
C. opportunity cost
A. Supply
D. none of above
B. Demand
105. Helen has $20, 000. She wants to in- C. Market
vest in a business in which she can control D. Business
the decisions and keep all of the profits. In
which type of business should she invest? 111. Occurs when each addition of an input re-
sults in declining quantity of the output
A. Sole proprietorship
A. Diminishing Marginal Utility
B. corporation B. Diminishing Marginal Costs
C. partnership C. Diminishing Marginal Returns
D. none of above D. Diminishing Marginal Profits
CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

112. A consumer’s demand curve for a product C. Rational Economic Decision Making
is downsloping because D. Diminishing Marginal Utility

A. total utility falls below marginal utility
as more of a product is consumed 117. To produce or make something you need
this part of the four factors of production
B. the income and substitution effects
precisely offset eachother A. land
C. marginal utility diminishes as more of B. labor
a product is consumed C. capital
D. time becomes less valuable as more of D. entrepreneurship
a product is consumed
118. Traditionally, The subject matter of Eco-
113. In practical application of the law of de- nomics has been studied under the follow-
mand, if the price of rice decreases, the ing broad branches
quantity demanded for rice will
A. Micro and macro economics
A. decreases
B. Positive and normative economics
B. increases
C. Deductive and inductive
C. remains unchanged
D. None of the above
D. becomes zero
119. When economists look at supply and de-
114. Why does scarcity exist? mand schedules and/or supply and de-
A. Each year workers tend to produce mand curves, what are the only two vari-
less than previously ables examined?
B. Machines wear out in time A. Price and Demand
C. There are not sufficient resources to B. Price and Supply
meet everyone’s wants C. Price and Quantity
D. There is a limit to people’s wants D. Price and Equilibrium Point
115. the sum of all costs associated with pro- 120. What country is not an example of capi-
duction talism
A. Total cost A. Germany
B. short run B. U.S.A
C. supply elasticity C. North Korea
D. negative returns D. China
116. Julie has to decide between attending her 121. An example of an oligopoly would be
prom or going on vacation with her friend. what?
Julie decides that perhaps prom is not that
important and chooses vacation with her A. Auto industry
friend. This is an example of a? B. Milk
A. Trade Off C. Jeans
B. Opportunity Cost D. none of above

122. In a Mixed Economic System, the eco- C. a shift in the production possibilities
nomic problems are solved by the frontier inward.
A. price mechanism. D. a movement along a production possi-
B. general public. bilities frontier toward capital goods.
C. government. 128. According to Adam Smith, the unseen
D. price mechanism and the general pub- forces of the market place would be re-
lic sponsible for getting buyers and sellers to-
NARAYAN CHANGDER
gether so they could do business. What
123. Demand is defined as consumers’ and was the name of this force?
to consume a good.
A. Laissez Faire
A. Ability; need
B. Invisible Hand
B. Willingness; ability
C. Consumer Sovereignty
C. Willingness; need
D. Bourgeoisie
D. Want; need
E. Proletariat
124. This factor of production puts the other
factors together so you can actually pro- 129. According to the , quantity demanded
duce things! and price move in opposite directions.
A. land A. law of demand
B. labor B. demand curve
C. capital C. demand schedule

D. entrepreneurship D. market demand
125. What is the economy when you go hunt 130. Which of the following is correct about
just like your father? PPC?
A. Traditional A. Inefficient production occurs at any
point outside the production possibilities
B. Command
curve.
C. Mixed
B. All points along the curve are efficient
D. Market points because each point represents a
maximum output possibility.
126. When diseconomies of scale occur:
C. All points inside the curve are unattain-
A. the long-run ATC curve falls
able due to scarcity of resources.
B. MC intersects ATC
C. the long-run ATC curve rises
D. average fixed costs will rise 131. When an individual specializes to produce
one good, and then acquires additional de-
127. Economic growth is depicted by sired goods from other specialists,
A. shift in the production possibilities A. both parties gain as a result of volun-
frontier outward tary exchange.
B. a movement from inside the curve to- B. both parties gain as a result of fraudu-
ward the curve. lent exchange.

C. neither party gains as specialization C. Constant Returns to Scale

decreases efficiency. D. Diseconomies of Scale

D. neither party gains as specialization
137. refers to the desire, willingness, and
decreases productivity.
ability to buy a good or service.
132. An Increase in Supply or a shift of the sup- A. Supply
ply curve to the right occurs when: B. Demand
A. A rise in input costs happens C. Law of Demand
B. If Government pays subsidies for a D. Market Supply
good.
138. The problem of what to produce covers
C. If producers expect the price to fall in
The issue relationship to
the future.
A. What goods are to be produced
D. If government regulates a good.
B. What quantity of goods to be produced
133. A change in the price of a good causes C. Both A and B
people to buy more or less of an item. This
best describes the concept of D. Neither A nor B
A. the demand curve 139. SSEMI 3 a:If the price of an item in-
creases, demand for its substitutes
B. change in quantity demanded
A. is unaffected
C. elasticity
B. decreases
D. change in demand
C. increases
134. Which of the following is a characteristic D. there is no way to tell
of perfect competition?
140. A cartel is a collusive agreement among
A. No barriers to entry
a number of firms that is designed to
B. firms produce identical products A. expand output and lower prices but not
C. price maker to a predatory level.
D. one seller in the whole industry B. restrict output and lower prices to a
predatory level.
135. What type of economy do most countries
C. restrict output and raise prices.
in the world have?
D. expand output and raise prices.
A. Market economy
E. expand output and lower prices to a
B. Command economy predatory level.
C. Traditional economy
141. The study of the economy with a large
D. Mixed economy scope, looking at regional, national and
global units.
136. The property whereby long-run average
total cost falls as the quantity of output A. Macro-Economics
increases. B. Micro-Economics
A. Economies of Scale C. Economics
B. Efficient Scale D. Supply and Demand

142. In order to save cost, the “Milk Industry” 147. Owed by many people and people invest
should use more labour than machine. This in it by buying stocks.
statement refers to A. Sole Proprietorship
A. What product should be produce? B. Corporation
B. Where product should be produce? C. Partnership
C. For whom product should be produce? D. Demand
NARAYAN CHANGDER
148. Self interest of the consumers lies in the
D. How product should be produce?
maximization of
143. amount of tax X quantity of good sold A. Profit
A. Tax revenue B. Sales
B. Consumer surplus C. Satisfaction
C. Producer surplus D. Wealth
D. Invisible hand 149. If a man buys a pair of pants for $10 and
sells them for $20 he will make a
144. The ability and willingness to buy specific
A. profit
quantities of goods in a given period of
time at a particular price, ceteris peribus. B. service
A. Supply C. donation
B. Demand D. none of above
C. Market 150. The degree to which tax falls on a partic-

ular person or group
D. Business
A. Surplus
145. Which of the following would be studied B. Tax incidence
in microeconomics?
C. Deadweight loss
A. Total numbers of workers employed in
a country D. Elasticity
B. The general level of prices in the 151. Consumers will buy more at low prices,
Malaysian economy and less at high prices. This is known as:
C. The output of the entire economy A. The law of demand
D. The output and price of chicken in B. The law of supply
Malaysia C. Supply
146. Opportunity cost is the: D. Demand
A. Number of units sacrificed 152. Of the three major economic questions,

which of the following is the best exam-
B. Number of units gained
ple of a “What? ” question?
C. Cost of next best alternative foregone
A. Should automobiles be produced using
D. None of these workers or robots?

B. Should higher-income or lower-income 157. This determinant of supply includes both

people buy SUVs? raw material and labor. It also states that
when the price of it decreases, the supply

C. Should we make faster microproces-
sors or pest-resistant corn? increases.
D. Should migrant workers or domestic A. Government Tools

workers be used to pick grapes? B. Prices of Resources
153. Suppose producers expect the price of C. Technology
their product to fall in the future. We D. Competition
would expect
A. Supply could increase or decrease 158. VOCABULARY:Government payments to
encourage or protect a certain type of eco-
B. Supply to remain unchanged
nomic activity.
C. Supply to decrease
A. Subsidy
D. Supply to increase
B. Supply
154. In a centrally planned economy, who or
C. Price Ceiling
what decides on the allocation of scarce re-
sources? D. Minimum Wage
A. Government
159. Patrick works in the oilfield and the low
B. Households gas prices have caused his company to tem-
C. Firms porarily lay people off! He is experiencing
what kind of unemployment?
D. Market forces
A. Structural
E. Banks
B. Cyclical
155. If the demand for used cars decreases af-
ter the price of a new car falls, used cars C. Seasonal
and new cars are D. Frictional
A. inferior goods
160. VOCABULARY:A maximum legal price
B. substitute goods that can be charged for a product.
C. complementary goods
A. Price Floor
D. normal goods
B. Price Ceiling
156. Which statement defines economics? C. Subsidy
A. Answers the question what to pro- D. Minimum Wage
duce.
B. A study about limited choices and un- 161. Normative economics deals with:
limited resources. A. facts
C. A branch of knowledge concerned with
B. opinions
the government.
C. both (a) & (b)
D. A study focused only on production,
consumption and transfer of wealth. D. none of these

162. The formula for PES is D. producers will offer more of a product
A. % change in P/% change in Qd at low prices than they will at high prices
B. % change in P/% change in Qs 168. (2) Which of the following resources
C. % change in Qd/% change in P would economists classify as “capital”?
D. % change in Qs/% change in P A. Raw Bauxite in a South African mine
B. A hammer used in framing a house
163. If the price of printers goes down, what
happens in the market for ink cartridges? C. A worker hired to repair engines
NARAYAN CHANGDER
A. Supply increases. D. Trees used to make paper
B. Supply decreases. 169. The fundamental economic problem of
C. Demand increases. having seemingly unlimited human wants
D. Demand decreases in a world of limited resources.
A. Trade-off
164. An example of complementary goods
B. opportunity cost
A. Butter and margarine
C. PPF
B. Public transport and cars
D. Scarcity
C. Pizza and Garlic Bread
D. Carrots and Parsnips 170. There are 4 They are land, labor, cap-
ital and entrepreneurship.
165. A change in Fixed Costs affect which of
A. Factors of Production
the following? (check all that apply)
B. Market Economy
A. AFC
C. Profit
B. AVC
C. ATC D. Economics
D. MC 171. A deadweight loss declines in size when

a unit of output is produced for which
166. In this market, businesses supply re-
sources needed to produce goods and ser- A. marginal cost exceeds marginal bene-
vices. fit
A. resource market B. maximum willingness to pay exceeds
minimum acceptable price
B. stores
C. producer surplus exceeds consumer
C. product market
surplus
D. businesses
D. consumer surplus exceeds producer
167. The law of supply indicates that: surplus
A. producers will offer more of a product 172. Scarcity can best bedefined as
at high prices that they will at low prices
A. A Shortage of a product
B. the product supply curve is downward
sloping B. Where demand is greater than supply
C. consumers will purchase less of a food C. Unlimited wants vs Limited resources

at high prices than they will at low prices D. Limited wants vs unlimited resources

173. Economics may be described as a “so- 178. What is it when a market is controlled by
cialscience” since it deals with one major supplier?

A. the economy A. Monopolistic Competition
B. the environment B. Perfect Competition
C. human behaviour C. Oligopoly
D. production and consumption
D. Monopoly
174. Situation in which goods and services are
plentiful but are prevented from making it 179. When there are only a few sellers of a
to the market place. type of produce, like Smart phones, there
is said to be an?
A. Scarcity
A. Monopoly
B. Supply
B. Oligopoly
C. Abundance
D. Shortage C. Monopolistic Competition
D. Perfect Competition
175. Quantity Demanded is
A. Law of Demand 180. “When the price of a product rises,
B. An amount of a good that buyers are consumers shift their purchases to other
willing to and able to purchase products whose prices are now relatively
lower.” This statement describes:
C. A sum of all individuals demands for a
good or service A. an inferior good
D. An increase in one price B. the rationing function of prices
C. the substitution effect
176. The key feature of monopolistic competi-
tion is D. the law of supply
A. the small number of firms in the indus-
181. Partners who are only responsible up to
try.
the extent of their investment
B. product differentiation
A. limited partnership
C. the small number of firms in the indus-
try. B. trading partnership
D. a lack of advertisement C. non-trading partnership
177. Average total cost is minimized by pro- D. special partnership

ducing the level of output where the
182. For whom to produce means
marginal cost
A. is minimized A. Produce for those who are rich
B. curve intersects the average total cost B. Produce for those who are poor
curve C. Produce for those who needs the prod-
C. curve intersects the fixed cost curve uct
D. curve intersects the marginal revenue D. Do not produce for those who does not
curve need the product

183. The three basic categories of resources 188. Neo classical theory assumes
are land, labour and: A. Workers maximise profits and con-
A. money. sumers maximise utility
B. time. B. Firms maximise profits and consumer
C. energy. maximise utility
D. capital. C. Consumers minimise utility and firms

maximise profits
NARAYAN CHANGDER
184. The demand for a product is said to be D. Workers maximise incomes and firms
inelastic with respect to price if: minimise profits
A. consumers are largely unresponsive
to a per unit price change 189. If a new, huge oil reservoir was found in
Ohio, this would cause the curve for
B. the elasticity coefficient is greater that oil and gas to shift
1
A. demand right
C. a drop in price is accompanied by a de-
crease in the quantity demanded B. demand left
D. a drop in price is accompanied by an C. supply right

increase in the quantity demanded D. supply left
185. PES is always 190. What will happen when there is short-
A. negative due to law of demand. term PROFIT in a market?
B. positive due to law of supply. A. Firms will enter the market, and prices
will rise.
C. negative due to law of supply.
B. Firms will enter the market, and prices
D. positive due to law of demand. will fall.
186. An economic system in which consumers C. Firms will leave the market, and prices
and the government answer the three key will rise.
economic questions. D. Firms will leave the market, and prices
A. Free Market Economy will fall.
B. Mixed Market Economy 191. The Central Problem of an economy
C. Command Economy arises due to?
D. Traditional Economy A. A. Unlimited wants
187. The study of how consumers allocate B. B. Limited resourses

their scarce resources to meet their wants C. Either a or b
and needs can best be described as? D. Both a and b
A. Markets
192. A market structure in which many compa-
B. Consumerism nies sell products that are similar but not
C. Economic Modeling identical.
D. Economics A. Monopolistic Competition
E. Scarcity B. Oligopoly

C. Monopoly 197. A is a graph that lists prices on the

vertical axis and quantities on the horizon-
tal axis.

193. The fundamental condition of economics A. demand curve
that results from the combination of lim-
B. market demand
ited resources and unlimited wants.
C. utility demand
A. Scarcity
D. demand schedule
B. Productivity
C. Microeconomics 198. Which of these economic problem deals
with technique of production?
D. Macroeconomics
A. What to produce
194. What is an economic problem? B. How to produce
A. Problem of making optimum utilization C. For whom to produce
of resouces
D. None of these
B. Making choice in the presence of
scarcity 199. In the circular flow model, the product
market includes
C. Problem of coice of techenique of pro-
duction A. stores that sell goods and services to
households
D. Problem of allocation of resources
B. the government paying for public
195. In the short run, a perfectly competitive goods
firm’s economic profits C. households selling their labor to busi-
A. Must equal to zero, that is the firm nesses
earns a normal profit D. households receive income from busi-
B. Must be positive nesses
C. Might be positive, negative (an eco- 200. The basic problem of economics is
nomic loss) or zero ( a normal profit)
A. scarcity
D. Must be negative, that is the firm must
B. lack of choice
incur an economic loss
C. shortages
196. A volcano erupts in Hawaii that destroys
D. overabundance
or severely damages many of the pineap-
ple orchards located there. What will be 201. The law of demand is
the effect on price and quantity of pineap-
A. The quantity of an item that is supplied
ples sold?
at a given price
A. price will fall and quantity will fall
B. The quantity of an item that is de-
B. price will fall and quantity will rise manded at a given price
C. price will rise and quantity will fall C. The quantity of an item that is desired
D. price will rise and quantity will also regardless of price
rise D. The quantity of an not desired.

202. Increase of resources implies that Produc- 207. What determines if an item’s demand is
tion possibility curve elastic?
A. shifts to the right A. If an item is on sale
B. shifts to the left B. If an item continues to be bought, de-
spite the rise in price
C. rotates to the right
C. If an item stops being bought because
D. none of these of a rise in price
NARAYAN CHANGDER
203. Suppose that there is an increase in input D. If an item is not on sale
prices. We would expect 208. What is the term for the principle that
A. Supply could increase or decrease suppliers will normally offer more for sale
at higher prices and less at lower prices?
B. Supply to remain unchanged
A. law of supply
C. Supply to increase
B. supply schedule
D. Supply to decrease
C. law of demand
204. What is the curve that shows the maxi- D. market demand
mum combinations of two outputs that an
economy can produce, given its available 209. All of the following are determinants of
resources and technology? supply except:
A. Marginal Analysis Curve A. technology

B. prices of related goods
B. Production Possibilities Curve
C. producer expectations
C. Technology
D. consumers’ price expectations
D. Graph
210. Which of the following is one of the five
205. Which is the following is a free good? factors of production?
A. A vaccination provided by the state A. productivity
without charge B. goods
B. Prizes of food items given away by a C. entrepreneurship
supermarket
D. services
C. Recycled paper
211. An economy operates on the PPC when
D. Wind coming from the sea
A. There is full & efficient utilization of re-
206. Which of the following market structures sources
will have the most difficult entry of new B. Inefficient utilization of resources
firms?
C. Creation of more Employment
A. monopoly D. Inflow of FDI in to the economy
B. monopolistics
212. The problem of whom to produce means
C. oligopoly
A. the choice between the goods to be
D. perfect competition produce

B. The choice between the technique to 217. Why does average total cost eventually
be used in production rise?

C. The choice to distribute the national in- A. Average fixed costs eventually begin to
come among individuals rise at an increasing rate.
D. All the above B. Average variable cost eventually begin
to rise at an increasing rate.
213. Economics as a subject deals with:
A. Nature & animals C. Average marginal costs eventually de-
crease.
B. Rational man
D. none of above
C. Human beings & their activities
D. None of these 218. Sharon decided to open a dry-cleaning
business. She borrowed some money from
214. The branch of economics that studies her sister and took a loan from a bank. She
decision-making by a single individual, hired one helper. What is one disadvan-
household, firm, industry, or level of gov- tage of Sharon’s business?
ernment.
A. no separation of ownership and con-
A. Macroeconomics trol
B. Microeconomics
B. ease of organizing the firm
C. Shortage
C. unlimited liability
D. Surplus
D. double taxation
215. Which of the following best describes the
Law of Demand? 219. Iphones become more expensive. What
will happen to Iphone covers?
A. As price goes down, demand goes
down. (and vice versa). A. Increase Demand
B. As price goes down, demand goes up B. Increase Supply
(and vice versa).
C. Decrease Demand
C. As demand goes down, supply goes
up. D. Decrease Supply
D. As demand goes up, price becomes 220. Of the three big questions, what, how,
elastic. and for whom, which of the following is
an example of a how question?
216. Why must every nation answer the three
fundamental economic questions? A. Why do doctors and lawyers earn high
A. Because of increased international incomes?
trade and cooperation. B. Why don’t we produce more small cars
B. Because of the problem of scarcity. and fewer gas guzzlers?
C. Because rich nations must subsidise C. Why do we use machines rather than
the development of poor nations. migrant workers to pick grapes?
D. Because some nations are more suc- D. Why do college football coaches earn
cessful than others. more than professors?

221. Peggy, a recent college graduate, decides 226. Other things being equal, which of the fol-
to look for a job instead of going to grad- lowing might shift the demand curve for
uate school. If she is unable to find a job gasoline to the left?
that suits her interests right away, what
A. the discovery of vast new oil reserves
type of unemployment is she MOST likely
in Alberta
experiencing?
A. structural B. the development of a low-cost electric
automobile
B. seasonal
NARAYAN CHANGDER
C. frictional C. an increase in the price of train and air
transportation
D. cyclical
D. a large decline in the price of automo-
222. Elasticity refers to biles
A. how producers of goods and services
react to price changes 227. For a market structure to be classified as
B. how often the price of a good or ser- an oligopoly, what would characterize the
vice changes when quantity demanded firms that have control over the market?
changes A. A large number of firms
C. how consumers of goods and services
B. A small number of firms
react to price changes
D. how producers of goods and services C. Government firms
react to price changes D. One single firm
223. Total Revenue-Total Cost =
228. The supply curve shows
A. Profit
A. The amount of goods or services that
B. Revenue
are supplied at a given market price.
C. Marginal Revenue
B. The amount of goods or services that
D. Variable Revenue
are consumed at a given market price.
224. Which of the following basic economic C. The amount of goods or services that
problems is closely related to the tech- are supplied at a given quantity.
nique of production?
A. What? D. none of above
B. How? 229. Which of the followings is not an assump-

C. For whom? tion of PPC?
D. Where? A. Resources in the economy are con-
225. Examples of renewable goods would in- stant
clude? B. The economy produces only two goods
A. Water, Coal, Gas and Oil C. There is no change in the technique of
B. Solar, Natural Gas, Hydroelectric production
C. Oil, Coal and Solar D. Resources are equally efficient in pro-
D. Solar, Wind and Hydroelectric duction of both the goods

230. SSEMI 4 b:Which provides the greatest 235. Let P = price, MR = marginal revenue, MC
incentive for entrepreneurs to take risks? = marginal cost, and ATC = average total
cost. In monopolistic competition, which

A. profits
of the following most accurately describes
B. inflation the long-run equilibrium conditions for a
C. prices firm?
D. interest A. P>ATC, MR=MC, and P>MC
231. Eataly’s sights set on China with possible B. P=ATC, MR=MC, and P=MC
joint-venture C. P=ATC, MR=MC, and P>MC
A. Business news D. P=ATC, MR>MC, and P>MC
B. Economic news
236. Which of the following is a typical fixed
C. Microeconomics cost?
D. Macroeconomics A. utilities
232. Labor costs are rising through the roof! B. rent
Minimum wages are now at $25 an hour. C. hourly labor
This means even the basic item will need
to cost more to keep up with rising costs. D. materials
What determinant of supply does this
237. A market structure in which a few large
most relate to?
firms dominate a market.
A. Change in Technology
A. Oligopoly
B. Change in Number of Sellers in the
B. Monopoly
Market
C. Monopolistic Competition
C. Change in Cost of Factors of Produc-
tion D. Perfect Competition
D. none of above 238. What is given up when a choice is made
233. A listing of the specific quantities that A. Scarcity
would be purchased at various prices is B. choice
known as
C. opportunity cost
A. Price Points
D. resources
B. Price Elasticity
C. Demand Schedule 239. Which of the following is an egg of posi-
tive economy
D. Demand Curve
A. India should take steps to control ris-
234. Measure of profit which includes explict ing prices
costs and depreciation of capital.
B. There are inequalities of income in our
A. Accounting Profit economy
B. Economic Profit C. There should not be an overpopulated
C. Total Profit country
D. Marginal Profit D. Income inequality should b ereduced

240. Max is studying for his spelling test. Un- 245. If there is destruction of resources in an
fortunately, his favorite TV program is on economy the PPC
right now. If he studies for the test, he A. Shifts towards left hand side
will miss watching the show. Max decides
to study for his test instead of watching B. Brings unemployment
TV. What is the opportunity cost of his de- C. Shifts towards right hand side
cision? D. None of the above
A. studying for a test
246. A is a chart or table showing quanti-
NARAYAN CHANGDER
B. watching TV ties supplied at different possible prices.
C. spelling test A. supply schedule
D. none B. supply curve
C. market table
241. Opportunity Cost is also known as the
D. profit graph
A. best option.
247. The uncompensated impact of one per-
B. second best options.
son’s actions on the well-being of a by-
C. trade-off. stander
D. choices A. Opportunity cost
B. Externality
242. The relationship between the quantity of
inputs used to make a good and the quan- C. Deadweight loss
tity of output produced. D. Surplus
A. Diminishing Marginal Utility 248. Cardinal approach to utility is:
B. Production Function A. Comparable
C. Conjunction Junction B. Measurable
D. Economies of Scale C. Not measurable
243. When the price of a good increases, the D. none of these

quantity demanded 249. What factor of production’s function is to
A. increases make decisions and take risks?
B. decreases A. Capital
C. remains unchanged B. Enterprise

C. Land
D. reverses
D. Labour
244. What is the price that both buyers and
sellers accept? 250. A perfectly competitive firm is a price-
taker because
A. Supply price
A. the government sets its price
B. Equilibrium price
B. it produces a differentiated product
C. Subsidized price
C. a larger firm sets the price for the in-
D. Demand price dustry

D. intense competition prevents it from C. as price increases, quantity demanded

influencing the market price decreases

251. An increase in output which arises from D. as price decreases, quantity de-
one additional unit of input. manded decreases
A. Marginal Cost 256. Which of the following is not a resource?

B. Marginal Physical Product A. Land.
C. Marginal Revenue B. Labour.
D. Marginal Input C. Money.
D. Capital.
252. Technology used to make cars improves.
This will cause.. 257. Something that people consume that is
A. Supply to Increase tangible “can be touched.”
B. Demand to increase A. Service
C. Supply to Decrease B. Good
D. Demand to Decrease C. Need

D. Want
253. SSEMI2 b:Whenever a company develops
a new product, an equilibrium price and 258. In a , most economic decisions are
quantity will eventually be determined by made by individuals looking out for their
own interests.
A. how much money is available in the
economy. A. free exchange
B. he government in their role as price B. market economy
setter. C. privatized economy
C. the interaction of sellers and produc- D. socialist market
ers.
259. The relationship between quantity sup-
D. the interaction of buyers and sellers. plied and price is and the relationship
254. Which is a feature of a perfectly compet- between quantity demanded and price is
itive market?
A. Price differences between firms pro- A. direct, inverse
ducing the same product B. inverse, direct
B. The industry’s demand curve is per- C. inverse, inverse
fectly elastic D. direct, direct
C. Significant barriers to entry into the in-
260. Problem of occurs when goods and
dustry
services are limited compared to man’s un-
D. Products are standardized or homoge- limited want and desires.
neous
A. surplus
255. The Law of Supply states: B. scarcity
A. as price increases, supply increases C. choices
B. as prices decrease, supply increases D. opportunity cost

261. Scarcity is a situation: C. A person or unit able to use land, labor

A. where people’s needs exceed their re- or capital. An economic actor uses these
sources. resources to shape an economy.
B. where people’s wants exceed their re- D. none of above
sources.
266. The branch of economics that studies
C. where the quantity of resources is suf- decision-making for the economy as a
ficient to meet all wants whole.
NARAYAN CHANGDER
D. where people’s needs exceed other A. Microeconomics
people’s resources.
B. Macroeconomics
E. where the quantity of resources is suf-
ficient to meet all needs. C. Positive Economics
D. Normative Economics
262. Which of the following is NOT
economist’s study? 267. The concept of pure monopoly was first
A. Scarcity given by
B. Benefit A. Robinson
C. Choices B. Stigler
D. Incentives C. Sraffa
263. The law of demand refers to how D. Chamberlain
A. demand changes when people’s in- 268. When a price ceiling is imposed in a mar-
comes change ket:
B. demand changes when the prices of A. A persistent surplus results
substitutes and complements change
B. Sellers of the product are made better
C. the quantity demanded changes when off
the price of the good changes
C. Quantity supplied is greater than the
D. the price of the good changes when quantity demanded
people’s demand for the good changes
D. A persistent shortage results
264. When the U.S. government purchases a
submarine from a company, the govern- 269. When the percent change in quantity de-
ment has made a major transaction in the manded is greater than a percent change
in supply it is
A. factor market
A. inelastic
B. public market
B. elastic
C. product market
C. complementary
D. foreign exchange market
D. unit elastic
265. An economic actor is
270. What are all societies forced to do be-
A. Is a Hollywood actor
cause of scarcity? SHOW ANSWER
B. A person that uses money to buy goods
and services. An economic actor uses A. Make production decisions
these resources to shape an economy. B. Conserve resources

C. Limit resource use 276. What do minimum wage laws impose on

D. Charge large amount of money for the market?

available resources A. surpluses
271. A good or service that people require for B. price floor
survival such as food, water, shelter and C. price ceilings
clothing are called?
D. shortages
A. Wants
B. Desires 277. Sending one of your workers back to
C. Needs school to learn accounting would best rep-
resent which factor of production?
D. Choices
A. Physical Capital
272. Pure monopoly may be based on
B. Human Capital
A. Increasing return to scale
C. Land
B. Control over the supply of raw materi-
als D. Entrepreneurship
C. Patent or government franchise 278. What will happen when there is short-
D. All of the above term LOSS in a market?
273. Which of the following would best repre- A. Firms will enter the market, and prices
sent all “Factors of Production” that any- will rise.
one starting a business would need to be B. Firms will enter the market, and prices
successful? will fall.
A. Land, Labor, Entrepreneurship C. Firms will leave the market, and prices
B. Land, Labor, Capital and Entreprenuer- will rise.
ship D. Firms will leave the market, and prices
C. Labor, Capital and Financing will fall.
D. Capital, Labor and Land
279. If the demand for a good increases when
274. If marginal cost is less than the aver- people’s incomes increase,
age total cost, then the average total cost A. the good is an inferior good
curve will.
B. the law of demand is violated
A. Increase
C. the good’s demand curve must be up-
B. Decrease
ward sloping
C. Not change
D. the good is a normal good
D. none of above
280. Which of these is not a physical asset?
275. Tax levied on a good levied on sellers
A. Supply curve stays the same A. Stocks
B. Supply curve shifts upward B. Car
C. Supply curve shifts downwards C. House
D. None of the above D. Property

281. SSEMI 3 a:Related goods, income, and 286. (3) Which of the followingis NOT a con-
preferences are variables MOST LIKELY to sumer good?
affect which part of a market? A. a bulldozer at a construction site
A. supply B. a Happy Meal at McDonalds
B. demand C. a pack of Doritos in a vending machine
C. quantity supplied D. a television set for sale at an appliance
store
D. quantity demand
NARAYAN CHANGDER
287. Why does economy exist in the world?
282. The Bank of England raises interest rates,
signals confidence in strengthening econ- A. Human wants for goods and services
omy. are unlimited
B. Productive resources with which to
A. Business news
produce goods and services are limited
B. Economic news C. Both
C. Microeconomics D. None of the above
D. Macroeconomics
288. The branch of economics which studies
the economy as a whole
283. What is not an example of a substitute?
A. Micro Economics
A. Train freight and truck freight
B. Macro Economics
B. Peanut butter and jelly
C. positive Economics
C. Hershey’s and Nestle chocolate
D. Microsoft Word and Google Docs
289. Study of behavior of individual house-
284. The study of an entire economy or one of holds, firms, and governments
its principal sectors. A. Microeconomics
A. Macroeconomics B. Macroeconomics
B. Microeconomics C. Economics
C. Scarcity D. none of above
D. Factors of Production 290. The good or service that you give up
when you make an economic choice is
285. Kathy, Sue, and Christina own a bakery. called
Each day all three women spend hours bak-
A. opportunity cost
ing cakes, decorating cakes, and packaging
cakes. Which economic concept would help B. economic choice
them become more efficient? C. economic interdependence
A. Scarcity D. economic specialization
B. Productivity 291. Efficiency loss is another term for
C. Specialization A. Deadweight loss
D. Interdependence B. Consumer surplus

C. Producer surplus 297. Economics is the study of

D. Elasticity A. How society manages the unlimited re-

292. Why does no one firm dominate in a per- sources
fect competition? B. How to reduce our wants until we r sat-
A. Each firm produces so little of the total isfied
supply that they cannot influence prices
C. How society manages it’s scarce re-
B. One firm will eventually dominate and sources
make it a monopoly
C. Each firm sells to different people D. How to fully satisfied our unlimited
wants
D. No firm has an incentive to
293. Wants are 298. Suppose consumers see a decrease in the
A. Things you essential for survival price of Coke. We would expect
B. Food, clothing, shelter A. Demand could increase or decrease
C. Desires that are not essential to sur- B. The demand for Pepsi remains un-
vive changed
D. Air, water, food
C. The demand for Pepsi to decrease
294. A nation in which the government makes
all decisions about what gets produced, D. The demand for Pepsi to increase
who it goes to and how much will be paid
for it is often called a? 299. Graphically, if the supply and demand
A. Command Economy curves are linear, consumer surplus is mea-
sured as the triangle
B. Traditional Economy
C. Mixed Market Economy A. under the demand curve and below the
actual price
D. Free Market Economy
E. Keynesian Economy B. under the demand curve and above the
actual price
295. Which of the following would entice a
firm to enter an industry in the long run? C. above the supply curve and above the
actual price
A. P=ATC
B. P>ATC D. above the supply curve and below the
actual price
C. P<AVC
D. P=MR 300. This is a type of business with two or
296. Human effort directed toward producing more individuals involved.
goods and services. A. sole proprietorship
A. land
B. partnership
B. labor
C. goods C. corportation
D. capital D. limited partnership

301. The fundamental economic problem being 306. The central question in economics is how
faced is: to:
A. Unlimited human wants A. deal with the problem of scarcity.
B. Limited wants and unlimited resources B. change government economic policy.
C. Unlimited wants and scarcity of re- C. change people’s wants to match their
sources needs.
D. Limited wants and limited resources D. manage money and become wealthy.
NARAYAN CHANGDER
302. Will lead to a change along the supply 307. Mowing lawns, washing the car and tak-
curve ing out the trash are all ways to earn
money by
A. Change in prices
A. selling a product
B. Change in costs of production
B. providing services
C. Change in taxes
C. saving for college
D. Change in international tariffs
D. none of above
303. Economics is
308. The demand curve shows the relationship
A. studying goods, services, and how peo- between:
ple can get them.
A. money income and quantity demanded
B. studying trees, bushes, and other
B. price and production costs
plants.
C. price and quantity demanded
C. studying animals and wildlife.
D. consumer tastes and the quantity de-
D. studying food, and how food is made.
manded
304. if there is an opportunity cost for a cer- 309. How can we measure the excess of dead-
tain product, then weight loss?
A. there is a money cost for the decision A. Demand Curves
B. Resources are unlimited B. Uncompensated Response
C. There is a sacrifice of something else C. Substitution Effect
D. none of above D. none of above
305. The perpetual problem in economics is: 310. Consider the following table:Production
A. the inability of people to work together Possibilities: A B C D EBread (units): 0 1
effectively. 2 3 4Butter (units): 10 9 7 4 0The oppor-
tunity cost of increasing bread production
B. the inability to satisfy everyone’s from 2 to 3 units is units of butter.
wants with the resources available.
A. 7
C. the gap between the income of the rich
and the poor. B. 2
D. how to supply enough to earn a consis- C. 4

tent profit D. 3

311. An increase in a firm‘s reputation can be 316. Which of the following illustrates the con-
represented by cept of internal economies of scale?

A. A rightward shift of the demand curve A. Falling average cost as output in-
creases
B. A leftward shift of the demand curve
B. Falling average cost as the industry ex-
C. A rightward shift of the supply curve
pands
D. A leftward shift of the supply curve C. Falling fixed cost as output increases
312. Several Companies sell similar products D. Rising average cost as output in-
is called what type of competition? creases
A. Perfect Competition 317. Which of the following is not a major
B. Monopolistic Competition component of a contemporary market sys-
tem?
C. Monopoly
A. Money
D. Oligopoly
B. Unemployment
313. How short run is defined in Economics? C. Trade
A. As the time period where all factors of D. Specialization
production are considered variable.
318. In the long run
B. As the time period of up to 12 months.
A. all input can be varied
C. As the time period where at least one
factor of production is considered fixed. B. all inputs are fixed
D. As the time period where the firm has C. some inputs are variable and other in-
the flexibility to make production choices. puts are fixed
D. outputs is fixed
314. SSEMI 2 b:How are equilibrium price and
quantity determined in most markets in 319. Variable Cost/Quantity =
the U.S. Economy?
A. Marginal Variable Cost
A. government sets the price
B. Average Fixed Cost
B. consumer and producer interaction C. Average Variable Cost
C. by a point on a production possibilities D. Marginal Total Cost
curve
D. by the law of demand 320. Another name for the type of economic
system the United States has is called
315. Benefit buyers get from participating in a the?
market A. Command Economy
A. Consumer surplus B. Traditional Economy
B. Producer surplus C. Socialist System
C. Total surplus D. Free Market Economy
D. Welfare economics E. Free Enterprise System

321. What is the formula for finding supply B. equilibrium.

function? C. prices.
A. Qs = c-dP D. quantity.
B. Qs = c x dP
327. The example of machinery in a factory is
C. Qs = c + dP an example of which of the 4 factors of
D. Qs = c / dP production?
A. land
NARAYAN CHANGDER
322. What do households provide to the re-
source market? B. labor
A. income C. capital
B. money D. entrepreneurship
C. people 328. A perfectly competitive firm faces a de-
D. land, labor, capital mand curve that is:
A. parallel to the vertical axis.
323. In general, the marginal benefit of eating
a 5th pizza is than the 1st pizza. B. U-shaped
A. less C. parallel to the horizontal axis
B. more D. downward sloping.
C. same 329. How does competition among buyers af-
D. I don’t know fect price?
A. Competition decreases the quality
324. Why do all societies have to make deci-
which decreases the price
sions about how resources will be used?
B. Competition increases quality of prod-
A. People are greedy
ucts which increases price.
B. There are not enough resources for
C. Competition increases production
those who want them
which increases the price.
C. Resources are too expensive for most
D. Competition increases demand which
people
increases price.
D. Because there is a huge gap between
the rich and poor 330. If there is a tax of $60 and the consumer
burden is $10 what is the burden on the
325. What is the biggest disadvantage of a producers?
Sole proprietorship and a partnership? A. $10
A. Start Up Costs B. $50
B. Taxes C. There is not enough information
C. Unlimited Liability D. $60
D. Receives all profits
331. What reason allows increasing returns to
326. On the market demand and supply graph, occur with production as one assess the la-
the vertical axis shows bor factor only?
A. demand. A. increasing costs

B. worker specialization 337. Brazil’s food inflation:don’t blame it all

C. underutilization on the weather

A. Business news
D. fixed resources
B. Economic news
332. Why will scarcity continue to be a prob-
C. Microeconomics
lem in the future?
D. Macroeconomics
A. Prices will rise
B. Resources will always be finite 338. Which of the following best illustrates
your marginal benefit from studying?
C. Needs will decrease in the future
A. The knowledge you gain from studying
D. World population will fall 2 hours a night for a month
333. For the law of supply, as price rises, B. The best things forgone by studying 2
what happens to quantity supplied? hours a night for a month
A. it goes up C. What you are willing to give up to study
for one additional hour
B. it goes down
D. What you must give up to be able to
C. it stays the same study for one additional hour
D. it is not effected
339. The resources for satisfying human
334. In this market structure there are many wants are:
buyers and sellers with identical products A. limited
A. perfect competition B. unlimited
B. monopolistic competition C. available at zero price
C. monopoly D. none of these
D. oligopoly 340. What is the most common economic sys-
tem today?
335. The choice between two goods or ser-
vices is known as A. command
A. scarcity B. mixed
B. opportunity cost C. traditional
C. economic choice D. none of above
D. economic specialization 341. The circular flow model of a market econ-

omy shows
336. When the quantity demanded at a specific
A. how profits are made
price exceeds the quantity supplied, what
will result in the market? B. what inputs are required for what out-
puts
A. Equilibrium occurs
C. how many firms can support the needs
B. A shortage occurs
of how many households
C. A surplus occurs D. the interactions between households
D. Supply increases and firms in the free market

342. The income elasticity of demand is a mea- B. To understand the society

sure of the: C. To be an informed citizen
A. relative responsiveness of quantity de- D. All of the above
manded to changes in income.
B. absolute change in demand yielded by 347. When you buy a PlayStation instead of
an absolute change in income. an X-Box because the price of the PlaySta-
tion went up, this is an example of what?
C. slope of the income-consumption
A. Complements
NARAYAN CHANGDER
curve.
D. negative slope of a market demand B. Substitutions
curve. C. Elasticity
343. What are the advantages to a market D. Economics
economy?
348. A surplus would be found
A. People are more likely to lose their
jobs A. In the bottom portion of the upward
sloping supply curve
B. Less income disparity than a command
economy B. Below the equilibrium point
C. One person gets to decide who gets C. Above the equilibrium point
what D. None of the above
D. More consumer choices than a com-
349. In perfect competition, each firm .
mand economy.
A. can influence the price that it charges
344. The study of a single factor of an
B. produces as much as it can
economy-such as individuals, households,
businesses, rather than the economy as a C. is a price taker
whole. D. faces a perfectly inelastic demand for
A. scarcity its product
B. microeconomics 350. Which of the following best explains why
C. macroeconomics firms experience Increasing Marginal Re-
turns?
D. none of above
A. Workers can specialize
345. When CDs became popular, people
stopped listening to tape cassettes. This B. Workers reach the limit of fixed re-
caused the curve for tape cassettes to sources
shift C. Managers motivate workers to pro-
A. demand right duce more
B. demand left D. Poor management leads to low motiva-

tion
C. supply right
D. supply left 351. According to the Total Revenue Test for
elastic demand, as prices go , total rev-
346. What is the importance of economics? enue goes
A. To learn a way of thinking A. Up; Up

B. Down; Up 357. When the price of Nike soccer balls fell,

C. Up; Down Ronaldo purchased more Nike soccer balls,
and fewer Adidas soccer balls. Which of

D. Down; Down the following best explains Ronaldo’s de-
352. A market in which profit opportunities cision to buy more Nike soccer balls?
are eliminated almost instantaneously. A. the substitution effect
A. open market B. the income effect
B. efficient market C. an increase in the demand for Nike
C. monopoly market soccer balls
D. closed market D. the price effect
353. which of these is a cause of shifting the 358. Bob currently earns $50, 000 per year as
demand curve to the right hand side if a financial planner. If he quit his job and
goods are normal opened an ice cream stand on the beach,
A. increase in income of consumer earning $25, 000 per year in accounting
B. increase in price of substitute goods profit, what is his Economic Profit?
C. decrease in price of complementary A. $25, 000

goods B. $50, 000
D. all of these C. $75, 000
354. If there is improved technique of Produc- D. -$25, 000
tion in both the goods, how the PPC will
be affected? 359. Consumers buy more of a good when its
price decreases and less when its price in-
A. Leftward shift of PPC creases. The desire for a product or service
B. Rightward shift of PPC A. Law of Demand
C. Rotation of PPC
B. Law of Supply
D. None of these
C. Consume
355. The founder and father of the mixed mar- D. Produce
ket economic system?
A. Karl Marx 360. When you buy a game system and games
together, this is an example of which eco-
B. Adam Smith
nomic concept?
C. John Maynard Keynes
A. Complements
D. David Ricardo
B. Substitutions
356. An increase in the price of A cause an in- C. Elasticity
crease in the demand for B. This indicates
that A and B are D. Economics
A. substitute good 361. The problem of ‘how to produce’ relates
B. not related to:
C. complementary goods A. the choice of technique
D. inferior good B. distribution of income

C. the choice of goods and services 367. In the long run, a Perfectly Competitive
D. none of above Firm will..
A. Earn zero economic profit
362. The study of how prices are set for indi-
vidual goods is considered as an issue in B. Earn an economic profit
C. Make an economic loss
A. macroeconomics D. Shut down
B. microeconomics
NARAYAN CHANGDER
368. Adam Smith’s “ “ guides the market
C. descriptive economics
to the most efficient point (max total sur-
D. normative economics plus)
363. Name a country that has a command lean- A. Deadweight loss
ing mixed economy. B. Invisible Hand
A. United States C. Mighty sword
B. Great Britain
D. Strawberry smoothie
C. Germany
D. N. Korea 369. Graphs provide a means to clearly show
economic relationships in two-dimensional
364. When tradition and customs decide what space.
gets produced in an economy system then
A. True
you have which type of system?
B. False
A. Command Economy
C. Sometimes
B. Traditional Economy
C. Mixed Market Economy D. Seldom
D. Free Market Economy 370. An economic system in which tradition
E. Centrally Planned Economy and customs answer the three key eco-
nomic questions.
365. Which of the following best describes Al-
locative Efficiency? A. Free Market Economy
A. D = ATC B. Mixed Market Economy

B. D = AVC C. Command Economy
C. D = MC D. Traditional Economy
D. Run = DMC 371. What would be most likely to increase
366. Which of the following is characterized as the equilibrium price of apartment rentals
‘the point where the quantity of a good in a particular area?
supplied is the same as the quantity de- A. An increased supply of building materi-
manded of that good’? als
A. The S/D Similarity B. A decrease in the availability of apart-
B. The Equilibrium Price ments
C. Price-Fixing C. A decrease in demand for apartments
D. Price Adjustment Point D. A surplus of undeveloped land

372. VOCABULARY:The amount of any given C. capital

commodity available for sale at a given D. i have no clue
time.

A. Subsidy 377. Value of the next best alternative given
up for the alternative that was chosen.
B. Demand
A. trade-off
C. Supply
B. opportunity cost
D. Price Floor
C. time
373. Empirical economics aims to: D. labor
A. Objectively describing and interpret-
378. “The max price a buyer will pay for a
ing facts and economic issues with scien-
good”
tific grounds.
A. Consumer surplus
B. Make personal comments or subjec-
tive views. B. Producer surplus
C. Explain the conduct of economic cells C. Deadweight loss
in market types. D. Willingness to pay
D. There is no correct sentence. 379. VOCABULARY:The lowest legal wage
374. When the price of good A rises, people that can be paid to workers.
start to drink good B. In this case, what is A. Minimum Wage
good B considered? B. Price Ceiling
A. luxury good C. Subsidy
B. complementary good D. Price-Fixing
C. substitute good
380. List the four market structures in order
D. normal good from least competitive to most competi-
tive.
375. If firms are entering an industry that
is monopolistically competitive, we would A. Oligopoly, Monopoly, Perfect Competi-
expect tion, Monopolistic Competition
A. the demand for existing firms to shift B. Monopoly, Oligopoly, Monopolistic
rightward Competition, Perfect Competition
B. the demand for existing firms to be- C. Monopoly, Monopolistic Competition,
come more inelastic. Perfect Competition, Oligopoly
C. economic profits to rise for all firms D. Perfect Competition, Oligopoly,
Monopoly, Monopolistic Competition
D. the demand for existing firms to shift
leftward 381. Law of demand and supply are good ex-
amples of in economics.
376. These are physical goods that are used to
produce other goods (example:trucks and A. Cause and effect relationship
trains to transport goods). B. Systemized body of knowledge
A. scarcity C. Capability of measurement
B. land D. All of the options

382. Microeconomics and Macroeconomics fo- A. Udit:Positive ; Shivam:Normative

cuses on the following in terms of employ- B. Udit:Normative ; Shivam:Positive
ment:
C. Both are positive statements
A. Employment Rate
D. Both are normative statement
B. Production
388. Someone who makes a product to sell is
C. Individual Employment a
D. Supplies A. human resource
NARAYAN CHANGDER
383. The problem of “what to produce” re- B. consumer
lates to: C. producer
A. the choice of technique D. trader
B. distribution of income 389. The problem of “What to Produce” is re-
C. market value of goods and services lated to
D. the choice of goods and services A. Choice of Goods to be produced
B. Choice of technique of production
384. Who is father of economics
C. Choice of group of Consumers
A. Alfred Marshall
D. None of these
B. Adam Smith
390. Which of these factors do you not need
C. JR Hicks
to take into consideration financially when
D. Samuelson choosing a new job?
385. What is another term for policy eco- A. Salary
nomics? B. Benefits
A. Normative economics C. Cost of living
B. Positive economics D. Age of boss
C. Negative economics 391. Those things used in making all goods and
D. Microeconomics providing all services, and all of them are
scarce.
386. What happens when production is shut A. Resources
down?
B. Materials
A. Fixed Cost Increases
C. Capital
B. Variable Costs Decline
D. Finances
C. Variable Costs become zero
392. Ramesh is working at a salary of 35, 000
D. Fixed Costs become zero
per month. He receives two job offers:1)
387. In the context of rising prices, follow- To work as an accountant at a salary of 30,
ing statements are made by two peo- 000 per month. 2) To work as a sales man-
ple:Udit:Prices in the economy are con- ager at a salary of 25, 000 per month.In
tinuously rising.Shivam:The government the given case, his opportunity cost will
should take reasonable steps to control ris- be:
ing prices. A. 25, 000

B. 30, 000 398. The process by which one substantially

C. 35, 000 improves or adds to a product is called?
Example:improving an iPad with a better

D. 65, 000 camera or making it thinner.
393. Movement along the Demand curve to A. Productivity
the right is called B. Innovation
A. decrease in demand
C. Production
B. decrease in quantity demanded
D. Invention
C. increase in demand
E. Engineering
D. increase in quantity demanded
399. Which of the following is NOT a factor of
394. The most fundamental concepts underly- production?
ing the discipline of economics are:
A. Land resources
A. scarcity and making an efficient
choice. B. Labor
B. supply and demand. C. Entrepreneur
C. money, stocks and bonds. D. Market

D. inflation and unemployment. 400. SSEMI 4 c:Assume Company 1 and Com-
pany 2 operate as an oligopoly. Which
395. On the demand and supply graph, the hor-
statement BEST represents this?
izontal axis shows
A. They own many different “brands”
A. demand.
B. They are major corporations with
B. equilibrium.
stockholders
C. prices.
C. They control over 75% of the market
D. quantity.
D. They have products that are different,
396. Gold demand slides to eight-year low in but are marketed the same way
third quarter of 2017.
401. If farmers stopped growing potatoes be-
A. Business news cause it was too hard, this would cause
B. Economic news the curve for Grippo’s to shift
C. Microeconomics A. demand right
D. Macroeconomics B. demand left
397. A rational choice is C. supply right
A. the best thing you must forgo to get D. supply left
something
402. Value to buyers minus cost to sellers
B. what you are willing to forgo to get
A. Consumer surplus
something
C. made by comparing marginal benefit B. Producer surplus
and marginal cost C. Total surplus
D. the best for society D. Deadweight loss

403. Why are some Monopolies allowed to ex- 408. Large number of buyers and sellers are
ist in our society? the characteristics of which type of mar-
A. Geography:it may be the only business ket
in a given area A. Perfect competition
B. Government:only the government pro- B. Monopoly
vides certain services C. Monopolistic competition
C. Utilities:sometimes only 1 company D. Oligopoly
NARAYAN CHANGDER
owns the utilities in an area
409. Tax on a good levied on buyers
D. All of the Above
A. Demand curve shift downward
404. These two are present in scarcity. B. Demand curve shift upward
A. Unlimited wants and needs C. Supply curve shift downward
B. Limited wants and needs D. Supply curve shift upward
C. Unlimited Resources
410. The founder and father of the free market
D. Limited Resources economic system?
405. Average revenue (AR) is the same thing A. Karl Marx
as B. Adam Smith
A. price per unit C. John Maynard Keynes
B. TR/Output D. David Ricardo
C. the extra revenue received as a result 411. SSEMI 4 a:Jane and Jill run a photogra-
of selling one more unit of output phy business as a partnership. They are
D. Total revenue less marginal revenue trying to decide if they wish to form a
corporation. If they decide to incorporate,
406. Economics is the study of how what will be a new disadvantage they will
A. we choose to use unlimited resources. face?
B. unlimited resources are used to satisfy A. double taxation
scarce wants. B. unlimited liability
C. society uses abundant resources to C. sharing of profits
satisfy unlimited desires. D. ease of startup
D. scarce resources are used to satisfy
unlimited wants. 412. Economic problem arises due to
A. Limited resources
407. What is meant by opportunity cost?
B. Unlimited wants
A. The next best alternative foregone
C. Alternative uses of resources
B. The cost of the item selected
D. All of the above
C. The cost of exploring business oppor-
tunities 413. On major advantage of a corporation is:
D. The labour used in producing the prod- A. Always have profits

uct B. Limited Liability

C. minimum failure 419. “We cannot have all the things we

D. All of the above want”. The resources available to satisfy
our wants are, at any time, limited in sup-

414. Which of the following is an example of ply:The statement reflects the concept of
a monopoly?
A. A national market for packaged meat A. opportunity cost
B. A large oil company in one state B. choices
C. A transcontinental railroad line C. scarcity
D. One company owning the majority of D. unemployment

the electric power plants
420. Bank of America to shift 125 British jobs
415. Which form of business organization is to Ireland ahead of Brexit (select three)
easiest to organize but is LEAST able to A. Business news
benefit from specialization? B. Economic news
A. sole proprietorship C. Microeconomics
B. partnership D. Macroeconomics
C. limited partnership
421. The characteristic of oligopolistic firms
D. corporation that makes them different from all other
types of firms is that oligopolistic firms:
416. Scarcity refers to limitation of in re-
lation to for a commodity. A. Advertise their products
A. Demand, sale B. Consider each other’s decisions
B. Demand, supply C. Produce differentiated products
C. Supply, Demand D. Face high barriers to entry
D. None of these 422. Under the monopoly MC is
417. What type of market is it when there in A. More than the price
which there is no competition? B. Less than the price
A. Buyer’s market C. Equal to the price
B. Oligopoly D. All of the above
C. Free Market 423. Law of Supply
D. Monopoly A. Tendency of suppliers to offer more of
a good at a higher price
418. It is comes from Greek word mikros,
meaning “small” B. Consumers buy more of a good when
its price decreases and less when its price
A. Micro
increases
B. Microeconomics
C. Theory of Relativity
C. Economics D. Price goes up quantity demanded
D. none of above goes down

424. What is the goal of a firm? 429. When the price of a good or service is
A. to make profits high consumer demand will usually be
A. high
B. to maximize profits
B. unpredictable
C. to maximize revenue
C. low
D. none of the above
D. average
425. Which of the following are factors of pro-
NARAYAN CHANGDER
duction? 430. A market structure in which a large num-
ber of firms all produce the same prod-
A. Animals
uct and no single seller controls supply or
B. Land prices.
C. Labour A. Monopoly
D. Enterprise B. Monopolistic Comeptition
E. Capital C. Oligopoly
426. In the 1990s, AT & T controlled 80%
of the phone industry and was the ONLY 431. When there is only one seller of a good
provider of long distance phone service. or service, they are said to have a?
This is an example of
A. Monopoly
B. Oligarchy
B. A monopoly
C. Oligopoly
D. Monopolistic Competition
432. Which type of economy has central own-
427. Will lead to a change along the demand ership of property, centrally-planned econ-
curve omy, and lack of individual choice?
A. Change in prices A. Free Market Economy
B. Change in firm’s reputation B. Mixed Economy
C. Change in consumer preferences C. Command Economy
D. none of above D. Traditional Economy
428. A rational person 433. A monopoly is a market structure in

A. buys the cheapest products at all times which
B. undertakes actions which produce A. a single firm exercises its power over
marginal social benefits that exceed smaller firms
marginal social costs. B. a single firm produces a product with
C. considers the marginal utility gained a wide variety of very close substitutes
from an action and chooses those activi- C. each firm is run by a small proprietor
ties which generate the greatest utlity D. there is only one firm producing a prod-
D. none of these answers. uct which has no close substitutes

434. Normal Profit is when 439. Which of the following factors is a char-
A. TR = TC acteristic of monopolistics competition?

A. Large number of small sellers
B. TR = TVC
B. producer of identical products
C. Economic Profit > 0
C. price maker
D. MR > MC
D. a firm that practices barriers to entry
435. What drives the circular flow model?
440. Entrepreneurs do all of the following EX-
A. success CEPT
B. profit A. bear risk from business decisions
C. taxes B. own all the other resources
D. monetary policy C. organize labor, land, and capital
436. The efficient scale of production occurs D. none of above

when 441. Printers and ink cartridges are typically
A. marginal cost is equal to average total purchased together. Economists would call
cost. these
B. marginal cost is less than average A. Stubstitues
fixed cost. B. Complements
C. marginal cost is less than average vari- C. Elastic
able cost.
D. Inelastic
D. marginal cost is greater than average
total cost 442. A price ceiling is a price
E. marginal cost is less than average to- A. that creates a surplus of the good
tal cost B. below which a seller cannot legally sell
C. above which a seller cannot legally sell
437. Positive economics involves statements
which are: D. Both answers A and B are correct
A. verifiable 443. Assumption of PPC is/are:
B. not verifiable A. There are only two goods
C. giving suggestions B. Resources are fully employed
D. none of these C. Technology is given
D. All of the above
438. If the demand for digital cameras in-
creases when consumers’ incomes rise, 444. Tangible objects that can satisfy people’s
then digital cameras are wants.
A. a normal good A. land
B. an inferior good B. labor
C. a substitute good C. capital
D. a complement to video cameras D. goods

445. Slope of production possibility curve is 450. A decrease in supply or a shift of the sup-
ply curve to the left:
A. Straight line
A. If more suppliers enter the market
B. Convex to the point of origin
place.
C. Concave to the point of origin B. A fall in the cost of an input occurs.
D. None of these C. If government ends regulation.
446. Shaniq consumes only magazine and CDs. D. If government places an excise tax on
NARAYAN CHANGDER
Her income equals $60 per month. CDs goods.
are $12 each and magazines are $5 each.
451. VOCABULARY:The combination of desire,
What is the equation for her budget line?
ability, and willingness to buy a product.
A. $60 = Qm + QCD A. Demand
B. $60 = $12Qm + $5QCD B. Supply
C. 12 =-2Qm + 6 C. Equilibrium Price
D. $60 = 12QCD + 5Qm D. Price Floor
447. The excess demand is a situation in which 452. Opportunity Cost is

the demand for a product or service ex- A. Number of units of a commodity sacri-
ceeds its supply in a market. ficed
A. Surplus B. Value of the next best alternative activ-
B. Shortage ity forgone
C. Number of units of a commodity
C. Production
gained
D. Equal
D. None of these
448. A country’s system for deciding what 453. The value of goods expressed in money
gets produced to meet its people’s needs terms is
and wants.
A. Revenue
A. Economic Challenge
B. Market
B. Economic Course
C. Price
C. Economic System D. Cost
D. Economic Process
454. Consider the market for cellular phones.
449. Iceberg & romaine are two different Which of the following shifts the demand
types of lettuce. For most consumers, ice- curve leftward?
berg and romaine are A. studies showing using cellular phones
A. complements can cause brain cancer
B. a decrease in the price of cellular
B. substitutes
phones
C. inferior goods
C. a decrease in the quantity demanded
D. resources of cellular phones

D. an increase in the services provided by 460. VOCABULARY:The lowest legal price that
cellular phones, such as text messaging can be paid for a good or service.

455. A point inside the PPC indicates A. Price Floor
A. Full utilization of resources B. Price Ceiling

B. Efficient utilization of resources C. Minimum Wage
C. Unemployment D. Subsidy
D. Economic Growth
461. If total product is at a maximum, the
456. Assuming that peanut butter and jelly are A. average product must be falling and be
complementary goods and consumers see equal to zero
an increase in the price of peanut butter,
we would expect B. average product must equal marginal
product
A. The demand for jelly to decrease
C. marginal product must be greater than
B. The demand for jelly to increase zero and must be falling
C. Demand could increase or decrease D. marginal product must be falling and
D. demand for jelly to remain unchanged be equal to zero
457. Which of the following is NOT the factor 462. A resource used to produce goods and ser-
affecting the timing of redevelopment vices.
A. Tenure A. Factors of Production
B. Statutory rights B. Capital Resource
C. Developer’s planning C. Capital Good
D. Landowner’s inertia
D. Production Possibilities Curve
458. Game theory is used to explain
463. What is the difference between Account-
A. why firms price discriminate ing (Normal) Profit and Economic Profit?
B. how monopolies evolve into A. Merchandise Costs
oligopolies
B. Opportunity Cost
C. strategic behavior of firms in oligopoly
C. Labor Cost
D. profit maximization in monopoly
D. Expenses
E. price leadership of monopolistic com-
petition
464. Which of the following is the best defini-
459. Oil, natural gas, coal and human labor are tion for Marginal Cost?
all examples of what? A. The cost of producing more units
A. Marginal Inputs B. The cost of producing one additional
B. Variable Costs unit
C. Fixed Costs C. Fixed costs
D. Productive Resources D. Variable Costs

465. An increase in taxes can be represented 470. One reason why the quantity of a good
by demanded increases when its price falls is
A. A rightward shift of the demand curve that the:
A. price decline shifts the supply curve to
B. A leftward shift of the demand curve
the left
C. A rightward shift of the supply curve B. lower price shifts the demand curve to
D. A leftward shift of the supply curve the left
C. lower price shifts the demand curve to
NARAYAN CHANGDER
466. Which of the following does not illustrate
the right
the concept of profit maximisation?
D. lower price increases the real incomes
A. MR=MC of buyers, enabling them to buy more
B. The difference between TR and TC is
471. “How allocation of resources affects eco-
the greatest
nomic well-being”
C. Economic profit is at least zero or
A. Consumer surplus
greater
B. Producer surplus
D. Total revenue is maximised.
C. Welfare economics
467. Which market structure involves selling D. Deadweight loss
identical products?
472. All of the following are part of the 4 fac-
A. Perfect Competition tors of production EXCEPT
B. Monopolistic Competition A. land
C. Oligopoly B. labor
D. Monopoly C. food
D. capital
468. Mrs. Castro works as a teacher in a pub-
lic school. What could be a benefit from E. enterpreneurship
her work as a public servant?
473. Which of the following is an example for
A. Free school supplies positive statement?
B. Shorter hours of work A. Petrol price should be decreased by
the government
C. Better retirement plan
B. Government ought to provide tax re-
D. Immediate access to holidays
duction for poor
469. Unlimited wants but limited resources C. Price and demand is negatively related
best describes which basic economic con- D. Minimum wage should be increased
cept?
474. Revenue generated by producing one ad-
A. Supply
ditional unit of product.
B. Demand A. Marginal Revenue
C. Elasticity B. Marginal Profit
D. Scarcity C. Total Revenue
E. Shortage D. Average Revenue

475. which of the following is the economic ac- C. moves up

tivity? D. moves down

A. Production
481. The amount a firm receives for the sale
B. Consumption of its output. P x Q =
C. Exchange A. Profit
D. All of these
B. Total Revenue
476. What do product markets provide for C. Marginal Revenue
consumers according to the circular flow
D. Average Profit
model?
A. goods and services 482. For an unregulated monopolist, the profit-
maximizing quantity will always be:
B. only goods
A. in the elastic region of the demand
C. only services
curve
D. taxes
B. where marginal revenue equals price
477. The problem of deals with technique C. where price equals average total cost
of production.
D. where the marginal cost curve inter-
A. What to produce sects the demand curve
B. How to produce
483. Which of the following is NOT the charac-
C. For whom to produce teristics of a property?
D. none of above A. Divisible
478. The strengthening dollar isn’t going to B. Longevity
last, says portfolio manager C. Unique
A. Business news D. Durable
B. Economic news
484. Positive statements are
C. Microeconomics
A. macroeconomic.
D. Macroeconomics
B. microeconomic.
479. A change in quantity demanded is shown C. statements of description that can be
A. at various points on the demand curve tested.
B. with a new demand curve drawn above D. statements of prescription that involve
or below the original demand curve value judgments.
C. with a vertical line 485. Reductions of combined consumer and
D. none of above producer surplus
480. What happened to a supply curve when A. Deadweight loss

supply goes down? B. Elasticity
A. moves left C. Tax incidence
B. moves rights D. Surplus

486. When a major car company lowers its C. Microeconomics

prices, other car makers will probably
D. Macroeconomics
A. maintain existing prices.
B. raise their prices. 492. If consumer incomes increase, the de-
mand for product X:
C. go out of business.
A. will necessarily remain unchanged
D. lower their prices.
B. may shift either to the right or left
NARAYAN CHANGDER
487. What type of factor of production is a
C. will necessarily shift to the right
road?
A. Capital D. will necessarily shift to the left
B. Enterprise 493. The definition of Scarcity is

C. Labour A. An unlimited amount of resources to
D. Land meet limited wants and needs
B. A limited amount of resources to meet
488. All the following are the Basic Economic
unlimited wants and needs.
Problems EXCEPT
A. What product should be produce? C. When people use time and energy to
create events
B. Where product should be produce?
D. a city where individuals commit them-
C. For whom product should be produce? selves to unlimited wants and needs
D. How product should be produce? 494. Tax on a good levied on buyers or on sell-
ers
489. Lucas fixes his friend’s sink. He is provid-
ing a A. Same outcome:a price wedge
A. trade B. Price paid by buyers rises
B. opportunity cost C. Price received ny sellers falls

C. product D. Lower quantity sold
D. service E. All of the above
490. The monopoly supply curve cannot be 495. The production possibility curve may be
drawn simply because defined as
A. The monopolists itself control price A. possible combinition of goods to be
B. He has no rivals consumed
C. The demand is indeterminate B. possible combinition of goods to be
produced
D. All of the above
C. possible combinition of goods to be
491. How marketing built Lego into the produced and consumed
world’s favourite toy brand
D. possible combinition of goods to be
A. Business news produced at a given level of resource and
B. Economic news given technology.

496. Which type of business can only be 501. VOCABULARY:Market structure with
owned by one person? only a single seller of a particular prod-
uct.

A. partnership
A. Oligopoly
B. corporation
B. Demand
C. entrepreneurship
C. Supply
D. sole proprietorship
D. Monopoly
497. If the production of a good generates a
positive externality, the government can 502. Which of the following statements be-
increase allocative efficiency by: longs to macroeconomics:
A. taxing the producer of the good A. The unemployment rate in many coun-
tries is very high.
B. setting a price ceiling to encourage
production of the good B. The average GDP growth rate in the pe-
riod of 2003-2011 in Vietnam was about
C. subsidizing the producer of the good 7%.
D. prosecuting firms that produce the C. Inflation rate in Vietnam is about 12%
good without proper permit per year during 2007-2011.
498. “All things remain unchanged” in Latin D. All three statements are correct.
phrase means
503. An economic system in which only con-
A. Latina antenna sumers own the factors of production and
B. ceteris paribus answers the three key economic ques-
tions.
C. non tammen sufficit
A. Free Market Economy
D. honoris causa
B. Mixed Market Economy
499. Das Capital was written by C. Command Economy
A. Marx D. Traditional Economy
B. Hayek 504. Does an increase in Fixed Costs affect a
C. Smith firm’s output?
D. Keynes A. Yes
B. No
500. What is the best example of scarcity
C. Maybe
A. The restuarant is not crowded tonight
D. none of above
B. The school parking lot only has 150
spaces but 200 students want to park 505. Which of the following is a microeco-
there nomics statement?
C. There are 500 houses in the subdivi- A. the real domestic output increased by
sion and 250 of them are occupied 2.5 percent last year.
D. A person decided to dye her hair B. Unemployment was 9.8 per cent of the
blonde instead of red labour force last year.

C. The price of wheat declined last year. 511. Which of the following would eliminate
D. The general price level increased by 4 scarcity as an economic problem?
per cent last year. A. Moderation of people’s competitive in-
stincts.
506. Scarcity is a problem:
B. Discovery of sufficiently large new en-
A. that only poor people face. ergy reserves
B. because human wants are limited
C. Resumption of steady productivity
while resources are unlimited.
NARAYAN CHANGDER
growth.
C. because human wants are unlimited
D. Economic scarcity cannot be elimi-
while resources are limited.
nated as long as the resources are lim-
D. only in third world countries. ited.
507. Scare means 512. Which of the following will make PES
A. enough price inelastic?
B. missing A. Lengthy production process
C. limited B. Large volumes of stock available
D. abundant C. Excess capacity
508. VOCABULARY:Agreement of compet- D. Time
ing businesses to set specific prices of
goods/services. 513. Selling goods and services is an example
of
A. Price Ceiling
A. Free Enterprise
B. Price Floor
B. Freedom of Speech
C. Demand
D. Price-Fixing C. Free Services
D. none of above
509. What is it called when a product loses
value over time? 514. Two types of resources?
A. Depreciation A. Renewable and Replaceable
B. Inflation B. Non-Renewable and Usable
C. Assets
C. Non-Renewable and Renewable
D. Growth
D. Renewable and Non-Replaceable
510. In the United States economy, there is a
circular flow of what three things between 515. Supply means that a seller is and
households, businesses, and markets? to sell a good.
A. Resources, stocks, and bonds A. willing and happy

B. Resources, dividends, and taxes B. willing and able
C. Resources, goods, and interest C. willing and hopeful
D. Resources, goods, and services D. none of above

516. This is the best alternative that we forgo, 521. Which of the following is correct?
or give up, when we make a choice or a de- A. TVC = TC-TFC
cision.

B. TC = TVC-TFC
A. Efficient market
C. TFC = TVC+TC
B. Marginalism
D. TC =TVC x TFC
C. Scarce
D. Opportunity cost 522. Allocative efficiency occurs only at that
output where
517. What defines average variable cost? A. marginal benefit exceeds marginal
A. total cost divided by the quantity of the cost by the greatest amount
variable factor employed B. consumer surplus exceeds producer
B. total variable cost divided by the quan- surplus by the greatest amount
tity of the variable factor employed C. the combined amounts of consumer
C. total variable cost divided by the out- surplus and producer surplus are maxi-
put produced mized
D. the addition to total variable cost by D. the areas of consumer and producer
producing one more unit of output surplus are equal
518. A change in Variable Costs affect which 523. Which of the following are needs rather
of the following? (check all that apply) than wants? Choose three.
A. AFC A. iPhone
B. AVC B. Trousers
C. ATC C. Five Guys burger
D. MC D. Water
E. Bread
519. How many firms and of what size are
there in a perfect competition? 524. Labour-intensive techniques are chosen in
A. Many, big a:
B. Many, small A. Labour-surplus economy
C. Few, big B. Capital-surplus economy
D. 2-5, small C. Developed economy

D. Developing economy
520. What type of economy has a private and
public sector, the characteristics of a free 525. This can be a price control that is im-
market, and is the most common economic plemented above equilibrium price, associ-
system today? ated with Minimum wage
A. Free Market Economy A. Price ceiling
B. Mixed Economy B. Price Floor
C. Command Economy C. Price of goods
D. Traditional Economy D. Price redundant

526. New technology advances the rate at 531. Check both items that pertains to how
which furniture can be assembled. Why microeconomics and macroeconomics view
does this change the supply? INCOME.
A. Change in cost of production A. Individual Income
B. Changes in number of producers B. Inflation
C. Changes in expectations C. National Income
D. none of above D. Deflation
NARAYAN CHANGDER
527. The government does not interfere in the 532. This is a factor of production that is about
process of decision making under: all that naturally occurs in the nature.
A. market economy A. Capital
B. centrally planned economy B. Entrepreneur
C. mixed economy C. Labor
D. all of these D. Land
528. In a market economy, who decides on the 533. Which of the following is concerned with
prices of goods and services? microeconomics?
A. government A. the unemployment rate decrease by

30%
B. buyers and sellers
B. In 2017, the national income of a coun-
C. firms try is RM23, 400 milliion.
D. local leaders C. The price of chicken increases signifi-
cantly during Hari Raya season.
529. Who are the main economic agents?
D. The economic growth of the country is
A. Households, consumers, companies expected to be 6% in 2019.
and tax payers
B. Consumers, companies and exporters 534. For the law of demand, as price rises,
what happens to quantity demanded?
C. Government, firms and importers
A. it goes up
D. Households, firms and government
B. it goes down
E. Households, tax payers and con-
sumers C. it stays the same
D. it is not effected
530. Which of the following is the characteris-
tic of Free Market Economy? 535. Total Costs / Quantity =
A. Private ownership of resources. A. Marginal Cost
B. Central planning authority B. Average Total Cost
C. Public ownership of resources C. Implicit Cost
D. Promote social justice. D. Explicit Cost

536. Average fixed cost curve will take the 541. What is the best definition for Long
shape of Run?

A. Rectangular hyperbola A. A period of time in which at lease one
B. Straight line resource is fixed
C. U-shapedd. B. A period of time in which all resources

can change
D. Upward rising
C. A period of 1 to 5 years
537. Approach favored by Adam Smith “Fa- D. A period of 5 or more years
ther of Economics” in which he said that
the government needed to keep its hands 542. A statement which does not offer any
off the economy and let buyers and sellers suggestion is known as:
do their thing!
A. positive statement
A. Invisible Hand
B. normative statement
B. Invisible Head
C. both (a) & (b)
C. Laissez-Faire
D. none of these
D. Glass Ceiling
543. Economic Problems arises due to the fact
E. Market Place
that:
538. Situation in which the amount of some- A. resources are scare
thing available is insufficient to satisfy the
B. human wants are unlimited
desire for it
C. resources have alternative uses
A. Scarcity
D. all of these
B. Economics
C. Demands 544. In the long run, new firms will enter a
D. none of above monopolistically competitive industry:
A. provided economies of scale are being
539. Consumer surplus increases as price realized.
A. Increases B. even though losses are incurred in the
B. Decreases short run.
C. Stays the same C. until minimum average total cost is
achieved.
D. Rises
D. until economic profits are zero.
540. A surplus occurs when
545. Which of the following is a characteris-
A. the quantity demanded exceeds the
tic of monopolistic competition in the long
the quantity supplied
run?
B. there is equilibrium
A. Efficiency
C. the quantity supplied exceeds the
quantity demanded B. Homogeneous products
D. the quantity supplied equals the the C. Zero economic profits

quantity demanded D. No government intervention

546. Economists point out that scarcity con- 551. Microeconomics and Macroeconomics
fronts was first coined by
A. the rich but not the poor A. Ragnar Frisch
B. the poor but not the rich B. Adam Smith
C. both the poor and the rich C. Marshall
D. neither the poor nor the rich. D. None of these
NARAYAN CHANGDER
547. Economics is best defined as the study 552. SSEMI 2 c:What occurs to equilibrium
of how people, businesses, governments, price and quantity in a market if demand
and societies increases, but supply remains the same?
A. make choices to cope with scarcity A. Price increases, quantity decreases
B. attain wealth B. price decreases, quantity increases
C. use their infinite resources C. price is unknown, quantity increases
D. none of above D. price increases, quantity increases
553. The value of PES is between 0 and 1

548. In competitive markets
when
A. the products sold are different depend-
A. quantity supplied increases more than
ing on the firm selling the product
proportionately compared to price rise.
B. it is hard for a seller to enter the mar-
B. quantity supplied increases less than
ket due to barriers to entry
proportionately compared to price fall.
C. firms will leave the market if they are
C. quantity supplied increases more than
making economic profits.
proportionately compared to price fall.
D. buyers can expect to find consistently
D. quantity supplied increases less than
low prices and wide availability of the
proportionately compared to price rise.
goods that they want.
554. In order to have a farm, which factor
549. A decrease in the price of a good will of production do you need (at least to
A. increase supply. start)?
B. decrease supply. A. land
C. increase quantity supplied. B. labor
D. decrease quantity supplied. C. capital
D. entrepreneurship
550. In the short run, which of the following
costs must continuously decrease as out- 555. If storage of a good is cheap and readily
put produced increases? available, supply is likely to be
A. Total variable cost A. relatively elastic.
B. Total fixed cost B. relatively inelastic.
C. Average total cost C. perfectly inelastic.
D. Average fixed cost D. perfectly elastic.

556. Demand is the desire and the to buy 561. It is comes from Greek word, makros,
a product or service meaning “large”

A. need A. Macro
B. time B. Micro
C. plan C. Eco
D. ability D. none of above
557. Which of the following market structures 562. When there is lots of competition in a
results in allocative efficiency? market because the barriers to entry are
A. Monopoly low and there are many substitutes that
exist, this is called?
B. Monopolistic Competition
A. Monopoly
C. Perfect Competition
B. Oligopoly
D. Oligopoly
558. Law of variable proportion explains
three stages of production. In the first D. Perfect Competition
stage ofproduction:
563. Sainsbury’s vows Asda will cut prices.
A. Both MP and AP rise
A. Business news
B. MP rises
B. Economic news
C. AP Falls
C. Microeconomics
D. MP is zero
D. Macroeconomics
559. When a worker gets better and better at
taking the same input and producing more 564. Define the term price elasticity of supply.
output in the same amount of time then he A. the responsiveness of quantity sup-
/ she is said to be more? plied to a change in price.
A. Specialized
B. the responsiveness of quantity de-
B. Hard Working manded to a change in price.
C. Productive C. the responsiveness of quantity sup-
D. Greedy plied to a change in quantities.
E. Marginally Challenged D. none of above
560. Coke raises their prices. What will hap- 565. What Hong Kong’s sky-high home prices
pen to Pepsi? mean for investors (select three)
A. Increase Demand A. Business news
B. Increase Supply B. Economic news
C. Decrease Demand C. Microeconomics
D. Decrease Supply D. Macroeconomics

566. One person creates the frame of a car, B. Adam Smith

another mounts the body, another installs C. John Maynard Keynes
the glass while yet another adds seats.
This is a prime example of what type of D. David Ricardo
economic activity? 571. The law of supply is
A. Division of Labor A. The quantity of an item that is desired
B. Economic Interdependence at a given price
NARAYAN CHANGDER
C. Factors of Production B. The quantity of an item that is supplied
at a given price
D. Cost Benefit Analysis
C. The quantity of an item that is not de-
E. Consumer Sovereignty
sired at a given price
567. The statements like Economy should con- D. The price of an item that is desired
trol pollution or unemployment in the econ- based on Quantity
omy ought to be reduced fall within the
scope of 572. Production Possibility curve can be
A. Normative statement A. Concave
B. Positive statement B. Convex
C. Both A and B C. Straight

D. All of the above can be possible
D. None of these
573. Represents how goods, services, and
568. In production function, production is a
money move through our economy.
function of:
A. Circular Flow Diagram
A. Price
B. Supply Curve
B. Factors of Production
C. Demand Curve
C. Total Expenditure
D. Supply and Demand Curve
D. None of these
574. In the United States people are free to
569. Monopolistic competition is characterized make their own choices on buying and sell-
by a ing. Businesses that satisfy those wants
A. few dominant firms and low entry bar- are required to following government reg-
riers ulations. Under these conditions the U.S.
would be considered which type of econ-
B. a large number of firms and substan-
omy?
tial entry barriers
A. Traditional Economy
C. a large number of firms and low entry
barriers B. Mixed Market Economy
D. few dominant firms and substantial en- C. Command Economy
try barriers D. Free Market Economy
570. The founder and father of the command 575. The market value of all the inputs a firm
or centrally planned economic system? uses in production.
A. Karl Marx A. Implicit Costs

B. Explicit Costs C. Utility

C. Total Costs D. Equilibrium

D. Marginal Costs 581. What are the advantages to a command
economy?
576. Which is a key economic question faced
by all countries? A. More jobs / employment than a market
economy
A. How big should the army be?
B. Less income disparity than a market
B. How much money should be raised in economy
taxes?
C. More flexibility than a market economy
C. How may schools should be built?
D. More consumer choices than a market
D. How should goods and services be pro- economy.
duced.
582. SSEMI 1 b:The primary of role of money
577. Compared to a perfectly competitive in- in the economy is to
dustry with the same demand and cost A. help set interest rates at financial in-
curves, a monopoly’s price and quantity stitutions.
will be which of the following?
B. provide a mechanism to assist foreign
A. P=Higher; Q=Same trade.
B. P=Lower; Q=Same C. serve as a medium of exchange for
C. P=Lower; Q=Higher goods and services.
D. P=Higher; Q=Lower D. identify prices in various markets.
583. Fixed Cost divided by the quantity of out-
578. An improvement in production technology
put.
will:
A. Average Fixed Cost
A. tend to increase equilibrium price
B. Average Variable Cost
B. shift the supply curve to the left
C. Marginal Cost
C. shift the supply curve to the right
D. Marginal Fixed Cost
D. shift the demand curve to the left
584. Which of the following is NOT considered
579. If sandals suddenly became very popular, as exceptional demand?
what would happen to the market for bas- A. Products with status symbol
ketball shoes? This would cause the
curve for basketball shoes to shift B. Highly priced goods
C. Festive products
A. demand right
D. Goods for war and natural disasters
B. demand left
C. supply right 585. What is the fundamental economic prob-
lem?
D. supply left
A. Racism
580. The amount of goods available: B. Scarcity
A. Supply C. Money
B. Demand D. Greed

586. A list of the quantity that a buyer is will- 591. A keeps prices form going any higher
ing to buy at different prices at one partic- and causes a
ular time and shows a functional relation- A. price ceiling; shortage
ship between price and quantity.
B. price ceiling; surplus
A. Demand Assumptions
C. price floor; shortage
B. Demand Theorems
D. price floor; surplus
C. Demand Percepts
592. Which of the following is not a key idea
NARAYAN CHANGDER
D. Demand Schedule
in the economic way of thinking?
587. Government of India take efforts to re- A. People make rational choices by com-
duce unemployment. How will it affect its paring costs and benefits.
PPC?
B. Poor people are discriminated against
A. PPC will shift rightward and should be treated more fairly.
B. PPC will shift leftward C. A rational choice is made at the mar-
C. PPC will not be affected gin.
D. None of these D. Choices respond to incentives.
588. The Central Problem of what to produce 593. Why is a PPF usually drawn concave to
means- the origin?
A. What technique to be used and in what A. Interaction between demand and sup-
ratio ply
B. What goods are to be produced and in B. Profit motive
what quantity C. Not all factors of production are per-
C. How to distribute the national income fectly mobile
among individuals D. Optimum use of resources is complete
D. None of the above specialisation
589. Anything that is created by humans that 594. Interdependence and price leadership are
is used to aid in the production of other characteristics of firms in what kind of
goods and services is known as a? market structure?
A. Capital Good A. monopoly
B. Consumer Good B. oligopoly
C. Intermediate Good C. monopolistic competition
D. Final Good D. perfect competition
E. Money 595. What does a production possibility curve
590. Predatory pricing policy is designed to show?
A. Drive competitors out of business A. The prices of two types of products be-
ing produced
B. Maximize profits
B. The quantity of capital and consumer
C. Encourage entrants into the market goods that people would like to be pro-
D. Attain least cost output duced

C. The maximum combination of two C. Tax

types of goods that can be produced with D. Deadweight loss
given resources.

D. The relative profitability of capital and 601. The number one goal of a business is:
consumer goods A. Equality
596. Which of the following statements is nor- B. Good Working Conditions
mative? C. Profit
A. Large government deficits cause an D. Charitable Contributions
economy to grow more slowly.
602. During the planning period highest
B. People work harder if the wage is
growth rate was achieved during
higher.
A. 8th plan
C. The unemployment rate should be
lower. B. 10th plan
D. Printing too much money causes infla- C. 9th plan
tion. D. 7th plan
597. Something that someone does for you or 603. The law of demand says that
performs for you is called a?
A. at higher prices, buyers will demand
A. Service less of an economic good.
B. Good B. at higher prices, buyers will demand
C. Need more of an economic good.
D. Want C. at higher prices, sellers will supply
more of an economic good.
598. The amount of a product or service is de-
sired by buyers is known as D. at higher prices, sellers will supply
less of an economic good.
A. Demand
B. Scarcity 604. is the struggle between buyers and
sellers to get the best products at the low-
C. Supply
est prices.
D. Surplus
A. Competition
599. Who is known as father of modern eco- B. Productivity
nomics?
C. Free enterprise
A. Ragnar Frisch
D. Economic freedom
B. Adam Smith
C. Marshall 605. An economic system where the three key
economic questions are answered only by
D. None of these consumers without interference from the
600. Value of everything a seller must give up government is known as?
to produce a good A. Command Economy
A. Cost B. Traditional Economy
B. Willingness to pay C. Mixed Market Economy

D. Free Market Economy 611. Producer surplus increases as price

E. Keynesian Economy A. Increases
606. An increase in product price will cause: B. Decreases
A. quantity demanded to decrease C. Stays the same

D. Grows wings and flies away
B. quantity supplied to decrease
C. quantity demanded to increase 612. What is market?
NARAYAN CHANGDER
D. the supply curve to shift to the right A. A group of buyers and sellers of a par-
ticular good and service
607. In what type of business organization is
B. Increase in demand
each owner personally liable for all busi-
ness debts, even if the debts were created C. Decrease in supply
by other owners? D. none of above
A. corporation 613. Definition of market equilibrium
B. partnership A. Quantity demanded and quantity sup-
C. proprietorship plied are the same
D. S corporation B. Quantity demanded and quantity sup-
plied are different
608. The United States has decided to spend
more money on military goods and less on C. Quantity demanded is higher than
education. The opportunity cost for spend- quantity supplied
ing more money on military goods would D. Quantity demanded is lower than quan-
be which of the following? tity supplied
A. the satisfaction of destroying our ene- 614. measure of the way in which quantity
mies supplied responds to a change in price
B. the money used to fund the military A. short run
C. money to spend on education B. negative returns
D. better paid soldiers C. Supply elasticity
609. What type of economy does America D. long run
have? 615. Trump announces tariffs on $60bn in Chi-
A. Mixed nese imports.
B. Traditional A. Business news
C. Market B. Economic news
D. Command C. Microeconomics
D. Macroeconomics
610. in increasing returns to factor total pro-
duction 616. What is a need?
A. increases A. Nothing
B. increases with diminishing rate B. Something you have to have to live
C. decreases C. Something you would like to have
D. increases with increasing rate D. Ice cream

617. Which of the following is not a function 623. The ideal price and level of output occurs
of money where

A. Measure of value A. Marginal Revenue and Marginal Cost
B. Medium of exchange cross
B. MR = AVC
C. Method for deferred payment
C. Average Fixed Cost equal ATC
D. Improvement to Barter
D. MR = MT
618. One effect of a subsidy is that it increases
624. Which of the following is not concerned
A. consumer surplus.
with the problem of choice?
B. allocative efficiency.
A. Unlimited wants
C. producer surplus. B. Excessive income
D. total surplus. C. Alternative use of resources
619. If the supply curve of a product is vertical, D. Limited resources
PES is equal to
625. The quantity of input which minimizes av-
A. 0. erage total costs?
B. 1. A. Diseconomies of scale
C. -1. B. Inefficient Scale
D. infinity. C. Efficient Scale
620. What do you call inputs to prodution? D. Economy of scale
A. Scarcity 626. Which factor of production is the least
B. choice mobile?
C. opportunity cost A. Capital
D. resources B. Enterprise
C. Labour
621. The lerner’s index of monopoly power
has a value D. Land
A. Zero 627. VOCABULARY:Real or perceived differ-

ences between competing products in the
B. One
same industry.
C. Between zero to unity
A. Price-Fixing
D. Two
B. Supply
622. are rewards offered to try to get peo- C. Demand
ple to take certain economic actions.
D. Product Differentiation
A. Profits
628. The study of how individuals / con-
B. Incentives sumers allocate their scarce resources to
C. Marginal benefits meet their wants and needs.
D. Trade-offs A. Microeconomics

B. Macroeconomcis 634. What does a point outside the PPC repre-

C. Regional Economics sent?
D. Para economics A. A currently unattainable position

B. An inefficient position
629. When demand is price elastic, a reduction
in price leads to C. The maximum use of resources
A. increase in revenue D. Unused resources
NARAYAN CHANGDER
B. increase in revenue initially, and a sub- 635. Total Costs=
sequent fall in the long run
A. Variable Costs-Fixed Costs
C. reduction in total revenue
B. Fixed Costs-Variable Costs
D. exit from the market
C. Fixed Costs + Variable Costs
630. Consumer is not Sovereign in which type D. Variable Costs Divided By Fixed Costs
of economy
636. Which type of economic system takes
A. Market economy
care of those in poverty?
B. Centrally planned economy
A. Capitalism
C. Mixed economy
B. Free Enterprise
D. none of above
C. Command
631. Opportunity cost is never D. Free Market
A. A triangle
637. The process of combining resources to
B. Equal to increased production make a good or provide a service is called
C. The next best alternative ?
D. A rectangle A. price
B. incentive
632. The amount a firm receives after all costs
have been paid. C. consumption
A. Revenue D. production
B. Marginal Profit 638. In which market structure does a firm
C. Profit have greatest control over its product’s
price?
D. Marginal Revenue
A. perfect competition
633. What are the 3 economic questions?
B. monopoly
A. What to produce? How To Produce?
For whom to produce? C. oligopoly
B. Who to produce? Why you produce? D. monopolistic competition

Like to produce? 639. What is the best definition for Short
C. Why to produce? Tell who to produce? Run?
Things to produce? A. A period of time in which at lease one
D. none of above resource is fixed

B. A period of time in which all resources B. individual choice, centrally-planned

can change C. competition, consumer sovereignty

C. A period of 1 to 5 years D. central ownership of property, profit
D. A period of 5 or more years
645. if demand is perfectly elastic then de-
640. Which of the following are assumptions mand curve would be
we make about perfect competition?
A. horizontal
A. A large number of industries
B. vertical
B. A large number of firms
C. rectangular hyperbola
C. Each firm is a price-taker
D. none of these
D. No government intervention
646. Microeconomics is concerned with
641. Which is the best example of a scarce re-
A. the aggregate income, employment
source?
and total output
A. Air
B. individual economic units and specific
B. Water markets.
C. Money C. international trade and barriers.
D. Dirt D. unemployment and inflation problems.
642. Which one of the following is an opportu- 647. Which form of business organization is
nity cost? authorized by law to act as a legal person
A. You stay out late and your parents regardless of the number of owners?
ground you. A. entrepreneurship
B. You run a red light and you get a ticket. B. partnership
C. You choose to give up math to study for
C. sole proprietorship
history.
D. corporation
D. In a softball game, you miss the ball
and strike out. 648. What is this the definition of:There are
many buyers and sellers, a standardized
643. In economics, the term demand refers to
product, and easy entry into and out of the
the quantity of a good that people
market
A. will buy at one particular price over a
A. Pure competition
long time period
B. Pure monopoly
B. would like to consume on a given date
C. Monopolistic competition
C. will buy at many different prices at a
particular time D. Oligopoly
D. would like to have available during a 649. Identify the central prblm which deals
given time period with deciding the Quantity of goods to be
644. What are some characteristics of a free produced
market economy? A. What to produce
A. lack of choice, competition B. How to produce

C. For whom to produce 655. Name a country that has a free market
D. None of these leaning mixed economy.
A. United States
650. If production of good X rises by 1 unit
and that of good Y falls from 15 to 12.5 B. Cuba
units then, marginal opportunity cost of X C. N. Korea
is: D. Russia
A. 27.5
656. Assume Company 1 and Company 2 oper-
NARAYAN CHANGDER
B. 2.5 ate as an oligopoly. Which statement best
C. 15 represents this?
D. 12.5 A. They control over 75% of the market
651. Labour, land and capital are called: B. They have products that are different,
but are marketed the same way
A. goods and services.
C. They own many different “brands”
B. entrepreneurship.
D. They are major corporations with
C. outputs. stock holders
D. factors of production.
657. The concept of vicious circle of poverty is
652. Will lead to a shift of the supply curve associated with
A. Kindleberger
A. Change in costs of production B. Schumpeter
B. Change in firm’s reputation C. Ragnar Frish
C. Change in consumer preferences D. Gunnar Myrdal
D. none of above
658. Which of the following describes a
653. In most places, citizens can only buy elec- monopoly firm?
tricity for their homes from one provider. A. Single seller
The barriers to the electricity market are
too high for new sellers. Many buyers are B. Many sellers
eager to purchase electricity as most mod- C. Many substitutes
ern homes require it. What is this? D. No barrier to entry
A. Oligopoly
659. Individuals A and B can produce good X.
B. Pure competition We say that A has a comparative advan-
C. Natural monopoly tage in the Production of good X if:
D. Monopolistic competition A. A has a lower opportunity cost of pro-
ducing X than B
654. Below are the concept in economic prob-
lems EXCEPT: B. A can produce less units of X in a given
time period than B.
A. Choices
C. A can produce X using newer technol-
B. Externalities ogy than B.
C. Opportunity Cost D. A can produce more units of X in a
D. Scarcity given time period than B.

660. Choose what is true about economics? C. Both A and B

A. Economics involve only positive state- D. Neither A nor B

ments
666. Microeconomics
B. Economics involve only normative
statements A. the study of the economic behavior and
decision making of small units, such as in-
C. Economics involve both positive and dividuals, families, and businesses
normative statements
B. Price floor and price ceiling
D. Economics involve neither positive nor
normative statements C. part of the economics study that con-
cerns all countries of the world
661. Which of these would be figured in to the D. Law of Demand and Supply
cost of production? (choose all that apply)
667. Factors that make it difficult for new
A. wages
firms to enter a market are called
B. natural resources
A. Barriers to entry
C. utilities
B. Factors of production
D. insurance
C. Limited supply
662. Monopolistic competition is a type of D. Monopolistic Outlook
A. price discrimination
668. Which of the following is true about a
B. market structure shareholder in a corporation?
C. advertising strategy A. A shareholder is part owner of that
D. oligopoly business.
B. A shareholder may not share in the
663. What do rent control policies impose on earnings of that corporation.
the market?
C. A shareholder may not transfer his
A. price floors share to another party without permis-
B. shortages sion.
C. price ceilings D. A shareholder is liable for any debts ac-
cumulated by that corporation.
D. surpluses
669. A maximum price consumers are required
664. A person who buys goods and services
to pay for a good or service.
A. consumer
A. Price Ceiling
B. entrepreneur
B. Equilibrium
C. resource
C. Market Clearing Price
D. currency
D. Price Floor
665. In deciding how to produce the economy 670. If the demand of a product drops, you
should consider would expect the price of the product to
A. Labour intensive technique
B. Capital intensive technique A. rise

B. stay the same 676. Which of the following is not related to

C. go up Macro Economics?
D. decrease A. Market Supply

B. National Income
671. What is demand?
C. Aggregate Demand
A. Amount an item costs
D. Central Bank’s Policy
B. Amount producers are willing to sell
NARAYAN CHANGDER
C. Amount of goods or services people 677. The process by which the same amount of
are willing to buy inputs, used in the same amount of time
produces a greater amount of output is
D. Amount of the incentive called
672. Which economy deals with economic is- A. Productivity
sues related to past, present and future? B. Manufacturing
A. Micro economics
C. Capitalism
B. Macro economics
D. Laissez-Faire
C. Normative economics
678. Name two characteristics of a command
D. Positive economics
economy.
673. The study of how people allocate their A. centrally-planned, profit
scarce resources to meet their wants and
B. central ownership of property, lack of
needs?
choice
A. Civics
C. competition, central ownership of re-
B. Economics sources
C. Utilitarianism D. centrally-planned, consumer
D. Consumerism sovereignty
674. What type of a science is economics? 679. Who developed micro economics
A. Political A. Alfred Marshall
B. Social B. JM Keynes
C. Natural C. Pigoue
D. Physical D. Dalton
675. Which of the following is found ONLY in 680. The demand curve shows
oligopoly? A. The amount of goods or services that
A. producers who sell identical products are consumed at a given market price.
B. one firm’s actions affect another firm’s B. The amount of goods or services that
profit are supplied at a given market price.
C. entry into the industry is blocked C. The amount of goods or services that
D. sellers face a downward sloping de- are consumed at a given quantity.
mand curve for their product D. none of above

681. This is a price floor that can be imple- 686. An example of perfect competition would
mented below equilibrium and is used for be what?
rent control.

A. Milk
A. Price Ceiling B. Cars
B. Price Floor C. Jeans
C. Price of Demand D. none of above
D. Price Redundant 687. Scarcity causes economic problem. Which
of the following statements is true about
682. An economic system in which only the scarcity?
government owns the factors of produc-
tion and answers the three key economic A. Scarcity is our inability to satisfy all of
questions. our wants.
A. Free Market Economy B. Scarcity problem arises because our

wants are greater than resources avail-
B. Mixed Market Economy able.
C. Command Economy C. The poor and the rich both face
scarcity.
D. Traditional Economy
D. All of the above.
683. What is the formula in finding demand
function? 688. Benefit sellers receive from participating
in a market
A. Qx = a-bp
A. Consumer surplus
B. Qx = a + bp
B. Producer surplus
C. Qx = a / bp C. Total surplus
D. Qx = a x bp D. Tax
684. What is the Profit Maximizing Formula? 689. Which of the following graphs will al-
A. Revenue > Expenses ways decrease?
A. Marginal cost
B. MR > ATC
B. Average Variable Cost
C. MR = MC
C. Average Fixed Cost
D. AFC + AVC = ATC
D. Average total cost
685. At 100 units of output, a firm’s total cost
690. In which type of market do you have the
is $10, 000. If the firm’s total fixed cost is
largest number of firms?
$4, 000, its average variable cost is equal
to: A. perfect competition and oligopoly
A. $140 B. perfect competition and monopolistic

competition
B. $100
C. perfect competition and monopoly
C. $60
D. monopolistic competition and
D. $40 oligopoly

691. This type of business is owned by many 696. Will lead to a shift of the demand curve
people and is treated as though it were a
person. It can own property, pay taxes,
A. Change in costs of production
make contracts, sue and be sued.
A. Sole proprietorship B. Change in firm’s reputation
B. Partnership C. Change in taxes
C. Joint Venture D. Change in international tariffs
NARAYAN CHANGDER
D. Corporation
697. This represents ownership rights to a cer-
692. Sammy’s Inc. competes with a few other tain portion of profits and assets of the
firms because there are natural barriers to company.
entry. Sammy’s operates in
A. Stock
A. a perfectly competitive market.
B. an oligopoly. B. Bonds
C. a monopolistic competitive market. C. Articles of incorporation
D. a monopoly. D. corporate charter
693. The reliance on one another to provide
698. The fact that human wants cannot be
the goods and services that people need.
fully satisfied with available resources is
A. Law of demand called problem of
B. Businesses
A. scarcity
C. Factor market
B. choices.
D. Economic interdependence
C. opportunity cost.
694. Which of the following is NOT the elastic-
ity of land supply D. none of the above.
A. Inelastic
699. Who owns a Corporation?
B. Elastic
A. Board of Directors
C. Perfectly inelastic
D. Super elastic B. CEO
C. Stockholders
695. Read the following two statements:1.
Nation A produces cars more efficiently D. The government
than it can grow food crops.2. Nation A
produces food and buys cars from Nation 700. What is the amount of goods or services
B.What principle of economics is illustrated available to consumers?
by these two statements?
A. price
A. Laws of Supply and Demand
B. demand
B. Scarcity
C. The Factors of Production C. incentives
D. Specialization D. supply

701. Economists normally assume that the C. Mixed Market

goal of a firm is to(i) sell as much of their D. Command
product as possible.(ii )set the price of the

product as high as possible.(iii) maximize 706. Diseconomies of scale arise primarily be-
profit. cause:
A. i only A. the SR ATC rises when MC increases
B. i and iii only B. of difficulties in managing a large busi-
C. ii and iii only ness
D. iii only C. firms must be large relative to the mar-

ket to employ efficient production tech-
E. i, ii and iii niques
702. Which of the following would be a D. MP declines as more units of a variable
macroeconomic topic. input are added to a fixed input
A. Why are Americans borrowing money 707. What is economic choice?
from China?
A. unable to find work
B. Why do I choose to buy a cell phone
B. being weak
rather than a laptop.
C. When you have to give something up
C. Will I work more if I’m paid more?
to have something else
D. How can I figure out how much to
D. goods and services purchased from
charge for my candy bars?
other countries
703. Situation created in which there are lim-
708. If Mary used to buy 10 units at $4 each
ited resources but people have unlimited
and now buys 15 units when the price is
wants and needs.
$4, her
A. Shortage
A. quantity demanded has increased
B. Supply
B. quantity demanded has decreased
C. Scarcity
C. demand has increased
D. Abundance
D. demand has decreased
704. A change in the demand for apples could
709. SSEMI 4 a A key advantage of a partner-
result from any of the following except
ship is
A. a change in the number of buyers
A. limited liability of the partners
B. increased preferences for fresh fruit
B. unlimited liability of the partners
consumption for health reasons
C. specialization of the partners
C. a change in the price of an apple
D. ease of raising capital through stock-
D. a change in the price of a banana holders
705. Which type of economic system lacks in- 710. Jim no longer has a job as a stock broker
centives for individuals to innovate? since 2008. He is experiencing what kind
A. Free Market of unemployment?
B. Free Enterprise A. Cyclical

B. Structural 715. The inability to satisfy all wants at the

C. Seasonal same time is called ?
D. Frictional A. Scarcity
B. choice
711. Which of the following statements is in-
correct? C. opportunity cost
A. If demand increases and supply de- D. resources
creases, equilibrium price will rise
NARAYAN CHANGDER
716. A firm produces 400 books and sells each
B. If supply increases and demand de- book for $15. If the explicit cost of produc-
creases, equilibrium price will fall ing the books is $4, 500 and the implicit
C. If demand decreases and supply in- cost is $1, 000, the firm’s economic profit
creases, equilibrium price will rise is:
D. If supply declines and demand re- A. $0
mains constant, equilibrium price will rise B. $500
712. With regards to determinants of supply, C. $1, 000
loose government regulation tends to
D. $1, 500
A. decrease supply
717. Water has seen an increase in demand
B. cause rebellion/revolts
8% this summer, while the price has de-
C. increase supply creased 12%
D. shift the curve to the left A. 1.5 inelastic
713. The study of how society chooses to allo- B. 1.5 elastic
cate its scarce resources to the production C. .67 inelastic
of goods and services in order to satisfy
unlimited wants. D. .67 elastic
A. Entrepreneurship 718. Jeff was replaced by a computer. He
B. Business Administration is experiencing what type of unemploy-
ment?
C. Accounting
A. Cyclical
D. Economics
B. Structural
714. What four entities make up the circular
C. Seasonal
flow model?
A. firms, households, factor, and product D. Frictional
markets
719. the price that balances quantity supplied
B. Buyers, sellers, producers, and con- and quantity demanded
sumers
A. Price Floor
C. Local, state, federal, and county gov-
B. Price Ceiling
ernments
C. Law of Demand
D. President Obama, Katy Perry, Waka
Flocka, and Lil Baby D. Equilibrium Price

720. Refers to all plots of ground and other 725. The fundamental economic prblm which is
natural resources used in the production of being faced is
goods and services.

A. Unlimited human wants
A. Land
B. Limited wants and unlimited resources
B. Labor
C. Unlimited wants and scarcity of re-
C. Entrepreneurial Ability sources
D. Capital D. Limited wants and limited resources
721. Scarcity is when 726. In a market economy, who or what
A. Unlimited wants is met with limited re- decides on the allocation of scarce re-
sources sources?
B. Forcing to pick some choices and re- A. Government
ject the rest
B. Households
C. Choosing one alternative means giving
C. Firms
up another
D. Market forces
D. All of them
E. Banks
722. A system allows businesses to com-
pete for profit with a minimum of govern- 727. If a new tax on capital increases a firm’s
ment interference. fixed cost of production, which of the fol-
A. Free Market lowing will occur in the short run?
B. Traditional A. Average total cost will increase
C. Command B. Marginal cost will increase
D. Mixed C. Average variable cost will increase
723. On the market demand and supply graph, D. The profit-maximizing level of output
the point equilibrium always happens will increase
A. at the highest point on the demand 728. Which way does a supply curve slope?
curve.
A. down
B. where the demand and supply curves
B. up
intersect.
C. at the lowest point of the supply curve. C. both
D. at the center point of the graph, irre- D. neither

spective of the curves. 729. If a consumer knows that a product will
724. The factor of production that includes the be going on sale this week, how will
physical land and resources that come di- his/her CURRENT demand be affected?
rectly from the earth. A. it will go up
A. Land B. it will go down
B. Labor C. it will stay the same
C. Capital D. what does this have to do with the
D. Entrepreneurship price of tea in China?

730. Which of the following included in compo- C. Supply

nents of microeconomics? D. none of above
A. Theory of equilibrium
736. What makes economics an art?
B. Theory of price
A. Positive statements
C. Theory of consumer behaviour
B. Normative statements
D. Both b and c
C. Practical use
E. Theory of disequilibrium
NARAYAN CHANGDER
D. None of the options
731. The human factor of production is 737. Who is the Father of Modern Economics?
A. Capital A. Ragnar Frisch
B. Land B. Adam Smith
C. Labor C. Marshall
D. All of these D. None of these.
732. What do the households provide busi- 738. An increase in a firm‘s costs of production
nesses? can be represented by
A. Revenue A. A rightward shift of the demand curve
B. Wages B. A leftward shift of the demand curve
C. Resources C. A rightward shift of the supply curve
D. Goods and services D. A leftward shift of the supply curve
733. When WalMart pays income taxes, what 739. Which of the following is a macroeco-
two parts of the circular flow model are nomic topic?
involved? A. the reasons for the rise in average
A. consumers and producers prices
B. product market and government B. whether the army should buy more
tanks or more rockets
C. consumers and government
C. the reasons for a rise in the price of
D. producers and consumers orange juice
734. A market structure in which there is only D. none of above
one seller is known as a
740. The basic formula for the price elasticity
A. Pure competition of demand coefficient is:
B. Oligopoly A. absolute decline in quantity de-
C. Monopoly manded/absolute increase in price
D. Monopolistic Competition B. percentage change in quantity de-
manded/percentage change in price
735. Study of choice under conditions of C. absolute increase in price /absolute
scarcity. decline in quantity demanded
A. Economics D. percentage change in price/ percent-
B. Scarcity age change in quantity demanded

741. The property whereby long-run average C. Opportunity Costs

total cost stays the same as the quanity of
D. none of above
output changes.

A. Constant Returns to Scale 746. This is a special form of partnership in
B. Economies of Scale which one partner is the general partner
and he makes all the decisions and the
C. Efficient Scale
other partner is considered a silent partner
D. Diseconomies of Scale because he only donated start up Money.
742. How are an Oligopoly and a Monopoly A. Limited Liability Partnership
different? B. Joint Venture
A. Monopoly:only 1 business in a market;
C. Limited Partnership
Oligopoly:only a few
B. Oligopolies are only owned by the gov- D. All of the above
ernment
747. Large number of companies selling simi-
C. Monopolies are only owned by the gov- lar but not identical products is called what
ernment type of competition?
D. Monopoly:few businesses in a market;
Oligopoly:only 1
743. Positive statements are statements
C. Monopoly
A. Objective
D. Oligopoly
B. Subjective
C. Emotional 748. A good that is used in place of another
D. Value good to meet the same need is called
744. When the price of a good rises then the A. complementary good.
quantity of that good that sellers are will- B. capital good.
ing to sell also rises. This best demon-
strates which economic law? C. substitute good.
A. Law of Demand D. consumer good.

B. Law of Supply
749. The opportunity cost of Australian house-
C. Law of Equilibriium holds moving away from coal-powered en-
D. Law of Adjustments ergy to solar-powered energy includes (i)
the loss of jobs in the coal industry, (ii) a
E. The Law of Inequalities cleaner environment, (iii) reduced coal pro-
745. study of how people (including duction.
companies/countries) make choices on A. (i), (ii) and (iii)
buying, selling, using, and distributing
goods/services. B. (ii) and (iii)
A. Economics C. (iii) only

B. Consumer Science D. (i) and (iii)

750. perfect competition and monopoly are 755. Indian Economy is:
similar in terms of A. Capitalism
A. long run profit B. Socialism
B. price determination C. Mixed
C. the demand curve D. Non Developing
D. the profit maximization condition, 756. The most popular definition of sustain-
MR=MC able development is given by
NARAYAN CHANGDER
751. When firms openly agree on price, out- A. World Development Report
put, and other decisions aimed at achieving B. UNDP Report
monopoly profits, those firms are practic-
C. Brundtland
ing
D. IMF Report
A. overt collusion
B. tacit collusion 757. The maximum price a consumer is willing
to pay for a product and the actual price
C. price leadership that they do pay
D. price-taking behavior A. Consumer surplus
E. price discrimination B. Producer surplus
752. If the price declines from Rs 450 to Rs C. Deadweight loss
350 and, as a result, quantity demanded D. Allocative Efficiency
increases from 1200 to 1500, elasticity of
demand is: 758. In short run, the monopolists
A. 1.78 A. Incurs a loss
B. 0.89 B. Makes a profit
C. 1.12 C. Break even
D. 3.42 D. Any of the above

759. Which of the following is not part of the
753. VOCABULARY:Market structure where
opportunity cost of going on holiday?
only a few very large sellers dominate an
industry. A. the money you spent on a theatre show
there
A. Monopoly
B. the money you could have made if you
B. Oligopoly had stayed at home and worked
C. Supply C. the money you spent on food
D. Demand D. the money you spent on airline tickets.
754. Which of the following does not illustrate 760. What is the biggest disadvantage of sole
the concept of normal profit? proprietorships and partnerships?
A. TR=TC A. Start Up Costs
B. AR=AC B. Taxes
C. MR=MC C. Unlimited Liability
D. Zero Economic Profit D. Receives all profits

761. Choose the one that is most appropriate 766. The founder and father of the traditional
about economics. economy?

A. Economics is ant art A. Karl Marx
B. Economics is a science B. Adam Smith
C. Economics is both art and science C. John Maynard Keynes
D. Economics is neither art nor science D. No one
762. Why do markets exist? 767. Scarcity of resources exists

A. to allow people to exchange goods and A. At macro level
services B. At micro level
B. to allow people to earn money C. Micro as well as macro level
C. to increase profits for business own- D. None of these
ers
D. to concentrate the productive efforts 768. What is an oligopoly?
of individuals A. A state of total government economic
control
763. Identify the correct determinant of sup-
ply.Example:If the government requires B. A free market economy
factories to reduce pollution, complying C. A market shared by a small number of
will initially increase costs of production in producers
the market and reduce supply.
D. A competitive state involving many pro-
A. Government regulation ducers making similar goods
B. Cost of resources
769. A market is in equilibrium:
C. Worker productivity/motivation
A. provided there is no surplus of the
D. Change in technology product
764. The economic problem of scarcity refers B. at all prices above that shown by the
to intersection of the supply and demand
curves
A. limited wants and limited resources.
C. if the amount that producers want to
B. unlimited wants and unlimited resell is equal to the amount that consumers
sources want to buy
C. limited wants and unlimited resources D. whenever the demand curve is down-
D. unlimited wants and limited resources sloping and the supply curve is up-sloping
765. Which type of economy is controlled by 770. When a resource becomes scarce, what
“the Invisible Hand” happens to its cost?
A. Command Economy A. The cost increases.
B. Free Market Economy B. The cost stays the same.
C. Mixed Economy C. The cost goes down.
D. Traditional Economy D. The cost always doubles.

771. An increase in the price of milk causes C. could be either a reward or a penalty
a decrease in the demand for cereal. The D. could be a penalty but could not be a
two products are reward
A. substitutes
776. Why does the average total cost curve
B. complements decrease as production increases in the be-
C. unrelated ginning?
D. demand elastic A. Average variable costs are increasing.
NARAYAN CHANGDER
B. Average fixed costs are decreasing.
772. What will happen to the price & quantity
C. Average fixed costs are the same.
of pizzas if a new study shows pizza is the
ultimate health food? D. Average fixed costs are increasing.
A. Price-Decrease & Quantity Increase 777. When a new producer of soap enters the
market, and the supply curve shifts to the
B. Price-Decrease & Quantity-No Change
right, which determinant of supply shift is
C. Price-Increase & Quantity-Decrease this an example of?
D. Price-Increase & Quantity-Increase A. Number of Sellers
773. In a market economy, what serves as an B. Subsidies

incentive for consumer to purchase a prod- C. Producer Expectations
uct? D. Input Costs
A. Price 778. When economists measure the respon-
B. Economic Interdependence siveness of consumers to changes in price,
C. Specialization they are measuring:
A. the percentage change in price
D. Shortage
B. the price elasticity of demand.
774. Which of the following would best com- C. the price elasticity of supply.
plete a short definition of economics?
“Economics is the study of “ D. income elasticity.
A. How unlimited resources are allocated 779. How are milk and cereal complements?
between scarce wants A. You usually buy milk and cereal to-
B. How scarce resources are allocated to gether
satisfy unlimited wants B. They are eaten together
C. How money is circulated through the C. You get complements based on your
economy choices of each
D. How nations trade goods and services D. Cereal is expensive but Milk is not
in a global marketplace 780. Which of the above is a factor of produc-
775. An incentive A) is the opposite of a trade- tion?
off. B) . C). D) . A. Supply
A. is the opposite of a tradeoff B. Demand
B. could be a reward but could not be a C. Trade-offs
penalty D. Land

781. Which is not a benefit of free market 786. The gap between limited resources and
economy? unlimited wants is known as

A. Greater consumer choice A. Demand
B. More innovation B. Scarcity
C. More competition C. Supply
D. Unequal income distribution D. Surplus
782. If the cost of a computer falls by a large 787. What are the basic problems/questions
amount, you have an incentive to in economy?
A. use your friend’s computer rather than A. What to produce

buy one yourself B. How to produce
B. avoid buying anew computer because C. For whom to produce
it is now less valuable D. None of the above
C. take a shorter vacation
788. If we say that two variables are in-
D. buy a new computer versely related, this means that:
783. Consider the following table:Production A. the two graph as an up-sloping line
Possibilities: A B C D EBread (units): 0 1 B. an increase in one variable is associ-
2 3 4Butter (units): 10 9 7 4 0All possi- ated with a decrease in the other
bilities A to E deal with:
C. an increase in one variable is associ-
A. Full use of available resources ated with an increase in the other
B. Under-utilisation of available re- D. the resulting relationship can be por-
sources trayed by a straight line parallel to the hor-
C. No use of available resources izontal axis
D. Demand for more resources 789. Revenue is the income gnerated from the
sale of
784. It is almost always the case that initial
A. goods and sevices in a market
plant size expansion leads to a decrease
in cost. This is due to: B. goods and services within an industry
A. technological improvement C. None of the above
B. increase in capital stock. D. goods from the least cost method of
production
C. A and B both
E. All of the above
790. A system where the government has full
785. When a limited amount of resources are control of economic activities is known as
available, consumers must: a/an
A. Demand more. A. Capitalistic Economy
B. Choose an alternative. B. Socialistic Economy
C. Wait. C. Mixed Economy
D. Fight for them. D. Islamic Economy

791. The study of production, distribution and C. price and quantity demanded are di-
consumption of goods and services. rectly related
A. Macro-Economics D. consumers will buy more of a given
B. Micro-Economics product at high prices than they will at low
prices
C. Economics
797. Which of the following is and example of
D. Supply and Demand
economic goods?
NARAYAN CHANGDER
792. Fall in total surplus that results from a A. Oxygen
market distortion (like taxes)
B. Sea Water
A. Total surplus
C. House
B. Deadweight loss
D. Dessert Sane
C. Corrective tax
798. The night before an economics test, you
D. Invisible hand
decide to go to the movies instead of
793. The body of knowledge and skills applied studying for the test. You get 50% for
to how goods are produced. the test-not the 70% you normally score.
What was the opportunity cost of your
A. Technology evening at the movies?
B. Market A. 50%
C. Technical B. 70%
D. Financial C. 20%
794. Labour intensive Tequinique are chosen in D. Nil.
a
799. Which type of economic system encour-
A. Labour surplus economy ages new ideas because people have pri-
B. Capital surplus economy vate property? MORE THAN ONE AN-
SWER
C. Developed economy
A. Mixed Market
D. Developing economy
B. Free Market
795. Cardi B is trending. What happens to her
C. Command
music?
D. Centrally Planned
A. Increase Supply
B. Decrease Supply 800. PPC is concave to the origin because of:
C. Increase Demand A. Increasing MRT
D. Decrease Demand B. Diminishing MRT
C. Constant MRT
796. The law of demand states that:
D. None of these
A. price and quantity demanded are in-
versely related 801. A market economy has ownership of
B. the larger the number of buyers in a property and resources.
market, the lower will be product price A. private

B. government D. Variable costs

C. tribal E. Cost benefit analysis

D. none of above
807. Which part of economic theory aims to de-
802. A surplus happens when termine income and employment level of th
eeconomy
A. prices are too low relative to consumer
demand. A. Microeconomics
B. prices are too high relative to con- B. Macroeconomic
sumer demand. C. Neither A nor B
C. prices are too low relative to producer D. Both A and B
demand
D. prices are too high relative to producer 808. What is meant by ‘labour’ in economics?
demand. A. Hard physical work used to produce
manufactured goods
803. The following is a factor that will not
cause the demand curve to shift: B. Human mental and physical effort
used for producing goods and services
A. Advertising
C. Natural resources used in the produc-
B. Population
tive process
C. Price
D. Risk taking and organising the factors
D. Consumer expectations of production
804. The most fundamental economic problem 809. Why the land supply for a particular use
is is not perfectly inelastic?
A. security. A. Because demand for land is low for
B. health. particular land use.
C. scarcity B. Because the land uses will go to the
D. none of above optimum use.
C. Because land uses can only have sin-
805. The study of how whole industries and gle use.
nations allocate their scarce resources to
meet their wants and needs. D. Because time affect the demand of
land.
A. Microeconomics
B. Macroeconomcis 810. The law of scarcity
C. Regional Economics A. Does not apply to rich, developed coun-
tries
D. Para economics
B. Applies only to the less developed
806. Your car payment, mortgage payment, countries
rent etc are all examples of?
C. Implies that consumers want will be
A. Marginal costs satisfied in a socialistic system
B. Total costs D. Implies that consumers want will
C. Fixed costs never be completely satisfied

811. Consuming more of one good because of 816. “It is not from the benevolence of the
a change in price of another good is known butcher, the brewer, or the baker that we
as the expect our dinner, but from their regard
A. income effect to their own interest.”-Adam Smith, The
Wealth of NationsWhich economic system
B. substitution effect is best described by this quote?
C. elasticity effect
A. Mixed Market Economy
D. demand effect
NARAYAN CHANGDER
B. Command Economy
812. In the product market
C. Free Market Economy
A. firms buy goods and services from
households. D. Traditional Economy
B. firms sell goods and services to house- E. Socialist Economy
holds.
C. firms sell resources to households. 817. Costs that do not change when the
quanity of output produced changes?
D. firms buy resources from households.
A. Fixed Costs
813. What is the basic economic problem?
B. Variable Costs
A. The imperfect interaction between de-
mand and supply C. Explicit Costs
B. Market forces determine the equilib- D. Implicit Costs
rium price level
C. The existence of inequalities 818. A list of the amounts of a product that
a seller would offer for sale at different
D. Scarcity:finite resources available to prices in a defined time period when all
satisfy all human needs and wants non-price factors are held constant.
814. What’s the fundamental concept of eco- A. Demand Schedule
nomics?
B. Market Schedule
A. money can’t buy happiness but it can
let you buy your own form of misery C. Production Schedule
B. having money’s not everything; not D. Supply Schedule
having it is
C. anybody who thinks money will make 819. When firms in an oligopoly successfully
you happy ain’t got money collude and do not cheat on a cartel agree-
ment, they can make a long-run economic
D. you can print money but we’re still lim-
profit similar to
ited by our resources #scarcity
A. perfect competition.
815. Production Possibility Frontier can be
B. monopoly.
A. Concave
B. Convex C. monopolistic competition.
C. Straight D. non-colluding oligopolies.

D. All of the above can be possible E. the firms in regulated industries.

820. Which of the following below would best 824. The short run is a period of time in which
represent the “Factors of Production? ” A. the quantity of at least one factor of

A. Land, Labor, Resources and En- production is fixed
trepreneurship B. the amount of output is fixed.
B. Labor, Capital, Entrepreneurship and C. prices and wages are fixed
Technology
D. nothing the firm does can be altered
C. Resources, Goods, Needs, Wants and
Services 825. A rational person does not act unless a.
the action is ethical.
D. Money, land, resources and education.
A. b. the action produces marginal costs
E. Land, Labor Capital and Entrepreneur- that exceed marginal benefits.
ship
B. the action produces marginal benefits
that exceed marginal costs.
821. The supply of perishable good such as ba-
nanas is more price than durable goods C. the action makes money for the per-
such as smart phones because of lack of son.
for perishable goods. D. none of these answers.
A. inelastic, good weather
826. What is it when a few businesses domi-
B. elastic, good weather nate the market?
C. inelastic, stock A. Monopolistic Competition
D. elastic, stock B. Monopoly
822. The opportunity cost of 100 kg of rice
D. Oligopoly
produced on a land which can also produce
80 tonnes of wheat is: 827. Seth is laid off from work because he is a
A. 100 tonnes of wheat life guard at the local water park. He is ex-
periencing what kind of unemployment?
B. 80 tonnes of wheat
A. Structural
C. 8000 tonnes of wheat
B. Seasonal
D. none of these C. Frictional
823. Input costs that may not have a direct D. Cyclical
outlay of money. Value of the opportunity
828. What is a want?
cost.
A. A person
A. Fixed Cost
B. Something you would like to have but
B. Variable Cost don’t need to live
C. Implicit Cost C. Purple
D. Explicit Cost D. Something you need to live

1.2 Macro Economics 84
1.2 Macro Economics

1. Comparative advantages show: 6. Dollar amount of all final goods and ser-
vices produced within a country’s national
A. outcomes without trading
borders in a year
B. who can make more items
A. National Income Accounting
C. competition within countries
B. Gross Domestic Product
NARAYAN CHANGDER
D. who should produce what item at the
C. Net National Product
lowest cost
D. Gross National Product
2. According to which approach demand for
money remains more or less constant dur- 7. What are some factors that can shift short-
ing a given period of time? run Aggregate Supply?
A. Transaction Approach A. A change in wage rates
B. Cash balance Approach B. A change in the cost of raw materials

and imports
C. Modern Approach
C. A change in government taxes or sub-
D. Old Approach sidies
3. Fiscal policy is concerned with D. All of the above
A. government spending and taxation. 8. Sarah buys flour to make cake in her bak-
B. consumer spending and productivity. ery. The flour is ?
C. government spending and the money A. a final good

supply. B. counted toward GDP
D. taxation and inflation. C. the final use.
D. an intermediate good
4. People who work part time (might be over-
qualified for their job) because they cannot 9. Calculated by subtracting depreciation
find full-time jobs from GNP
A. CPI A. Gross Domestic Product
B. Underemployed Workers B. Gross National Product
C. Discouraged Workers C. Net National Product
D. Expansionary Fiscal Policy D. Output-Expenditure Model
5. Marginal Productivity Theory is based on: 10. Who is in charge of Monetary Policy
A. Derived demand of Labour A. The Government
B. Capability of Labour to produce B. The Federal Reserve System
C. Value of Marginal revenue product C. The states
D. All of these D. The Department of the Treasury

11. Which one of the following is most likely A. shift the aggregate demand curve left-
to lead to an increase in spending on im- ward.
ports?

B. shift the aggregate supply curve left-
A. A fall in the exchange rate ward.
B. A rise in unemployment C. decrease Canada’s exports and in-
C. A rise in the rate of Value Added Tax crease Canada’s imports.
(VAT) D. increase Canada’s exports and de-
D. A cut in income tax rates crease Canada’s imports.
12. The way the government chooses to con- 17. Subsistence Wage theory is based on mini-
trol the money supply is called mum wages for human existence as pop-
ulation increases as wages increase is
A. monetary policy
based on which law?
B. open market operation
A. Ricardo’s natural law of labour
C. reserve requirement and discount rate
B. Malthusian Law
D. fiscal policy
C. Adam Smith wage theory
13. Which of the following is not a part of prof- D. Mill Theory
its?
A. Corporate Tax 18. The “cost” of credit is known as this.
B. Dividends A. Credit score

C. Retained Earnings B. Savings
D. Royalty C. Deductible
D. Interest
14. As per Social Progress Index, safety is a
19. Occurs when a fundamental change in the
A. Basic human need operations of the economy reduces the de-
mand for workers and their skillsUse rich-
B. Foundations of well-being
text editor
C. Opportunity
A. unemployment rate
D. Socio-economic factor
B. frictional unemployment
15. Most countries try to maintain an inflation C. structural unemployment
rate of per year.
D. cyclical unemployment
A. One % or less
B. Two to three % 20. value of current gross domestic product ad-
justed for inflation
C. Four to five %
A. GDP
D. Six to seven %
B. real GDP
16. The net exports effect suggests that a de-
C. inflation
crease in Canada’s price level relative to
other countries will: D. none of above

21. The multiplier effect means that B. The cost for the opportunity to buy any-
A. consumption is usually several times thing you want.
as large as savings C. The opportunity that will cost you loads
B. a change in consumption can cause a of money.
larger change in investment D. none of above
C. an increase in investment can change 26. If the economy is in a recession, the FED
GDP by a larger amount could do all of the following EXCEPT
NARAYAN CHANGDER
D. a decline in MPC can cause GDP to rise A. lower discount rate
by a larger amount
B. buy securities
22. Matt Damon, a manager at a Taco Bell, re- C. lower taxes
ceived a $5, 000 increase in his annual
D. Lower the federal funds rate
disposable income. Suppose his marginal
propensity to consume is 0.90. How much 27. Which of the following is NOT calculated
of the $5, 000 increase will Damon save? into the Gross Domestic Product (GDP)?
A. $1000 A. investment
B. $4500 B. net exports
C. $4700 C. aggregate supply
D. $300 D. government spending
E. $500 28. In economics, scarcity means that:
23. With an upward-sloping short-run as A. Resources will never run out.
curve, an increase in gov. expenditure will B. The world is rapidly running out of re-
most likely sources.
A. reduce the price level C. There is a finite amount of resources.
B. increase real gross domestic product D. There are not enough resources to go
C. shift the short-run aggregate supply around.
curve to the right 29. The labor force consists of
D. shift both the AD curve and the LRAS A. everyone who has a job
curve to the left
B. all employed workers minus all unem-
24. The Federal Reserve Bank’s activities are ployed workers
controlled by C. all employed workers minus all mili-
A. the President tary workers
B. Board of Governors D. all employed and unemployed civilian
workers
C. Congress
D. the citizens 30. Who owns the Federal Reserve System?
A. all commercial banks in the country
25. Which one of these definitions best de-
scribe ‘Opportunity Costs’? B. all banks in the country
A. The cost of making one decision over C. the federal government
another. D. member banks

31. Completed goods counted in the GDP 37. A decrease in government spending will
A. Final Goods cause a(n):

B. Durable Goods A. Decrease in the quantity of real output
demanded
C. Intermediate Goods
B. Decrease in aggregate demand
D. Non-Durable Goods
C. Increase in aggregate demand
32. A period of high economic activity and high
D. Increase in the quantity of real output
employment is:
demanded
A. A recovery
38. The LM curve expresses the equilibrium in
B. A recession
C. A boom
A. factor market
D. A slowdown
B. product market
33. The economy must operate at maximum ca- C. money market
pacity refers to
D. services market
A. full employment
B. price stability 39. It is the continuing increase of the general
price level in the market.
C. economic growth
A. Inflation
D. equitable distribution of income
B. Deflation
34. Gross domestic product after adjustments
C. Stagflation
for inflation is known as
D. Recession
A. Real GDP
B. GDP Per Capita 40. Which of the following is NOT a macroeco-
C. National GDP nomic issue?
D. Current GDP A. Unemployment.

B. Inflation.
35. What is the best measurement of Economic
Growth? C. The wages paid to footballers.
A. Real GDP D. Economic growth.
B. Nominal GDP 41. How does inflation rate affect currency
C. Real GDP per Capita value/exchange rate?
D. C + I + G + (X-M) A. Higher inflation leads to depreciating
currency & vice versa
36. The short-run aggregate supply curve will
shift to the right when B. Increasing inflation leads to more
favourable exchange rates
A. energy prices increase
C. Higher inflation leads to currency ap-
B. government regulation increases preciation
C. prices of inputs decrease D. Lower inflation leads to more
D. productivity rates decrease favourable exchange rate

42. Which of the following helps to develop & C. price level

expand the microeconomics theories?
D. net national product
A. Macroeconomics
B. Keynes 48. Which one is considered to be business
fixed investment?
C. Theory of Income
A. Build a new house
D. Adam Smith
B. Increase stock in warehouse
NARAYAN CHANGDER
43. Unemployment measures include
C. Build a new factory plant
A. Students
D. Buy a sharia mutual fund
B. People who want to work longer hours
but can’t 49. Which would be least appropriate for ex-
C. Long term sick pansionary fiscal policy
D. Those out of work but not seeking ben- A. Increase taxes

efits B. Decrease taxes
44. The crowding out effect can only occur if C. Increase government spending
the D. Combination of decreasing taxes and
A. government deficit spends. increasing spending
B. government runs a surplus.
50. Which theory is called Iron Law of
C. personal savings rate increases. Wages?
D. economy begins to boom. A. Subsistence Theory
45. Which entitlement program takes the B. Wage Fund Theory
largest part of the federal budget? C. Marginal Productivity Theory
A. Disaster relief
D. Modern Theory of Wages
B. Social Security
C. Veterans Affairs 51. Income of self employed is partly:
D. Housing assistance A. Wages

B. Dividend
46. It is the real gross national product (GNP)
that measures the total income of an econ- C. Profit
omy. D. Both a and c
A. Unemployment
52. Saying that net exports are positive is the
B. Inflation
same as saying that
C. Output
A. there is a current account surplus
D. Economic growth
B. there is a capital account surplus
47. GDP that is NOT adjusted for inflation is C. there is a current account deficit
A. real GDP D. the same weight of goods has been im-
B. nominal GDP ported as were exported

53. Inflation in the range of 1 to 3 percent per D. Short run capital inflows to the US will
year decrease

A. Deflation
58. When the Government saves more than it
B. Creeping inflation spends
C. Hyperinflation A. Budget
D. Price level B. Budget Surplus
54. The transaction demand for money is very C. Budget Deficit
closely associated with money’s use as a
D. Price Level
A. Store of value
B. Standard unit of account 59. The total value of goods and services pro-
duced within the borders of a country dur-
C. Measure of value ing a specific time period, usually one year.
D. Medium of exchange A. GDP
E. Standard of deferred payment
B. GNI
55. Occurs when workers with less skills, tal- C. GDP per capita
ent, or education are replaced by machines
D. HDI
that do their jobs
A. technological unemployment 60. Macroeconomics focuses on the study of
B. frictional unemployment economics from the standpoint of
C. structural unemployment A. individual economic units
D. cyclical unemployment B. a typical firm
56. When the government increases the tax C. a typical household

rate the marginal propensity to consume D. the entire economy
will
61. Type of unemployment that occurs when
A. Increase
people take time to find a job.
B. Decline
A. Seasonal Unemployment
C. No change
B. Structural Unemployment
D. zero
C. Frictional Unemployment
57. If the Federal Reserve undertakes a policy
D. Cyclical Unemployment
to reduce interest rates, international cap-
ital flows will be affected in which of the 62. The value of all the final goods and ser-
following ways? vices produced within a nation in a given
A. Long run capital outflows from the US year.
will decrease
A. Gross Domestic Product
B. Long-run capital inflows to the US will
B. per capita GDP
increase
C. Gross National Product
C. Short run capital outflows from the US
will decrease D. none of above

63. Which of the following is not a determi- B. Macroeconomics

nant of aggregate demand? C. both Micro and Macroeconomics
A. Change in Consumer Spending D. none of above
B. Change in Political Parties
69. It shows the cycle of goods and services in
C. Change in Government Spending an economy.
D. Change in investment Spending A. Circular flow of goods
B. Circular flow of money
NARAYAN CHANGDER
64. Prices rise because demand is higher than
what producers can supply. C. Circular flow of the economy
A. Wage Price D. Circular flow of resources
B. Demand Pull 70. When one decision is made, the next best
C. Cost Push alternative not selected is called
D. none of above A. economic resources
B. opportunity cost
65. The U.S. can produce 50 cars and 25 tools.
Peru can produce 20 cars and 15 tools. C. scarcity
What is the opportunity cost of producing D. comparative disadvantage
a car in the U.S.? E. production
A. .5 tools
71. The following are macroeconomics objec-
B. .5 cars tives, EXCEPT
C. .75 cars A. price stability
D. 1.3 tools B. full employment
66. It is the list all final goods and services C. high economic growth
sold within an economy for a period of D. unjust distribution of income
time.
72. Do you remember the accurate formula of
A. Gross Domestic Product Inflation Rate (%)?
B. Gross National Product A. CPI Current Year-CPI Previous Year x
C. Consumer Price Index 100% CPI Current Year
D. Market Basket of Goods B. CPI Previous Year-CPI Current Year x
100% CPI Current Year
67. What function is money serving when you C. CPI Previous Year-CPI Current Year x
use it when you go shopping? 100% CPI Previous Year
A. A store of value D. CPI Current Year-CPI Previous Year x
B. A medium of exchange 100% CPI Previous Year
C. A medium of deferred payment 73. The near money is also known as
D. A unit of account A. Cashless
68. Which of the following studies economics B. Cheque
as a whole? C. Bond money
A. Microeconomics D. Quasi money

74. What can one assume from the follow- C. lower exchange rates
ing headline:“President and Congress Feud D. reduced inflationary pressure
Over Fiscal Policy”?

A. The President and Congress cannot 79. The 4 Factors of Production are:
agree on a tax plan and/or budget. A. Land, Money, Enterprise & Buildings
B. The President favors higher taxes, but B. Labour, Money, Raw materials, & Land
Congress opposes them.
C. Land, Labour, Needs, & Wants
C. Congress and the President cannot
D. Land, Labour, Capital, & Enterprise
agree on defense spending.
D. Congress and the President cannot 80. If Mr. Woodward’s disposable income in-
agree on interest rates. creases from $600 to $650 and her level
of personal consumption expenditures in-
75. Which of the following might cause supply crease from $480 to $520, you may con-
to increase on a Micro graph? clude that her marginal propensity to
A. Government subsidizing tomato pro- A. consume is 0.8
duction
B. consume is 0.4
B. firms providing electricity and power
going out of business C. save is 0.8
C. An increase in government taxation on D. save is 0.4

textbook producers 81. All other things being equal, in the short
D. A natural disaster destroying farmers run, a decrease in aggregate demand in an
ability to harvest their crops economy is most likely to result in a reduc-
tion in
76. When inflation is high the of the dollar
decreases A. government spending on welfare ben-
efits
A. cost value
B. the unemployment rate.
B. purchasing power
C. the budget deficit.
C. importance
D. the balance of payments deficit on the
D. validity
current account.
77. The current account shows
82. Changes in price level
A. international movement of goods and
A. Shift the AD curve left (decrease)
services
B. Shift the AD curve right (increase)
B. international movement of capital
C. Move along the AD curve
C. foreign exchange market
D. Shift the AS curve right (increase)
D. international movement of invest-
ments E. Shift the AS curve left (decrease)
78. An increase in interest rates is most likely 83. The rate of economic growth is measured
to have the following effect by
A. lower rates of saving A. (original/difference) x 100
B. higher consumption B. difference x 100

C. potential-actual level of output 89. Plants and fertilizer are complements. If

D. (difference/original) x 100 the price of fertilizer increases, what will
happen in the market for plants?
84. Which of the following is not true about
A. supply increase
the limitations of GDP as a measure of
welfare? B. supply decrease
A. Household productions are not in- C. demand increase
cluded in GDP
D. demand decrease
NARAYAN CHANGDER
B. Health and life expectancy is not con-
sidered in GDP 90. Opportunity costs is MOST RELATED which
C. Leisure time is not measured in GDP concept? D absolute advantage
D. Marketable transactions are not ac- A. A price floors

counted in GDP B. B scarcity
85. In the circular flow of income model, which C. C elasticity
one of the following equations is correct? D. D absolute advantage
A. Income = Output = Expenditure
91. All other things being equal, an economy
B. Income = Output = Injections
is most likely to experience demand-pull
C. Output = Expenditure = Withdrawals inflationary pressure when it has
D. Expenditure = Income = Injections A. a high rate of productivity growth
= Withdrawals
B. a positive output gap.
86. In which part of the GDP calculation does
C. an increase in the value of its ex-
this fit? The US military spends $5 billion
change rate.
on five new helicopters.
A. Consumer spending D. an increase in the rate of interest
B. Government spending 92. A decrease in the general price level
C. Investment spending A. Deflation
D. Net exports B. Inflation
87. Goods used to create finished products C. Hyperinflation
A. Final Goods D. Price level
B. Non-Durable Goods
93. Congress approves a budget that allocates
spending on defense, education, social pro-
D. Durable Goods grams, etc., but also increases taxes to
pay for this. What does this plan define?
88. What is represented on the “X” axis on
the AD/AS Model? A. the government’s monetary policy
A. price level B. the government’s revenue
B. price C. the government’s reserves require-
C. Real GDP ment
D. Nominal GDP D. the government’s fiscal policy

94. LP stand for In Speculative motive 99. Taxing & spending to slow the economy is
referred to as
A. Least percentage

A. budget surplus
B. Liquidity preference
B. monetary policy
C. Low price
C. contractionary policy
D. Liquidity price
D. budget deficit
95. If the government increases spending but
100. a rise in the cost of goods and services
does not bring in enough tax revenue, this
will create a A. inflation
A. budget surplus B. discount rate

C. interest
B. trade surplus
D. monetary policy
C. trade deficit
D. budget deficit 101. The goal of fiscal policy is to achieve full
employment by shifting this curve:
96. Which of the following would be consid- A. Long Run Aggregate Supply
ered unemployed?
B. Aggregate Demand
A. A recent college graduate looking for
C. Short Run Aggregate Supply
a job
D. Phillips
B. A stay-at-home parent
C. A 14-year-old student who babysits for 102. Which worker BEST illustrates the prob-
extra cash lem of structural unemployment?
A. a computer programmer laid off during
D. A retired grandmother
an economic turndown
97. John Keynes argued that if the economy B. a steelworker whose skills are no
was “stuck” in a recession, that longer marketable
should actively “prime the pump” or steer C. a landscaper who can’t find a job in the
the economy in the short-run winter
A. government D. a college graduate looking for her first
B. business investment full-time job
C. international trade 103. If the MPC is .80, the government spend-

ing multiplier is:
D. federal reserve
A. 4
98. A set of ideas about the economy to be or- B. 5
ganized in a logical framework
C. 3
A. Economic model
D. 2
B. Economic theory
104. Nominal GDP= 20002012 Population=
C. Economic system
20002012 Price Level Index= 100What is
D. Macroeconomics the Real GDP?

A. 2000 109. Macroeconomics is mostly focused on:

B. 1 A. why specific businesses fail.
C. 100 B. the individual markets within an econ-
omy.
D. 20
C. the economy as a whole.
105. In the circular flow diagram, which sec-
D. only the largest industries in the econ-
tions buys goods and services from the
omy
NARAYAN CHANGDER
product market and provides productive
resources to the factor market 110. In a mixed economy, what to produce and
A. Households how much to produce are determined by
B. Firms A. a central planning agency
C. Corporations B. a private planning agency
D. Limited Liability Partnership C. large corporations and small en-
trepreneurs
106. The for a given year is 100 times D. markets and the government
the ratio of nominal GDP to real GDP that
year. 111. This group is responsible for implement-
A. GDP Deflator ing fiscal policy
B. Market Basket A. Supreme Court
C. Aggregate Price Level B. Federal Reserve Board
D. Inflation Rate C. Council of Economic Advisors

D. U.S. Congress
107. The lesson of is to forget about the
money that’s irretrievably gone and in- 112. Equitable distribution of in incomes is to
stead to focus on the marginal costs and reduce the gap between and
benefits of future options.
A. developed country; development coun-
A. budget constraints try
B. sunk cost B. urban area; rural area
C. marginal analysis C. rich people;poor people
D. marginal utility D. old generation;young generation
108. Aggregate supply is the total amount: 113. When there is an increase in the produc-
A. Of labour supplied by all households tion of goods and services in the economy,
we have
B. Of products produced by a given indus-
A. Economic Development
try
B. Economic Regression
C. Produced by the government
C. Economic Growth
D. Of goods and services produced in an
economy D. Economic efficiency

114. What does the vertical axis represent on 119. A government reduces its budget deficit.
the aggregate demand curve? Other things remaining the same, the most
likely short-run impact of this policy is

A. Total Input
A. a reduction in the current account
B. Total Output
deficit.
C. Price Level
B. a reduction in unemployment
D. Both A & B
C. an increase in the rate of economic
115. All other things being equal, an economy growth.
has a budget surplus when D. an increase in the rate of inflation.
A. exports are greater than imports. 120. Raising taxes and cutting entitlements
B. tax revenue is greater than govern- such as Medicare and WIC benefits is what
ment spending. type of policy?
C. government tax revenue increases at A. Expansionary Policy and Fiscal
a faster rate than its spending. B. Contractionary Policy and Monetary
D. government spending is greater than C. Expansionary Policy and Monetary
tax revenue.
D. Contrationary Policy and Fiscal
116. In Pigou’s equation, it is and not
121. The percentage of a nations labor force
which is a more important determinant of
that is unemployed.
the price level.
A. M, K
B. Inflation
B. K, R
C. Unemployment
C. K, M
D. Consumer Price Index
D. R, K
122. When savings leaks out of the circular
117. In many cases, it is reasonable to refer flow model, what happens to it?
to the as the price.
A. It flows to the government.
A. sunk cost
B. It flows to borrowers who then inject
B. opportunity cost it back into the economy.
C. marginal utility C. Savings does not leak out of the circu-
D. budget constraint lar flow model.
D. It shrinks the size of the economy.
118. Dollar value of all final goods, services,
and structures produced in one year with 123. Is the sale of products and services in for-
labor and property supplied by U.S. resi- eign countries that are sourced or made in
dents the home country.
A. Gross Domestic Product A. Import
B. Gross National Product B. Export
C. Net National Product C. Trade
D. Output-Expenditure Model D. Global Market

124. GDP is calculated in the expenditure ap- 129. The total amount of money that a coun-
proach by how much is spent on ? try’s government has borrowed, by vari-
ous means
A. goods and services
A. National Debt
B. final good and services.
B. Social Security
C. wages, rent, interest, and profit
C. Grants
D. factors of production D. Stock options
NARAYAN CHANGDER
125. Open market operations are 130. Which is an example of government
spending?
A. the processes by which money enters
into circulation. A. Road Construction
B. reserves greater than the required B. Clothes
amounts C. Housing
C. the buying and selling of government D. Food
securities to alter the supply of money. 131. The Fed does not
D. rates of interest banks charge on A. print money
short-term loans to their best customers.
B. regulate banks
126. Attending college is a case where the C. serve as a lender of last resort
exceeds the monetary cost. D. control the money supply
A. Marginal utility 132. Jack saves his money in a piggy bank. He
B. Marginal analysis is using money as a
C. Opportunity cost A. medium of exchange

B. store of value
D. Budget constraint
C. unit of measurement
127. Cost-push is a type of inflation caused D. bartering tool
when
133. A business where a few people share
A. Input costs decrease ownership and responsibility is
B. Input costs increase A. corporation
C. Input costs remain the same B. oligopoly
D. none of above C. partnership
128. In a year when the federal government
spends more money than it collects in 134. In the gross domestic product, the largest
taxes, the immediate result is dollar amount is
A. consumer spending
A. the federal budget deficit
B. rental payments
B. an increase in GDP
C. net exports of goods and services
C. a decrease in GDP
D. government purchases of goods and
D. a federal budget surplus services

135. The economy is producing at full capacity 140. Advantage:When a producer can pro-
when it duce a good/service at a lower opportu-
nity cost than another producer.

A. grows more slowly than its long-run
trend rate of growth A. Absolute
B. has neither a positive nor a negative B. Consumption
output gap C. Hippopotamus
C. is also in equilibrium on its balance of D. Comparative
trade.
141. The general increase in the price of goods
D. grows more rapidly than its long-run and services
trend rate of growth. A. Retention
136. Importing more than exporting is B. Gross Domestic Product
A. trade surplus C. Unemployment
D. Inflation
B. trade deficit
C. balance of trade 142. Which of the following type of spending
do not fall under GDP?
D. balance of payment
A. Investment
137. In an economy, the government reduced B. Government
its spending by £4bn at the same time ex- C. Imports
ports rose by £20bn. As a result of these
D. Consumer
changes, national income rose by £20bn.
The size of the multiplier is 143. The use of government spending and rev-
A. 0.75 enue collection to influence the economy.
A. Monetary Policy
B. 1
B. Fiscal Policy
C. 1.2
C. Congressional Policy
D. 1.25
D. Executive Policy
138. What is the relationship between rate of 144. is the most basic economic problem.
interest and demand for money?
A. Scarcity
A. Positive
B. Labor
B. Negative C. Greed
C. Constant D. Capital
D. None 145. When people can’t find a job because of
a lack of demand for their skills or type of
139. In MV the M represent
labor, this is called?
A. Velocity of circulation of money A. Frictional Unemployment
B. Quantity of money B. Structural Unemployment
C. Mobilisation C. Cyclical Unemployment
D. Macro D. none of above

146. A measuring tool for inflation that calcu- 151. A person who uses and buys goods and
lates the prices of what the average con- services
sumer buys
A. money
A. Aggregate Demand
B. producer
B. Consumer Price Index
C. consumer
C. Aggregate Supply
D. economics
D. Market Price
NARAYAN CHANGDER
152. Inflation in the range of 500 percent a
147. A statistical series that can be used to year and above
measure changes in prices over time
A. Deflation
A. Price index
B. Inflation
B. Real GDP
C. Hyperinflation
C. Consumer price index
D. Price level
D. Market basket
153. Which of the following is NOT included in
148. What is the formula for the expressing a country’s GDP?
the consumption (spending) method of cal-
culating GDP? A. Consumer Spending
A. Debt+Inflation = prosperity B. Business Spending
B. C+I+G+ (X-Y) = GDP C. Government Spending
C. Change in price/ Change in Quantity D. Net Exports

Demanded E. Net Imports
D. E= MC2
154. Stagflation might be caused by
149. What does X represent in calculating net A. Increase in technology
imports? X-M
B. Decrease in the price of raw materials
A. Imports
C. Increase in the price of raw materials
B. Exports
D. Decrease in the money supply
C. Expenditures
D. None of the Above 155. Refer to Figure 2-2. At Point A in the pro-
duction possibilities graph shown above,
150. If aggregate demand and real GDP are be- the economy:
ginning to fall and the unemployment rate A. is using its resources efficiently while
is beginning to rise, what conclusion can producing clothing but no food.
you draw?
B. is using its resources efficiently while
A. The economy is in recovery producing food but no clothing.
B. The economy is in an expansion phase C. is using its resources efficiently to pro-
C. Aggregate supply is increasing duce both food and clothing.
D. The economy is facing a slowdown D. is not using its resources efficiently.

156. is a way to illustrate how a regular group 161. All of the following would be considered
of goods and services changes over time. employed except:

A. Consumer Price Index A. Someone who has only a part-time job
B. Final Goods B. Someone on maternity/paternity leave
C. Market Basket C. An owner of a new business who isn’t
making a profit yet
D. Durable Goods
D. A prisoner at a state prison who makes
157. RBI may use a contractionary policy commissary money from working in the
when prison laundry
A. the economy is slowing down. 162. Which of the following statements is

TRUE according to the Simple Quantity The-
B. there has been a negative economic
ory of Money?
shock.
A. an increase in the money supply will
C. when inflation is too high. cause inflation
D. during a recession. B. an decrease in the money supply will
cause inflation
158. Which of the following is NOT a macroe-
conomics objective? C. an increase in the quantity of goods
purchased will cause inflation
A. To achieve equal distribution of income
D. inflation is only caused by changes in
B. To maintain domestic price instability the weather
C. To achieve full employment of re-
163. Who provides top leadership for the Fed-
sources
eral Reserve?
D. To achieve sustainable economic A. Member Banks
growth
B. Federal Open Market Committee
159. It captures the prices of goods and ser- C. Board of Governors
vices that consumers typically buy.
D. Federal Depository Institutions
A. Total Weighted Price
164. Macroeconomics deals with
B. Weighted Price
A. Economic aggregates
C. Consumer Price Index
B. The behavior of the electronics indus-
D. Consumer Product Index try
C. The behavior of firms
160. Select three reasons productivity changes
between countries and regions. D. The activities of individuals units
A. Personal Preferences 165. What is the definition of “Aggregate De-
B. PPP mand”
A. The total spending in a nation on goods
C. Physical Capital
and services at a given price level.
D. Human Capital
B. How much someone is willing and able
E. Technological Progress to pay for Agricultural products.

C. When you order an Aggie to do some- A. $6 billion

thing. B. $8 billion
D. The total amount of products produced C. $1.25 billion
by businesses in a nation.
D. $24 billion
166. Which one of the following best describes
the action of the accelerator theory of in- 171. The savings function indicates functional
vestment? relationship between
NARAYAN CHANGDER
A. Firms decide to invest more following A. Income and expenditure
a cut in bank rate B. Income and consumption
B. Firms invest in capital equipment due C. Saving and income
to higher economic growth
D. Expenditure and rate of interest
C. Improved business confidence causes
firms to increase their investment 172. Number of unemployed persons divided
D. Large profits encourage firms to invest by the total number of persons in the civil-
in new capital equipment ian labor force
167. If the government adopts a contrac-
tionary fiscal policy, where it tries to re- B. frictional unemployment
duce government debt, it might C. structural unemployment
A. increase spending and taxation D. cyclical unemployment
B. eliminate taxation and spending
173. What is money?
C. increase taxation and reduce spending
A. only currency(bills) that is printed by
D. increase spending and reduce taxation the federal government
168. It measures the output produced by fac- B. any thing you want it to be
tors of production located in the domestic C. any item accepted as payment for
economy. goods or services
A. Economic Growth D. none of the above
174. A higher GDP generally correlates to a(n)
C. Gross National Product standard of living.
D. Inflation A. higher
169. GDP per capita is B. lower
A. The population divided by total GDP. C. unrelated
B. Investment as a percentage of GDP. D. none of above
C. Total GDP divided by total population.
175. The three sector economy do not include
D. The same as GDP per worker.
A. household
170. In the Keynesian aggregate-expenditure B. firms
model, if the MPC is 0.75 and gross invest-
ment increases by $6 billion, equilibrium C. the whole world
GDP will increase by D. government

176. In the narrowest definition of money, 180. A general rise in the price level of prod-
M1, savings accounts are excluded be- ucts is known as:
cause they are

A. Hyperinflation
A. not a medium of exchange B. Cost-Push phenomenon
B. not insured by federal deposit insur- C. Inflation
ance
D. Deflation
C. available from financial institutions
other than banks 181. When writing a check, it is a good idea to
use
D. a store of purchasing power
A. pencil
E. interest-paying accounts
B. erasable pen
177. If the cost of producing cell phones in- C. blue or black ink pen
creases, the price and equilibrium quantity D. red pen
of cell phones will most likely change in
which of the following ways? 182. A firm operating at ‘X’ produces 70
whips and 60 saddles. It changes produc-
A. P Increase Q increase tion to ‘Y’ producing 20 whips and 90 sad-
B. P Increase Q decrease dles. The opportunity cost of this produc-
tion change is
C. P decrease Q increase
A. 20 whips
D. P decrease Q decrease
B. 30 saddles
E. P no change Q decrease
C. 50 whips
178. One measure of the economy macroe- D. 60 saddles
conomists pay attention to to study the
pace of growth in the economy is 183. The percentage of people not working is
known as
A. supply
B. inflation
B. real GDP
C. demand C. Economic Growth
D. equilibrium price D. Full Employment
179. The amount of money that the public 184. The unemployment rate is calculated as
wants to hold in the form of cash will the number of
A. be unaffected by any change in inter- A. unemployed persons divided by num-
est rates or the price level ber of employed persons
B. increase if interest rates increase B. persons in the labour force divided by
the number of unemployed
C. decrease if interest rates increase
C. unemployed divided by size of the
D. increase if the price level decreases labour force
E. decrease if the price level remains con- D. employedpersons divided by number
stant of unemployed persons

185. A market structure where many busi- C. Cost-push inflation

nesses sell an identical product but com- D. The multiplier effect
pete based on price
A. monopoly 191. Which of the following is included in the
calculation of personal income, but not na-
B. monopolistic tional income?
C. pure or perfect competition A. Undistributed corporate profits
D. oligopoly B. Social security contribution
NARAYAN CHANGDER
186. In the short run, an increase in a govern- C. Corporate dividend
ment budget deficit is most likely to reduce D. Transfer payment
A. imports
192. This is what we call the thing that is sac-
B. unemployment. rificed when we choose one thing over an-
C. interest rates. other
D. inflation. A. biodiversity
B. land
187. Identify all examples of wealth
C. opportunity cost
A. Salary
D. capital
B. Benefits
C. Pension fund 193. An index that measures the prices of a
market basket of goods that typical con-
D. Savings sumers purchase.
188. The income that households have after A. Consumer Price Index
taxes is called B. Federal Reserve
A. Disposable income C. Bank
B. Rental income D. Deflation
C. Deferable income
194. Which of the following would be a pro-
D. National income gressive tax?
189. “The Fed” refers to the A. All people pay a 15 percent income tax.
A. Federal Bureau of Investigation B. People pay 10 percent tax on property
whether it is worth $50, 000 or $500, 000.
B. Federal Government
C. All people pay a 15 percent income tax.
C. Federal Reserve System/Bank
D. People earning $35, 000 pay 10 per-
D. Federal Income Tax
cent tax, while people earning $100, 000
190. Which one of the following best describes pay 30 percent tax.
how an initial change in expenditure leads 195. In which part of the GDP calculation does
to a larger impact upon the level of na- this fit? Australia exported $6 billion
tional income? worth of goods in 2018, but imported $10
A. The accelerator process billion in goods.
B. Fiscal policy A. Consumer spending

B. Government spending C. wholesale price of manufactured

C. Investment spending goods

D. Net exports D. prices of all goods and services pro-
duced in an economy
196. Each year, any deficit in the federal gov- E. cost of a select market basket of goods
ernment’s budget adds to the country’s and services
A. national income
201. The primary role of the Federal Reserve
B. national debt Bank is to steer the economy by
C. national surplus A. controlling the budget
D. none of above B. setting spending levels.
197. Assuming fixed exchange rates, if coun- C. controlling the money supply.
try Z’s rate of inflation increases rela- D. loaning out money.
tive to it trading partners, Country Z’s im-
ports and exports will most likely change 202. Which of these is NOT an example of a
in which of the following ways? need?
A. Imports:DecreaseExports:Decrease A. Water
B. Imports:DecreaseExports:Increase B. Food
C. Imports:IncreaseExports Decrease C. watch
D. Imports:IncreaseExports:Decrease D. Shelter
198. With all else held constant, an increase 203. COVID-19 causes a world wide pandemic
in aggregate demand tends to cause an in- which lead to a toilet paper shortage.
crease in What lead to the shortage?
A. employment A. Decrease in supply of toilet paper
B. nominal interest rate B. Decrease in demand of toilet paper

C. Increase in supply of toilet paper
C. GDP and national income
D. Increase in demand of toilet paper
D. unemployment rates
204. The goals of macroeconomics include
199. If the price of imported Canadian lumber
increases A. Economic stagnation
A. AS shifts left (decrease) B. Higher price level
B. AS shifts right (increase) C. Imbalance in balance of payment
C. AD shifts left (decrease) D. Full employment
D. AD shifts right (increase) 205. A positive impact on consumption could
be due to
200. The consumer price index (CPI) is de-
signed to measure changes in the A. better funding conditions
A. spending patterns of urban consumers B. higher interest rates
only C. higher tariffs abroad
B. spending patterns of all consumers D. none of above

206. It is the measure of the total income 211. During the recession more businesses
earned by domestic citizens. shut down, causing unemployment. This
A. Economic Growth type of unemployment is:
B. Gross Domestic Product A. Seasonal
C. Gross National Product B. Frictional
D. Inflation C. Structural
D. Cyclical
NARAYAN CHANGDER
207. Economists use the term “Land” to refer
to all sorts of natural resources. Which of 212. Which of the following is MOST likely to
the following resources fit into this cate- promote economic growth?
gory? A. A decrease in business tax credits for
A. Land investment spending
B. Lumber B. A decrease in federal student educa-
tion grants
C. Oil
C. An increase in investment in tools and
D. All of the Above
machinery
208. Which one of the following is most likely D. A decrease in the labor force participa-
to lead to a fall in aggregate investment? tion rate
A. A reduction in the level of unemploy-
213. Which of the following formulas is used
ment
to compute for GDP using the expenditure
B. An increase in spare capacity in the method?
economy
A. C+I+G+(X-M)
C. A reduction in the average level of in-
B. C+I+G-(X+M)
terest rates
C. AG+IN+SE
D. An increase in aggregate demand
D. C+I+G / (X-M)
209. The rate of unemployment is
214. A lifeguard is hired on at Pensacola Beach
A. How many people are not in work / To-
for the summer, and is told the job will end
tal Population x 100
in August. This is an example of unem-
B. Total Unemployed/Total population x ployment.
100
A. Frictional
C. Total unemployed/Workforce x 100
B. Seasonal
D. Total unemployed/ (total employed + C. Structural
total unemployed) x 100
D. Cyclical
210. What function is money serving when
you deposit money in a savings account? 215. The branch of economies that examines
the functioning of individual industries and
A. A checkable deposit the behavior of individual decision making
B. A unit of account units is
C. A medium of exchange A. microeconomics
D. A store of value B. macroeconomics

C. positive economics C. rightward shift in demand

D. normative economics D. leftward shift in demand

216. What does the circular flow model of the 221. Which of the following is NOT the objec-
economy illustrate? tive of macroeconomics?
A. Injections and leakages that take A. Achieving a low inflation rate
place in the economy. B. Achieving a high economic growth
B. How fast the economy grew during the C. achieving deficits balance of payment
previous ten years.
D. Narrow down the gap between poor
C. The price of every product and service. and rich
D. How households pay rent to the gov-
222. The actions the Federal Reserve System
ernment.
takes to influence the level of real GDP and
217. An example of expansionary fiscal policy the rate of inflation in the economy.
would be A. Fiscal Policy
A. cutting taxes. B. Monetary Policy
B. cutting government spending. C. Congressional Policy
C. cutting production of consumer goods. D. Executive Policy
D. cutting prices of consumer goods. 223. Assume the economy is in long run equilib-
rium and the government increases spend-
218. Total value of all final goods and services
ing on healthcare
produced in the economy during a given
year, calculated with the prices current in A. AD will shift right and an inflationary
the year in which the output is produced gap will result
A. GDP B. AD will shift left and a recessionary
gap will result
B. Nominal GDP
C. AS will shift right and an inflationary
C. Real GDP gap will result
D. Real GDP per Capita D. AS will shift left and a recessionary
219. All of the following are sections of the gap will result
circular flow diagram but E. No change will result
A. Product market 224. Systematic upturns and downturns of
B. factor market real GDP
C. Firms A. business cycles
D. Flea Market B. business fluctuations
C. peak
220. Corn Flakes are an inferior good. If mini-
mum wage increases, what will happen in D. trough
the market for Corn Flakes? 225. According to Keynes, marginal efficiency
A. rightward shift in supply of capital is also known as
B. leftward shift in supply A. . Rate of discount

B. Rate of interest 231. Macroeconomics is the study of

C. Rate of capital formation A. a business entity
D. None of these
B. economy as a whole
226. What causes cost push inflation
C. individual units
A. An increase in demand for goods and
services D. selected markets
B. An increase in supply
NARAYAN CHANGDER
232. How many factors affecting money sup-
C. A rise in production costs passed on to ply?
consumers
A. 1
D. A fall in the price of imports
B. 2
227. Which of the following is not an eco-
nomics indicator discussed in class? C. 3
A. Presidential Policy D. 4
B. Inflation
C. Gross Domestic Product 233. How can a nation increase its En-
trepreneurship factor of production.
D. Unemployment
A. Conquer another nation
228. The Federal Reserve’s two primary goals
DO NOT include B. Protect intellectual property with
A. maximum sustainable employment Patent and copywright laws.
B. stable inflation C. Invest in research and development
C. diversification of the economy D. Improve farming techniques
D. none of above
234. When people can’t find a job because the
229. The long-run growth rate of an economy
economy is not doing well due to a reces-
will be increased by an increase in all the
sion, this is called?
following EXCEPT
A. capital stock A. Frictional Unemployment
B. labor supply B. Structural Unemployment
C. real interest rate C. Cyclical Unemployment
D. rate of technological change
D. none of above
230. A statistical series used to measure price
changes for a representative sample of fre- 235. Which is an example of things that would
quently used household items is called the be listed in a “market basket.”
A. producer price index A. Car
B. composite index of leading economic
B. Salmon
indicators
C. consumer price index C. Bread
D. implicit GDP price deflator D. Xbox

236. Cars, TVs, computers belong in which A. mortgage borrowing from UK banks
part of the GDP formula? GDP = B. overseas lending to UK firms
C+I+G+(X-M)

C. the UK’s current account deficit
A. Consumption Expenditures
D. the UK government’s budget deficit
B. Investment Expenditures
242. In the circular flow diagram, which sec-
C. Government Expenditures
tion is where business purchase productive
D. Net Imports resources needed to make products?
237. To stimulate the economy, the Federal Re- A. Product market
serve decides to increase the money sup- B. factor market
ply. Which of the following actions will
C. households
they MOST LIKELY take?
D. firms
A. raise the reserve requirement
B. raise the discount rate 243. How can a nation change the “Land” fac-
tor of production.
C. sell bonds
A. Increase the birth rate
D. lower the reserve requirement
B. Increase immigration
238. Theory of multiplier assumes MPC to be C. Discover a new resource like oil or
A. Less than one gold
B. Equal to one D. Invest in new buildings or infrastruc-
ture
C. Constant
D. Greater than one 244. Which of the following actions might the
Federal Reserve take together that will
239. The total demand for goods and services both increase the money supply?
in an economy is known as; A. open market sales, decreasing the re-
A. Aggregate demand serve requirement
B. National demand B. increasing the reserve requirement,
C. Gross national product decreasing the discount rate
D. Economy-wide demand C. open market purchases, increasing

the reserve requirement
240. Which of the following is a stage of the D. open market purchases, decreasing
business cycle? the reserve requirement
A. Procession
245. Which one of the following is most likely
B. Trough to be classified as a supply-side policy?
C. Slide A. An increase in subsidies on essential
D. Valley goods
B. An increase in the government budget
241. All other things remaining the same, deficit
which of the following events would di-
rectly increase the size of the UK’s na- C. A reduction in the exchange rate
tional debt? An increase in D. A reduction in welfare benefits

246. A is a hypothetical set of consumer B. The value of a television produced last

purchases of goods and services. year but sold this year
A. Market Basket C. The sale of a previously occupied
B. Aggregate Price Level house
D. The value of a savings bond sold by the
C. Consumer Price Index (CPI)
federal government to investors this year
D. Producer Price Index (PPI)
251. Which person would be hurt the MOST by
NARAYAN CHANGDER
247. Which strictly monetary policy combina- sudden inflation?
tion would work best to slow down an
A. Pedro, who receives income from his
overheating, overproducing economy?
stock portfolio.
A. decrease the discount rate, buy trea-
B. Marie, who is retired and lives on a
sury securities
fixed income.
B. increase taxes, increase the discount
C. Jim, who works at a company that
rate
gives raises every year.
C. increase the discount rate, sell trea-
D. Sally, who has a fixed payment on a
sury securities
mortgage.
D. increase taxes, lower government
spending 252. The determination of price and the be-
haviour of individual markets are studied
248. A point outside the PPC would represent in On the other hand, topics such as
A. An efficient use of resources business cycles, unemployment and infla-
tion are studied in
B. Future output once producers become
more efficient A. macroeconomics; microeconomics
C. An inefficient use of resources B. demand; supply analysis

C. microeconomics; macroeconomics
D. A combination that cannot be achieved
due to scarcity D. none of the above
E. Full employment of resources in the 253. Bobby earns 23, 258.45 pesos per
economy month. He has a total monthly contribu-
tion or 857.50 pesos to SSS, pag-ibig, and
249. Assuming Ramen is an inferior good, a
PhilHealth. How much is his Taxable in-
decrease in income will shift the:
come?
A. supply curve for Ramen to the left
A. 3, 762.28
B. supply curve for Ramen to the right
B. 3, 726.28
C. demand curve for ramen to the right
C. 267, 811.40
D. demand curve for ramen to the left
D. 268, 811.40
E. there is no shift
254. The U.S. can produce 10 ipads or 20
250. Which of the following would be counted phones. China can produce 20 ipads or 30
in this year’s GDP? phones. Who should produce what?
A. The value of a loan taken out this year A. U.S.-ipadsChina-phones

B. U.S. phonesChina-ipads 259. Unemployment caused by by a deficiency

of total spending. The overall demand for
C. both should produce ipads
goods and services decreases.

D. they should not specialize
A. Frictional Unemployment
255. What is the relationship between price B. Structural Unemployment
and quantity of money according to trans- C. Seasonal Unemployment
action approach?
A. Direct and proportionate
260. Defined as the percentage of the total
B. Indirect and proportionate number of people in the labor force who
C. Direct and non-proportionate are unemployed
D. Indirect and non-proportionate A. Underemployment Rate
B. Inflation Rate
256. Which of the following combinations
of changes in government spending and C. CPI
taxes is necessarily expansionary? D. Aggregate Supply
A. Govt spending increase and taxes in- 261. Macroeconomics is concerned with all of
crease the following except
B. Govt spending increase and taxes de- A. the growth of real output
crease
B. the level of unemployment
C. Govt spending decrease and taxes do C. the general level of prices
not change
D. production methods and costs
D. Govt spending decrease and taxes in-
crease 262. The foreign Trade multiplier is also known
as multiplier
E. Govt spending decrease and taxes de-
crease A. Export
B. Import
257. Which of the following is studied in
Macroeconomics? C. Balance of payment
D. Substitution
A. Individual income
B. individual savings 263. Which of the following policy changes
represents a contractionary fiscal policy?
C. individual output
A. A decrease in income tax
D. general price level
B. A decrease in the budget deficit
258. An increase in the value of currency is C. An increase in government spending
called D. An increase in the rate of interest
A. appreciation
264. Bring goods or services into a country
B. depreciation from abroad for sale
C. trade surplus A. Export
D. exchange rate B. Globalization

C. International trade of the following will they MOST LIKELY

D. Import due?
A. lower the discount rate
265. Lotteries, markets, barter, rationing, and
redistribution of income are all methods B. implement an “easy money” policy
commonly used to C. buy bonds
A. A allocate scarce resources. D. raise the reserve requirement for
banks
NARAYAN CHANGDER
B. B collect taxes.
C. C improve productivity.
270. Unemployed plus employed
D. D invest in education and technology.
A. Unemployed
266. If the unemployment rate is rising and B. Unemployment Rate
GDP is falling, the fiscal policy action
that the federal government should MOST C. Labor Force
likely follow is D. Total Population
A. decreasing taxes
271. Shows the relationship between the ag-
B. decreasing spending
gregate price level and the quantity of ag-
C. decreasing the money supply gregate output supplied in the economy
D. decreasing the reserve requirement A. Aggregated Supply
267. What are the two methods economists B. Aggregated Demand
use to measure Gross Domestic Product C. Budget
(GDP)?
D. Labor force
A. The earnings and depreciation ap-
proach.
272. The total value of goods produced and
B. The receipts and payments method. services provided in a country during one
C. The income and expenditure approach. year is called
D. The nominal and the actual methods. A. Gross National Product

268. The major economic problem caused by
unemployment is the C. Consumer Price Index
A. loss of wages and salaries to house- D. Market Basket of Goods
holds
B. level of job search allowances paid by 273. The Federal Open Market Committee
the government A. combines the Board of Governors and
C. loss of economic efficiency and the the 12 Reserve Banks
waste of resources B. contains approximately 8.039 commer-
D. higher crime rate cial banks
C. ensures safety deposits
269. Due to inflation, the Federal Reserve de-
cides to decrease the money supply. Which D. none of above

274. Structural unemployment is most likely 278. Which statement is MOST LIKELY true if
to occur because of the Fed increases the reserve requirement
and the discount rate?

A. labour being temporarily unemployed
when moving between jobs. A. the economy is in a trough
B. fluctuations in the level of aggregate B. they are trying to limit inflationary
demand. pressures
C. the seasonal nature of certain occupa- C. loans are difficult to get because little
tions money is circulating
D. long-term changes in the pattern of de- D. there has been a recent increase in
mand for the products of particular indus- taxes
tries.
279. Which of the following is an example of
275. Advantage:When a producer can pro- an intermediate good?
duce more of a good/service than another
producer. A. a pair of shoes at the mall
A. Absolute B. a new car
B. Consumption C. lumber purchased to build a house
C. Hippopotamus D. a fee paid to real estate agent for sale
D. Comparative of a house
276. If the government of Sri Lanka spends 280. What do Social Security taxes pay for?
$13 million more this year than it re- A. benefits to federal workers and mili-
ceives in revenue, what can we say for tary personnel
certainty?
B. benefits to those who are unemployed
A. Sri Lanka’s revenue will grow.
C. transportation and training expenses
B. Sri Lanka will experience a budget for low-income people
deficit.
D. benefits to older citizens, surviving
C. Sri Lanka will experience a trade family members of wage earners, and
deficit. people with certain disabilities
D. Sri Lanka will experience a trade sur-
plus. 281. When people are in the process of looking
for a job after being fired or are transition-
277. If the government’s fiscal policy involves ing to a new position, this is called?
stopping high inflation, which choices
should Congress consider? A. Frictional Unemployment
A. either cut taxes or increase govern- B. Structural Unemployment

ment spending C. Cyclical Unemployment
B. either increase taxes or cut govern- D. none of above
ment spending
282. It is the rate of change of the general
C. either lower the discount rate or sell
price level
bonds
D. either raise the discount rate or buy A. Unemployment
bonds B. Output

C. Economic growth 288. If a country faces high inflation, the pur-

D. Inflation chasing power will be
A. decrease
283. Taxes that increase as income increases.
B. increase
A. Progressive
C. constant
B. Sin
D. no affected
C. Proportional
289. Which of the following will increase the
NARAYAN CHANGDER
D. Estate US trade deficit?
284. A nation’s gross domestic product (GDP): A. US firms buying technologically ad-
vanced computers from Germany
A. is always some amount less than C +
I + G +Xn. B. European citizens traveling in large
numbers to the United States
B. is the dollar value of all final output
produced by its citizens, regardless of C. A US company being hired to build a
where they are living production plant in another country
C. can be found by summing C + I + S + D. GDP in a poor French accent
Xn.
290. If the required reserve ratio is 25% and
D. is the dollar value of all final output a customer deposits $300 into her check-
produced within the borders of the nation able deposit, the money supply will if
during a specific period the banking system does NOT hold any ex-
cess reserves.
285. Changes in real GDP are used to measure
A. be unchanged
A. inflation.
B. increase by $1, 200
B. the level of employment.
C. increase by $900
C. economic growth
D. increase by $1, 000
D. the distribution of income
291. If you live on a fixed income, how will
286. When consumption increases, employ- you be affected by inflation.
ment usually
A. You are hurt because your purchasing
A. remains the same power has decreased.
B. decreases B. You are helped because your purchas-
C. increases ing power has increased.
D. enters stagflation C. You are helped because interest rates

rise.
287. GDP per capita is found by dividing a D. You are hurt because interest rates
country’s GDP by it’s rise.
A. population.
292. Macroeconomic model used to analyze
B. average birth rates. the economy’s performance
C. number of households. A. Gross Domestic Product
D. none of above B. Gross National Product

C. Net National Product videos cost $2.00 each. What is the op-
D. Output-Expenditure Model portunity cost of one video?

A. It is constant and equal to 1/2 song
293. According to the Circular Flow of Income
B. It is constant and equal to 2 songs
and Expenditures, how does income flow
from firms to households? C. It is $1.00
A. Borrowing for investment D. An increases in cost as more videos
are purchased
B. C + I + G
298. Which of the following is a monetary pol-
C. Savings
icy that might be used to reduce inflation?
D. Aggregate Income A. decreasing taxation
294. The total value of all final goods and ser- B. decreasing the discount rate
vices produced in a country in a given year. C. open market sales
A. Gross Domestic Product D. increasing government spending
B. Consumer Price Index 299. What causes demand pull inflation?
C. Inflation A. rise in price due to a decrease in sup-
D. Unemployment ply
B. a rise in price level due to an increase
295. The buying and selling of government se- in consumption
curities in order to alter the supply of
money. C. a rise in price due to an increase in the
cost of production
A. Open Market Operations
D. a decrease in price due to a decrease
B. Expansion in supply
C. Discount Rate
300. At the point at which it is currently pro-
D. Trough ducing, Britain must give up the produc-
tion of 75 hats to produce 25 additional
296. The goal of macroeconomics is sweater. The opportunity cost of produc-
A. to explain the economic changes that ing 3 hats is sweater (s).
affect a particular household, firm or mar- A. 1
ket
B. 22
B. to explain the economic changes that C. 1/3
affect many households, firms, and mar-
ket simultaneously D. 3
C. to devise policies to deal with market 301. Why is there scarcity?

failures, such as monopoly, externalities, A. Because theory dictates it.
common resources and public goods
B. Because our unlimited wants exceed
D. all of above our limited resources
297. Suppose you have a $20 iTunes gift card C. Because human wants are limited.
with which you can buy (download) songs D. Because the opportunity set deter-
or videos. Songs cost $1.00 each and mines this.

302. Farmer Joe cannot plant crops during 307. Why will government have to change
summer. In this case, he is taxes by a larger magnitude than they
A. seasonally unemployed would change spending.
B. fictionally unemployed A. Some spending leaks out of the econ-

omy through international trade
C. cyclically unemployed
B. Some portions of tax cuts are saved
D. structurally unemployed and not spent
303. Two-sectors economy involved and
NARAYAN CHANGDER
C. Government spending is too inefficient
a process
A. government; household D. Tax cuts are always superior to govern-
B. firms; government ment spending
C. government; whole world 308. Refer to Figure 2-2. When the economy
D. household; firms moves from Point A to Point B in the dia-
gram above:
304. Contractionary policy does what? A. All of the above occur.
A. Increase government spending B. the economy increases production of
B. Decrease government spending both clothing and food.
C. Decrease reserves C. the economy operates at its produc-
D. Decrease Taxes tive capacity once it reaches Point B.
D. the economy begins using its re-
305. When a government it spending more sources efficiently to produce both food
money than it is making, it is operating in and clothing.
a
A. deficit 309. Someone without a job, but looking
B. surplus A. Frictional Unemployment
C. IOU B. Structural Unemployment
D. interest C. Discouraged Workers

D. Unemployed
306. Other things staying equal, if the price of
a key resource used to produce product X 310. The central bank of the United States that
falls, the: sets policies designed to control the money
A. product supply curve of X will shift supply is called the
Right A. Federal Reserve
B. product demand curve of X will shift to B. Congressional Bank
the right C. Bank of the United States
C. product supply curve of x will shift to D. Bank of U.S. Governors
the left
D. product demand curve of x will shift to 311. Fiscal policy aims to influence the eco-
the left nomic activity through the use of
E. both supply and demand of X will in- A. money supply and interest rate.
crease B. exchange rate.

C. government spending and taxation. 316. The study of the economy as a whole and
how major sectors of the economy inter-
D. direct and indirect taxation.
act.

312. The shifting of a country’s production pos- A. Incentives
sibilities curve to the right will most likely
B. Inflation
cause
C. Unemployed
A. inflation to increase
D. Macroeconomics
B. the long-run aggregate supply curve to
shift to the right 317. What term best describes the total de-
C. net exports to decline mand for final goods and services at a
range of price levels during a stated period
D. the long-run aggregate supply curve to of time?
shift to the left
A. Aggregate Supply
313. An economics system in which economic B. Total Supply
decisions and the pricing of goods and ser-
C. Total Demand
vices are guided by the interactions of
a country’s individual citizens and busi- D. Aggregate Demand
nesses.
318. Which of the following is more likely to
A. Market Economy lead to inflation?
B. Traditional Economy A. Increased aggregate demand at full
C. Mixed Economy employment
D. Command Economy B. A rise in the exchange rate

C. A rise in unemployment
314. What happens to the production possibil-
D. Lower indirect taxation
ity curve when economic growth occurs?
A. The curve shifts to the left 319. Products that would be used in calculat-
ing GDP include
B. The curve shifts to the right
A. Toys manufactured in China at a fac-
C. The curve becomes a straight line tory owned by a U.S. company.
D. The curve does not change B. Cars manufactured in Tennessee at a
factory owned by a Japanese automobile
315. A government is planning to reduce its
company.
budget deficit by increasing taxes on to-
bacco and reducing spending on defence. C. The purchase of a U.S. Treasury Bond.
These policies are most likely to D. A social security payment to a retired
A. change the pattern of economic activ- Georgian.
ity in the long run.
320. Monetary Policy is defined as
B. increase inflation in the long run.
A. decisions of the Federal Reserve Sys-
C. increase the level of economic activity tem that determine the money supply.
in the short run.
B. taxing and spending decisions of the
D. reduce exports in the short run United States Government.

C. interaction of buyers and sellers in the 326. Activities which are purposely hidden
market place. from the view of the government in order
D. buying and selling of currency in for- to avoid taxes is known as
eign exchange markets. A. Underground Economic Activities
321. Why is real GDP more accurate than nom- B. Household Production
inal GDP? C. Economic Activities
A. It’s adjusted for price changes D. All of the options
NARAYAN CHANGDER
B. It’s adjusted for depreciation 327. If a reduction in aggregate supply is fol-
C. It includes unpaid and paid work. lowed by an increase in aggregate demand,
D. It includes unrecorded business. which of the following will definitely oc-
cur?
322. Wages in modern times, just like the A. Output will increase.
other factors of production are governed
by B. Output will decrease.
A. government regulation C. Output will not change.
B. labor laws D. The price level will increase.
C. supply and demand E. The price level will decrease.
D. glass ceiling 328. The way the government conducts taxing

and spending is called what?
323. People who are actively looking for a job
but aren’t employed A. Monetary Policy
A. Underemployed B. Economic Policy
B. Labor Force C. Expansionary Policy
C. Unemployed D. Fiscal Policy
D. CPI 329. An economist for a computer company

predicts that a rise in consumer incomes
324. It is when prices of most goods and ser- will increase the demand for consumers.
vices are rising over time This prediction assumes that:
A. Inflation A. there are many subs for computers
B. Economy B. there are many complementary goods
C. Rise of the prices for computers
D. Socialism C. there are few goods that are substi-
tutes for computers
325. What is a factor that can change in
Consumer consumption in a national econ- D. computers are normal goods
omy? E. computers are inferior goods
A. Changes in interest rates 330. The three major macroeconomic goals do
B. Changes in Expectations not include
C. Changes in Wealth A. full employment
D. All of the Above B. price level stability

C. sustained economic growth C. nominal GDP.

D. high levels of environmental quality D. GNP

331. What constitutes Fiscal Policy? 336. Real GDP divided by population size
A. Governments trying to change the A. GDP
Money Supply B. Real GDP
B. When a government tries to decide C. Real GDP per Capita
who will receive Welfare D. Nominal GDP
C. How much a government taxes and 337. Economic system that has some market
spends based elements and some level of govern-
D. How often a government holds elec- ment involvement.
tions. A. Market Economy
332. Supply Curve of Labour is backward bend- B. Mixed Economy
ing or sloping curve due to: C. Traditional Economy
A. Demand and Supply of Labour D. Command Economy
B. Bargaining power 338. What would you conclude about an econ-
C. Income and Substitution effect omy characterized by increasing gross do-
mestic product (GDP), low unemployment,
D. Wage differentials and increasing inflation?
333. The calculation of GDP would directly in- A. This economy is in a slow down.
clude B. The government needs to address the
A. the sale of a 25-year-old house. unemployment problem.
B. the income of a person who pays rent C. This economy is in the expansion
by babysitting for the homeowner’s chil- phase of a business cycle.
dren. D. The Federal Reserve should expand
C. A dinner at Applebee’s. the money supply.
D. the price of the steel used to build a 339. Which of the following are responsible
new hotel. for making fiscal policy decision?
A. The President and Congress
334. A decrease in the general level of prices
of basic commodities is called B. The Federal Reserve System
A. Inflation C. The National Council of Economic Advi-

sors
B. Deflation
D. The commerce Department
C. Stagflation
340. All of the following are excluded from
D. Disinflation GDP except
335. GDP expressed in constant, or unchang- A. non-market goods and services
ing, (adjusted for inflation) prices is called B. used goods
A. real GDP. C. environmental quality
B. price level. D. final goods and services

341. Which one is not the motive for liquidity B. Subsidies

preference? C. Scholarship
A. Transaction motive D. Salaries
B. Measurement motive
347. Money is not an income earning asset.
C. Precautionary motive
A. True
D. Speculative motive
B. False
NARAYAN CHANGDER
342. A business with one owner who has total C. Neither true nor false
control and liability is
D. Either true or false
A. Partnership
348. refers to government revenue, spending,
B. monopoly
and debt
C. corporation
A. Fractional Reserve Banking
B. Legal Reserves
343. In which part of the GDP calculation does C. Fiscal
this fit? You spend $15 at AMC to see the
D. Reserve system
latest Avengers movie.
A. Consumer spending 349. During a recession, which of the follow-
ing is likely to occur?
B. Government spending
A. an increase in real wages
C. Investment spending
B. an increase in production
D. Net exports
C. and increase in the GDP growth rate
344. GDP that is adjusted for inflation
D. an increase in the unemployment rate
A. real GDP
350. The annual expression of fiscal policy in
B. nominal GDP
the light of current economic conditions. A
C. price level statement of anticipated revenue, expen-
D. net national product diture and borrowing by the government
in a year
345. The multiplier effect shows A. fiscal policy
A. How spending is magnified in the econ- B. budget
omy
C. monetary policy
B. How much consumers can spend from
their paychecks D. crowding out effect
C. How much the government can spend 351. The belief that the economy self corrects
from their budget and gov. intervention will do more harm
D. How often the economy can survive re- than good
cessions A. fiscal policy
346. Which of the following will be included in B. classical policy

national income of India C. Keynesian policy
A. Old age pension D. Discretionary policy

352. Who initially recognised the relationship 357. Supply-Side Economic policies are de-
between changes in consumption and net signed to increase what?
investment?

A. Aggregate Supply (both short and long
A. Kurilara run)
B. J.M.Clark B. Aggregate Demand
C. T.N.Carver C. Incomes
D. J.S.Mill D. Inflation
353. Which of the following will NOT cause the 358. Equal to the sum of the employed + un-
demand for video games to change? employed
A. a change in the price of a close substi- A. Underemployed workers
tute
B. CPI
B. a change in consumer incomes
C. Market Basket
C. a change in the price of video games
D. Labor Force
D. a change in consumer tastes
E. a change in consumer preferences 359. The national debt is equal to which of the
following?
354. Which one of the following is an example
of contractionary fiscal policy? A. The value of all government bonds held
by the nation’s central bank
A. Decreasing the supply of credit
B. The value of all loans in the nation’s
B. Increasing spending on welfare bene- banking system
fits
C. The current government budget deficit
C. Reducing progressive taxation
D. The sum of all past government budget
D. Increasing the size of the budget sur- deficits and surpluses
plus
360. Exchange of goods and services in return
of goods and services is known as
to cause demand-pull inflation?
A. Cashless system
A. An increase in indirect taxation.
B. An increase in productivity. B. Digital system
C. A decrease in interest rates. C. Modern system
D. A rise in oil prices. D. Barter system
356. It is the decrease in the general level of 361. Something that makes people want to
prices of basic commodities. produce more goods and services
A. Inflation A. Incentives
B. Deflation B. Macroeconomics
C. Stagflation C. Inflation
D. Stagnation D. GDP

362. Examples of contractionary fiscal policy 367. Unlike a market economy, a command
includes which of the following (choose all economy uses
correct answers)?
A. More centralized planning in economic
A. Raise taxes on corporations decision making
B. Lower the corporate tax rate B. Consumer sovereignty to make pro-
C. Government increases spending on reduction decisions
search in Antarctica
C. Its resources more efficiently
NARAYAN CHANGDER
D. Government cuts spending on educa-
tion D. Price signals in economic decision
making
363. Macroeconomics approaches the study of
economics from the viewpoints of E. The popular vote in making resource al-
location decisions
A. individual firms
B. individual consumers 368. Europe and North America enter a period
C. government units of recovery from a recession. Other things
remaining the same, the impact on the UK
D. the entire economy economy is most likely to be
364. A general increase in prices across an A. an increase in structural unemploy-
economy. ment
B. an increase in the current account
B. Consumer Price Index deficit
C. Unemployment C. a reduction in cyclical unemployment.
D. Inflation
D. a reduction in UK economic growth.
365. What would a microeconomist most
likely study? 369. is a decrease in the rate of inflation.
A. The relationship between the size of A. Hyperinflation
the money supply and the rate of inflation.
B. Disinflation
B. The effects of aggregate consumer
debt on overall consumption spending. C. Deflation
C. The effects of an income tax reduction D. Stagflation
on the size of the national budget deficit.
D. How consumers respond to a change 370. Which agency is tasked of creating Mon-
in gasoline prices. etary policy?
366. Which part of the check is the least im- A. National Economic Development Au-
portant? thority
A. memo line B. Department of Finance
B. signature line C. Banko Sentral ng Pilipinas
C. routing numbers D. Department of Budget and Manage-
D. check number ment

371. A high MPC implies which of the follow- C. Hyperinflation

ing?
D. Price level

A. a high MPS
B. a high marginal tax rate 377. Fiscal policy is MOST influenced by
C. A equilibrium level of income near full A. Congress
employment. B. the Federal Reserve
D. a low MPS
C. the federal board of governors
372. The acceleration principle was first intro- D. businesses
duced in to economics in the year
A. 1916 378. Unemployment caused by workers who
B. 1917 are “between jobs”
C. 1918 A. unemployment rate

D. 1919 B. frictional unemployment
373. occurs when a government deficit C. structural unemployment

drives up the interest rate and leads to re- D. cyclical unemployment
duced investment spending.
A. Crowding Out 379. Housing is a normal good. If average
salary increases, what can we expect to
B. Rate of Return
happen in the housing market?
C. Loanable Funds Market
A. rightward shift in supply
D. Fisher Effect
B. leftward shift in supply
374. Inflation is measured by
C. rightward shift in demand
A. Consumer Price Index (CPI).
D. leftward shift in demand
B. Gross National Product (GNP).
C. Gross Domestic Product (GDP). 380. What is inflation?
D. Securities & Exchange Commission A. rise in all prices
(SEC).
B. rise in most prices
375. Which of the following formulas is used C. rise in some prices
to compute for GDP using the income
method? D. rise in general prices
A. C+I+G+X-M
381. Permanent spending or taxation laws en-
B. PI+CI+GI+IBT-S+D acted to work counter cyclically to stabi-
C. AG+IN+SE lize the economy
D. PI+CI+GI+NFIA-S+D A. Keynesian policy
376. An increase in the general price level B. classical policy

A. Deflation C. non discretionary fiscal policy
B. Inflation D. Discretionary policy

382. What is the difference between a fixed 387. A positive impact on consumption could
rate exchange system and a floating rate be due to (select several options)
system? A. better expectations about future eco-
A. Government sets rate vs market sets nomic growth
rate B. lower interest rates
B. Doesn’t exist vs does exist C. higher income
C. Never changing vs always changing D. higher unemployment
NARAYAN CHANGDER
D. Currency never appreciates vs can ap- E. higher minimum wage
preciate
388. Which of the following does NOT shift the
383. The belief that the government should ac- AD curve?
tively manipulate the economy to reach
A. Government Spending
full employment
B. Investment Spending
A. fiscal policy
C. Long run aggregate supply
B. classical policy
D. Net Exports
C. Keynesian policy
D. Discretionary policy 389. Americans revive their love of SUV’s and
the newly remodeled, but still “gas guz-
384. George is moving to New York and, as a zling” Hummer. What happens to the mar-
result, has no job. This is an example of ket for gasoline?
A. Demand for gasoline will decrease
A. cyclical unemployment
B. Demand for gasoline will increase
B. frictional unemployment C. Supply for gasoline will decrease
C. structural unemployment D. Supply for gasoline will decrease
D. seasonal unemployment
390. Equilibrium in macroeconomics refers to
385. What is the simple spending multiplier
formula? A. total value of output being produced
A. 1/MPS more than total value of expenditure.
B. 1/MPC B. aggregate supply being greater than
aggregate demand
C. MPC+MPS
C. aggregate demand being greater than
D. MPC/MPS
aggregate supply
386. Which of the economic systems listed D. aggregate demand being equal to ag-
below involves government ownership of gregate supply
the factors of production?
391. Unemployment that rises during eco-
A. Command Economy
nomic downturns and falls when the econ-
B. Market Economy omy improves.
C. Traditional Economy A. Seasonal Unemployment
D. All of the Above B. Structural Unemployment

C. Frictional Unemployment 397. Which one of the following is not part of

the role of the Monetary Policy Committee
of the Bank of England?

392. A business owned and managed by a sin- A. Achieving the target rate of inflation
gle individual. B. Changing Bank Rate
A. Partnership C. Reviewing various pieces of macroeco-
B. Corporation nomic data
C. Sole Proprietorship D. Setting the target rate for inflation
D. Limited Partnership 398. An economic system in which the means

of production and distribution are pri-
393. How many main functions of money? vately or corporately owned and devel-
A. 1 oped.
A. command economy
B. 2
B. capitalism
C. 3
C. traditional economy
D. 4
D. none of above
394. The multiplier is useful in determining:
399. The Lowest point in the business cycle
A. the full employment rate
A. Peak
B. level of business inventories B. Trough
C. rate of inflation C. Expansion
D. change in GDP resulting from a change D. Contraction
in spending
400. Deflation in the domestic economy is
395. Comparing real GDP between two consec- most likely to
utive years is MOST useful in determining A. cause consumers to delay their pur-
which economic measurement? chases of consumer durables
A. equilibrium price B. lead to a rise in interest rates for both
B. equity borrowers and lenders
C. economic growth C. lead to a rise in both exports and im-

ports
D. exchange rates
D. reduce the real value of any money
396. When the economy is working properly, that has been lent.
and there is FULL EMPLOYMENT, what is 401. The total value of all final goods and ser-
the unemployment rate? vices is called the
A. 0 to 3 percent A. gross domestic product
B. 4 to 6 percent B. consumer price index
C. 8 to 10 percent C. business cycle
D. 10 to 12 percent D. net export

402. Type of unemployment that occurs as a C. Increase by 50%

result of harvest schedules, vacations, or D. Decrease by 50%
when industries make seasonal shifts in
their production schedules. 407. All other things being equal, a large in-
A. Seasonal Unemployment crease in interest rates in the UK is most
likely to
B. Structural Unemployment
A. decrease the size of the government
C. Frictional Uneployment
budget deficit.
NARAYAN CHANGDER
D. Cyclical Unmeployment
B. increase aggregate investment.
403. The equilibrium aggregate price level and C. lead to an increase in bank lending.
level of aggregate output occur when
D. decrease house prices.
A. The aggregate demand and aggregate
supply curve intersect 408. Which of the following does Economics
primarily study?
B. Real domestic output is at its maxi-
mum level A. how scarcity can be eliminated
C. There is full employment B. how firms manipulate prices
D. The exports are equal to import C. how government influences resource
allocation decisions
404. Are short-run contractions and expan-
sions of economic activity. D. the problem of scarce resources rela-
tive to human wants
A. Business cycles
B. Macroeconomics 409. During which phase of the business cy-
cle is production the lowest and unemploy-
C. Long-Run economic growth ment the highest?
D. Gross Domestic Product A. Peak
405. Which one of the following is a correct B. Trough
statement?
C. Expansion
A. Fiscal policy can be used to affect the
D. Contraction
pattern of economic activity
B. The Bank of England is responsible for 410. The government is concerned that eco-
fiscal policy nomic growth is too high, unsustainable,
and inflation is resulting. What might be
C. Fiscal policy is only used to affect the
done to stop this?
demand side of the economy.
A. increasing taxation
D. The government uses fiscal policy to
control the exchange rate. B. open market sales
C. decreasing taxation
406. According to cash balance Approach if M
(Quantity of money) increase by 50% then D. increasing government spending
P (Price)
411. Shows the relationship between the ag-
A. Increase by 100% gregate price level and the quantity of ag-
B. Decrease by 100% gregate output demanded by households,

business, the government, and the rest of B. A business hiring 10, 000 workers at a
the world factory

A. Aggregate Supply C. A truck for a delivery company
B. Aggregate Demand D. An oven for a family of four
C. CPI E. An increase in construction jobs
D. GDP 417. A representative collection of goods and
412. What is the “full employment” rate of services used to calculate the Consumer
the United States? Price Index (CPI) is called
A. 4-6 percent A. the market basket.
B. 2-3 percent B. the price index.
C. 10 percent C. a census.
D. 8-10 percent D. intermediate goods.
413. What is the equation of fisher? 418. The way the government conducts spend-
ing and taxation is called
A. MV=PT
A. monetary policy
B. N=PK
B. economic policy
C. M=PKR
C. free enterprise policy
D. MT=PV
D. fiscal policy
414. If the government takes an expansionary
fiscal policy, where it kickstarts the econ- 419. A market structure where a few busi-
omy to fight off recession, they might nesses control the selling of a product
A. eliminate taxation and spending A. monopoly
B. increase spending and taxation B. oligopoly
C. increase taxation and decrease spend- C. pure or perfect competition

ing D. monopolistic
D. increase spending and decrease taxa- 420. It says that the goverment can take ac-
tion tions to alleviate unemployment
415. Consumers spending $120 from a wage A. Positive analysis
increase of $200 implies: B. Normative analysis
A. an MPS of 0.8 and a multiplier of 5 C. Keynesian approach
B. an MPS of 0.4 and a multiplier of 2.5 D. Socialism
C. an MPS of 0.6 and a multiplier of 2
421. The law of supply states
D. an MPS of 0.4 and a multiplier of 3.5
A. the higher the price, the less produc-
416. Which of the following is the best exam- ers will make
ple of physical capital? B. the higher the price, the more produc-
A. A $100, 000 business loan from a bank ers will make

C. the lower the price, the more con- B. monopolistic

sumers will buy C. oligopoly
D. the higher the price, the more con-
D. pure or perfect competition
sumers will buy
422. Which component of the Federal Reserve 427. What is the equation of pigou?
system holds the most power in regards A. MV=PT
to day to day monetary policy?
B. M=PKR
NARAYAN CHANGDER
A. The Federal Open Market Committee
C. MT=PV
B. The Board of governors
D. K=PMR
C. Congress and the President
D. The 12 District banks 428. Which of the following scenarios show
frictional unemployment?
423. The theory of negotiated wages is based A. John got laid-off from work since the
on the company is not making enough money.
A. idea that wages are influenced by a la-
B. Jeff cannot find work since most blue
bor union negotiating with management
collar jobs are already filled.
for better pay and benefits
C. Ramon quit his jobs to move to Canada
B. the equilibrium wage created by sup-
for a better job offer.
ply of labor and demand of labor
C. concept the more skills and talents you D. Alberto works as a call center agent af-
have the higher your pay should be ter graduating nursing
D. principle of physical capital and re- 429. Government spending in excess of taxa-
source accumulation tion revenue is commonly known as a
424. Which of the following is not concerned A. trade deficit
with Macroeconomics? B. budget deficit
A. National Income Accounting C. balance of payments deficit
B. Inflation D. current account deficit
C. International Trade
430. What is the definition for “Aggregate
D. Individual Firm
Supply? ”
425. How much is MPS in an economy when A. How many agricultural products farm-
MPC is .8? ers in a nation provide.
A. .2 B. The total amount of products that all
B. 3 customers in a nation demand put to-
gether.
C. 1.6
D. .8 C. The number of aggregates that a na-
tion has left.
426. A market structure where one business D. The total amount of goods and ser-
controls the selling of a product vices that all businesses in a nation will
A. monopoly produce at every given price level.

431. The goals of monetary policy include 436. GDP adjusted to remove the distortion of
(more than one answer-pick all correct an- inflation
swers for credit):

A. Price index
A. regulating the amount of money circu- B. Real GDP
lating in the economy
B. Keep inflation high
D. Market basket
C. Keep inflation low
D. Keep unemployment low 437. Monetary policy MOST affects
E. Raise the unemployment levels A. the amount of taxes citizens pay.

B. the amount of money government
432. What happens to the money circulation, spends
when the FED orders a tight money pol-
icy? C. the price of stock in sole proprietor-
ships
A. more money is put out into circulation
D. interest rates on loans
B. less money is put into circulation
438. On a micro graph, which of the following
C. circulation stays the same
might cause demand to increase?
D. interest rates rise
A. A decrease in the price of a comple-
433. Estimate of its total spending and total mentary good
revenue B. increase in sales and income taxes on
A. Budget consumers
B. Budget Surplus C. a decline in the popularity of a product
C. Budget Deficit D. A random increase in the price of the

product
D. CPI
439. The central bank in the USA that regu-
434. Who is most likely to be hurt by infla- lates the monetary system
tion?
A. The FED
A. someone who borrowed money
B. FDIC
B. a pensioner on a fixed income
C. The IRS
C. a business owner
D. Social Security
D. the U.K. government
440. Based on the data presented sourced
435. Which type of economists believe that from the World Bank, the GDP in the Philip-
the economy is self correcting and does not pines was worth how much in 2019? (in
need government intervention? US dollars)
A. Keynesian economists (Keynes) A. 261.92 Billion
B. Monetarist economists B. 297.48 Billion
C. Supply-side economists C. 297.48 Billion
D. Classical economists (Hayek) D. 376.80 Billion

441. Prices at which currencies are traded is 446. What can cause a production possibilities
called curve to move to the right?
A. Exchange Currency A. thousands of people move out of the
country
B. Exchange Rate
B. a drought destroys many crops
C. Foreign Exchange Market
C. new technology
D. Local Currency Demand
D. the population is growing increasingly
NARAYAN CHANGDER
442. What is the formula for GDP? old
A. C + I + G + (X-M) 447. Real wages can be expressed as:

B. C + I + G / (X-M) A. Money Wages/ Index of Price Level
C. C + I + G + (population) B. Index of Price level/ Money Wage

C. Price Level/ Money Wage
D. C + I + G + (Reserve Ratio)
D. Money Wage/ Price level
443. Marginal propensity to save (MPS)
448. When we have to give up one thing, in
A. Plus the MPC = Nation income order to choose another thing
B. Minus national income = consumption A. opportunity cost
C. Plus intended investment = one B. diversity
D. Plus the MPC = one C. capital
D. income
444. GDP = C + I + G + (X-M) In this model,
the “(X-M)” represents the 449. If CPI goes from 100 to 300 and your
A. Total of the dollar value of goods sent salary goes from $100, 000 to $200,
abroad and goods purchased from abroad 000, what happened to your purchasing
power?
B. Difference between the dollar value of
A. Increase
goods sent abroad and goods purchased
from abroad B. Decrease
C. Total investments in the United States C. No change
by foreign nationals D. none of above
D. Total investments in other nations by 450. Index of prices received by domestic pro-
US citizens ducers for their output
445. The measure of a country’s total produc- A. Price index
tion of final goods and services in a given B. Real GDP
period of time is called
A. Gross National Product D. Producer price index
451. An indication of the expansion of the
C. Exports economy’s total output.
D. Imports A. Output

B. Inflation C. Raising interest rates

C. Deflation D. Selling bonds to investors

D. Economic Growth 457. Which of these following example can be
counted in GDP?
452. Point in the business cycle when real GDP
stops decreasing A. Your grandmother wins $10 million in
the lottery
A. business cycles
B. Company A takeover by purchasing all
B. business fluctuations the assets of Company B
C. peak C. Buy mozzarella cheese to store it as
D. trough restaurant’s inventory
D. You buy a used copy of this textbook
453. How many function of primary function
of money? 458. The concept of employment multiplier as
A. 1 introduced by
A. Kaldor
B. 2
B. Hicks
C. 3
C. Keynes
D. 4
D. R.F. Kahn
454. GDP is the total value of goods and ser-
459. The purchase of US government bonds
vices
by Japanese investors will be included in
A. produced all over the world Japan’s
B. produced in one month A. current account
C. produced within a nation’s borders B. financial account (formerly called cap-
D. produced by a singl company ital account)
C. trade deficit
455. If a French firm buys computers from the
D. imports
US, there would be an increase in which of
the following in the foreign exchange mar- 460. An increase in which of the following is
ket? consistent with an outward shift in the
A. Demand for US dollars and supply of production possibilities curve?
euros A. Aggregate demand
B. Demand for both US dollars and Euros B. Income tax rates
C. Supply of US dollars and demand for C. Long-run aggregate supply
euros D. Exports
D. Supply of both US dollars and euros 461. Holistic and psychology based approach
456. Which of the following scenarios would to measure social welfare is
cause the nation’s money supply to in- A. HDI
crease? B. GDP
A. Decreasing government spending C. SPI
B. Lowering interest rates D. GNHI

462. Macroeconomics theory studies the fol- A. Monetarist Theory

lowing EXCEPT B. Polulist Theory
A. How to determine international trade C. Marxist Theory
activities
D. Keynesian Theory
B. How to determine the unemployment
and inflation rate 467. Typical basket of of goods and services
C. How to determine the equilibrium in- A. Aggregate Supply
NARAYAN CHANGDER
come in an economy
B. Expansionary Fiscal Policy
D. How to determine type and quality of
C. Market Basket
goods to produce
D. Budget
463. Taxing & spending to help the economy
grow is referred to as 468. According to Subsistence theory, Wages
will with increase in population.
A. expansionary policy
A. increase
B. monetary policy
B. decrease
C. contractionary policy
C. equal
D. budget deficit
D. none
464. If the Federal Reserve is using an expan-
sionary monetary policy, where it is trying 469. A rightward shift in the aggregate de-
to increase the money supply it would do mand curve with a horizontal aggregate
all of the following except supply curve will cause employment and
the price level to change in which of the
A. decrease discount rate following ways?
B. buy bonds on the open market A. Increase Employment; Increase Price
C. increase reserve requirement Level
D. decrease interest payments on re- B. Increase Employment; No Change to
serves Price Level
465. GDP, CPI, and the unemployment rate are C. No Change to Employment, Increase
all Price Level
A. signs that the economy is peaking. D. Increase Employment; Decrease Price

Level
B. signs that the economy is in contrac-
tion. 470. All of the following might happen as a re-
C. economic indicators used to deter- sult of unanticipated inflation but
mine the state and direction of the econ- A. Borrowers using a fixed rate of inter-
omy. est will have to pay less back
D. the result of economic expansion. B. Lenders who loan at a fixed rate will
not gain as much profit
466. Which economic theory believes that Gov-
ernment spending to increase Aggregate C. lenders who lend at a variable rate will
demand is the key to having a healthy and lose potential profit
growing economy? D. Value of money will decrease

471. What do taxes collected under the Fed- 476. Monetary policy decisions are decided by:
eral Insurance Contribution Act (FICA)
A. Congress
fund?

B. Senate
A. Social Security and Medicaid
C. The Fed
B. Social Security and Medicare
D. President
C. Medicare and Medicaid
D. Medicaid and Supplemental Security 477. When the US is is making more money
Income than it is spending, it is operating in a
472. Economists teach us that countries with A. deficit

higher GDP per capita and higher stan- B. suprlus
dards of living are
C. interest
A. more productive
D. IOU
B. more peaceful
478. To promote higher economic growth, the
C. more socialist
best way is to
D. more capitalist
A. decrease government spending and in-
473. The Furlough Scheme is estimated to cost crease taxation.
the Government how much by the time it B. decrease government spending and
come to a close in the Autumn? decrease taxation.
A. £80bn C. increase government spending and de-
B. £90bn crease taxation.
C. £100bn D. increase government spending and in-
crease taxation.
D. £120bn
474. Why does the Federal Reserve require 479. Is the branch of economics that studies
banks to keep a percentage of their funds the behavior and performance of an econ-
in reserve? omy as a whole
A. to buy bonds A. Long-Run economic growth
B. to balance the budget B. Microeconomics
C. to supply cash withdrawals C. Macroeconomics

D. to ensure business investment D. GDP
475. Which phase of the business cycle would 480. An economy is currently experiencing a
be most closely associated with an eco- positive output gap. In the short run the
nomic contraction? economy is most likely to experience
A. Trough A. An increase in inflation
B. Peak B. An increase in unemployment
C. Recession C. An increased budget deficit
D. Recovery D. An increase in trend growth

481. Which of the following is the best mea- 486. Advances in technology in an economy
sure of a nation’s standard of living? are most likely to lead to
A. Real GDP per capita A. increases in long run aggregate supply
B. Nominal GDP B. increases in short run aggregate sup-
ply
C. Unemployment
C. a higher price level
D. Inflation
D. falling real GDP
NARAYAN CHANGDER
482. Supporters of Keynesian economics be-
lieve that 487. What is the relationship between a bud-
get deficit and the national debt?
A. government should be used as a tool
to increase demand for goods. A. They are the same
B. demand for goods increases when B. The national debt makes a budget
prices rise. deficit more likely
C. taxes have a strong negative influence C. A budget deficit adds to the size of the
on economic output. national debt.
D. the government should have a limited D. There is no connection between a bud-

role in regulating the economy. get deficit and the national debt.
488. Macroeconomics is concerned with the
483. Which of the following is not the area of
study of
macroeconomics:
A. how Malaysian respond to oil price
A. Unemployment rate
B. production methods and costs
B. Market structure
C. the effects of reduction of wages on
C. Inflation rate
agricultural output
D. Foreign exchange rate
D. the general price level
484. The balanced budget theorem holds 489. What is not a criterion used to measure
goods, when the tax is levied welfare in HDI?
A. . Regressive A. Education
B. Progressive B. Opportunity
C. Proportional C. Standard of living
D. Lump sum D. Health and life expectancy
485. Expansionary fiscal policy is so named be- 490. Average GDP per Capita is better known
cause it: as:
A. involves an expansion of the nation’s A. A country’s standard of living
money supply.
B. How much a country makes on aver-
B. is designed to expand real GDP. age from imports
C. necessarily expands the size of govern- C. The average amount businesses
ment. spend on the stock market
D. is aimed at achieving greater price sta- D. The average amount of investment
bility. done by citizens

491. The slope of the is determined by the C. Per Worker

relative price of the two goods, which is
D. Per Person
calculated by taking the price of one good

and dividing it by the price of the other 496. The situation of workers between jobs is
good. called
A. budget constraint
A. frictional unemployment
B. utility level
B. structural unemployment
C. opportunity set
C. cyclical unemployment
D. personal preference
D. seasonal unemployment
492. How does a budget deficit relate to the
national debt? 497. If nominal interest rates are 12% and the
A. They are the same thing. rate of inflation is 7% the real rate of in-
terest is
B. Budget deficits are more than the na-
tional debt. A. 12%
C. Budget deficits reduce the size of the B. 5%
national debt. C. 19%
D. Budget deficits create the national D. 7%
debt.
493. Monthly salary:45, 387.92Monthly 498. Your company has been bought out by
a large corporation and they lay you off.
contributions:SSS:581.30Pag-ibig fund:100.00PhilHealth:230.00How
much is the Annual Tax Due? This is an example of
A. 63, 427.86 A. cyclical unemployment

B. 63, 429.86 B. frictional unemployment
C. 63, 428.86 C. structural unemployment
D. 63, 430.86 D. seasonal unemployment
494. If a country has a comparative advantage 499. Which one is not the factor affecting sup-
over another country it is said that ply of money?
A. Country A can produce more than A. Bank credit to private sector
Country B
B. Balance of payment situation
B. Country A should not trade with Coun-
try B C. Velocity of circulation of money
C. Country A can produce at a lower op- D. Speculative purpose
portunity cost than Country B
500. What is an action of monetary policy?
D. Country A and Country B have no direct
relationship to each other A. reduce taxes
495. What does Per Capita Mean? B. changing reserve requirements

A. Per Household C. increase spending
B. Per Object D. borrow money for deficit

501. Unemployment that occurs as a result of B. Inflation and unemployment are un-
a recession or an economic downturn is avoidable.
A. frictional C. Growing populations will deplete natu-
B. structural ral resources.
C. seasonal D. Individuals and communities must
D. cyclical make choices among competing alterna-
tives.
NARAYAN CHANGDER
502. What is the simple tax multiplier for-
mula? 507. It is the ability of the peso to purchase
A. 1/MPS goods and services.
B. 1/MPC A. CPI
C. MPC+MPS B. PPP
D. MPC/MPS
C. PPI
503. A four-sector economy is called D. CPP
A. injection
B. open economy 508. A leftward shift of the supply curve for
avocados ( a normal good) might be caused
C. simple economy by:
D. closed economy
A. an improvement in avocado picking
504. Find the unemployment rate.Labor force= techniques
10, 000Employed = 4, 000
B. a decrease in the wages that must be
A. 66 % paid to avocado pickers
B. 40 % C. an increase in consumer incomes
C. 60%
D. some avocado farmers leaving the
D. 33% market
505. If the Federal Reserve is using a contrac- E. a news report stating that avocados
tionary monetary policy or where it is try- are associated with good health
ing to decrease the money supply, it would
do all of the following but 509. If a company lays off half of its employ-
A. decrease interest payments on re- ees during a recession, what can you rea-
serves sonably conclude?
B. increase discount rate A. The employees were bad at their job
C. sell bonds in the open market B. Another company wanted to higher the
D. increase reserve requirement employees
506. What does the fundamental problem of C. The company couldn’t afford to pay the
economics imply? employees
A. Governments must be relied upon to D. The employees were overqualified for
supply essential goods and services. their jobs

510. The Federal Reserve 515. It is the total market value of all the fi-
A. is made up of 12 district banks and 25 nal goods and services in a given period of
time by the country’s citizens.

branch banks.
B. is managed by a 12-member board of A. Gross National Product
directors. B. Gross Domestic Product
C. is made up of district banks that oper- C. Consumer Price Index
ate independently from one another. D. Market Basket of Goods
D. none of above
516. It is the measure of national output that
511. What is an exchange rate? adjusts GNP to account for price changes.
A. The rate at which goods are exchanged A. nominal GNP
between two countries B. potential GNP
B. The price of one nation’s currency in C. real GNP
terms of another’s D. actual GNP
C. How many US dollars you can ex-
517. Which of the following creates a shortage
change for RMB at Travelex
of products?
D. The price of goods in terms of a foreign
A. Price ceiling
currency
B. price floor
512. When discussing the “Factors of Produc-
C. equilibrium price
tion, “ economists use the term to re-
fer to the time, effort and energy people D. market price
put into production 518. Labour Productivity is best defined as
A. Entrepreneurship A. How much over time workers put in
B. Labor B. How hard people work
C. Physical Capital C. The output generated per worker
D. All of the Above D. The value of work produced
513. When the government spends more 519. An increase in which of the following
money than they take in each year is called would cause the aggregate demand curve
a ? to shift to the left?
A. Debt A. Consumer optimism
B. Deficit B. Population
C. Surplus C. Cost of resources
D. Expansionary D. income taxes
E. Net exports
514. When money is used to determine the
worth of a product, it is being used as 520. Investment is a
A. store of value A. Stock concept
B. unit of value B. Flow concept
C. medium of exchange C. Stable concept
D. consumer price index D. Nominal concept

521. The wealth effect states that higher 526. Revenue means this:
prices the purchasing power or the real A. Credit
value of the nation’s households’ wealth
and savings. B. Income
A. increase C. Taxes
B. stagnate D. Bankruptcy
C. reduce 527. if we pay tax and consume goods, but
NARAYAN CHANGDER
D. double still have money left, we keep the money
in the bank as
522. Gross National Product minus Net Na- A. Private Saving
tional Product is called
B. Public Saving
A. Net National Product
C. National Saving
D. Investment Saving
C. Indirect Tax
D. Depreciation 528. The law of explains why people
and societies rarely make all-or-nothing
523. Which theory believes that changing Ag- choices.
gregate Demand only raises prices (infla- A. Utility
tion) in the long run?
B. marginal analysis
A. Monetarist Theory
C. Consumption
B. Keynesian Theory
D. Diminishing marginal utility
C. Marxist Theory
D. Populist Theory 529. After much debate in congress, the House
and Senate finally passed a bill calling for a
524. An example of structural unemployment 1 percent tax decrease and a cut in federal
is the funding to artistic institutions. The presi-
A. decision not to hire employees without dent then signs the bill. This is an example
the needed skills of the government’s
B. shutdown of a manufacturing plant A. monetary policy

due to a world recession B. open market operations
C. decision by an employee to take a hol- C. fiscal policy
iday before looking for a new job D. tight money pollicy
D. decision by an employee to leave Aus-
tralia to seek work overseas 530. The economy hits a recession and your
employer has fired you. This is an example
525. Keynesian equation is of
A. n=pk A. Cyclical unemployment
B. n=pkr B. structural unemployment
C. MV=PT C. seasonal unemployment
D. M=PKY D. Frictional unemployment

531. Changes in technology and changes in con- 536. Which type of economic system is MOST
sumer tastes can cause likely to experience high amounts of gov-
ernment regulation and low amounts or

private ownership? D international
A. ) market
C. cyclical unemployment
B. ) command
D. seasonal unemployment C. ) traditional
532. Total market value of all final goods and D. ) international
services produced in the economy during a
537. Competition and free enterprise are most
given year
common in which type of economic sys-
A. Unemployed tem?
B. Price Level A. A traditional
C. Nominal GDP B. B market
D. GDP C. C communist
D. D planned
533. What will generally happen to the aggre-
gate demand curve when consumer confi- 538. Which of the following are considered re-
dence is too low? sources?
A. Curve shifts left A. humans
B. No change in curve B. land
C. Curve slopes up C. capital (money and equipment)
D. curve shifts right D. all of the above
534. When quantity supplied and demanded 539. What is the most liquid asset?
are equal you have A. Money
A. a surplus B. Bond
B. a shortage C. Cheque
C. a deficit D. All of the above
D. equilibrium 540. What is the function of the expansionary
phase?
535. Unemployment characterized by large
numbers of workers who have recently A. Decreasing unemployment rate
been replaced by machines or laid-off due B. increasing inflation rate
to technological improvements is consid- C. Decreasing GDP
ered to be which kind of unemployment?
D. Both A and B
A. frictional
541. A period of macroeconomic expansion or
B. structural
growth, followed by a period of contrac-
C. seasonal tion, or decline.
D. cyclical A. Business Cycle

B. Circular Flow 547. A market structure with many sellers

C. Equilibrium that compete based on changing up their
products
D. GDP
A. monopolistic
542. Income per capita is
A. GDP / Employed Population B. monopoly
B. GDP / Total Population C. pure or perfect competition
NARAYAN CHANGDER
C. GDP / Number of Cats
D. oligopoly
D. GDP / Output
543. In aggregation, all of the following are 548. An increase in personal income taxes will
true, except one. Which is it? most likely result in which of the following
changes in real GDP and the price level in
A. Composition of demand and supply in
the shortrun?
selected markets
B. Composition of demand and supply is A. Decrease Real GDP; Decrease Price
important in microeconomics issues Level
C. In economic fluctuations, markets B. Increase Real GDP; Decrease Price
move up or down together Level
D. Composition of demand and supply in
C. Decrease Real GDP; Increase Price
various markets
Level
544. A variety of policy measures used by the
D. Increase Real GDP; Increase Price
government to affect the overall perfor-
Level
mance of the economy.
A. Macroeconomics Policy
549. When making a decision, the next best
B. Microeconomics Policy alternative is called
C. Unemployment
A. The production possibilities
D. Economic Growth
B. The opportunity cost
545. According to the wage-price spiral, if a
company gives a worker a raise in pay, C. Scarcity
what must they also do?
D. The absolute advantage
A. Raise the price of their products
B. go out of business E. Efficiency
C. lower the price of their products

550. Gross Domestic Product is the measure of
D. none of above our national income and ?
546. What is GDP per capita? A. growth
A. GDP x population
B. output
B. GDP / population
C. GDP + population C. decision making
D. GDP-population D. interest

551. National deficits are different than the 556. Unemployment directly related to swings
national debt because in the business cycle

A. deficits are calculated using all previ- A. unemployment rate
ous deficits. B. frictional unemployment
B. debts are consistently repaid and C. structural unemployment
deficits can not be.
D. cyclical unemployment
C. only deficits vary from year to year.
557. Supply-side policies are aimed mainly at
D. deficits occur when expenditures ex-
ceed revenues for 1 fiscal year. A. improving the underlying trend rate of
economic growth.
552. Which of the following groups suffer B. dealing with short-term supply-side
from high inflation shocks to the economy
A. Borrowers C. combating cyclical unemployment.
B. Lenders D. reducing the government’s budget
deficit.
C. Taxpayers
D. Property Investors 558. An example of Macroeconomics is
A. GE’s pricing policy
553. Odd one out
B. Samsung’s employment rate
A. Net Exports
C. Inflation in the Philippines
B. Consumption
C. Resource prices
559. Suppose that in an economy with lump-
D. Investment sum taxes and no international trade, au-
tonomous investment spending increases
554. Reduces aggregate demand (a decrease
by $2 million. If the marginal propensity
in government purchases of goods and ser-
to consume is 0.75, equilibrium gross do-
vices, an increase in taxes, a decrease in
mestic product will change by a maximum
government transfers)
of
A. Expansionary Fiscal Policy
A. $0.5 million
B. Contractionary Fiscal Policy B. $1.5 million
C. Discretionary Fiscal Policy C. $2.0 million
D. Budget D. $8.0 million
555. What is an increase in nation’s total out- E. $15.0 million

put of goods and services over time, par- 560. Which economic approach talk about the
ticularly from one year to the next. invisible hand?
A. Economic expansion A. Normative analysis
B. Economic Growth B. The Keynesian Approach
C. Productivity C. The Classical Approach
D. Economic dynamism D. The Unified Approach

561. If an economy experiences a dramatic 566. Technical inconsistency is one of the limi-
rise in prices, which fiscal policy action tation of
could be taken?
A. Pigou’s equation
A. Selling securities on the open market
B. Equation of exchange
B. Raising interest rates
C. Keynes’ equation
C. Reducing government spending
D. Modern Approach
D. Raising reserve requirements
NARAYAN CHANGDER
567. The continuing increase of the general
562. An example of expansionary is what? price level in the market is called
(Multiple answers-must pick all to receive
credit) A. Inflation
A. Decrease taxes B. Deflation
B. Raise taxes C. Stagflation
C. Government spends more on Science D. Recession

research
568. Which of the following is primarily re-
D. Government cuts organizations like sponsible for the control of the money sup-
the National Science Foundation ply?
563. According to the short-run Phillips curve, A. the United States Treasury
lower inflation rates are associated with B. The Federal Reserve System
A. higher unemployment rates C. the Federal Deposit Insurance Corpo-
B. higher government spending ration
C. larger budget deficits D. the Comptroller of the Currency
D. greater labor-force participation rates 569. Most choices involve , which involves
564. What type of GDP is calculated with the comparing the benefits and costs of choos-
current year’s prices? ing a little more or a little less of a good.
A. Nominal GDP A. Utility
B. Real GDP B. the budget constraint
C. GDP per capita C. Consumption

D. none of above D. marginal analysis
565. Unemployment is high and GDP is declin- 570. Philosophers draw a distinction between
ing. To improve conditions, the govern- positive statements, which describe the
ment increases spending by $5B. If the world as it is, and , which describe how
MPC is .75, by how much will GDP rise? the world should be.
A. $5B A. Trade-Off
B. $10B B. Opportunity Cost
C. $15B C. Normative Statements
D. $20B D. Budget Constraints

571. When an economy is in equilibrium at po- 576. All of the following are sections of GDP
tential GDP, the actual unemployment rate but
is

A. Consumer spending
A. equal to the cyclical rate
B. Investment spending
B. greater than the natural rate
C. Government spending
C. less than the natural rate
D. Net Exports
D. equal to the natural rate
E. All are parts of GDP
572. In which situation might the Federal Re-
serve buy government securities or lower 577. Which of the following is one of the
its discount rate? tasks conducted by the Federal Reserve
System?
A. in a recession
A. executing fiscal policy
B. in the middle of an expansion phase
B. printing money
C. when inflation is too high
C. setting the federal government’s bud-
D. when aggregate demand is too high
get
573. A period of time when recovering from a D. making loans to commercial banks
recession?
578. The outer circle in the circular flow dia-
A. peak
gram is the flow of
B. trough
A. goods, services, and productive re-
C. expansion sources
D. trend line B. money
574. Which is the Fed MOST LIKELY to do in C. aggregate supply and demand
the event of a recession? D. price and quantity
A. Sell bonds on the open market.
579. All of the following are tools of monetary
B. Raise the reserve requirement.
policy but
C. Buy bonds on the open market.
A. reserve requirment
D. Raise the discount rate.
B. open market operations
575. Which of the following is one reason the C. interest payments on reserves
federal government collects income taxes
as a person earns? D. discount rate
A. so that people do not realize exactly E. deposit destination

how much they are paying
580. The IS schedule reflects the equilibrium of
B. so that the money can be put aside un- the market
til it is needed
A. product
C. so that the government can pay bills as
B. factor
they come due
D. so that taxpayers can qualify for re- C. money
funds of excess tax D. commodity

581. The official unemployment rate under- 586. Which is the equation for unemployment
states the unemployment level in the econ- rate
omy because the official unemployment
A. E/LF
rate
A. ignores the duration of unemployment B. U/LF
B. ignores underemployed and discour- C. (E+U)/LF

aged workers D. LF/U
NARAYAN CHANGDER
C. includes jobs created by the under-
ground economy 587. When the US$ exchange rate falls it will
D. excludes all unemployed teenagers usually
E. excludes frictionally unemployed work- A. help to reduce a US trade deficit.

ers B. increase the foreign price of US ex-
ports.
582. Which of the following is a macroeco-
nomic objective of the government? C. reduce the price of US imports.
A. Minimising economic growth D. reduce US inflation
B. High but stable budget deficit
588. The consumer price index (CPI) is an indi-
C. Stable prices
cator of which of the following?
D. Rising current account deficit
A. the size of the economy
583. If one wanted to know whether there
B. the velocity of money
had been inflation or not, the BEST mea-
sure to observe would be the C. the level of inflation or deflation
A. GDP D. the presence of a budget deficit or sur-
B. business cycle plus
C. CPI
589. Tanks and roads belong in which part of
D. national debt the GDP formula? GDP = C+I+G+(X-M)
584. A literary editor leaves her job in New A. Consumption Expenditures
York to look for a new job in San Francisco.
B. Investment Expenditures
A. Frictional
C. Government Expenditures
B. Cyclical
D. Net Imports
C. Structural
D. Not counted 590. Law of Marginal Utility:The more you
consume, the less you enjoy additional con-
585. Refer to Figure 2-1. The most inefficient sumption.
point depicted is:
A. Diminishing
A. Point A
B. Point C B. Increasing
C. Point D C. Inconsequential
D. Point G D. Coincidental

591. A two-sector economy in the circular flow 597. What is not involved in the construction
diagram is represented by of a retail price index?

A. households and the government A. a base year
B. firms and the government B. a basket of goods
C. households and firms
C. the income tax rate
D. banks and firms
D. the weighting of products
592. The relative magnitude of prices at one
point in time 598. Which of the following statements BEST
A. Deflation differentiates between the terms debt and
deficit?
B. Inflation
A. Debt and deficit are synonymous
C. Hyperinflation
B. Debt means more money is flowing out
D. Price level
than coming in, and deficit is the total
593. In which year the hyper inflation hap- amount owed
pened in Germany? C. Deficit means more money is flowing
A. 1913 out than coming in, and debt is the total
B. 1933 amount owed
C. 1929 D. Debt and deficit are completely unre-
D. 1923 lated terms
594. The largest sector of the macroeconomy 599. Which one of the following is an example
is the of a contractionary fiscal policy designed
A. investment sector to reduce inflationary pressures?
B. government sector A. An increase in the government budget

surplus
C. foreign sector
D. consumer sector B. A reduction in the supply of money
available to banks for lending purposes
595. Percent increase in the overall level of
C. Higher interest rates
prices per year
D. A reduction in the exchange rate
A. Inflation Rate
B. Aggregate Demand 600. A high marginal propensity to consume
C. Budget implies which of the following?
D. Budget Surplus A. A small change in consumption when
income changes
596. The measures the cost of the market
basket of a typical urban American family. B. A high savings rate
A. Consumer Price Index (CPI) C. A high marginal tax rate
B. Producer Price Index (PPI) D. An equilibrium level of income near full
C. Aggregate Price Level employment
D. Inflation Rate E. A low marginal propensity to save

601. Induced investment curve is 606. To make Gross Domestic Product a better
A. Vertical straight line measure of comparative living standards it
needs to be adjusted by
B. Horizontal straight line
A. deducting the effects of exports and in-
C. Downward sloping curve flation
D. Upward sloping curve B. deducting the effects of imports and
exports.
602. The government begins funding train-
C. deducting the effects of population
NARAYAN CHANGDER
ing programs to teach computer repair
and website design to unemployed adults. change and exports.
Which kind of unemployment would such D. deducting the effects of population
training help MOST? change and inflation.
A. frictional
607. The Federal Reserve has how many dis-
B. seasonal tricts
C. structural A. 6
D. cyclical B. 25
603. Economists refer to this pattern, the , C. 12
which means that as a person receives D. 10
more of a good, the additional or marginal
utility from each additional unit of the 608. What is likely to fall when the rate of
good declines. unemployment in a country falls?
A. law of diminishing marginal utility A. business confidence
B. law of trade-offs B. consumer spending
C. law of increasing marginal utility C. government budget deficit
D. production possibilities frontier D. government revenue from taxes

609. The study of the nation’s economy as a
604. Assume that the nominal interest rate is
whole is called..
10 percent. If the expected inflation rate
is 3 percent, the real interest rate is A. Microeconomics
A. 0.5% B. National economy
B. 3% C. National output
C. 7% D. Macroeconomics
D. 10% 610. GDP per capita measured by PPP is:
605. When a bank makes a loan of $1, 000, A. (U.S. dollar / country A’s currency PPP
then adjustment) / (GDP in country A’s cur-
rency)
A. the money supply increases by $1, 000
B. (GDP per capita in country A’s cur-
B. the money supply decreases by $1, rency) x(U.S. dollar / country A’s currency
000 PPP adjustment)
C. nothing C. (GDP in A’s currency) x(U.S. dollar /
D. the bank owes the FED $1, 000 country A’s currency PPP adjustment)

D. google it. 616. Which of the following would be MOST

LIKELY to increase aggregate demand?
611. United States of Fredo’s Consumption

A. increasing the discount rate
Spending is 5000, Investemnt Spending is
1000, Government Spending is 2000, and B. decreasing government spending
Net Exports is 500. What is its GDP? C. increasing consumer confidence
A. 7500 D. declining consumer confidence
B. 8000
617. Identify the consequences of in equality
C. 8500 in income
D. Not enough Information A. Social unrest
B. More opportunity
612. The long run aggregate supply curve is
vertical because C. Increase in living standards
A. Price level increases but GDP doesn’t D. Poverty
B. GDP increases but price level doesn’t 618. If the federal government is attempting
C. GDP decreases but price level doesn’t to encourage spending by consumers and
businesses, a fiscal policy BEST serving
D. Price level decreases but GDP doesn’t this purpose would be
613. Which of the following typically rises dur- A. decreasing taxes.
ing a recession? B. decreasing government spending.
A. Unemployment C. reducing the investment tax credit.
B. Average income D. balancing the budget.
C. Production 619. All of the following are types of unem-
D. Stock prices ployment but
A. cyclical
614. Which of the following might be a sign of
an economic trough? B. full
A. low unemployment C. structural
B. recession D. frictional
C. high GDP E. seasonal
D. stable CPI 620. Higher taxes tend to

A. increase consumption
615. Economic growth would most likely be
stimulated by B. increase unemployment
A. higher unemployment rates C. cause inflation
B. faster rates of technological progress D. lesson government spending
C. increases in membership of labour 621. The three major normative macroeco-

unions nomic goals do not include
D. consumption of more consumer goods A. Full employment.

B. Price level stability. 627. Measures the cost of the market basket
C. Sustained economic growth. of a typical urban American family
D. High levels of environmental quality. A. Aggregate Supply

B. GDP
622. An increase of prices lead to
C. CPI
A. a change along the AD curve to the
D. Budget
right
NARAYAN CHANGDER
B. an outward shift of the AD curve 628. The real interest rate is 10 % and the in-
flation rate is 3%. What is the nominal
C. an inward shift of the AD curve
interest rate?
D. a change along the AD curve to the left
A. 13%
623. A representative selection of goods and B. 7%
services
C. -7%
A. Price index
D. 10%
B. Real GDP
629. Which of the following issues would a
C. Consumer price index macroeconomist concentrate on?
D. Market basket A. the price of pizza
624. The IRS lays off thousands of employees B. the profits of Air Asia
every year after April 15th. This is an ex- C. The market for Proton Saga cars
ample of
D. The unemployment rate in Malaysia
A. seasonal unemployment
B. cyclical unemployment 630. The law of Demand states
C. frictional unemployment A. that the higher the price, the more pro-
ducers will make
D. structural unemployment
B. the lower the price, the less producers
625. The UK economy is most likely to be in the will make
boom phase of the economic cycle when C. the higher the price, the more con-
there is a rise in sumers will buy
A. the demand for imports. D. the lower the price, the more con-
B. the saving ratio. sumers will buy
C. spare capacity 631. Which of the following is an example of
D. business pessimism. discretionary fiscal policy?
A. Income tax payments grow
626. A positive impact on net exports could be
due to (select several options) B. Congress spends an extra $2 billion to
provide jobs
A. trade war
C. Fewer workers receive unemployment
B. appreciation of domestic currency compensation
C. higher income abroad D. More people apply for and receive wel-
D. depreciation of domestic currency fare benefits

632. Which of the following creates a surplus 637. Unemployment occurs when
of goods? A. Someone wants a job but can’t find

A. Price ceiling work
B. Price floor B. Someone is able and willing to work
but can’t find a job
C. equilibrium price
C. Someone is able to work but does not
D. market price have employment
633. Real GDP is D. Work provided is not sufficient to meet
the needs of workers
A. GDP at the current prices
B. GDP that has been adjusted for infla- 638. Which of the following is most appropri-
tion ate about GDP as a measure of welfare?
C. A measure of the total production of A. GDP is the single best measure of wel-
goods in other countries fare
B. GDP is not used to measure welfare
D. The same thing as nominal GDP
C. GDP have some limitations as a mea-
634. To be certain that a country is producing sure of welfare
more from year to year, economists look D. GDP is not at all a measure of welfare
to see that has
A. GDP; decreased 639. take the number of unemployed people in
the country divided by the number of peo-
B. GDP; increased ple in the labor force and multiplying the
C. Real GDP; decreased quotient by 100.
D. Real GDP; increased A. unemployment rate

B. unemployment growth
635. Daffa buys stock $1, 000. He has to
C. employment rate
pay $50 for broker fee. How much can
be counted in GDP? D. none of above
A. $1000 (only the stock) 640. Who “owns” most of the U.S. debt?
B. $1050 (stock + broker fee) A. American citizens
C. $0 (neither stock nor broker fee) B. India
D. $50 (only the broker fee) C. England
D. The International Monetary Fund
636. Which of the following would cause a
rightward shift in the aggregate demand 641. What measure shows what percentage
(AD) curve? of the eligible workers do not have jobs?
A. A rise in imports A. Gross Domestic Product
B. A rise in income tax B. Unemployment Rate
C. A fall in indirect tax C. Inflation Rate
D. A fall in saving D. none of above

642. The marginal benefit of a slice of pizza is B. B to E

the:
C. A to B
A. price of the slice of pizza.
D. C to F
B. difference between the value of the
slice to the consumer and the price of the 647. Unemployment describes the condition
slice. where:
C. total amount that a consumer is will- A. a person does not have a job, regard-
NARAYAN CHANGDER
ing to pay for a whole pizza, divided by the less of whether or not he or she wants one
number of slices.
B. a person cannot get a job but is willing
D. maximum amount that a consumer is to work and is actively seeking work
willing to pay for the slice.
C. equipment and machinery are going
643. Which of the following deals with unused
Macroeconomics?
D. any resource sits idle.
A. Individual income
B. Individual output 648. Unemployment that is directly related to
swings in the business cycle is
C. Individual savings
D. General price level
644. A government decided to increase its
spending on building schools and hospitals. C. cyclical unemployment
Which aim of government policy is most D. seasonal unemployment
likely to be achieved by this increase?
A. a balance of payments surplus 649. When the Fed is conducting open market
operations, they are
B. a stronger exchange rate
A. Buying or selling government bonds.
C. economic growth
B. Buying or selling factors in the factor
D. price stability
market.
645. The Federal Reserve would do which of C. Buying or selling stocks on the New
the following in order to expand the econ- York Stock Exchange.
omy?
D. Buying or selling goods in the product
A. sell bonds market.
B. raise the discount rate
C. buy bonds 650. A country is said to be experiencing infla-
tion when
D. raise the reserve requirement
A. Prices of most goods and services are
646. Refer to Figure 2-1. An economy is rising over time
operating at full employment, and then
B. Total output is falling over time
workers in the bread industry are laid off.
This change is portrayed in the movement C. Total output is rising over time
from: D. Prices of most goods and services are
A. G to F falling over time

651. Assume that the required reserve ratio B. increase by 2.1 billion
is 10 percent, banks keep no excess re- C. decrease by $4.29 billion
serves, and borrowers deposit all loans

made by banks. Suppose you have saved D. increase by $4.29 billion
$100 in cash at home and decide to de-
656. The use of taxes and government spend-
posit it in your checking account. As a re-
ing to affect the economy
sult of your deposit, the money supply can
increase by a maximum of A. Monetary Policy
A. $800 B. Fiscal Policy
B. $900 C. Contractionary Policy
C. $1, 000 D. Expansionary Policy
D. $1, 100 657. The business cycle since World War II has
E. $1, 200 been characterized by
A. extended expansions alternating with
652. In which situation would contractionary brief recessions
fiscal policy be the most appropriate pol-
icy? B. brief expansions alternating with
lengthy recessions
A. Increased budget surplus
C. uninterrupted expansion
B. Negative output gap growing
D. uninterrupted recession
C. Rising current account surplus
D. Inflationary pressure emerging 658. What is the formula to find the total
money supply?
653. If the economy is in an inflationary pe- A. M
riod, what action would fiscal policy most
likely take? B. MV
A. Decrease Taxes C. PKR
B. increase government spending D. MV/T
C. Increase taxes 659. Which of the following is an injection into

D. Decrease the discount rate the circular flow model?
A. Government taxes
654. is the branch of economies that stud-
ies the individual decision making such as B. Savings
households, firms and government. C. Imports
A. Macroeconomics D. Exports
B. Microeconomics 660. A positive impact on investments could
C. Masterconomics be due to
D. Microplan economics A. higher business confidence
655. If the MPC is .7 and gross investment B. higher interest rates

spending increase by $3 billion, GDP will C. higher taxes
A. increase by $10 billion D. none of above

661. If Jet’s disposable income increases from 666. Contractionary Fiscal Policy involves
$500 to $550 and his level of personal A. increase the money supply and in-
consumption expenditures increases from crease interest rates
$380 to $420, you may conclude that his
marginal propensity to B. increasing govt. spending and de-
crease taxes
A. consume is .8
C. decrease interest rates decrease
B. consume is .4 money supply
NARAYAN CHANGDER
C. consume is .25 D. decrease govt. spending and increase
D. save is .8 taxes
E. save is .25 667. How many Federal Reserve Districts are

there?
662. Which of the following studies the prob-
lems of economics at individual levels? A. 6
B. 9
A. Microeconomics
C. 12
B. Macroeconomics
D. 20
C. Both Micro and Macro economics
D. none of above 668. The term when govt budget deficit raising
real interest rate and decrease investment
663. Which feature would be most helpful in is called
identifying a typical developing country? A. Ricardo-barro effect
A. the level of Gross Domestic Product B. Crowding-in effect
B. the rate of rural to urban migration C. Multiplier effect
C. the size of geographical area D. Crowding-out effect
D. the size of the population
669. If the government brings in more tax rev-
enue than it spends, this will create a
664. The wage rate shall be the value of
product. A. budget surplus
A. Equal B. budget deficit
B. Less C. trade surplus
C. More D. trade deficit
D. Equal or less 670. Economic growth would most likely be

stimulated by
665. Which of the following is not a Macroe-
conomic goal? A. Higher unemployment rates.
B. Faster rates of technological progress.
A. To increase Real GDP per Capita
C. Increases in membership of labour
B. Create more jobs
unions.
C. Provide more unemployment benefits
D. Consumption of more consumer
D. Maintain stable prices goods.

671. The Board of Governors is appointed by 676. Contractionary fiscal policy would most
the likely be used during

A. vice president A. recessions
B. president B. times where economy is operating at
full employment
C. Fed
C. periods of sustained, demand pull in-
D. state governors flation
672. When calculating GDP, the purchase of a D. Anytime we have a negative GDP gap
new factory is counted as
677. Macroeconomics studies the economy
A. consumption from viewpoint of
B. government A. The firms
C. investment B. The households
D. net export C. The government
D. The entire economy
673. Which of the following are indirect
taxes? 678. A government aiming to increase aggre-
A. VAT gate demand through the use of monetary
policy might increase the
B. Corporation tax
A. rate of interest.
C. Excise Duty
B. exchange rate
D. Income tax
C. amount of money in circulation
674. The aggregate demand curve will shift to D. level of government expenditure.
the right as the result of
679. In which part of the GDP calculation does
A. an increase in corporate business this fit? You purchase the new iPhone
taxes (made abroad).
B. a decrease in the real interest rate A. Consumer spending
C. recessions in foreign nations that B. Government spending
trade with the United States, causing a
C. Investment spending
lower demand for U.S. products
D. Net exports
D. an increase in the nominal interest
rate 680. The dynamic multiplier relates to
675. Period during which real GDP declines for A. Investment

two quarters in a row, or six consecutive B. Time lag
months C. MPC
A. business cycles D. Employment
B. recession
681. Someone without a job a job who has quit
C. peak looking
D. trough A. Intermediate Goods

B. Discouraged Worker A. unemployment rate

C. Structural Unemployment B. aggregate supply
D. Seasonal Unemployment C. gross domestic product
682. Monetary Policy is the Federal Reserve D. consumer price index

Systems attempt to 687. These are IOUs from the U.S. government
A. control the amount of money in circula- to people that finance a little piece of the
tion government’s debt in exchange for a very
NARAYAN CHANGDER
B. control the Federal Government’s debt small amount of interest
C. control state governments’ spending A. Government Bonds, or Securities
D. none of these answers are correct. B. Government Credit

C. Government Cash
683. All of the following are crucial social and
economic goals for Macroeconomics but D. Government Holdings
688. Which of the following is not method of

A. Full Employment measuring National Income?
B. Price instability A. Output
C. Economic Growth B. Income
D. Price Stability C. Expenditure
684. In which part of the GDP calculation does D. None of the givern
this fit? The local taxi service purchases 689. If the economy is in a recession, the Fed
new vehicles for the company. should do what with the reserve require-
A. Consumer spending ment?
B. Government spending A. raise
C. Investment spending B. lower
D. Net exports C. all of the above ;)
685. The long run aggregate supply curve is D. none of above

also known as 690. What is a factor that can cause change in
A. structural unemployment Investment (demand for businesses spend-
B. Full-employment ing).
C. The natural rate of employment A. Changes in taxes
D. Cyclical unemployment B. Technological Change

C. Resource costs
686. A market basket represents a long list
of goods and services that the average D. Other products
household buys in a given time period. By 691. Inflation in excess of 500 percent per
dividing a market basket of goods and ser- year is called
vices from one time period by a market
basket from another time period a person A. demand-pull inflation
can calculate the B. cost-push inflation

C. stagflation B. Direct correlation between the short-

D. hyperinflation run and long-run aggregate supply

C. Direct correlation between the rate of
692. The growth of an economy is below its inflation and the unemployment rate
trend rate and it is simultaneously experi-
encing inflation and a deficit on its balance D. Inverse correlation between the short-
of trade. All other things being equal, a run and long-run aggregate supply
reduction in the rate of income tax is most
likely to lead to a decrease in the 697. A period of falling real gross domestic
product is an indicator of a(n):
A. inflation rate.
B. level of unemployment. A. peak
C. rate of economic growth. B. trough

D. balance of trade deficit. C. expansion
693. The business cycle depicts: D. recession
A. the phases a business goes through E. recovery

from when it first opens to when it finally
closes. 698. The circular flow of income for the two-
sector model shows the flow of income be-
B. the evolution of technology over time. tween and
C. short-run fluctuations in output and
A. household, government
employment.
D. fluctuations in the general price level. B. firm, government
C. government, whole world
694. The economy is in general equilibrium
when the and the sectors are in equi- D. household, firm
librium
699. An increase in which of the following will
A. financial sector
increase aggregate demand?
B. service sector
A. Taxes
C. production sector
B. Government spending
D. real sector
C. The federal funds rate
695. Which of the following is not an measure
of living standards? D. Reserve requirements
A. Average Income 700. Approximately how often does a finan-

B. Average life expectancy cial institution send a bank statement
through the mail?
C. Average years of schooling
D. Average number of holiday days A. yearly
B. weekly
696. The traditional Phillips Curve shows the:
C. quarterly
A. Inverse correlation between the rate
of inflation and the rate of unemployment D. monthly

701. Which of the following goods would be C. high levels of unemployment use up
considered scarce? I. Education II. Gold III. tax collections
Time D. interest payments on the national debt
A. I only increase from one year to the next
B. II only 706. If Congress increases government spend-
C. III only ing by the same amount it increases taxes
D. I and II only aggregate demand will
NARAYAN CHANGDER
E. I, II and III A. remain the same
B. decrease, these are both contrac-
702. Which of the following characteristics tionary
best describes a progressive income tax
system? C. increase
A. high income earners pay more in tax D. shift down

than low income earners
707. A commercial bank’s ability to create
B. as income rises, the marginal rate of money depends on which of the follow-
tax increases ing?
C. as income falls, the marginal rate of A. The existence of a central bank
tax increases
B. A fractional reserve banking system
D. highincome earners pay a lower aver-
C. Gold or silver reserves backing up the
age tax rate
currency
703. If the US dollar appreciates relative to D. A large national debt
the Canadian dollar, what is a likely out-
E. The existence of both checking ac-
come?
counts and savings accounts
A. trade surplus in US
708. Accelerator shows effect of
B. trade deficit in Canada
A. Growth rate of national income
C. trade deficit in both
B. investment on aggregate income
D. trade surplus in Canada
C. investment on consumption
704. What is NOT a consequence of expansion-
D. consumption on investment
ary fiscal policy?
A. AD shifts Right 709. Which of the following is NOT a valid ex-
change medium for factors of production?
B. Increased Price levels
A. Profit
C. increased output
D. increased unemployment B. Wages
C. Imports
705. Federal budget deficits occur when
D. Rent
A. more money is being spent on entitle-
ment programs than has been allocated 710. Which of the following is a subject matter
B. the federal government spends more of Macroeconomics?
than it collects in taxes in a given year A. Studies Employment & Unemployment

B. Determination of National Income B. allocative efficiency

C. Promotes Economic Growth & Devel- C. the production possibilities frontier

opment
D. trade-offs
D. All of the above options
716. Which of the following is NOT a conse-
711. All other things being equal, an increase quence of economic growth
in aggregate demand would result from an
increase in the A. Less employment
A. deficit in the current account of the bal- B. Pollution
ance of payments C. Increased incomes
B. household saving ratio. D. Improved living standards
C. government’s budget surplus
717. GDP is misleading because
D. ratio of household consumption to na-
tional income A. The quantity produced is not reflected
in the total amount of money made
712. Which of the following are sources of
wealth? B. The goal is to make the most money
and sometimes that does not happen
A. Salary
C. GDP is not misleading because it only
B. Dividend
counts certain goods and services
C. Pension Fund
D. none of above
D. Savings
718. When the Government spends more than
713. Which of the following will increase eco- it saves
nomic growth
A. Budget
A. An increase in unemployment
B. Budget Surplus
B. An increase in incomes
C. Budget Deficit
C. An ageing population
D. Investment in technology D. GDP
714. How many factors affecting the demand 719. An increase in labor productivity would
for money? most likely cause real gross domestic prod-
uct and the price level to change in which
A. 1 of the following ways
B. 2
A. Increase Real GDP; Increase Price
C. 3 Level
D. 4 B. Increase Real GDP; Decrease Price
Level
715. The choice on a production possibilities
set that is socially preferred, or the choice C. Decrease Real GDP; Increase Price
on an individual’s budget constraint that is Level
personally preferred, will display D. Decrease Real GDP; Decrease Price
A. Scarcity Level

720. Which of these economists believes that C. They are the same thing
in the long run, an economy can get D. none of above
“stuck” at a level below full employment
until the government takes action to raise 725. When economists estimate Gross Domes-
aggregate demand. tic Product using the income approach,
which types of income are included?
A. John Maynard Keynes
A. Profit, depreciation, and interest.
B. F.H. Hyakk
B. Wages, interest, and taxes.
NARAYAN CHANGDER
C. Milton Friedman
C. Profit, wages, interest, and land.
D. Karl Marx
D. Rent, wages, interest, and profit.
721. A business where shareholders have lim- 726. Whose opinions have revolutionised the
ited liability and majority shareholders run scope of Macroeconomics?
the business as chief officers
A. Adam Smith
A. Partnership
B. Keynes
B. sole proprietorship C. Theory of National Income
C. Corporation D. none of above
D. Pure or Perfect Market competition
727. When it comes to saving money, what is
722. Countries will export goods and services a good rule of thumb?
that they can produce at lower costs. This A. Keep most of your savings in your
is called- checking account
A. oligarchy B. Put aside money for savings each
month
B. monopoly
C. Choose the savings account with the
C. comparative advantage
lowest interest rate
D. capitalism D. Put anything you can’t afford on your
723. If the government’s fiscal policy is de- credit card
signed to expand the economy, which ac- 728. It is observed that in an economy during
tion would Congress be MOST likely to the recession phase of the economic cycle
take? there is more likely to be a rise in
A. buy government bonds A. investment
B. increase income B. consumption
C. raise the discount rate C. unemployment
D. increase government spending D. inflation
724. What is the difference between real and 729. In the circular flow of income model,
nominal GDP? which one of the following is an injection?
A. Consumer spending
A. Real GDP = adjusted for inflation;
Nominal GDP = not adjusted for inflation B. Government spending
B. Nominal GDP = adjusted for inflation; C. Imports
Real GDP = not adjusted for inflation D. Wages

730. Which of the following is not a store of 735. The consumer price index is used primar-
value? ily to measure the
A. production possibilities curve.

A. money
B. gold B. inflation rate.
C. food C. unemployment rate.
D. gems D. economic growth of a country.
731. If government borrow fund from bank 736. High levels of GDP per capita indicate
and spend for public welfare then supply A. Higher levels of happiness
of money will be B. Higher standard of living
A. Decrease C. Equal levels of wealth
B. Increase D. Self-sufficient communities
C. Constant 737. How do we measure GDP using the fac-
D. All of the above tors of production?
A. Expenditure Approach
732. Why do changing exchange rates help
one country and hurt the other? B. Nominal GDP/ Price Level Index
A. One side loses purchasing power and C. Income Approach
the other gains it D. Real GDP/ Population
B. Takes money away from one side and 738. What does Green GDP represent?
gives it to the other
A. An attempt to subtract the cost of en-
C. Causes war between the two coun- vironmental externalities from GDP
tries
B. GDP for Frogs and Frog-related prod-
D. One country’s government introduces ucts.
tariffs to protect local industries
C. GDP for Forested nations.
733. Select all features of a recession D. GDP for environmentalists
A. Increased unemployment 739. Which of the following is excluded from
B. Higher tax rates taxable income?
C. Lower interest rates A. Rent
D. Falling GDP B. Interests
C. Wages
734. If the CPI for the last three months has
been 100, 101, 104, then what DEFINITE D. 13th Month pay
conclusion can you make about the econ- 740. An increase in which of the following
omy? would cause the AD curve to shift to the
A. unemployment has decreased left?
B. GDP is improving A. Consumer optimism
C. prices have increased B. Population
D. the production possibilities curve has C. Cost of resources
shifted D. Income taxes

741. An increase in which of the following C. 5%

would cause an outward shift of the PPC D. 2%
for consumer goods and capital goods?
E. 7%
A. An increase in the demand for con-
sumer goods 746. The total value of all final goods and ser-
vices produced in the economy during a
B. An increase in taxes on consumers
given year, calculated using the prices of
C. A decrease in unemployment a selected base year
NARAYAN CHANGDER
D. An increase in the resources to pro- A. Real GDP
duce capital goods B. Nominal GDP
E. The efficient production of consumer C. Real GDP per Capita
goods
D. GDP
742. If the Federal Reserve decides to sell
747. An economy in which production, invest-
bonds, what effect will it have?
ment, prices, and incomes are determined
A. It will cause the money supply to de- centrally by a government.
crease and inflation to fall
A. Market Economy
B. It will cause the money supply to in- B. Mixed Economy
crease and employment to rise
C. Traditional Economy
C. It will guarantee higher taxes
D. Command Economy
D. It will extend stagflation
748. Which of these is NOT a monetary policy
743. What is the main function of Fiscal pol- tool?
icy?
A. Discount rate
A. Government spending and taxation to
B. Balance Accounts
stabilize the economy
C. Open Market Operation
B. Buy houses
D. Reserved Requirements
C. Take over the economy
749. Which of the following is a need?
D. Buy government bonds
A. clothes
744. How many components of supply of
B. car
money?
C. job
A. 1
D. smart phone
B. 2
750. If the demand for Wendy’s increases
C. 3
when the price of Starbucks decreases,
D. 4 then what type of goods are Wendy’s and
Starbucks?
745. If the actual unemployment rate is 7%
and the cyclical unemployment rate is 2%, A. normal
then the natural rate of unemployment is B. inferior
A. 3.5% C. substitutes
B. 9% D. complements

751. A rise in the overall price level 756. People use money to buy things and pay
A. GDP debts because they have agreed upon the
money’s worth. This function of money is

B. Market Basket called what?
C. Aggregate Supply A. Medium of exchange
D. Inflation B. unit of account
752. How does a government-funded construc- C. store of value
tion project stimulate spending? D. standard of value
A. By requiring construction workers to
buy equipment 757. GDP stands for
B. By providing construction workers A. gross domestic product
with regular income B. gross domestic problems
C. By selling leftover materials to con-
C. great domestic problems
struction workers
D. great domino product
D. By creating homes for construction
workers to rent 758. Which is the example of near money?
753. Select the three macroeconomic policy A. Cash
goals from the following list.
B. Demand deposit
A. Keep the economy growing over time
C. Bond
B. Limit unemployment
C. Keep prices stable
D. Raise unemployment 759. If the economy is operating at full em-
ployment and there is a substantial in-
E. Keep the economy shrinking over time crease in the money supply, the quantity
theory of money predicts an increase in
754. The expansion or contraction of the
money supply in order to influence the cost A. real output
and the availability of credit is B. the price level
A. Monetary Policy
C. interest rates
B. Contractionary Policy
D. unemployment
C. Fiscal Policy
D. Expansionary Policy 760. Refer to Figure 2-1. Along the produc-
tion possibilities frontier, the most effi-
755. An expansionary monetary policy will cient point of production depicted is:
lower interest rates and A. Point B
A. raise inflation. B. Point C
B. lower inflation. C. Point D
C. decrease liquidity. D. All points on the production possibili-
D. cause mortgage defaults. ties frontier are equally efficient.

761. The LRPC is vertical because 766. Macroeconomics theory studies the fol-
lowing except how
A. In the long run there is no tradeoff be-
tween inflation and unemployment A. To determine international trade activ-
ities.
B. In the long run there is no tradeoff be-
tween price level and GDP B. To determine the equilibrium income in
an economy.
C. In the long run there is no tradeoff be-
tween price and quantity demanded C. To determine the unemployment and
NARAYAN CHANGDER
inflation rate.
D. In the long run there is no tradeoff be-
tween two production options D. To determine type and quantity of
goods to produced.
762. The factories, machines, and technology
767. One explanation for the downward slope
that people use to make products to sell.
of the aggregate demand curve is that
A. capital goods when the price level increases, which of
the following will decrease?
B. human capital
A. Real value of assets
C. entrepreneurship
B. Prices of foreign goods
D. none of above
C. Prices of substitute goods
763. Which of the following situation de- D. Expectations of future prices
scribes unemployment?
E. Government deficit
A. Robert is a full-time student.
768. Which of the following would cause a left-
B. Sharon just graduated from college. ward shift of the production possibilities
C. George earns 70 pesos an hour. curve?
D. Gene works after school as a bagger A. An increase in unemployment
at a local grocery store. B. An increase in inflation
C. An increase in capital equipment
764. This happens when there is an increase in
the production of goods and services. D. A decrease in consumer demand
A. Economic Development E. A decrease in the population
B. Economic Progress 769. It is the measure of a country’s total pro-
C. Economic Growth duction of final goods and services in a
given period of time.
D. Economic efficiency
A. Gross National Product
765. System of statistics and accounts that B. Gross Domestic Product
track overall economic performance C. Exports
A. Gross Domestic Product D. Imports
B. Gross National Product
770. In a typical business cycle, what stage im-
C. Net National Product mediately follows a peak?
D. National Income Accounting A. contraction

B. expansion B. Taxes on businesses are greatly in-

C. trough creased

D. growth C. Businesses have greater amounts of
productive resources
771. Macroeconomics is a study of D. Minimum Wage has been reduced
A. individual price levels
777. What do you call an economic policy that
B. government units
is designed to influence the aggregate de-
C. the entire economy mand in order to control the economy?
D. the behavioral of individuals firms A. Spending policy
772. If real output exceeds expenditure B. National policy
A. inventories will fall C. Fiscal policy
B. inventories will rise D. Monetary policy
C. inventories will remain unchanged 778. What is the only way to increase the
D. aggregate expenditure will rise “full employment” capacity of a nation in
both Monetarist and Keynesian Long-Run
773. occurs in the economy when unem- aggregate supply theories?
ployment and inflation are both high.
A. Lower Taxes
A. Hyperinflation
B. Raise Inflation
B. Disinflation
C. Weaken the power of Unions
C. Deflation
D. Increase one or more of the four fac-
D. Stagflation
tors of production
774. Money
779. Nonsystematic upturns and downturns of
A. represents near-money real GDP
B. is backed by gold A. business cycles
C. is widely accepted for the payment of B. business fluctuations
debt
C. peak
D. consists of bill only, not coins
D. trough
775. The US dollar is an example of
780. Economists consider inflation to be a neg-
A. Commodity Money
ative event because
B. Fiat Money
A. inflation encourages consumers to buy
C. Representative Money goods made in the UK rather than imports
D. the Gold Standard B. It increases the rate of savings
776. On a micro graph, which of the following C. It means a recession is around the cor-
might cause supply to decrease? ner
A. Productive resource costs greatly de- D. It leads to uncertainty and makes in-
crease vestment more risky

781. Output-Expenditure ModelGDP = Con- 786. Whether the following items will be in-
sumer C + Investment I +? + Exports & cluded in National Income?
Imports (X-M)
A. Gains from sale of shares.
A. Demand-D
B. Dividend on shares
B. Taxes-T
C. Interest paid by one firm to another
C. Product-P
D. Gifts to a trust from Japan.
D. Government-G
NARAYAN CHANGDER
787. When you open a savings account at a
782. Inflation is defined as bank, you are using money as a
A. the growth phase of the business cy- A. store of value
cle.
B. unit of value
B. the rate of growth in nominal GDP.
C. medium of exchange
C. an increase in the overall level of
D. consumer price index
prices
D. a situation where all prices in the econ- 788. All other things being equal, which one
omy rise simultaneously. of the following is most likely to increase
an economy’s underlying trend rate of
783. What is the relationship between price growth? A rise in the rate of growth of
and value of money?
A. Positive A. inflation
B. Negative B. household income
C. Constant C. imports of consumer goods
D. None of the above D. labour productivity
784. Which branch of macroeconomics specifi- 789. Money loses its value when it
cally focuses on the problems of develop-
A. It becomes too plentiful
ing economies?
B. becomes too portabale
A. Development Economics
C. is divisible
B. Monetary Economics
D. is durable
C. Public Finance
D. Trade Cycle Theory 790. Which of the following measure of wel-
fare focuses on people and their capabil-
785. which of the following is a focus of the ities to access the development and wel-
study of macroeconomics? fare of a country?
A. inflation A. Social Progress Index
B. average cost B. Gross Domestic Product
C. individual demand C. Human Development Index
D. factor market D. Gross National Happiness Index

791. If demand for golf balls decreases when C. 12

the price of baseball gloves decreases, we D. 21
can stay that baseball gloves and golf balls

players are 796. The Phillips Curve represents the trade-
off between
A. normal goods
A. Inflation and unemployment
B. inferior goods
B. Price and quantity demanded
C. substitute goods
C. Price level and GDP
D. complementary goods
D. Two production options
E. unrelated due to the substitution ef-
fect 797. In deciding how many hours to work, Beu-
lah will make a choice that maximizes her
792. An appreciation of the United States dol- ; that is, she will choose according
lar on the foreign exchange market could to her preferences for leisure time and in-
be caused by a decrease in which of the come.
following?
A. production possibilities frontier
A. United States interest rates
B. Utility
B. The United States consumer price in- C. budget constraint
dex
D. opportunity cost
C. exports from the US
798. The multiplier operates in effectively
D. The tariff on goods imported into the
Economy
US
A. Open
793. Which economist play the role in cash bal-
B. Closed
ance Approach?
C. trade
A. Fisher
D. Business
B. Cannan
799. Expansionary fiscal policy would most
C. Kemmerer
likely be used during
D. Robertson
A. recessions
794. Nonworking people who are capable of B. times where economy is operating at
working but have given up looking for a full employment
job due to the state of the job market C. periods of sustained, demand pull in-
A. Underemployed Workers flation
B. Discouraged Workers D. periods of large positive output gaps in
C. Labor Force GDP
D. Market Basket 800. Consumers reduce spending because they

lack confidence in the economy. All else
795. number of federal reserve district being equal, what effect will this have on
banks? the price level and GDP?
A. 5 A. Both prices and real GDP will decline.
B. 10 B. Both prices and real GDP will increase.

C. Prices will increase, but real GDP will 805. if aggregate demand and real GDP are
be unaffected. slowly beginning to rise and the unemploy-
D. Prices will decrease, but real GDP will ment rate is just beginning to fall, which
be unaffected. conclusion is most likely?
A. the economy is in a recovery phase
to result in a rise in savings by house- B. the economy is facing a slowdown
holds? C. There are serious risks of high infla-
NARAYAN CHANGDER
A. Higher interest rates and higher in- tion
come tax D. Aggregate supply is sharply decreas-
B. Lower interest rates and higher in- ing
come tax 806. Which of the following is the formula to
C. Higher interest rates and lower in- calculate GNP, based on the expenditure
come tax approach?
D. Lower interest rates and lower income A. GNP = C + I + G + (X + M)
tax B. GNP = C + I + G-(M-X)
802. All of the following changes will shift the C. GNP = C + I + G + X + M
investment demand curve to the right EX- D. GNP = C + I + G + M-X
CEPT
A. a decrease in the corporate income tax 807. Full employment GDP is
rate A. output where the Natural Rate of Un-
B. an increase in the productivity of new employment is achieved
capital goods B. Output without cyclical unemployment
C. an increase in the real interest rate C. output where there is non-
D. an increase in corporate profits accelerating inflation
E. an increase in real gross domestic D. All of the above

product 808. Which of the following is an example of
803. Which of the following is not the subject fiscal policy?
matter of macroeconomics? A. Measures to boost productivity
A. National Income Accounting B. An increase in the top rate of income
B. Business cycle tax
C. Laws of demand and supply C. A cut in interest rates
D. General price level D. An additional £30bn of quantitative

easing
804. An equal initial increase in government
expenditure and taxation will 809. A price index determined by measuring
the price of a standard group of goods
A. Leave the IS curve unchanged meant to represent the market basket of
B. Only alter the slope of the IS curve a typical urban consumer.
C. . Shift the IS curve down to the left A. Gross Domestic Product
D. Shift the IS curve up to the right B. Consumer Price Index

C. Unemployment 815. Which one of the following is the best

definition of a household’s total saving?
D. Inflation

A. An injection into the circular flow of in-
810. The consumer price index is a measure of come
A. gross domestic product B. Contributions to a pension fund for re-
tirement
B. aggregate suply
C. Money placed in bank and building so-
C. aggregate demand ciety accounts
D. inflation D. That part of disposable income not
spent on consumption
811. How could the Federal Reserve encour-
age banks to lend out more of their re- 816. Type of unemployment that occurs when
serves? workers skills do not match those needed
for the jobs available.
A. reduce the interest rate
A. Seasonal Unemployment
B. raise the required amount of reserve B. Structural Unemployment
C. increase the prime rate C. Frictional Unemployment
D. reduce the money supply D. Cyclical Unemployment
812. The proportion of any change in income 817. Which of the following is the major as-
that is spent rather than saved is sumption of the classical school of eco-
nomics?
A. the multiplier
A. Lack of aggregate demand causes in-
B. income determinants voluntary unemployment
C. marginal propensity to consume B. Govt’s fiscal operations can reduce un-
employment
D. macroeconomic equilibrium
C. Unemployment & inflation can exist to-
813. What is NOT a consequence of contrac- gether
tionary fiscal policy D. Economy will be in full employment in
the long run
A. aggregate demand shifts left
B. price level increases 818. Identify all incomes
A. Shares
C. unemployment increases
B. Interest
D. output decreases
C. Profits
814. Which of the following is an example of D. Pension
transfer income
819. How many phases of trade cycle?
A. Bonus
A. 1
B. Unemployment allowance B. 2
C. Compensation of employees C. 3
D. All of above D. 4

820. Which President is on the $5 dollar Bill? C. unit of value

A. Washington D. consumer price index
B. Jackson 826. Gross National Happiness Index is devel-
C. Hamilton oped in
D. Lincoln A. India
B. Bhutan
821. Goods that last fewer than 3 years
NARAYAN CHANGDER
C. Nepal
A. Intermediate Goods
D. Oman
B. Non-Durable Goods
C. Final Goods 827. Consider the following data relating to
the price index for an economy.2012
D. Durable Goods
= 1002013 = 982014 = 1032015 =
822. Congress creates a new bill that is de- 104Which of the following statements is
signed to change AD through gov. spend- true, based on these data?
ing or taxation. A. Inflation was highest in 2015
A. Keynesian policy B. The economy experienced deflation in
B. classical policy 2013
C. non discretionary fiscal policy C. Money gained in value over the period
2012-14
D. Discretionary policy
D. All prices rose over the period 2012-14
823. When we have unlimited needs and
wants, but a limited supply of a particular 828. When the Federal Reserve buys govern-
resource ment securities on the open market, which
of the following will decrease in the short
A. deforestation run?
B. extinction A. Interest rates
C. scarcity B. Taxes
D. choice C. Investment
824. Monetary policies the Federal Reserve D. The money supply
can adopt include all of the following EX-
829. When the economy is working properly,
CEPT
and at a normal rate of growth, the unem-
A. raising the interest rate. ployment rate is usually around:
B. buying government bonds. A. 0-2 percent
C. lowering the reserve requirement. B. 2-8 percent
D. raising personal income tax rates. C. 4-6 percent
825. When you buy and sell items from a store, D. 15-20 percent
you are using money as a 830. Which one of the following indicates a
A. medium of exchange contractionary monetary policy?
B. store of value A. A fall in the budget deficit

B. A rise in the money supply 836. The long-run aggregate supply curve will
C. An increase in the national debt shift to the right when

D. Appreciation of the exchange rate A. foreign exports increase
B. government spending increases
831. Liquidity function is the function of
C. investment increases
A. Primary function
D. consumption increases
B. Secondary function
C. Contingent function 837. If fiscal policy is used to influence the
economy, this could involve changing
D. Both 1 and 2
A. the rate of interest
832. The first step to take in measuring infla-
tion is to a. B. the amount of money in circulation.
A. convert the dollar cost of representa- C. the budget deficit.

tive goods to an index value D. the balance of payments.
B. find the percentage change in the
monthly price level 838. The labour force survey measure of un-
employment is
C. select a market basket
A. Usually higher than the claimant count
D. find the average price of representa-
tive goods B. Usually lower than the claimant count
C. Fully representative of the labour
833. Price index of about 90, 000 items in 364
force
categories
D. A measure often used to make com-
A. Price index
parisons of unemployment between coun-
B. Real GDP tries
839. How much did China’s GDP change by in
D. Market basket Q1 2020?
834. a plan to reduce inflation and slow the A. Increase 1.2%
economy by the congress and president B. Decrease 6.8%
A. Contractionary Fiscal Policy C. Increase 3.2%
B. Expansionary Fiscal Policy
D. Decrease 2.9%
C. Contractionary Monetary Policy
840. What constitutes Monetary Policy
D. Expansionary Monetary Policy
A. When a government changes taxes or
835. Another name for a “flat” tax is which spending levels
of the following?
B. When a government takes action to in-
A. corporate tax crease or decrease the Money Supply
B. proportional tax C. When a government declares war on
C. progressive tax another country.
D. regressive tax D. When a government stores gold.

1.3 Statistics 168
841. A barter economy is different from a 843. Unemployment caused by lack of skills or
money economy in that a barter economy demand
A. encourages specialization and division A. Structural Unemployment
of labor B. Frictional Unemployment
B. involves higher costs for each transac- C. Seasonal Unemployment
tion
D. Discouraged Workers
C. eliminates the need for a double coin-
NARAYAN CHANGDER
cidence of wants 844. If income remains the same, while the av-
D. has only a few assets that serve as a erage price level doubles, then:
medium of exchange A. Nominal income will fall
E. promotes market exchanges B. Real income will fall
842. The general pattern that consumption of C. Nominal interest rates will fall
the first few units of any good tends to D. Purchasing power will rise
bring a higher level of to a person than
consumption of later units is a common pat- 845. The total amount of goods and services
tern. produced throughout the economy is
A. opportunity cost A. aggregate demand
B. marginal benefit B. supply shock
C. sunk cost C. quantity supplied
D. utility D. aggregate supply
1.3 Statistics
1. When data seems to be “gathered” A. Below average
around a particular value or values. B. Above average
A. Symmetry C. Average
B. Gap D. none of above
C. Cluster
4. What’s the rounding rule for the estimate
D. Peak of population proportions?
2. A right-tailed test with n = 41 has a test A. Round off to the same number of deci-
statistic t = 2.72. Which is the correct p- mal places as given for the mean
value? B. Round off to one or more decimal
A. 0.0033 place/s than the number of decimal
B. .00486 places in the raw data
C. .0096 C. 3 decimal places
D. Not enough information D. Round up to the next whole number
3. The positive standard deviations on a nor- 5. The two types of statistics are
mal distribution curve mean what? A. descriptive and informational.

1.3 Statistics 169
B. inferential and quantitative. 11. In Statistics, error refers to:

C. descriptive and cualitative A. mistakes resulting in wrong decisions

D. inferential and descriptive. B. mistakes resulting from computation
6. To determine how to vote on a bill, a sen- C. difference between two parameter val-
ator calls random constituents to ask their ues
opinion. D. difference between an observed value
A. Survey and a parameter
B. Observational Study 12. What is the mean of this set of data? 2,
C. Experiment 15, 7
D. none of above A. 24
B. 3
7. A teacher hands out an index card and
asks all of her students to write down C. 6
the following information:age, height (in D. 8
inches), and what grade they are in.Which
of the following best describes her method 13. Determine if the given sample is random
of data collection? or not random:Rachel chooses each player
on the soccer team whose last name starts
A. Census with a vowel to participate in a survey
B. Simple Random Sample about team sports
C. Cluster Random Sample A. biased sample
D. Stratified Random Sample B. unbiased sample
8. How often something occurs. C. random sample
A. Frequency D. biased population
B. Population 14. The mean of the square of first 11 natural
C. Range numbers is
D. Mean A. 26
B. 46
9. What is the mode of the following data
set:1, 1, 4, 5, 6, 7, 8, 9 C. 48
A. 1 D. 52
B. 1 and 6 15. Which question is best suited for a statis-
C. 4 tical investigation?
D. 7 and 8 A. How tall is the tallest student at Parker
Middle School?
10. The following are the three main forms of
presentation of data EXCEPT B. How tall is the shortest student at
Parker Middle School?
A. Textual presentation
C. How tall are the students at Parker
B. Data tables Middle School?
C. Diagrammatic presentation D. How tall is the oldest student at Parker
D. Organizational Charts Middle School?

1.3 Statistics 170
16. Which of the following IS an example of a C. Most of the data is in the middle (draw
statistical question? a line down the middle and both sides look
A. How many gadgets does your best- the same)
friend have? D. none of above
B. How many events has your section 21. the probability that the interval estimate
won in the school fair? contains the parameter
C. How many flavors of Milktea has my A. Critical Values
NARAYAN CHANGDER
teacher already tasted?
B. Statistics
D. How many tourist destinations has
C. Confidence Level
each of my teachers been to?
D. Estimate
17. What is the mode? 3, 12, 12, 14, 15, 4,
12, 12, 16, 16 22. A poll about favorite sports is taken from
100 seniors in a high school where the se-
A. 12
nior class has 575 students. 23% of re-
B. 16 spondents said that baseball was their fa-
C. 4 vorite sport.The “100” is the
D. none of above A. Sample Size
B. Population Size
18. An example of a quantitative discrete vari-
able would be: C. Statistic
A. how many cars are in your neigh- D. Parameter
borhood. 23. A musician wanted to see what people
B. the weight of your family mem- who bought his last album thought about
bers. the songs.Which choice best represents a
C. the temperature in Monterrey. sample?
A. Every person who bought the album.
D. the amount of liters of soda con-
sumed in a family. B. A selection of people who didn’t want
to buy the album.
19. Arrange the following in proper sequence:I.
C. 250 girls who bought the album.
CollectionII. InterpretationIII. Organiza-
tionIV. Analysis D. A selection of 3, 294 people who
bought the album.
A. I-II-III-IV
B. I-III-II-IV 24. All of the below sets have the same
mean.Set 1-Standard Deviation=3.1Set
C. I-III-IV-II
2-Standard Deviation=4.9Set 3-Standard
D. I-IV-III-II Deviation=1.7Set 4-Standard Devia-
tion=3.2Which set of data probably has
20. What does it mean for a graph of data to
the points closest to the mean?
be SYMMETRICAL?
A. 1
A. Most of the data is grouped to the left
side B. 2
B. Most of the data is grouped to the right C. 3
side D. 4

1.3 Statistics 171
25. Summarizes data using a single number. 30. Assign each car in a dealership a number
The single number is found by finding the and then use a random-number table to se-
sum of the data divided by the number of lect the cars to be inspected.

pieces of data. A. systematic
A. Median B. random sample
B. Range C. convenience
C. Mean D. biased sampling
D. Mode
31. Descriptive Statistics helps us to
26. It is the one that influences the depen- A. Organize data and represent data
dent or outcome variable but was not sep- B. Make decisions based on data
arated from the independent variable.
C. Make objective decisions
A. confounding variable
D. none of above
B. placebo
32. P be the probability of an event. P = 0.5
C. double-blinding
implies
D. treatment variable
A. the even is likely to happen.
27. How will ‘Parental activities’ be cate- B. the event is unlikely to happen.
gorised C. the event is equally likely to happen or
A. Economic activity not to happen.
B. Non-economic activity D. the expression is nonsense
C. None of these 33. consist of information coming from ob-
D. none of above servations, counts, measurements, or re-
sponses.
28. According to a random telephone survey of A. Statistics
200 adults, 75% of all working adults in
the U.S. are satisfied with their current job. B. Data
What is the population in this survey? C. Population
A. 200 adults D. Sample
B. adults in the U.S. 34. Which of the following is not the limita-
C. 75% of adults tions of statistics:
D. none of above A. Statistics can be Misused
B. Statistics does not deal with individual
29. Which one of the following is a relative
measure of Dispersion? C. statistics can study of market struc-
tures
A. Standard Deviation
D. Statistical laws are not exact
B. Variance
35. REVIEW:When a graph is symmetrical,
C. Coefficient of Variation
what would you use to describe the cen-
D. None of the above ter and spread?

1.3 Statistics 172
A. Mean and IQR C. 7

B. Median and IQR D. 8
C. Mean and Standard Deviation 40. What is the outlier of the following data:5,
D. Median and Standard Deviation 3, 4, 6, 7, 9, 19, 2, 8, 10, 5
36. Deals with the formulation of inferences A. 7.091
about conditions that exist in a population B. 6
from study of a sample drawn from a pop-
NARAYAN CHANGDER
C. 5
ulation.
D. 19
A. Statistics
E. 17
B. Descriptive statistics
C. Inferential statistics 41. A questionnaire is a list of well-planned
questions written on paper which can ei-
D. Statistician
ther be personally administered of mailed
37. The data set below has an outlier of 42.2, by the researcher to the respondents using
5, 12, 15, 19, 4, 6, 11, 16, 18, 12, 12, any of the following forms EXCEPT
42What effect does removing the outlier A. Guided-response type
have on the distribution of the data?
B. Recall type
A. The mean will decrease
C. Free response type
B. The median will decrease
D. Interview type
C. The mean will increase
D. The median will increase 42. It is the characteristic or attribute of a sam-
ple or population that changes or varies for
38. A business evaluates a proposed venture different individuals or things.
as follows. It stands to make a profit of A. Random Variable
$10, 000 with probability 3/20, to make
a profit of $5000 with probability 9/20, B. Variable
to break even with probability 5/20, and C. Statistics
lose $5000 with probability 3/20. The
D. Sample Space
expected profit in dollars is
A. 1500 43. Social security number of a worker is
B. 0 A. Ordinal Scale
C. 3000 B. Nominal Scale
D. 3250 C. Interval Scale
39. Mrs. Jones surveyed the class for the num- D. Reason Scale
ber of letters in their given first name. The 44. A recent survey found that out of 400 ran-
data is recorded below.{5, 8, 6, 5, 4, 9, 8, dom American adults, 89% pay their bills
7, 6, 3, 8, 7, 5, 6, 7, 8}What is the in- on time. The margin of error in this survey
terquartile range of the data? was 2%. What is the interval of values in
A. 2 which the truth is likely found?
B. 3 A. 89%-91%

1.3 Statistics 173
B. 87%-89% 50. The entire set of items from which data

C. 87%-91% can be selected?
A. Population

D. 388-402
B. sample
45. When p-value is greater than alpha we: C. statistics
A. Reject Ho D. data
B. Fail to reject Ha
51. Probability can be written as
C. Fail to reject Ho
A. a fraction
D. Reject Ha B. a decimal
46. The mean of a set of numbers is X . If each C. a percent
number is multiplied by z, the mean is D. all of the above
A. X + z 52. The outlier is:
B. X − z A. an outcome which lies outside of the
C. z X mean
D. X B. where a single observation does not fit
with the expected outcome
47. What is the word in statistics for any char-
C. when a sample favours a certain out-
acteristic or attribute of a person, place, or
come
thing?
D. where a single outcome is provided
A. variable
53. Population mean is denoted by
B. descriptive statistic
A. π
C. inferential statistic
B. µ
D. parameter
C. θ
48. What is a variable? D. σ
A. It is a set that groups a series of data
54. Inferential statistics makes judges or
with similar characteristics
claims from analyzing
B. It is a characteristic of an object A. a sample from a population.
C. It is a number B. a whole population.
D. It is a set that groups a series of data C. data obtained.
with diferent characteristics
D. a random sample.
49. Samples used were too small and conve- 55. In testing hypotheses, which of the follow-
nient are examples of which kind of mis- ing would be strong evidence against the
use? null hypothesis?
A. Suspect Samples A. using a small level of significance
B. Ambiguous Averages B. using a large level of significance
C. Changing the Subject C. obtaining data with a small p-value
D. Detached Statistics D. obtaining data with a low test statistic

1.3 Statistics 174
56. consists of information coming from 61. Mass of a cake.

observations, responses etc
A. qualitative
A. Sample
B. quantitative discrete
B. Data
C. quantitative continuous
C. Data set
D. none of above
D. Population
62. Put data set in order from least to great-
NARAYAN CHANGDER
57. Farmer Joe separates his farm into 10 re- est and find the middle number.
gions. He then randomly selected 5 trees
from each region to estimate the number A. Finding the Median
of apples produced on his apple tree farm. B. Finding the Mode
This is sampling.
C. Finding the Mean
A. Cluster
D. Range
B. Systematic
63. Descriptive Statistics is useful for
C. Stratified
D. Simple A. comparing the statistical events
B. comparing two different samples
58. Statistic measures and analizes
C. describing the quantitative character-
A. change over time. istics of variables
B. variability. D. none of above
C. independability.
64. Mrs. Gillihan asked each student in her
D. information. class these four questions. Which of the
59. Which measure of central tendency best following questions is statistical?
represents this set of data:3, 18, 2, 0, 1, A. How many times do you exercise each
0, 2, 1 week?
A. Mean B. How many laps around the school
B. Median track is equivalent to a mile?
C. Mode C. How many cups are in a gallon?

D. Range D. How many hershey chocolate bars
come in a package for s’mores?
60. To study the amount of time students
spend doing homework each day, use 65. A graph that displays the highest and low-
a random number generator to select est quarters of data as whiskers, the mid-
25 students from the student enrollment dle two quarters of the data as a box, and
database to survey. the median.
A. Convenience Sample A. Line Graph
B. Simple Random Sample B. Histogram
C. Stratified Random Sample C. Box Plot
D. Interval Sample D. Data

1.3 Statistics 175
66. What is the MEDIAN of a data set? 71. What do you call a number that describes
a population statistics?
A. The middle value

A. sample statistic
B. The number that occurs most fre-
quently B. parameter
C. The average C. variable

D. distribution
D. The difference between the max and
min values 72. The entire group of objects or individuals
considered for a survey.
67. A finite population is one that
A. biased sample
A. can be physically listed
B. population
B. the membership in the population is
C. random sample
unlimited
D. sample
C. ends abruptly due to a catastrophy
D. ends abruptly due to natural causes, 73. Refers to the organization of data into ta-
such as a flood or the ice age bles, graphs and charts.
A. Collection of Data
68. numerical value obtained from applying B. Collation of Data
the estimator using the sample data; can
be a value or range of values that approx- C. Presentation of Data
imate a parameter D. None of the above
A. Estimate 74. The sum of the deviations of the scores
B. Estimator from mean is always
C. Estimation A. 2
D. none of above B. 1
C. 0
69. What are characteristics that cannot be de- D. -1
fined by a number, such as shape or color?
A. descriptive statistics 75. Your age is an example of?
A. Quantitative/ numeric data
B. inferential statistics
B. Qualitative/categorical data
C. categorical variables
C. Quantitative and discrete
D. numerical variables
D. Quantitative and continuous
70. A science of collection, presentation of
76. Raw, unprocessed facts and figures are
data.
known as
A. Population A. information
B. Statistics B. knowledge
C. Analysis of Data C. data
D. none of above D. wisdom

1.3 Statistics 176
77. Statistics is concerned with ? 82. These are the three main types of obser-
A. Qualitative information vational studies.
B. Quantitative information A. cross-sectional study
C. Either a or b B. retrospective study
D. Both a and b C. experimental study

D. longitudinal study
78. the average value (statistic) deviates from
83. In statistics, it is the characteristic, prop-
NARAYAN CHANGDER
the parameter
erty or attribute that makes members of
A. Biased Estimate
a group vary.
B. Positive Bias
A. Continuous
C. Unbiased Estimate
B. Discrete
D. Negative Bias
C. Polynomic
79. What is the term in statistics for the en- D. Variable
tire collection or group of individuals being
studied? 84. Find the z-score for 62 given a mean of 30
and a standard deviation of 20.
A. population
A. 1.6
B. sample
B. -1.6
C. parameter
C. 11.6
D. statistic
D. -11.6
80. The following are uses of line graphs EX-
CEPT 85. A sample in which each individual or ob-
ject in the entire population has an equal
A. When you want to show trends. For ex-
chance of being selected.
ample, how house prices have increased
over time. A. biased sample
B. When you want to make predictions B. population
based on a data history over time. C. random sample
C. When comparing two or more differ- D. sample
ent variables, situations, and information
over a given period of time. 86. Coefficient of correlation will be always
will always be
D. When showing percentage or propor-
tional data. A. More than 0
B. More than-1
81. Identify the VARIABILITY in the following
question:What are the heights of the stu- C. More than 1
dents at Clarke Middle School? D. Between-1 and 1
A. Heights 87. Why is statistics important?
B. Students A. To solve problem
C. Clarke Middle School B. Help to investigate relationship be-
D. ages tween variables

1.3 Statistics 177
C. Help in making wise decision 93. Statistics is defined in terms of statistical

D. To provide solution/option for problem method in the

based on proper statistical study A. Singular sense
88. If a question is statistical what does it B. Plural sense

have C. Either a or b
A. data
D. Both a and b
B. data without variability
C. data with variability 94. Marianne wanted to know students’ opin-
ion on the new schedule at school. So she
D. none of above randomly selected 2 students from each
class during second period. This is a form
89. Which interval shows 68% of the data
of:
given a mean of 15 and a standard devia-
tion of 3? A. Convenience Sampling
A. 9 to 21 B. Simple Random Sampling
B. 12 to 18 C. Stratified Random Sampling
C. 6 to 24 D. Cluster Sampling
D. 13 to 16
95. It consists of the collection, organization,
90. Median means? summation, and presentation of data.
A. Most frequent A. Statistics
B. Middle number B. Probability
C. Average
C. Descriptive Statistics
D. Largest minus smallest
D. Inferential Statistics
91. Mrs. Trahan samples her class by selecting
every third person on her class list. Which 96. Variables can be classified as
type of sampling method is this? A. qualitative and quantitative.
A. Simple
B. qualitative and categorical.
B. Systematic
C. quantitative and categorical.
C. Stratified
D. none of above
D. Cluster
92. What is the mode of the following data
discrete data?
set:1, 2, 2, 2, 5, 9
A. 1 A. Average daily temperature
B. 2 B. Number of Facebook likes

C. 5 C. Number of litters of milk in a gallon
D. 9 D. Volts of electricity

1.3 Statistics 178
98. Identify the Population:Gwinnett County 103. The root mean square deviation of obser-
Public Schools randomly selected 230 vations from the arithmetic mean is
teachers to find out which technology re-
A. Quartile deviation
source is the most effective. 30 teachers
chose Safari Montage, 45 selected Learn B. Standard deviation
Zillion, 100 chose Ed Puzzle, and 55 chose
C. Mean deviation
Kahoot. GCPS concluded that all teachers
prefer Ed Puzzle. D. None of these
NARAYAN CHANGDER
A. 230 Teachers
104. What are the characteristics of a param-
B. All teachers eter?
C. 100 Teachers
A. Population is complete
D. 55 Teachers
B. Population is fixed
99. An estimator should have both and
C. Population is not fixed
A. CORRECT
D. Population is not complete
B. PRECISION
C. VALUES 105. Which economic activity deals with use of
D. ACCURACY goods and services for the satisfaction of
human wants?
E. STANDARD
A. Consumption
100. A sample is
A. a subset of a population B. Production
B. an infinite selection of a population C. Distribution
C. a characteristic of a population D. Exchange
D. a data value generated by the statisti-
cal information 106. “The average Japanese woman lives to
the age of 86.” What is the population
101. The distance between the greatest num- behind this statistic?
ber and the least number in a set of data.
A. A randomly selected group of
A. Mean Japanese women
B. Median
B. All of the women in the world
C. Range
C. All of the women in Japan
D. Mode
D. Everybody in Japan
102. What is the branch of mathematics deal-
ing with the collection, organization, anal- 107. The science of collecting, describing, and
ysis, interpretation and presentation of interpreting data.
data?
A. Statistic
A. Algebra
B. Geometry B. Sample
C. Probability C. Probability
D. Statistics D. Variable

1.3 Statistics 179
108. What would be the sample i n this exam- 113. This is the lowest level of measurement.
ple? Surveyors in a mall choose shoppers A. Nominal
to ask about products they prefer.

B. Ordinal
A. the surveyors
C. Interval
B. all shoppers in the mall
D. Ratio
C. the shoppers who were asked their
preferences 114. Identify the outlier for the given data?
D. none of above 23, 34, 27, 7, 30, 26, 28, 31, 34
A. 7
109. A scientific body of knowledge which
deals with the collection, organization, B. 23
presentation, analysis and interpretation C. 31
of data. D. 34
A. Algebra
115. What percent of data lies within 2 stan-
B. Geometry dard deviations from the mean?
C. Statistics A. 95%
D. none of above B. 99%
110. A gaming website wanted to find out C. 68%
which console its visitors owned. Which D. 100%
choice BEST represents a population?
A. Visitors with an ‘e’ in their user name. 116. Which of the following is NOT an eco-
nomic activity
B. Visitors to the 3DS section.
A. Production of books
C. Visitors over 22.
B. Investment in stocks
D. All the website visitors.
C. Donation of blood
111. Tom surveys 40 moviegoers by randomly D. Consumption of Ice creams
choosing their names. What type of sam-
pling method is this? 117. When there are no data points around
A. Random particular values.
B. Convenience A. Cluster
C. Biased B. Peak
D. Self-Selected C. Gap
D. Symmetry
112. The statistical data can be represented
by: 118. What is the upper quartile of the set of
A. Frequency bar graph data; 2, 4, 6, 6, 7, 8, 10
B. Pie graph A. 4
C. Increasing cumulative frequency poly- B. 6

gon C. 8
D. All choices D. 2

1.3 Statistics 180
119. What is the meaning of ordinary business 124. A sample chosen at random form a ran-
of life? domly chosen subgroup or subgroups.
A. Doing business in life by ordinary peo- A. random sample
ple B. systematic sample
B. Doing ordinary business by people C. stratified sample
C. Gainful employment of people in some D. none of above
economic activities
125. Variables represent
NARAYAN CHANGDER
D. Earning weath in life
A. a preference in people.
120. Which of the following statistical process B. a value we’re trying to find.
is used to generalize the results from sam-
ple to its respective population C. a characteristic we are studying.
A. Descriptive statistics D. a result we are calculating.
B. Comparative statistics 126. Marshall’s definition of Economics is also

on known as
C. Inferential statistics
A. Wealth definition
D. Predictive statistics
B. Growth definition
121. A beverage company wanted to see if
C. Material welfare definition
people in the United States liked their new
logo.Which choice best represents a popu- D. Scarcity definition
lation?
127. Mode is
A. A selection of logo artists. A. Least frequent value
B. Every person in the United States. B. Middle most value
C. A selection of shoppers from different C. Position value
shoppers from different states.
D. Most frequent value
D. 3, 800 children age 5-15
128. Which of the following are levels of mea-
122. Find the median from the given set of surement?
data.1, 2, 3, 4, 2, 3, 2, 3
A. Nominal data
A. 2.5
B. Ordinal data
B. 4 C. Interval data
C. 5 D. Quantitative data
D. 1 E. Qualitative data
123. The parameter is a number describing 129. Level of measurement where there is log-
the: ical ordering or categories.
A. population A. Nominal
B. sample B. Ordinal
C. survey C. Interval
D. percent D. Ratio

1.3 Statistics 181
130. Mark bowled 7 games last weekend. His C. 7

scores are:155, 165, 138, 172, 127, 193, D. 8
142. What is the range of Mark’s scores?

136. Find the area under the standard normal
A. 193
curve where z < 2.42 .
B. 66
A. .008
C. 127 B. .992
D. 172 C. .301
131. What is the meaning of statistics in plural D. .862
sense?
137. The term ‘Statistics’ was first used by
A. Data
A. Gottfried Achenwall
B. Statistical Methods B. Paul A. Samuelson
C. Statistical Enquiry C. Lord Robbins
D. Research D. J.B.Say
132. subjects were taken from a population 138. It refers to the process of making conclu-
with an equal numberof males and fe- sions based on the presented data.
males.
A. analysis
A. Simple Random Sample
B. interpretation
B. Sample of Convenience C. collection
C. Information D. organization
D. Systematic Sample
139. What is the branch of statistics that in-
133. A frequency distribution is a tabular sum- volves organizing, displaying and describ-
mary of data showing the ing data?
A. fraction of items in several classes. A. descriptive statistics
B. percentage of items in several B. inferential statistics
classes. C. sports statistics
C. relative percentage of items in several D. health statistics
classes.
140. Identify the Sample:A restaurant wants
D. number of items in several classes. to know if customers buy dessert when
they eat out. As people leave the restau-
134. The statistic is a number describing the:
rant one evening, 20 people are surveyed
A. population at random. Eight people say they usu-
B. sample ally order dessert when they eat out. The
restaurant concluded that most customers
C. survey
do not order dessert.
D. percent
A. 20 customers
135. What is the mean of 3, 7, 9, 8, and 13? B. All customers
A. 5 C. 8 customers
B. 6 D. Dessert

1.3 Statistics 182
141. Political webpages often allow readers C. 36

to rate whether they strongly agree, D. 12
agree, disagree, or strongly disagree with
the President’s decision on any given situ- 147. Ethnic group categories of people in a
ation. This is a form of: neighborhood.
A. Voluntary Response A. Nominal
B. Convenience Sampling B. Ordinal
NARAYAN CHANGDER
C. Stratified Random Sampling C. Interval
D. Cluster Sampling D. Ratio
142. Which type of numerical data uses only 148. Complete the definition:A is a subset
whole numbers? of a population
A. Categorical data A. sample
B. Continuous data B. sampel
C. Discrete data C. people
D. None of the above D. statistics
143. A method of collecting information about E. group
a certain group of people by asking a ques-
tion or set of questions 149. Who has defined economics as “The
study of man in the ordinary business of
A. population
life”?
B. data
A. Adam Smith
C. census
B. Alfred Marshall
D. survey
C. Lionel Robbins
144. The indices of ( value of) scatteredness D. Amartya Sen
or variability
A. Measures of Central tendency 150. If you want to perform a quality study,
you need to use the following data:
B. Coefficient of variation
A. LC = 98% Z= 1.96
C. Coefficient of correlation
B. LC = 90% Z= 1.96
D. Measure of dispersion
C. LC = 99% Z= 2.33
145. The speed of the car was 45 mph.
D. LC = 99% Z=2.575
A. Qualitative
151. Ervin bowled 7 games last weekend. His
B. Quantitative
scores are:155, 165, 138, 172, 127, 193,
C. Both 142. What is the range of Ervin’s scores?
D. Neither A. 193
146. What is the mean? B. 127
A. 9 C. 60
B. 18 D. 66

1.3 Statistics 183
152. Marcos wants to find out how many stu- C. All of these
dents at his school like to go to the movies. D. None of these
Which survey method is likely to produce

a representative survey? 157. Study the data set shown. 15, 14, 19,
A. Ask the boys in the boys locker room. 16, 22, 20, 17, 20, 29, 21, 18 Which
statement is true about this set of data?
B. Ask the 25 students in his homeroom
class. A. The range is 3
C. Ask students coming out of a movie B. The range is 20
theater. C. The median is 18.5
D. Ask half of the 34 students on the soc- D. The median is 19
cer team.
158. If the mean of five observations x, x + 2,
153. What does the standard deviation tell us
x + 4, x + 6, x + 8 is 11, then the mean
about the data set?
of first three observations is
A. How spread out the numbers are
A. 9
B. How much each number in the data set
B. 11
increases by
C. 13
C. How much each number in the data set
decreases by D. 15
D. none of above 159. Sum of data points divided by the number
154. According to , “Economics is the sci- of data points.
ence of wealth” A. Finding the Median
A. Adam Smith B. Finding the Mode
B. Alfred Marshall C. Finding the Mean
C. Prof. Samuelson D. none of above
D. lionel Robbins
160. The facts or numbers gathered in a sur-
155. a range of values where the true value vey is an example of?
will most likely fall A. sample
A. Accuracy B. data
B. Point Estimate C. census
C. Precision D. statistics
D. Interval Estimate
161. It is a variable whose values depend on
156. How does statistics help in economic plan- outcomes of a random phenomenon.
ning
A. Random Variable
A. helps to make best use of national re-
B. Discrete Variable
sources
B. helps compare development of various C. Continuous Variable
countries D. Independent Variable

1.3 Statistics 184
162. Solve to find the equivalent fraction.4/5 C. Qualitative

= x /15 D. Quantitative
A. 8/15
168. A student measures the weight of every
B. 12/15 individual in his batch. This means that he
C. 10/15 will get
D. none of above A. Sample
B. Statistics
NARAYAN CHANGDER
163. A sample in which every member of the
population has an equal chance of being se- C. Variable
lected. D. Parameter
A. random sample
169. A company consists of four members.
B. biased sample How many sample points are in the sample
C. sample space when three officers:president, vice
president, and secretary are to be cho-
D. population
sen?
164. Refers to drawing of conclusions or gen- A. 3
eralizations from the analysed data.
B. 18
A. Analysis of Data
C. 24
B. Collection of Data
D. 30
C. Interpretation of Data
170. A sample should be
D. Non Parametric
A. representative of only middle school
165. In statistics, a population consists of students only
A. All people living in country B. a very large group
B. All people living are under study C. representative of the population
C. All subjects and objects whose charac- D. representative of people who volun-
teristics are being studied teer
171. Square of standard deviation is called
166. Which of the following are parametric A. Variance
tests?
B. Mean
A. t-test
C. Quartile deviation
B. f-test D. Range
C. Anova
172. Which of the following accurately de-
D. Chi-square test scribes the power of a statistical test of
167. Variables which can assume values that hypothesis?
manifest the concept of attributes A. It is equal to the p-value.
A. Continuous B. It is equal to 1-(p-value).
B. Discrete C. It is equal to the significance level.

1.3 Statistics 185
D. It is the probability that a test using a D. Ordinal Data

fixed value of α will reject H0 when a par-
ticular alternative value of the parameter 178. The algebraic sum of the deviations of a

is true. set of n values from their mean is
A. 0
173. Disneyland often surveys its guests as
they exit a restaurant during their visit. B. n-1
The surveyor stands at the restaurant exit, C. n
counts the number of people leaving, and D. n + 1
surveys every 25th guest.This is a form
of: 179. In this study, the researcher manipulates
one of the variables and tries to deter-
A. Simple Random Sample
mine how manipulation influences other
B. Stratified Random Sample variables.
C. Voluntary Response A. observational study
D. Systematic Random Sampling B. cross-sectional study
174. Andrea got a 98, 90, and 94 on her C. longitudinal study
math quizzes. What was her average quiz D. experimental study
score?
180. Religious affiliation is an example of?
A. 92
A. Quantitative/numeric data
B. 93
B. Qualitative/categorical data
C. 94
C. Quantitative and discrete
D. 95
D. Quantitative and continuous
175. All subjects under investigation
181. Find the mean of the numbers:2, 4, 5, 5,
A. Sample
6, 8
B. Data
A. 5
C. Data set
B. 4
D. Population C. 3
176. Find the z-score for 48 given a mean of D. 2
50 and a standard deviation of 5.
182. A restaurant chain wanted to find out
A. 2.5 how the customer experience was in
B. -2.5 a store.Which choice best represents a
C. -0.4 statistic?
D. 0.4 A. The percentage of all customers that
reported a positive experience.
177. Price, weight, height and velocity are ex- B. The percentage of customers surveyed
amples of that reported a positive experience.
A. Qualitative Data C. All customers.
B. Quantitative Data D. A random selection of customers that
C. Variable Data were surveyed.

1.3 Statistics 186
183. For a data containing 15 items arranged B. Range

in ascending order, what item is the me- C. Mode
dian of the data
D. Median
A. 7th item
B. 8th item 189. You have a mean of 56 and a standard
deviation of 4.3. What is-2 standard de-
C. 6th and 7th item
viations from the mean?
D. 7th and 8th item
A. 60.3
NARAYAN CHANGDER
184. Welfare definition of Economics has been B. 47.4
given by:
C. 51.7
A. Lionel Robbins
D. 64.6
B. Adam Smith
190. Information collected by the researcher in
C. Alfred Marshall
quantitative or qualitative form are named
D. Prof. Samuelson as:
185. Inference is A. Single score
A. using a sample to make a judgement B. Raw score
about the population C. Variable
B. a form of bias D. Attributes
C. random sampling
191. What is the mean of the following data
D. a census set:1, 2, 4, 9, 9
186. Between a Population and Sample:which A. 1
size is bigger? B. 3
A. Population C. 5
B. Sample D. 15
C. Both can be the same
192. A variable that takes only whole number
D. Not enough information
as its score is known as
187. Descriptive statistics A. Continuous variable
A. use data from a sample to answer B. Intervening variable
questions about population.
C. Dependent variable
B. allow you to generalize beyond the
D. Discrete variable
data at hand.
C. summarize and describe data. 193. The sample size of poll is 107 people.
What is the approximate margin of error.
D. none of above
A. 10%
188. A particular observation which occurs
maximum number of times in a given data B. 3.1%
is called its C. 2.38%
A. Frequency D. 1%

1.3 Statistics 187
194. If you score 76, 85, 97, and 83 on your distributed, determine the z-score of a
math tests, what would your median score teenage male with a 33 inch waist.
be?

A. 2.00
A. 84 B. 1.00
B. 90 C. -2.00
C. 85 D. -1.00
D. 88
200. What is a quantitative variable that can
195. These are units of information, often nu- take on a certain number of values?
meric, recorded and used for the purpose A. categorical variable
of analysis.
B. qualitative variable
A. Questionnaire
C. discrete variable
B. Data
D. numerical variable
C. Statistics
201. The collection and classification of data
D. none of above
that are in the form of numbers.
196. Population mean or proportion The pa- A. Statistics
rameter must be identified before analy-
B. Data
sis?
C. Range
A. Population
D. Population
B. Simple
C. Parameter 202. It is a statistical instrument consisting of
a series of questions for the purpose of
D. All the above gathering information from respondents
197. A subset of the population. A. Statistical Instruments
A. Statistice B. Questionnaire
B. Sample C. Closed-Ended Questions
C. Population D. Open-Ended Questions
D. Variable 203. The collection of data from every member
of a population
198. What is the the total area under the stan-
dard normal distribution curve? A. population
A. 100 B. sample
B. 25 C. census
C. .5 D. statistics
D. 1 204. Which of the following is not a feature of

statistics in Plural sense?
199. The average waist size for teenage males
is 29 inches with a standard deviation A. Aggregate of facts
of 2 inches. If waist sizes are normally B. Analysis of data

1.3 Statistics 188
C. Affected by multiplicity of causes 209. Find the probability of rolling a 7 on a

single die.
D. Statistics are collected for a predeter-
mined purpose A. 1/6
B. 7/6
205. Define Statistics?
C. 0
A. Science of Collecting, organizing, ana-
D. 7/7
lyzing, interpreting Data
210. The frequency or occurrence of some-
NARAYAN CHANGDER
B. Science of Data
thing.
C. Collection
A. Data
D. Analyzing B. Range
206. The mean of a set of seven numbers is C. Frequency
81. If one of the numbers is discarded, the D. Distribution
mean of the remaining numbers is 78. The
value of discarded number is 211. the number of values that are free to
vary after a sample statistic has been com-
A. 101 puted
B. 100 A. Alpha
C. 99 B. Critical Values
D. 98 C. Degree of Freedon
D. Z values
207. The school librarian wants to determine
how many students use the library on 212. Where is Mr. Byer?
a regular basis. What type of sampling A. Jamaica
method would she use if she chose to ran-
domly select 20 students in the cafeteria B. Florida
during each of the three lunch periods on C. Puerto Rico
Monday. D. Alaska
A. Convenience Sample
213. Exit polls (where the surveyor asks those
B. Simple Random Sample who are leaving the poll booths on election
C. Stratified Random Sample day) are a form of:
A. Voluntary Response
D. Interval Sample
B. Convenience Sampling
208. Statistics which is concerned with summa- C. Simple Random Sampling
rizing values to describe group characteris-
D. Systematic Sampling
tics of the data.
A. Descriptive 214. Research Question:Does the type of gaso-
line put in a car effect how fast the car can
B. Inferential drive. What is the independent variable?
C. Parametric A. Type of gasoline
D. Non Parametric B. which car the gas is put into

1.3 Statistics 189
C. how fast the car can drive 220. It is a collection of information that can
be classified into groups.
D. how much gas is put into the car

A. Categorical data set
215. Eva flips a coin. If she gets heads, she B. Numerical data set
wins $4. If she gets tails, she loses $3.
What is her expected value of a coin flip? C. Statistics
A. $1 D. Statistical question
B. $0.50 221. The average waist size for teenage males

is 29 inches with a standard deviation
C. -$0.50
of 1.4 inch. If waist sizes are nor-
D. $0 mally distributed, estimate the proportion
of teenagers who will have waist sizes
216. A sample that follows a rule, formula, or greater than 31 inches?
pattern.
A. 92.4%
A. random sample B. 10.5%
B. stratified sample C. 16%
C. systematic sample D. 7.6%
D. none of above 222. Drawing conclusion and taking decission
by using statistical methods is a study of
217. The sum of the percent frequencies for all
which branch of statistics?
classes will always equal
A. Statistical Methods
A. One
B. Descriptive Applied Statistics
B. Number of classes
C. Correlational Applied Statistics
C. Number of items in the study
D. Scientific Applied Statistics
D. 100
223. Referring to the middle term or mean of
218. Find the mean of these numbers:2, 57, the middle two terms of a series of values
38, 42, 6 arranged in order of magnitude.
A. 29 A. Mean
B. 38 B. Median
C. 50 C. Mode
D. Range
D. 145
224. This misleading tactic is frequently used
219. A method to collect data where EVERY to make one group look better than an-
person is counted. other.
A. Sample Survey A. Omitting the baseline
B. Census B. Manipulating the Y-Axis
C. Population C. Cherry Picking Data
D. none of above D. Using The Wrong Graph

1.3 Statistics 190
225. A census is a statistical study in which C. parameter

an entire population is counted, not just a D. statistic
sample. Which of the following stats is
most likely to be based on a census? 230. To find the you add up all the numbers
A. The mean number of stars in visible and then divide by how many numbers you
galaxies have.
B. The average SAT Score for a high A. Mean
school B. Median
NARAYAN CHANGDER
C. The number of jobless adults in a coun- C. Mode
try
D. Range
D. The average wind speed of a tornado
231. What do we call a question that can be
226. Determine if the sample is random or not answered by gathering and analyzing in-
random samples:Mr. Thomas chooses the formation?
first seven students to raise their hands in
his math class to participate in a survey A. Categorical data set
A. random sample B. Numerical data set
B. unbiased sample C. Statistics
C. biased sample D. Statistical question
D. population sample 232. Inferential Statistics help us to
227. Knowing that the total of a certain sur- A. Analysis infers properties of a popula-
veyed population is 25. The central angle tion
of a value whose frequency 5 is: B. Make statistical inferences from a
A. 20◦ sample
B. 72◦ C. Make generalizations
C. 90◦ D. Help make subjective decisions
D. 105◦ 233. A librarian wants to know what genres
228. A research team surveys 200 high school- of books are most popular. He looks up
ers at glenoak. They find that 57% of the top 100 checked out books in the li-
them drive to school every day. What is brary’s computer system.
the margin of error? A. Survey
A. 95% B. Observational Study
B. 14% C. Experiment
C. 7% D. none of above
D. 3%
234. Economics is an art because
229. What is a smaller, representative group A. it gives practical application of scien-
drawn from a population? tific principles
A. unit B. it makes it easier to understand eco-
B. sample nomic conditions

1.3 Statistics 191
C. its laws can be tested in controlled con- B. Statistics are numerically expressed
ditions C. Statistics are collected for a predeter-

D. None of the above mined purpose
235. What does it mean for a graph of data to D. None of these

be SKEWED LEFT?
240. Find the median of the data set9, 8, 7,
A. Most of the data is grouped to the left 11, 7, 16, 3
side
A. 8
B. Most of the data is grouped to the right
B. 7
side
C. 3
C. Most of the data is in the middle (draw
a line down the middle and both sides look D. 2
the same)
241. Statistics in plural sense means
D. none of above
A. Statistical methods
236. The graphical representation of a cumula- B. Descriptive statistics
tive frequency distribution is called
C. Quantitative data
A. Bar graph
D. Qualitative data
B. Histogram
C. Frequency polygon 242. Which of the following variables is most
likely to be used as categorical?
D. Ogive
A. length of a garden hose
237. Which of the following best describes the B. recorded rainfall for a day
process of finding the interquartile range
for a set of data? C. flower color
A. Add the biggest and smallest numbers. D. weight of books on a shelf
B. Place the numbers in order from least 243. expresses the way in which the value of
to greatest and find the middle. a parameter may deviate from that speci-
C. Find the difference between the maxi- fied in the null hypothesis, and is assumed
mum and the minimum. true when the experimental evidence sug-
gests that the null hypothesis is false.
D. Subtract Q1 from Q3.
A. Alternative hypothesis (H1)
238. What is the Mode? 22, 7, 22, 1, 7, 18,
B. Null hypothesis (Ho)
18, 16, 6, 6, 7
C. Type ll error
A. 7
D. none of above
B. 18
C. 21 244. Which answer shows numerical data?
D. 6 A. Favorite animal
239. Which of the following is NOT a charac- B. Hours of sleep last night
teristic of statistics under plural sense C. Hair color
A. Statistics are aggregate of facts D. Elementary school you attended

1.3 Statistics 192
245. Source of bias that occurs when you ask 250. the process of determining parameter
people who are EASY to ask values
A. Response Bias A. Estimation
B. Convenience Sampling B. Estimate
C. Nonresponse C. Estimator
D. Voluntary Response D. none of above
NARAYAN CHANGDER
246. The word Statistics was used first in 251. Underestimated the parameter
A. 1749 A. Biased Estimate
B. 1851 B. Positive Bias
C. 1849 C. Unbiased Estimate
D. 1790 D. Negative Bias
247. Which of the following are qualitative 252. A way to describe the shape of a data
data display that indicates most of the data is
on one side of the display.
A. People’s heights
A. symmetric
B. People’s home town
B. unimodal
C. The distance people travel to
C. skewed
work/school
D. bimodal
D. none of above
253. is the entire group of objects or indi-
248. What makes a question statistical?
viduals considered for a survey.
A. Population
A. Sample
B. Measurability
B. Population
C. Variability
C. Random Sample
D. All of the above D. Quartile
249. “The majority of U.S. car owners still buy 254. In a single throw of two fair dice, what
American cars.” Ideally, what would the is the probability that the sum of two dice
sample be in the study that generated this will be 7, given that the two dice have the
stat? same outcome?
A. Everyone in the United States who A. 0%
owns a car
B. 25%
B. Everyone in the United States who
owns an American car C. 50%
C. A randomly selected group of car own- D. 75%

ers in the U.S.
255. A school randomly chose ten English
D. A randomly selected group of Ameri- teachers and asked them which type of
cans who own American cars juice their students would prefer. Which

1.3 Statistics 193
reason best shows why this sample is bi- 260. What is the probability of flipping a coin
ased? and getting heads?

A. The sample didn’t include students. A. 1/2
B. The sample is too small. B. 1/3
C. The sample can only be accurate if C. 1/4

each teacher is included in the sample D. Never, Tails never fails.
D. none of above 261. probability distribution that is used to es-
timate population parameters when sam-
256. Which among the following divides the ple size is small and/or the population
data in two different category variance is unknown
A. Ordinal Scale A. Z-Distribution
B. Nominal Scale B. T-Distribution
C. Interval Scale C. Z-Table
D. Ratio Scale D. T-Table
257. An infinite population is one that 262. If the scores are approximated to its
nearest whole number, it is said to be as
A. can be physically listed
A. Single sample
B. the membership in the population is
B. Single score
unlimited
C. Single group
C. ends abruptly due to artificial interven-
tion, such as treating with an antibiotic D. Raw Score
D. ends abruptly due to natural causes, 263. Mrs. Trahan samples her class by select-
such as a flood or the ice age ing 5 girls and 7 boys. This type of sam-
pling is called?
258. Identify the population and the sam- A. Stratified
ple:The average annual salary for 35 of a
company’s 1200 accountants is $68, 000. B. Systematic
A. Population:1200 Sample:$68, 000 C. Simple

D. Cluster
B. Population:35Sample:1200
C. Population:1200Sample:35 264. solve to find the equivalent fraction.1/3
= x/6
D. Population:$68, 000Sample:1200
A. 1/6
259. Which of the following data is continu- B. 3/6
ous?
C. 2/6
A. The weight of a person D. none of above
B. Books sold every month on Amazon
265. What is a quantitative variable that could
C. Employees working in a store have an infinite number of values?
D. none of above A. categorical variable

1.3 Statistics 194
B. qualitative variable 271. The empirical relationship among mean,

C. discrete variable median and mode is
D. continuous variable A. Mode = 3 mean-2 median
B. Mode = 2 median-2mean
266. The important sources of secondary data
in India are C. Mode = 3 median-2 mean
A. Census D. Mode =4 median-3 mean
B. NSSO
NARAYAN CHANGDER
272. , 7-What is the mode?
C. Both A. 1
D. None of these B. 2
267. Population is C. 3
A. It is a subset of selected members of D. 7
a population
273. Which of the following variables is most
B. It is the complete set of all the ele-
likely to be used as quantitative?
ments that will be studied
A. ZIP code
C. It is the variable that describes some
characteristics B. Google Drive capacity
D. It is a numerical characteristic C. country of birth
268. Research question:does the distance a D. car manufacturer

person kicks a soccer ball effect how well 274. Which is an example of ratio scale?
they will do on their math test. What is
the dependent variable? A. time
A. How far they kick the soccer ball B. gender
B. who the person is C. grades
C. how well they do on the math test D. all of these
D. Type of soccer ball. 275. It is a question that gives a survey re-
269. In its singular sense, Statistics means sponses limited and narrow to the given
options.
A. Aggregate of numbers
A. Closed-Ended Questions
B. Numerically expressed data
B. Open-Ended Questions
C. Statistical methods
C. Questionnaire
D. None of these
D. Statistical Instruments
270. Which level of measurement does not
provide a numerical result for each partici- 276. Interview the first 30 students who en-
pant. ter the school in the morning.
A. Nominal data A. simple random
B. Ordinal data B. population
C. Interval data C. systematic
D. none of above D. convenience

1.3 Statistics 195
277. Spread is the , or difference, between A. Median = 6.5; Mean = 7.2Mode = 4;

least and greatest values. Range = 11

A. Mean B. Mean = 4; Mean = 11Mode = 4;
Range = 6.5
B. Median
C. Mean = 6.5; Mean = 2.7Mode = 4;
C. Mode
Range = 4
D. Range
D. Mean = 4; Mean = 11Mode = 4;
278. In which of the following scale the value Range = 11
of ‘0’ has meaning 283. A gaming website wanted to find out
A. Interval Scale which console its visitors owned.Which
B. Ratio Scale choice best represents the population?
A. Visitors to the 3DS section.
C. Nominal Scale
B. All of the website visitors.
D. Ordinal Scale
C. Visitors to the PS4 section.
279. It is the branch of applied mathematics
D. Visitors who are on the website for
dealing with data collection, organization,
more than 5 minutes.
analysis, interpretation and presentation.
A. Problem-Solving 284. Who is known as the father of Statis-
tics?
B. Trigonometry
A. Laplace
C. Statistics
B. Gottfried Achenwall
D. Geometry
C. D Molvere
280. Activities undertaken to earn a living are D. Guass
known as
285. a ratio or fraction of the sample orpop-
A. Non-Economic activities
ulation that has a specific characteristicof
B. Economic activities interest
C. Both of these A. Proportion
D. None of these B. Z values
281. Find the interquartile range using the 5 C. Alpha

D. Critical Values
number summary.Minimum:2Q1:3.5Median:6Q3:10.5Maximum:12
A. 7 286. A mayor wanted to see if the people in
B. 10 his town thought he was doing a good
job.Which choice best represents a statis-
C. 4.5
tic?
D. 8.5
A. The percentage of all townspeople
282. Calculate the median, mean, mode and who believe the mayor is doing a good job.
range for each of these data sets:11, 4, 4, B. The percentage of townspeople sur-
6, 7, 2, 9, 12, 13, 4Round your answers veyed who believe the mayor is doing a
to one decimal place where necessary. good job.

1.3 Statistics 196
C. All townspeople. 291. Statistics is defined in terms of numerical

D. A random selection of 100 townspeo- data in the
ple. A. Singular sense
287. Statistics help us to B. Plural sense
A. Obtain data and then organize and C. Either a or b

analyse D. Both a and b
B. Obtain data and then organize, summa-
NARAYAN CHANGDER
292. If you were conducting a survey, in what
rize, present, analyze, interpret and reach
order would you perform the following
conclusions
tasks? A) analysis; B) observation; C)
C. obtain data and then organize, summa- sample; D) statistic
rize, present and analyze
A. B A C D
D. It is a set of methods to plan studies
B. C B D A
and experiments
C. C B A D
288. Locate the number that shows up the
D. A C B D
most.
A. Finding the mode 293. It is a graph that uses symbols to present
and compare data. These graphs are of-
B. Finding the mean
ten used where there are people who need
C. Finding the median to understand things, even if they do not
D. Finding the range read or speak the language.
A. Bar Graph
289. Will conducting this survey introduce
bias? Surveying parents of Year 8 stu- B. Line Graph
dents to find out how many children the C. Pie Graph
average adult has.
D. Pictograph
A. Yes, because the survey was con-
ducted with only parents of Year 8s. 294. What is the RANGE of a data set?
B. Yes, because the survey was con- A. The middle value
ducted only with adults. B. The number that occurs most fre-
C. Yes, because parents are able to opt quently
out and not complete the survey. C. The average
D. No, there is no bias. D. The difference between the max and
290. Your test grades are 72, 83, 78, 85, and min values
90. You have one more test and want an 295. A frequency distribution is
average of an 82. What must you earn on
your next test? A. a tabular summary of a set of data
showing the relative frequency.
A. 84
B. a graphical form of representing data.
B. 82
C. a tabular summary of a set of data
C. 100 showing the frequency of items in each of
D. 81 several nonoverlapping classes.

1.3 Statistics 197
D. a graphical device for presenting cate- 301. A P-value indicates:

gorical data.
A. the probability that the null hypothesis

is true
296. Applied statistics can be
B. the probability that the alternative hy-
A. Descriptive
pothesis is true
B. Scientific
C. the probability of obtaining the results
C. Both Desctiptive & Scientific (or one more extreme) if the null hypothe-
sis is true
D. None of these
D. probability of a Type I error
297. The independent variable is also known
as 302. Data is
A. outcome variable A. a planned activity whose results yield
a set of data
B. explanatory variable
B. a numerical value that summarizes all
C. control variable of the data of an entire population
D. none of above C. the set of values collected from the
variable from each of the elements that
298. How many parts are there to a box-and- belong to the sample
whisker-plot?
D. A numerical value summarizing the
A. 2 sample data
B. 5
303. Find the median from the list of num-
C. 3 bers:60, 58, 52, 48, 60, 67
D. 4 A. 58
299. A toy store owner is tracking how much B. 59

kids spend each month on toys.Which C. 60
choice best represents a population?
D. 118
A. All of the kids who buy toys.
304. Example of quantitative data ..
B. 227 rich kids.
A. color of eyes
C. 228 boys age 7-15.
B. numbers of chairs
D. 235 kids from age 10 to 15.
C. types of glasses
300. What is a census? D. marital status
A. A tool used to collect statistical data
305. overestimated the parameter
B. Statistics collected from an entire pop-
ulation A. Biased Estimate
C. The factual information collected from B. Positive Bias

a survey or other source C. Unbiased Estimate
D. A group chosen from a population D. Negative Bias

1.3 Statistics 198
306. A number line showing the frequency of 311. Identify the population:A survey of 500
data by marking an X on the umber line for adults in the U.S. found that 54% drink
each occurrence. coffee daily.
A. Mode A. Collection of the 500 adults surveyed
B. Measure of Center B. Collection of all adults in the U.S.
C. 54%
C. Box Plot
D. 500
D. Line Plot
NARAYAN CHANGDER
312. Primary data..
307. It is a process that aims to describe an ob- A. second hand data
servable event by using any instruments
B. first hand information
or devices.
C. data from other parties
A. Questionnaire
D. annual report
B. Statistical Instruments
313. What is the mode in the set of data? 2,
C. Open-Ended Questions 2, 2, 4, 4, 5, 6, 6, 6, 7
D. Close-Ended Questions A. 2
B. 6
308. What is the median of:6, 12, 16, 11, 8,
4, 1, 11, 4 C. 2 and 6
A. 11 D. 2, 4, and 6
B. 6 314. Qualitative observations that fall into

separate and distinct categories.
C. 8
A. Numerical Data
D. 7
B. Data
309. To find the you put all numbers in or- C. Categorical Data
der from least to greatest and then take D. Measure of Center
the largest number minus the smallest
number . 315. What is data?
A. The practise of collecting and
A. Mean
analysing data
B. Median B. The factual information collected from
C. Mode a survey or other source
D. Range C. An element or feature that can vary
D. A group chosen from a population
310. A survey that chose every nth person
from a list to answer the questions. 316. Given the following data:the following
data 1, 3, 5, 7, 9
A. Satistics
A. the variance is 8
B. Population B. the variance is 10
C. Census C. the variance is 12.5
D. Random Sample D. the variance is 40

1.3 Statistics 199
317. Find the median of these numbers:4, 2, 7, C. population

4, 3 D. statistics

A. 4
323. Which measure of central tendency best
B. 5 represents this set of data:13, 13, 11, 13,
C. 7 13, 12, 13
D. 10 A. Mean
B. Median
318. Which types of graphs are used to show
changes over time? C. Mode
A. Line and Bar D. Range
B. Pie and Bar 324. A variable (or response variable) is

C. Line and Pictograph A. a characteristic of interest about each
individual element of a population or sam-
D. Bar and Pictograph
ple
319. Probability is B. a characteristic that is irrelevant to the
A. the chance that some event will occur. collection of the data
B. a game that involves coins. C. a characteristic that changes when the
data is collected
C. a guarantee.
D. a characteristic or trait that will be ig-
D. none of above nored in a sample population
320. Descriptive statistics is used to 325. What is normal distribution?
A. Describe the Characteristics of sample A. A symmetrical bell-shaped graph
B. Predict the association between the B. A graph that is skewed to the right
variables C. A graph that is skewed to the left
C. Generalized the results D. none of above
D. Compare the groups
326. Find the probability of rolling greater
321. Which one is NOT refer to inferential than a 1 on a single die.
statistics A. 6/6
A. methods to find out something about B. 5/6
population C. 4/6
B. also called inductive statistics D. 1/6
C. make inferences from data to more
general conditions
a statistic?
D. used to present quantitative descrip-
A. (10 x 10)15 = 115
tions in a manageable form
B. The average test score was 76
322. Drawing a general conclusion about a set C. Tomorrow night there will be a full
of data from a sample of the population moon
A. sample D. It looks like there’s a good chance of
B. survey rain tonight

1.3 Statistics 200
328. is an assumption about the population pa- 333. Data obtained from measuring
rameter? A. Dichotomic
A. hypothesis B. Discrete
B. hyper C. Continuous
C. Simple D. Polynomic
D. Population
334. “Noticing and recording a certain charac-
NARAYAN CHANGDER
329. The measures that help to solve an eco- teristic of a group” is the definition for:
nomic problem are called what in eco- A. Observation
nomics? B. Bias
A. Economic Formule C. Survey
B. Economic Solution D. Sample
C. Economic Model
335. What does it mean for a graph of data to
D. Economic Policies be SKEWED RIGHT?
330. What is the mean of the following data:5, A. Most of the data is grouped to the left
3, 4, 6, 7, 9, 19, 2, 8, 10, 5 side
A. 7.091 B. Most of the data is grouped to the right

side
B. 6
C. Most of the data is in the middle (draw
C. 5 a line down the middle and both sides look
D. 19 the same)
E. 17 D. none of above
336. What is statistics?

331. At a local high school, GPA’s are normally
distributed with a mean of 2.9 and stan- A. The science of collecting and analysing
dard deviation of 0.6. What percentage data
of students at the high school have a GPA B. Statistics collected from an entire pop-
between 2.3 and 3.5? ulation
A. 68% C. An element or feature that can vary
B. 99.7% D. A group chosen from a population
C. 95% 337. What are 2 branches of Statistics?
D. 84% A. Parameter and Statistics
332. A consists of all subjects (human or B. Quantitative and Categorical
otherwise) that are being studied. C. Inferential and Descriptive
A. Population D. none of above
B. Sample
338. Extreme values are also known as
C. Study what?
D. Exam A. interquartile ranges

1.3 Statistics 201
B. modes 344. Identify the POPULATION in the follow-

C. medians ing question:What are the ages of the stu-
dents at Clarke Middle School?

D. outliers
A. Students
339. Each and every element of a large group B. Age
of data.
C. Clarke Middle School
A. Population
D. none of above
B. Sample
C. Variable 345. Sales are best presented through a
graph.
D. Data
A. Line
340. People who select the one measure of av- B. Bar
erage that lends the most evidence to sup-
C. Circle
port their position is an example of which
type of misuse? D. Picture
A. Suspect Samples 346. A dog owner wants to know what sham-
B. Changing the Subject poo is better for his dogs. He washes one
dog with shampoo A and one with sham-
C. Implied Connections
poo B. He then compared their fur.
D. Ambiguous Averages
A. Survey
341. If the data are labels or categories that B. Observational Study
are used to define an attribute of an ele-
C. Experiment
ment, the scale we use is
D. none of above
A. Ordinal
B. Nominal 347. Parameters describes
C. Interval A. Mean value of sample
D. Reason B. Variation in the sample
C. Central value of population
342. Which of the following is a limitation of
statistics? D. None of the above
A. Single figures are treated as statistics 348. Find the interquartile range using the fol-
lowing.Minimum:1Q1:3Median:5Q3:7Maximum:9
B. It deals with quantitative data
A. 8
C. Iot does not study qualitative phenom-
ena B. 4
D. None of these C. 5
D. 10
343. What is the mode in the following num-
bers? [3, 24, 3, 7, 30, 1, 3, 7, 3] 349. Types of Statistics are:
A. 3 and 7 both are modes A. marketing and accounting
B. 1 and 7 both are modes B. descriptive and inferential statistic
C. 3 only C. primary and secondary
D. 7 only D. quantitative and qualitative

1.3 Statistics 202
350. Distrust of Statistics is due to: 355. “Our brand has 1/3 fewer calories”,
does not compare to anything, let alone
A. Misuse of statistics
another brand is an example of which mis-
B. Insufficient statistical methods use?
C. Scope of statistics is limited A. Detached Statistics
D. Limitations of statistics B. Misleading Graphs
C. Changing the Subject
351. The correct definition for a sample is:
NARAYAN CHANGDER
D. Ambiguous Averages
A. a survey which is conducted on the en-
tire population 356. It is a numerical description of a popula-
B. a set of data taken from only part of a tion characteristic.
population A. Parameter
C. when a sample favours a certain out- B. People
come C. Statistics
D. the amount surveyed D. Data
352. The shelf life of a particular dairy product 357. What measure represents the value in
is normally distributed with a mean of 12 the center?
days and a standard deviation of 3 days.
A. Mode
About what percent of the products last
between 12 and 15 days? B. Median
A. 68% C. Mean
B. 34% D. none of above
C. 16% 358. A sample refers to of a population.

D. 2.5% A. a subset
B. a list
353. What is the median of the following data
set:1, 3, 4, 5, 5, 6, 7 C. a description
A. 1 D. a collection
B. 4 359. What is a statistical question

C. 5 A. huh?
D. 7 B. A question that can be answered by
collecting data w/ variability
354. statistics consists of the collection, or- C. A question that can be answered by
ganization, summarization and presenta- collecting data w/o variability
tion of data.
D. zZzZ
A. mathematical
360. When one examines the entire population
B. descriptive
instead of a subgroup of the population,
C. inferential this is called a
D. population A. Sampling

1.3 Statistics 203
B. Census 366. Find the MEDIAN 77, 83, 83, 85, 87, 90,
C. Bias 90, 93, 94, 99, 99

361. What graph misleading is used in this B. 99

statement? “using green for losses, and C. 90
red for profits”
D. 87
A. Cherry Picking Data
B. Omitting the baseline 367. Facts, figures, and other evidence gath-
C. Going Against Conventions ered through observation.
D. Manipulating the Y-Axis A. Range

B. Data
362. What is the branch of statistics that in-
volves drawing conclusions about a popu- C. Statistics
lation based on information contained in a
sample taken from that population? D. Information
A. descriptive statistics 368. Jamal said that 41 was the number in a

B. inferential statistics data set that was listed the most. Which
term would define Jamal’s number?
C. sports statistics
D. health statistics A. mean
B. median
363. What shape is a normal distribution
curve? C. mode
A. Half curve D. range
B. Round curve
369. a mathematical expression or formula
C. Bell curve
usedin computing the estimate
D. Square curve
A. Estimate
364. Income of a family is an example of
B. Estimation
A. Quantitative data
C. Estimator
B. Qualitative data
D. none of above
C. Saving
D. none of above 370. In a standard normal curve, what is the
z value that corresponds to the proportion
365. The most common graphical presentation 0.3413?
of quantitative data is a
A. 1.0
A. histogram.
B. bar chart. B. 1.5
C. stem and leaf display. C. 2.0

D. pie chart. D. 2.5

1.3 Statistics 204
371. On a plate of wings, there are mild and C. Systematic Random Sampling
hot wings. In a sample of 10 chicken D. Cluster Random Sampling
wings, 4 are hot wings. If there are 50
wings on the platter, estimate how many 376. Which of the following is a way to collect
are hot. information from a group?
A. 25/50 A. Survey
B. 20/50 B. Large
NARAYAN CHANGDER
C. 16/50 C. Population
D. none of above D. Random
372. Which of the following are steps in statis-
377. The whole from which the sample was
tical problem solving? (select ALL correct
taken.
answers.)
A. Range
A. Defining the problem
B. Population
B. Collecting the data
C. Variability
C. Analyzing the data
D. Posting the data on Facebook D. Survey
373. Area outside the boundaries of the con- 378. Suppose the P-value for a hypothesis
fidence interval estimate; area distributed test is 0.0304. Using a = 0.05, what is
in both tails of the standard normal distri- the appropriate conclusion?
bution curve A. Reject the null hypothesis
A. Condifence Level B. Reject the alternative hypothesis
B. Z values C. Fail to reject the null hypothesis
C. Alpha D. Fail to reject the alternative hypothe-
D. Critical Values sis
374. Which of the following are the types of 379. The class mark of the class 5.5-20.5 is
Probability Sampling? A. 15.5
A. Stratified Random Sampling B. 20.5
B. Systematic Sampling C. 18
C. Convenience Sampling D. 5
D. Quota Sampling
380. What do you call the set of all people, ob-
375. A Statistics student did a research on the jects, events, or ideas you want to inves-
time spent by Grade 12 students playing tigate?
video game. He selected the subjects by
A. sample
using the Table of Random Numbers. What
technique is used? B. population
A. Simple Random Sampling C. data
B. Stratified Random Sampling D. statistics

1.3 Statistics 205
381. According to the empirical rule, how much 386. number summaryMin:30 Q1:50Median:60
of the data falls within 3 standard devia- Q3:90Max:170Are there any outliers?
tions?

A. There is a high outlier but no low out-
A. 25% lier
B. 68% B. There is a low outlier but no high out-
C. 95% lier
D. 99.7% C. There is both a low and high outliers

D. There are no outliers
382. the number of independent values or
quantities that can be assigned to a sta- 387. Descriptive statistics can be represented
tistical distribution by
A. Alpha A. summaries or histograms.
B. Critical Values B. essays or graphs.
C. Degree of Freedon C. essays or summaries.
D. Z values D. histograms or graphs.
383. Complete the definition:A consists of
388. The null hypothesis is represented by:
all subjects (human or otherwise) that are
being studied A. Ha
A. Statistics B. Ho
B. Number C. t*
C. People D. HP
D. Population E. µ
E. Pueblo
389. Which level of measurement would in-
384. What is the MODE of a data set? volve participants being assigned labels to
put them into categories?
A. The middle value
A. Nominal data
B. The number that occurs most fre-
quently B. Ordinal data
C. The average C. Interval data

D. The difference between the max and D. none of above
min values
390. What is referred to as a subset of the
385. Like a bar chart but the X axis is numeri- population under investigation that a re-
cal, in order. searcher selected to be part of the study?
A. Dot Plot A. Sample
B. Histogram B. Population
C. Line Plot C. Variable
D. Bar Graph D. Replicate

1.3 Statistics 206
391. The extent to which scores differ from C. Line Graph

one another or from their mean. D. Bar Graph
A. Variability
397. A data set can have more than one
B. Range
A. Median
C. Statistics
B. Mode
D. Data
C. Mean
test is used to compare the means of
NARAYAN CHANGDER
392. D. Midrange
two groups
A. t 398. Find the IQR (interquartile range) using
the following information.Minimum:77Q1:79.5Median:86.5Q3
B. f
A. 86.5
C. r
B. 22
D. u
C. 90.5
393. The negative standard deviations on a
D. 11
normal distribution curve mean what?
A. Below average 399. Refers to the collection of facts where the
researcher gets information.
B. Above average
A. Collection of Data
C. Average
B. Organization of Data
D. none of above
C. Analysis of Data
394. In statistics, we measure a variable,
which can be defined as
A. what we are measuring. 400. Farmer Joe’s apple tree farm is set up in
100 rows. He counts the number of apples
B. what we are counting.
produced on every 10th row to estimate
C. what we are studying. the number apples produced on the whole
D. what we are categorizing. farm. This is sampling.
A. Simple
395. Which of the following is part of the an-
alytic goals of studying statistics? B. Stratified
A. Relationships within the group C. Cluster
B. Variance in the group D. Systematic
C. Prediction 401. You draw two marbles at random from a
D. All of the above jar that has 20 red marbles and 30 black
marbles without replacement. What is the
396. If a researcher wants to present the re- probability that both marbles are red?
sponses of the participants if they agree
or disagree with the martial law, what are A. 0.1551
the two appropriate graphs to use? B. 0.1600
A. Pictograph C. 0.2222
B. Pie Graph D. 0.4444

1.3 Statistics 207
402. A mayor wanted to see if the people in 407. What is the median 133, 140, 98, 98,
his town thought he was doing a food 140, 119, 119.
job.Which choice best represents a sam-

A. 200
ple?
B. 96
A. 1, 000 unemployed voters
C. 119
B. The mayor’s family
D. 121
C. The residents of the town
408. A parameter is
D. 242 voters
A. a planned activity whose results yield
403. To determine the most popular type of a set of data
cake amount all the students at your B. a numerical value that summarizes all
school, ask your entire math class. of the data of an entire population
A. Cluster Sample C. the set of values collected from the
B. Simple Random Sample variable from each of the elements that
belong to the sample
C. Stratified Random Sample
D. Interval Sample
sample data
404. A is a collection of numbers gathered
409. is a part of a group being surveyed.
to give some information.
A. Sample
A. Tally mark
B. Population
B. Data
C. Random Sample
C. None of these
D. Quartile
D. Pictograph
410. A collection, or set, of individuals or ob-
405. The entire group of individuals about jects or events whose properties are to be
whom we hope to gain information analyzed.
A. Sample A. Sample
B. Population B. Variable
C. Bias C. Statistic
D. Parameter D. Population
406. The city of Smyrna wants to know which 411. , 9-What is the range?
brand of paint will last longer. They paint A. 9
2 streets with brand A and two streets
B. 4
with brand B and checked which lasted
longer. C. 3
A. Survey D. 6
B. Observational Study 412. , 7-What is the median?
C. Experiment A. 2
D. none of above B. 4

1.3 Statistics 208
C. 5 417. Which of the following is true regarding

secondary source of data? ? ?
D. 7
A. It provides first hand information
413. Deals with organizing and summarizing B. it implies collection of data from its
observations so that they are easier to original source
comprehend
C. collection of data from sources who al-
A. Statistics ready collected the data
NARAYAN CHANGDER
B. Descriptive Statistics D. can rely on this data as compare to pri-
C. Inferential Statistics mary data
D. Statistician 418. An investigation of the opinions or expe-
rience of a group of people, based on a se-
414. Which scenario would produce the least ries of questions.
biased results?
A. Statistics
A. asking athletes at a gym what their fa- B. Survey
vorite television show is
C. Histogram
B. asking shoppers at a store where their
favorite place to shop is D. Data
C. asking fans at a baseball game who 419. What is the average weekly allowance
their favorite baseball team is of HUMSS-MARX student for the first
semester of SY 2018-2019? What is the
D. asking students in a college library
population of the study?
what their favorite college sports team is
A. All HUMSS-MARX students for the first
415. Taos, Acoma, Zuni, and Cochiti are the semester, SY 2018-2019
names of four Native American pueblos B. Weekly allowance of the HUMSS-
from the population of pueblos in Arizona MARX
and New Mexico. Identify the data level.
C. All HUMSS-MARX students
A. Nominal
D. All students who have allowance
B. Ordinal
420. The sum of the relative frequencies for all
C. Interval classes will always equal
D. Ratio A. the sample size.
416. Descriptive statistics is B. the number of classes.
A. statistical methods used to find some- C. one.

thing about population D. any value larger than one.
B. statistical methods used to describe 421. The following grades were obtained from
data that have been collected the first exam of a english class:70 85 91
C. statistical methods used to forecast 67 98 80. What is the standard deviation
something under study of the data?
D. statistical methods used to estimate A. 10.94

something under study B. 11.99

1.3 Statistics 209
C. 81.83 427. Calculate the interquartile range of the

D. 31 following data17, 18, 18, 19, 20, 21, 21,
23, 25

422. A radio station in Raleigh, NC wants to A. 3
know the most popular song of the week.
The DJ surveys random listeners who call B. 4
in throughout the week. What is the pop- C. 5
ulation of the DJ’s survey?
D. 8
A. all the people in Raleigh, NC
B. listeners of this radio station 428. Facts, or a set of information or observa-
tion under study
C. the listeners who call the station
A. Constant
D. the most popular song of the week
B. Data
423. In plural sense, which is not a character-
stic of statistics? C. Sample
A. aggregate of data D. Variable

B. only expressed in words 429. A school principal wants to see which sub-
C. affected by multiplicity of causes ject the 695 students in his school liked
best. Which choice BEST represents a sam-
D. collected in a systematic manner
ple?
424. A teacher asks all her students five ques- A. The girls in the school.
tions about their study habits.
B. 1 classroom for each grade
A. Survey
C. All the students in the school.
B. Observational Study
D. The students making a B in math.
C. Experiment
D. none of above 430. Why is statistical study important?
425. A variable that quantifies an element of A. To solve problem

a population. B. Help to investigate relationship be-
A. Qualitative Variable tween variables
B. Quantitative Variable C. Help in making wise decision
C. Sample D. To provide solution/option for problem
based on proper statistical study
D. Parameter
426. What is Statistics? 431. Which is the root of all economic prob-
lems?
A. Relevant information
A. Unemployment
B. Involves scientific procedures and
methods B. Scarcity
C. decision making process C. Abundance
D. data are generated D. Inflation

1.3 Statistics 210
432. The school librarian wants to determine B. number of illiterate people in India
how many students use the library on
C. everyday temperature
a regular basis. What type of sampling
method would she use if she chose to se- D. appreciation of art
lect every 3rd student who enters the li-
brary on Tuesday. 437. A poll was conducted in which 1000
A. Convenience Sample only adults were asked if they prefer bottled
water or tap water, and 57% of them said
B. Simple Random Sample they prefer bottled water. In this scenario,
NARAYAN CHANGDER
C. Stratified Random Sample the 57% is a
D. Systematic Sample A. population
433. For a certain distribution, mode and me- B. sample
dian were found to be 100 and 1250 re- C. parameter
spectively. Find mean for this distribution
using an empirical relation D. statistic
A. 1375
438. is the science of collecting, organizing,
B. 1265 analyzing, and interpreting data in order
C. 1145 to make decisions.
D. 1550 A. Statistics
434. The school librarian wants to determine B. Data

how many students use the library on C. Population
a regular basis. What type of sampling
method would she use if she chose to use D. Sample
a random number generator to randomly
select 50 students from the school’s atten- 439. The best defense against bias in which
dance roster. every individual is given a fair chance of
being selected
A. Population
B. Simple Random Sample
B. Sampling
C. Stratified Random Sample
D. Interval Sample C. Survey
D. Randomization
435. Which of these is a statistical question?
A. What is your name? 440. A Type I error is when:
B. What is your address? A. We reject the null hypothesis when it
C. Did you read today’s newspaper? is actually true
D. How old are the students in your B. We obtain the wrong test statistic
class?
C. We fail to reject the null hypothesis
436. Which of the following is an example of when it’s actually false
qualitative data D. We reject the alternate hypothesis
A. number of vegetarian students when it’s actually true

1.3 Statistics 211
441. In statistics, a sample: 446. It is a numerical description of a sample

A. Can be used for inferences but not for characteristic

predictions. A. Statistic
B. Is another word for population.
B. Statistics
C. Is a set of data taken from the popula-
tion to represent the population. C. Parameter
D. Is only used in descriptive statistics. D. Data
442. The relative frequency of a class is com- 447. the measure of closeness of the esti-
puted by mates to each other
A. dividing the midpoint of the class by
A. Accuracy
the sample size.
B. dividing the frequency of the class by B. Point Estimate
the midpoint. C. Precision
C. dividing the sample size by the fre-
D. Interval Estimate
quency of the class.
D. dividing the frequency of the class by 448. What refers to any procedure done to se-
the sample size. lect samples?
443. Farmer Joe separates his apple tree farm A. Experimentation
into 10 regions. He counts the number of
apples produced in just one of the regions B. Replication
and uses that estimate to predict the num- C. Sampling
ber of apples produced on the whole farm.
This is sampling. D. Treatment
A. Simple 449. Seth said that 17 was the number that
B. Cluster showed the difference between the lowest
C. Stratified and highest numbers in a data set. Which
term would define Seth’s number?
D. Systematic
A. mean
444. The Statistics is concerned with:
A. aggregate of numerical facts B. median
B. aggregate of disorganised facts C. mode

C. aggregate of qualitative facts D. range
D. aggregate of heterogeneous facts
450. In the data set below, what is the mean
445. What type of data will questions answer- absolute deviation? 6, 5, 7, 2, 4, 8
able by YES or NO generate?
A. 1.70
A. Categorical data
B. 1.71
B. Numerical data set
C. Statistics C. 1.72
D. Statistical question D. 1.73

1.3 Statistics 212
451. What measure represents the value that 456. This Part of the survey asks the respon-
repeats the most dent certain important personal details.
A. Mode A. Introduction
B. Median B. Profile of the Respondent
C. Mean C. Questions to Answer
457. The area under the normal curve is
NARAYAN CHANGDER
452. Which measure of central tendency best
represents this set of data:3, 4, 5, 4, 5 A. 0.99
A. Mean B. 0.5
B. Median C. 0.95
C. Mode D. 1
D. Range 458. To find the you put all the numbers in

order from least to greatest and then see
453. Before a nation wide election, a polling which number you have the most of.
place was trying to see who would
A. Mean
win.Which choice best represents the
statistic? B. Median
A. A selection of voters over age 50. C. Mode
B. All voters. D. Range
C. The percentage of voters in favor of 459. It involves describing the data using sta-
the candidate. tistical methods and procedures.
D. 53% of the selection of voters support A. analysis
the candidate. B. interpretation
454. A variable that categorizes or describes C. collection
an element of a population. D. organization
A. Qualitative Variable 460. The nature of statistics is:
B. Quantitative Variable A. Science
C. Parameter B. Art
D. Sample C. both (a) and (b)
455. This occurs when a sample is collected in D. none of them

such a way that some members of the in- 461. When finding median and the middle has
tended population are less likely to be in- two numbers instead of one, what do you
cluded than others. do?
A. sampling error A. Take the higher number
B. sampling bias B. Take the lower number
C. random sampling C. Take both
D. clustered sampling D. Take the mean of the two

1.3 Statistics 213
462. A survey is one that encompasses er- 467. Mark Twain called statistics pliable, be-
rors caused by the design of the survey cause you can adapt them to support any
and its questions. point. What does “pliable” mean?

A. good A. Flexible
B. biased B. Trustworthy
C. fun C. Useful
D. school D. Rigid
463. Choose the correct examples of discrete 468. That part of the population from which
variable. information is collected.
A. A film critic’s rating of a film (0-4 stars) A. Constant
B. Time taken to commute to work B. Population
C. The sum of the numbers rolled on a C. Sample
pair of dice
D. Variable
D. Winning ticket number drawn from a
raffle 469. Careful use of statistical methods does
E. Amount of gasoline a car not include
A. carefully defining the situation
464. , 7-What is the range
B. gathering data
A. 4
C. summarizing the data accurately
B. 7
D. deriving and communicating meaning-
C. 3
ful conclusions
D. 6
E. throwing out data that does not fit the
465. An experiment is graph
A. a planned activity whose results yield 470. Statistics in singular sense means
a set of data
A. Statistical data
B. a numerical value that summarizes all
of the data of an entire population B. Statistical procedure
C. the set of values collected from the C. statistical laws

variable from each of the elements that D. None of these
belong to the sample
471. µ means in statistics
sample data A. sample mean
B. population mean
466. Which among the following is not part of
measure of central tendency C. sample s.d
A. Mean D. population s.d
B. Median 472. A quantitative variable that can assume
C. Mode a countable number of values.
D. Range A. Nominal Variable

1.3 Statistics 214
B. Ordinal Variable 478. Which of these shapes is the symmetrical

C. Discrete Variable and bell-shaped distribution of a random
variable?
D. Continuous Variable
A. Circle
473. A value that describes how data is cen- B. pie graph
tered.
C. normal curve
A. Data
D. line graph
NARAYAN CHANGDER
B. Measure of Center
479. In a certain community, 30% of house-
C. Median
holds have 1 child, 43% have 2 children,
D. Statistics and 27% have 3 children. If a house-
hold is selected at random, what is the
474. To find the average of a set of numbers, expected number of children in that house-
add up all the items and divide by hold? HINT:It may be helpful to make a
A. 2 probability distribution table.
B. The minimum A. 2.00
C. The maximum B. 2.13
D. The number of items C. 1.97
D. 1.27
475. What are characteristics that are defined
by a number, such as age or weight? 480. If the entire population is surveyed, the
A. descriptive statistics type of survey is a/an:
B. inferential statistics A. Stratified Sampling
C. categorical variables B. Random Sampling
D. numerical variables C. Population Sampling

D. Census
476. Identify the outlier (what number
doesn’t belong) for the given data? 23, 481. What percentage of scores falls within 3
34, 27, 7, 30, 26, 28, 31, 34 standard deviations of the mean?
A. 7 A. 68%
B. 23 B. 34%
C. 31 C. 99.7%
D. 34 D. 95%
477. Measure of dispersion is used to deter- 482. A school principal wants to see which sub-
mine ject the 845 students in his school liked
best.Which choice best represents a pa-
A. A common value of the distribution
rameter?
B. Variability in the distribution
A. 700 of the 845 students prefer math.
C. Significance difference B. 100 of the 120 students surveyed pre-
D. Relationship between the variables fer math.

1.3 Statistics 215
C. 845 students 488. The mean of a, b, c, d and e is 28. If the

D. 120 students surveyed mean of a, c and e is 24, then mean of b
and d is

483. What is a population? A. 24
A. A tool used to collect statistical data B. 36
B. Statistics collected from an entire pop- C. 26
ulation D. 34
C. All the people or objects on which data
489. Statistics in singular sense includes
is collected
A. Collection of data
D. A group chosen from a population
B. Organisation of data
484. If every individual in a population has the C. Analysis of data
same chance of being included in a sample,
D. All of these
the sample is a(n) sample.
A. Biased Sample 490. It occurs when data are obtained erro-
neously or samples are biased.
B. Convenience Sample
A. non-random sampling
C. Random Sample
B. convenience sampling
D. Stratified Sample C. non-sampling error
485. The most frequently occurring score(s) in D. sampling error.
a distribution.
491. Process of extracting relevant informa-
A. Range tion from a set of data.
B. Mean A. Analysis of Data
C. Median B. Collection of Data
D. Mode C. Interpretation of Data
D. Non Parametric
486. Given the following data:1, 2, 3, 4, 5, 6,
7, 8, 9, 10 492. is a person who buys goods and ser-
vices for the satisfaction of his/her wants
A. the average of the data is 5
A. Producer
B. the average of the data is 6
B. Service provider
C. the average of the data is 5.5
C. Service holder
D. the average of the data is 55
D. Consumer
487. Temperature can be classified into this 493. the measure of closeness of the esti-
level of measurement. mates to the actual value
A. interval A. Precision
B. ratio B. Interval estimate
C. nominal C. Accuracy
D. ordinal D. Point Estimate

1.3 Statistics 216
494. It is the science of collecting, organiz- 499. A group of subjects selected from a pop-
ing, interpreting, and analyzing data. It ulation is a
is very important because it has many ap- A. Portion
plications in the society.
B. Sample
A. Biology
C. Group
B. Statistics
D. Data
C. Mathematics
NARAYAN CHANGDER
D. none of above 500. What is the probability of getting the
number 1 in a fair dice?
495. What does “mode” mean?
A. 1/6
A. average
B. 1/3
B. middle
C. 1/2
C. repeats the most
D. 2/3
D. variation
501. A characteristic about each individual ele-
496. Identify the sampling technique ment of a population or sample.
used:Students are classified according to
major. Twenty students are selected from A. Variable
each major and asked how often they use B. Statistic
the library.
C. Sample
A. Random sample
D. Population
B. Stratified sample
502. Statistics as a singular noun means:
C. Cluster sample
A. Statistical data
D. Systematic sample
B. Statistical methods
497. Units of the population are grouped; one
or more groups are selected at random. All C. Inductive statistics
units of that group are included in the sam- D. Descriptive statistics
ple.
503. What is the Median? 8, 13, 2, 4, 48
A. cluster sample
A. 8
B. simple random
B. 48
C. stratified
C. 2
D. proportional
D. 9
498. Statistics which is concerned with a
higher order of critical thinking and judg- 504. Quantitative variables are separated into
ment.
A. Descriptive A. ordinal and nominal.
B. Inferential B. discrete and continuous.
C. Parametric C. discrete and nominal.
D. Non Parametric D. ordinal and continuous.

1.3 Statistics 217
505. To find out what the preferred ice cream 510. Part of the entire group being surveyed.
flavor is, wait outside an ice cream parlor
A. random sample
and ask every 4th person leaving the store

to name his or her favorite flavor until you B. biased sample
get 25 responses is an example of
C. sample
D. population
B. Simple Random Sample
C. Stratified Random Sample 511. What is another name for average
D. Systematic Sample A. Mean
506. Ana wants to know the average stu- B. Median
dent’s opinion of the tardy policy at her C. Range
school. Which group of students should
she survey in order to achieve the most D. Q1/Q3
accurate results?
512. How do you find the range?
A. thirty students who are often tardy
A. order least to greatest, then slash
B. thirty students who are rarely tardy
from each side until you reach the middle
C. thirty of her friends
B. add the numbers in your data set, then
D. thirty randomly selected students divide by the amount you added
from her school
C. look for the number that repeats the
507. Basic economic activities most
A. Production D. highest number minus the lowest num-
B. Consumption ber
C. Distribution
513. Which economist is known as the “Father
D. all of these of modern economics”?
508. Kim surveys 100 moviegoers that en- A. Alfred Marshall
tered the movie theater in the first hour.
B. Adam Smith
What type of sampling method is this?
A. Random C. Samuelson
B. Convenience D. Karl Marx
C. Biased
514. an assertion that a parameter in a statis-
D. Self-Selected tical model takes a particular value, and is
assumed true until experimental evidence
509. Who expressed the View that “Eco-
suggest otherwise?
nomics is neutral between ends”?
A. Alternative hypothesis (H1)
A. Robbins
B. Marshall B. Null hypothesis (Ho)
C. Pigou C. Type 1 error
D. Adam Smith D. none of above

1.3 Statistics 218
515. A landscaper needed some rope and cut it 520. They are quantitative data that are char-
into the different lengths shown here. 14 acterized by not having negative numerical
in., 12 in., 10 in., 11 in., 10 in., 11 in., 11 values
in., 12 in., and 11 in. What is the mode of A. Ordinal Scale
the lengths of rope?
B. Interval Scale
A. 10 in.
C. Reason Scale
B. 11 in. D. Nominal Scale
NARAYAN CHANGDER
C. 12 in.
521. This is a sampling technique where sam-
D. 13 in. ples are selected by dividing the popula-
tion into groups then taking samples into
516. Classify.The numbers of cheeseburgers a groups.
fast-food restaurant serves each day
A. random
A. None of these
B. stratified
B. Abstract
C. systematic
C. Continuous D. cluster
D. Discrete
522. What do you call the graph which uses
517. The manager of a bookstore surveys peo- horizontal or vertical bars to represent
ple who buy mystery novels to see if the data?
store should expand its hours. What is the A. Bar Graph
population? B. Line Graph
A. People who visit the bookstore. C. Pictograph
B. People who buy mystery novels. D. Pie graph
C. Residents of the town 523. This is a misuse of statistics where a
D. People who like to read. claim was used but no comparison is made.
A. misleading graphs
518. weight (in grams) of tomatoes at a gro-
cery store is what type of variable? B. implied connections
C. detached statistics
A. Qualitative/ categorical
D. changing the subject
B. Quantitative/Numeric
C. Quantitative and discrete 524. The data shows the test scores of four
different classes.Algebra:{87, 91, 64, 88,
D. Quantitative and continuous 74}Geometry:{98, 86, 84, 91, 79}Statis-
tics:{87, 72, 84, 88, 91}Pre-Algebra:{63,
519. corresponding z-values of the confidence
82, 78, 71, 74}Which class had the small-
level
est interquartile range?
A. Condifence Level A. Algebra
B. Z values B. Geometry
C. Alpha C. Statistics
D. Critical Values D. Pre-Algebra

1.3 Statistics 219
525. A teacher has been told that students A. exactly the same as
like when they do activities that get them
B. nothing like
moving. She asks her students what they

think? C. representative of
A. Survey D. larger than
531. Find the mode of 25, 95, 24, 44, 51, 95,
C. Experiment 25, 47, 95, 99, 95
526. A value that is much higher or much lower B. 95
than the other values in a set of data.
C. 25
A. Outlier
D. 24
B. Box Plot
C. Range 532. Statistics is used by
D. Histogram A. Government
B. Businessmen
527. What measure represent the average
A. Mode C. Economists
B. Median D. All the above
C. Mean 533. What is a sample?

D. none of above A. A tool used to collect statistical data
528. The number of hours you spent studying B. Statistics collected from an entire pop-
each day during the past week ulation
A. Nominal C. The factual information collected from
B. Ordinal a survey or other source
C. Interval D. A subgroup chosen from a population
D. Ratio 534. First quartile is also known as
529. Regarding spendature, and increase of A. Lower quartile
3% sounds a lot better than $6, 000, 000
B. Upper quartile
when an increase is not favorbale is an ex-
ample of which misuse? C. Median
A. Ambiguous Averages D. Geometric Mean
B. Misleading Graphs
535. What does a quartile mean?
C. Changing the Subject
A. One fourth of the data.
D. Suspect Samples
B. One half of the data.
530. In order to use samples to estimate some-
C. Some data only.
thing from the population, the sample
should be the population. D. All of the data.

1.3 Statistics 220
536. Data obtained from counting a group of students. This means that he
A. Dichotomic will get the
A. Sample
B. Discrete
B. Statistics
C. Continuous
C. Variable
D. Polynomic
D. none of above
537. Brian has an aquarium with eleven fish.
NARAYAN CHANGDER
The lengths of the fish in centimeters are 542. There are 700 men, 800 women and 500
listed. What is the mode of these lengths? children in a town. A sample of 80 people
2, 5, 3, 9, 4, 2, 8, 3, 9, 2, 8 is required with a stratified sample. How
would the sample be composed?
A. 2 cm
A. Men = 28 Women = 32 Children = 20
B. 3 cm
B. Men = 32 Women = 28 Children = 20
C. 4 cm
C. Men = 20 Women = 32 Children =
D. 7 cm 28
538. Your friend’s score on an intelligence test D. Men = 29 Women = 31 Children = 20
A. Nominal 543. A school principal wants to offer an after-
B. Ordinal school club setting. She decided to survey
300 students about this. Which word best
C. Interval describes the group of 300 students?
D. Ratio A. Population
539. In this measurement, zero is just another B. Sample
point in the scale. C. Census
A. Nominal D. Prediction
B. Ordinal
544. Let P be the probability of an event. P
C. Interval =-1 implies
D. Ratio A. the event is very unlikely to happen.
B. the event is very likely to happen.
540. If random selection occurred only among
male students that had an excellent aca- C. the event will happen surely
demic background, what type of sampling D. the expression is nonsense.
is this?
A. Random Samples
continuous data?
B. Stratified Samples
A. The number of classes you have in a
C. Cluster Samples day
D. Snowball Samples B. The amount of time you spend studying
541. A student measures the weight of every C. The number of games you have in-
individual in his batch with a total of 120 stalled in your phone/computer
students. He only needs a specific data on D. The size of your shoes

1.3 Statistics 221
546. Which among the statements is NOT an C. iii only

example of statistical question? D. i and iii

A. Who is my favorite Korean Drama E. i and ii
star?
B. What is the favorite Korean Drama of 551. This is a tool that researchers use to col-
the grade 7 students? lect needed data.
A. Statistical Instrument
C. What is the typical age of the grade 7
Mathematics teachers? B. Statistical Measurement
D. How many brothers and sisters do my C. Statistical Diagram
classmates have? D. none of above
547. It is characterized because the differ- 552. Scientists track a flock of birds for three
ences between two data values is signif- years to learn their migratory patterns.
icant.
A. Survey
A. Reason Scale B. Observational Study
B. Ordinal Scale C. Experiment
C. Nominal Scale D. none of above
D. Interval Scale
553. Which level of measurement provides the
548. Which of the following is positional aver- least sensitive analysis?
age A. Nominal data
A. Median B. Ordinal data
B. Arithmetic mean C. Interval data
C. Harmonic mean D. none of above
D. d) None of these 554. The data below shows the number of
549. What is the mean of a standard normal hours boys and girls spent studying for
distribution? a test.Boys:{2, 1, 3, 1, 2, 2}Girls:{4, 1,
3, 2, 2, 4}What is the difference in the
A. 0 interquartile range between the girls and
B. 1 boys?
C. 2 A. 1
D. -1 B. 2
C. 3
550. Which of the following statements are
true? I. All variable can be classified D. 5
as quantitative or categorical variables.II. 555. What is the meaning of Statistics?
Categorical variables can be continuous
variable.III. Quantitative variables can be A. To Collect Data w/ Variability
discrete variables. B. To Collect Data w/o Variability
A. i only C. Statistics
B. ii only D. I was playing ROBLOX

1.3 Statistics 222
556. Collection of data is a feature of statistics 562. The plant has grown 4 cm since yester-
in which sense? day.
A. Singular Sense A. Qualitative
B. Plural Sense B. Quantitative
C. Either Singular or Plural sense C. Both
D. Both Singular & Plural sense D. Neither
557. What is another math term for “middle” 563. Why do we randomly select our sam-
NARAYAN CHANGDER
A. Median ples?
B. Waypoint A. for control
C. Range B. to reduce bias
D. Quasimodo C. so we don’t get the same answers
from everyone
558. Two branches of statistics are and
D. to eliminate confounding results
A. engineering and chemistry
B. mathematical and inferential 564. Let m be the mid point and b be the upper
limit of a class in a continuous frequency
C. inferential and descriptive distribution. The lower limit of the class is
D. hard and easy A. 2m-b
559. Determine whether the event is impossi- B. 2m + b
ble, unlikely, as likely as not, likely, or cer- C. m-b
tain. You flip a fair coin and the coin will
land heads up. D. m-2b
A. impossible 565. There is no logical order in the
B. unlikely A. quantitative and discrete.
C. even chance B. categorical and ordinal variable.
D. likely C. quantitative and continuous.
560. A representative set of a population, to D. categorical and nominal variable.
gain information from a large group
566. Variables which are numerical in nature
A. Population
A. Dichotomic
B. Response Survey
B. Polynomic
C. Sample
C. Qualitative
D. Experiment
D. Quantitative
561. The mean of 5, 9, x, 17 and 21 is 13,
then find the value of x 567. At Donald’s Donuts the number of donut
holes in a bag can vary. Help Donald find
A. 9 the mode .12, 10, 10, 10, 13, 12, 11, 13,
B. 13 10
C. 17 A. 13
D. 21 B. 12

1.3 Statistics 223
C. 10 is assigned to a student. This is ran-

D. 111 dom sampling.

A. Systematic
568. To study the amount of time students
spend doing homework each day, use a B. Simple
random number generator to select 25 C. Stratified
freshmen, 25 sophomores, 25 juniors, and
25 seniors to survey. D. Cluster
A. Convenience Sample 573. Exit poll that shows the chances of win-
B. Simple Random Sample ning the number of seats by different par-
ties in 2014 election shown on T. V. For
C. Stratified Random Sample the viewer is
D. Interval Sample A. Primary data
569. letter grades (A, B, C, D, or F) that an B. Secondary data
English 100 class received on their essays.
C. Continuous data
what type of variable is this?
D. Discrete data
A. Qualitative/ categorical
B. Quantitative/ numeric 574. What is the first step when creating a
C. quantitative and discrete box and whisker plot?
D. Quantitative and continuous A. Find the median

B. Find the lowest and highest values
570. Use the following information and the
Empirical Rule to estimate the answer.The C. Order the data set
ages of golfers are normally distributed, D. Find the median of the top and bottom
with a mean of 38 and a standard devi- halves
ation of 4.Find the proportion of golfers
that are older than 42. 575. A portion or part of a population is called
A. 13.5% a
B. 16% A. Random survey
C. 50% B. Sample
D. 85% C. Tally
571. What is the mean of the following data D. Frequency distribution

set? 133, 140, 98, 98, 140, 119, 119
576. The tendency of individual measures
A. 42 among a set of measures to cluster around
B. 98 a central value is known as
C. 119 A. Coefficient of correlation
D. 121 B. Coefficient of variation
C. Measure of dispersion
572. Mrs. Trahan samples her class by picking
10 numbers from her hat and each number D. Measure of central tendency

1.3 Statistics 224
577. What is the mode? 500, 600, 700, 800, 582. The z-score represents
500, 600 A. the amount of standard deviations a
A. 500 and 600 data value is above or below the mean.
B. 700 B. the percentile the data value is above
or below the mean.
C. 800 and 700
C. the amount of standard deviations a
D. 500 data value is above or below the median.
NARAYAN CHANGDER
578. The null and alternative hypothesis can D. the percent the data value is above or
be the same. below the mean.
A. Yes 583. What is the Mean? 9, 5, 7
B. No A. 8
C. Maybe B. 11
D. All the above C. 7
D. 6
579. find the range 34 27 49 38 67
A. 24 584. Find the median.12, 5, 9, 18, 22, 25, 5
B. 40 A. 9
B. 8
C. 37
C. 12
D. 45
D. 18
580. Faulty Survey Questions have in the
questions. 585. Let the random variable X represent the
weight of male black bears before they be-
A. Bias gin hibernation. Research has shown that
B. Accurate Information X is approximately Normally distributed
with a mean of 250 pounds and a stan-
C. Data dard deviation of 50 pounds. What is P(X
D. Statistics > 325 pounds)?
A. 0.0668
581. Significant level (α )?
B. 0.2514
A. function of a sample of observations
which provides a basis for testing the va- C. 0.7486
lidity of the null hypothesis. D. 0.8531
B. the size of the critical region; the prob- 586. Data collected from a population is an ex-
ability of Type 1 error. ample of a
C. the critical region is located wholly at A. sample
one end ofthe sampling distribution of the
test statistic; H1 involves < or> but not B. population
both. C. data
D. none of above D. survey

1.3 Statistics 225
587. Regression Equation is used to find out C. 6/5

A. the significant difference between the D. 6/11

means
592. Three out of every 10 students age 8-12
B. prediction about the independent vari- have a cell phone. Suppose there are 30
able on the basis of dependent variable students in Annabelle’s class. About how
C. prediction about the dependent vari- many would have a phone?
able on the basis of Independent variable A. 3
D. association between the variables B. 9
588. When the information is recorded in the C. 10
form of ranks given to the subjects are D. 15
said to be in
593. Making decisions and drawing conclu-
A. Ordinal scale sions about populations.
B. Ratio scale A. Descriptive Statistics
C. Interval scale B. Inferential Statistics
D. Categorical scale C. Qualitative Variable
589. What is not a usual question to ask when D. Quantitative Variable
conducting statistical analysis?
594. The number I see the most is called the
A. If the data does not give me the results
I want do I still trust the results?
A. mode
B. Where did the data come from, what is
B. median
its source?
C. Mean Absolute Deviation
C. What kind of surveys were conducted,
if any? D. modular
D. Are the results of the data reliable? 595. Find the median for the set of num-
bers:23, 37, 11, 58, 13, 45
590. Before a nation wide election, a polling
place was trying to see who would A. 30
win.Which choice best represents a sam- B. 23
ple? C. 37
A. A selection of voters over age 50. D. 28
B. A selection of male voters.
596. Which of the following can be used to de-
C. A selection of voters of different ages. scribe the spread of a distribution? Select
D. All of these. all that apply.
A. range
591. Whats the chance of getting a red apple
from a bushel of 6 red apples and 5 green B. interquartile range
apples? C. standard deviation
A. 1/6 D. standard error
B. 5/6 E. z-scores

1.3 Statistics 226
597. We can measure the cause and effect re- C. Interval

lationship by D. Ratio
A. Time series analysis
603. You pick the king of diamonds from a full
B. Correlation analysis deck of playing cards. Based on this data,
C. Regression analysis which of the following statistics makes a
prediction?
D. Cross-sectional analysis
A. You are more likely to pick a queen
NARAYAN CHANGDER
598. , 9-What is the mode? than a king on your next draw
A. 3 B. There are now 51 cards left in the deck
B. 4 C. There are only three kings left in the
rest of the deck
C. 6
D. The deck now contains fewer dia-
D. 9 monds than hearts
599. Which of the following is a type of Dis- 604. The another name for t-test is
crete Numerical Data?
A. Student’s t-test
A. Number of Korean Drama Series that B. Paired t-test
High School students have completed
C. Independent Sample t-test
B. Height of Grade Seven students
D. Single sample
C. The exact distance of each GLAF-
JENHS home from the school. 605. A question that anticipates and accounts
for a variety of answers.
D. The amount of rice that a typical Fil-
ipino teen consumes in a day A. Statistical Question
B. Numerical Data
600. What is a characteristic of a sample?
C. Categorical Data
A. parameter D. Survey
B. statistic
606. Between what two standard deviations
C. categorical variable of a normal distribution contain 68% of
D. numerical variable the data?
A. one below and one above
601. Collection, presentation, and description
of sample data. B. two below and two above
A. Descriptive Statistics C. two below and zero

D. zero and two above
B. Inferential Statistics
C. Qualitative Variable 607. is a sample in which each individual
or object in the entire population has an
D. Quantitative Variable equal chance of being selected.
602. The cell phone listed as third best on an A. Sample
online electronics review website. B. Population
A. Nominal C. Random Sample
B. Ordinal D. Quartile

1.3 Statistics 227
608. What is a the meaning for “median”? 614. Which of the following involves group-
A. fair share by-group selection of samples?

B. middle A. Simple random sampling
C. repeats the most B. Stratified sampling
D. variation C. Snowball sampling

D. Quota sampling
609. What statement below is an example of
a statistical question? 615. A jar contains 2 pink, 6 red, and 4 blue
marbles. If you pick one marble without
A. What was the range of scores on the
looking, what is the probability that the
quiz?
marble you pick will be red or blue?
B. Do you have any siblings?
A. 5/6
C. What did you eat for breakfast?
B. 1/2
D. How old is your father?
C. 1/3
610. Which answer shows categorical data? D. 1/6
A. Age
616. statistics consists of generalizing
B. Height from samples to populations, performing
C. Number of cousins estimations and hypothesis tests, deter-
mining relationships among variables, and
D. Favorite singer making predictions.
611. What is the mean of test scores? {70, A. mathematical
70, 80, 85, 85, 90, 95, 95, 100, 100} B. descriptive
A. 87 C. inferential
B. 85, 95, and 100 D. population
C. 30
617. Katie earned 84, 92, 84, 75 and 70 on
D. 85 and 90 her first 5 tests. What is the minimum
grade Katie needs to earn on the next test
612. It is the complete set of all the elements
to have a mean of 84?
that will be studied
A. 81
A. Inferential Data
B. 84
B. Population
C. 95
C. Sample
D. 99
D. none of above
618. A researcher plans to conduct a test of hy-
613. Data that can be counted or measured.
potheses at the α = 0.01 significance level.
A. Categorical Data She designs her study to have a power of
B. Statistical Data 0.90 at a particular alternative value of
the parameter of interest. The probability
C. Numerical Data that the researcher will commit a Type I
D. none of above error is

1.3 Statistics 228
A. 0.01 C. Numerical information

B. 0.10 D. Both (a) and (b)
C. 0.90
624. Which of the following method is used
D. 0.99 when an investigator collects the required
information with the informant
619. the average value (statistic) is equal to
the parameter A. Direct personal interview
B. Indirect oral interview
NARAYAN CHANGDER
A. Biased Estimate
B. Positive Bias C. Mailing method
C. Unbiased Estimate D. Questionnaire through correspon-
dents
D. Negative Bias
620. What is the range of the following data 625. When the temperature is 0 degree celcius,
set:1, 1, 3, 5, 5, 6 which of the following is not true?
A. 1 A. zero is just another point in the scale
B. 3 B. there is no temperature
C. 4 C. an example of interval scale

D. 5 D. freezing point of water
621. The main purpose of descriptive statistics 626. Mrs. Trahan samples her class by se-
is to: lecting all students sitting at group 1 and
group 5 in her classroom. This sampling
A. Summarize data in a useful and infor-
technique is called?
mative manner.
A. Simple
B. Make inferences about a population.
B. Stratified
C. Determine if the data adequately rep-
resents the population. C. Systematic
D. Gather or collect data. D. Cluster
622. An example of a categorical and ordinal 627. Distance of difference between the least
variable would be and greatest numbers in a data set.
A. the hair color of each student. A. Finding the Median
B. the favorite subject of each stu- B. Measure of Center
dent.
C. Range
C. the birth date of students in a
D. Survey
class.
D. the favorite ice cream flavor of 628. What does “mean” mean?
each student. A. average
623. Statistics in plural sense deals with B. middle
A. methods of collection of data C. repeats the most
B. Methods of presentation of data D. variation

1.3 Statistics 229
629. Sample is different from population be- 634. Check all that applyStatistics are used to:
cause A. Describe data

A. a set of items selected from the popu-
B. Tell me which pizza I should buy for din-
lation
ner
B. a complete set
C. Compare two or more data sets
C. a measuring variable for every unit in
D. Make students love Math class
the population
D. a study done before the actual frame- E. Make estimates about population char-
work acteristics
630. As part of a 6th grade statistics project, 635. Farmer Joe randomly picks 100 trees us-
the teacher brings a candy jar full of gum- ing a random number generator to esti-
balls (red & green). The assignment is to mate the number of apples produced by his
estimate the proportion of red gumballs apple trees. This is sampling.
in the jar. Suppose one of the students A. Simple
draws 25 gumballs from the jar:8 are red,
B. Stratified
17 are green. What is the POPULATION?
C. Cluster
A. students
D. Systematic
B. red gumballs
C. all gumballs in jar 636. Which statistical tool is used to compare
D. 25 gumballs drawn the means of more than two groups
A. Independent Sample t-test
631. What is the class size of the class 15-
30? B. One Way Analysis of Variance
A. 15 C. Regression
B. 30 D. Product moment correlation
C. 22 637. This is an attribute that describes an en-
D. 22.5 tity such as a person, place or a thing
and the value that variable take may vary
632. The entire group being studied.
from one entity to another.
A. random sample
A. Variable
B. biased sample
B. Sample
C. sample
C. Parameter
D. population
D. Population
633. The value appearing at the center of a
sorted version of a list, or the mean of the 638. Find the mean of these numbers:5, 11, 2,
two central values. 12, 4, 2
A. Median A. 4.1
B. Range B. 6
C. Mean C. 4.5
D. Mode D. 4

1.3 Statistics 230
639. To find the you put all numbers in 644. What is the Range of the following
order from least to greatest and find the data:6, 8, 12, 3, 25, 13, 29
number that is in the middle .
A. 2
A. Mean
B. 26
B. Median
C. 27
C. Mode
D. 29
D. Range
NARAYAN CHANGDER
645. These are variables that can be placed in
640. Your test scores are 87, 86, 89, and 88.
distinct categories.
You have one more test in the marking pe-
riod. * You want your average to be a 90. A. discrete variables
What is the lowest score you must get on B. continuous variables
your last test?
C. qualitative variables
A. 96
D. quantitative variables
B. 90
C. 94 646. The probability of it raining today is 30%.
What is the probability that it will NOT
D. 100
rain?
641. Statistics is defined in terms of numerical A. 30%
data in
B. 70%
A. Singular sense
C. 100%
B. Plural sense
D. 0%
C. Both of these
D. None of these 647. Find the z-score.{15, 9, 27, 29, 37, 17,
30}x = 14
642. Why is a sample of 1000 people better
than a sample of 100 people? A. -1.02
A. It reduces the margin of error. B. -1.2
B. It decreases bias. C. 1.4
C. Having more people is always better. D. 2.1
D. More people means that our results 648. What’s the rounding rule for the interval
are more accurate. estimate of the mean using sample mean
643. The following are the uses of Statistics and SD?
EXCEPT A. Round off to the same number of deci-
A. It allows comparison of quantities mal places as given for the mean
B. It provides exact number of unknown B. Round off to one or more decimal
quantities place/s than the number of decimal
places in the raw data
C. It gives explanation to actions that has
taken place C. 3 decimal places
D. none of above D. Round up to the next whole number

1.3 Statistics 231
649. The following are the four scales of mea- 654. Non Parametric Statistics are not used in
surement EXCEPT which of the following condition

A. Nominal A. When the data is recorded in categori-
cal scale
B. Ordinal
B. In case of data is normally distributed
C. Categorical
C. When the data has non-normal distri-
D. Interval
bution
650. For which set of numbers do the mean, D. When the data is recorded in ordinal
median and mode all have the same val- scale
ues?
655. Statistics are used
A. 2, 2, 2, 4
A. in education
B. 1, 3, 3, 3, 5
B. in science
C. 1, 1, 2, 5, 6
C. in government
D. 1, 1, 2, 1, 5
D. in mathematics
651. What do you do if there are two numbers E. all of the answer choices
in “the middle” when you are finding the
median? 656. When experimenting with the growth of
A. Pick your favorite number a plant, a scientist uses three (of the same
type of) plants, two different fertilizers,
B. Add the two numbers in the middle & equal light, and equal water. What type
then divide by two. of variable is the fertilizer?
C. They are both the median A. Dependent
D. None of the above B. Independent
652. The arithmetic average of a distribution C. Control
obtained by adding the scores and then di- D. Compound
viding by the number of scores.
A. Mode 657. Second quartile is known as
B. Median A. Mode
C. Mean B. Mean
D. Range C. Median
D. Harmonic mean
653. Find the area under the standard normal
curve that lies between z=-0.5 and z=1.5. 658. In plural sense statistics deals with
A. 62.46% A. Qualitative data only
B. 72.47% B. Quantitative data only
C. 5.40% C. Both Qualitative & Quantitative data
D. 62.47% D. None of these

1.3 Statistics 232
659. Which question is a statistical question? 664. What is the Mode of the following data?
A. What color are my eyes? 27, 12, 5, 1, 19
B. What are the chances that a child of A. 27
blue-eyed parents will have brown eyes? B. 0
C. What color are the eyes of your family C. 5
members?
D. No mode
D. How many students in a class of 24
NARAYAN CHANGDER
have blue eyes if 1/4 of the students’ eyes 665. Statistics is
are blue? A. ..the collection and interpretation of
data.
660. What is a characteristic of a population?
A. unit B. ..the collection and representation of
data.
B. sample
C. ..the investigation and utilization of
C. parameter data.
D. statistic D. the investigation and representa-
661. Our data come from , but we really tion of data.
care most about
666. A graph that uses vertical or horizontal
A. theories; mathematical models bars to show comparisons among two or
B. subjective methods; objective meth- more items.
ods A. Numerical Data
C. samples; populations B. Box Plot
D. populations; samples C. Bar Graph
662. Use the following information and the D. Categorical graph
Empirical Rule to estimate the answer.The
ages of golfers are normally distributed, 667. Claims that attempt to imply connections
with a mean of 38 and a standard devi- between variables that may not actually
ation of 4.There are 500 golf members at exist, like “eating fish MAY HELP to re-
the Mathy Country Club. How many are duce your cholesterol”, is which type of
younger than 34? misuse?
A. 16 A. Detached Statistics
B. 80 B. Misleading Graphs
C. 100 C. Suspect Samples
D. 150 D. Implied Connections
663. The most appropriate method to select a 668. Ranking system is part of which classifi-
measuring tool (Test) is: cation?
A. Characteristics of population A. Nominal
B. Validity and reliability of test B. Ordinal
C. Researcher’s area of Interest C. Interval
D. Purpose of the research D. Ratio

1.3 Statistics 233
669. What is a survey? 674. A farmer puts fertilizer on half his corn
plans and no fertilizer on the other half.
A. process of collecting statistical data
He determines which half produced more

from a small group of a population
corn at the end of the season.
B. Statistics collected from an entire pop-
A. Survey
ulation
C. An element or feature that can vary
C. Experiment
D. A person chosen from a population
D. none of above
670. A branch of science which deals with 675. It is a type of data that can be expressed
the collection, organization, presentation, in numbers.
analysis, and interpretation of data
A. Number Theory
A. Geometry
B. Numerical data set
B. Statistics C. Statistics
C. Biology D. Statistical question
D. Chemistry
676. The wickets taken by a bowler in 10
cricket matches are as follows:2, 6, 4, 5,
671. What’s the rounding rule for the interval
0, 2, 1, 3, 2, 3 Find the mode of the data
estimate of the mean using raw data?
A. 2
A. Round off to the same number of deci-
mal places as given for the mean B. 3
B. Round off to one or more decimal C. 4

place/s than the number of decimal D. 5
places in the raw data
677. Marital status, beauty and quality are ex-
C. 3 decimal places amples of a
D. Round up to the next whole number A. Qualitative Data
B. Quantitative Data
672. Which of the following symbols denotes
margin of error? C. Continuous Data
A. E D. Discrete Data
B. s 678. Categorical variables are separated into

C. t
A. ordinal and nominal.
D. X
B. discrete and continuous.
673. A sample that is by chance . C. discrete and nominal.
A. random sample D. ordinal and continuous.
B. stratified sample 679. Kolmogorov-Smirnov test is used for:
C. systematic sample A. Prediction
D. none of above B. Normal distribution

1.3 Statistics 234
C. Parametric statistics C. 57
D. Non parametric statistics D. Cannot be determined from the infor-
mation given.
680. A statistic is
A. a planned activity whose results yield 685. Small, medium and large measures to
a set of data give the size of an object are
B. a numerical value that summarizes all A. Nominal Scale
of the data of an entire population
NARAYAN CHANGDER
B. Reason Scale
C. the set of values collected from the
C. Interval Scale
variable from each of the elements that
belong to the sample D. Ordinal Scale
D. A numerical value summarizing the 686. Find the mode of 34, 48, 87, 56, 87, 51,
sample data 29
681. When a data point is higher than its A. 34
neighboring data points.
B. 48
A. Peak
C. 87
B. Symmetry
D. 56
C. Cluster
D. Gap 687. It is characterized when the data can be
accommodated in some order
682. Qualitative data is which
A. Nominal Scale
A. Can be quantified
B. Interval Scale
B. Can not be quantified
C. Ordinal Scale
C. none
D. Reason Scale
D. none of above
688. The sum of frequencies for all classes will
683. Which of the following is the FIRST step
always equal
of a hypothesis test?
A. Check assumptions & conditions A. 1.
B. Find your test statistic B. the number of elements in a data set.
C. State your conclusion C. the number of classes.

D. State your null & alternative hypothe- D. a value between 0 and 1.
ses
689. Failing to reject a null hypothesis that is
684. A test is given that has a mean of 70 and false can be characterized as
a standard deviation of 13. If a student’s A. a Type I error
Z-score is +1, the student’s score before
conversion was: B. a Type II error
A. 70 C. both a Type I and Type II error
B. 83 D. no error

1.3 Statistics 235
690. What is the last (final) stage of statisti- 695. Lack of confidence in statistical methods
cal methods? is called

A. Collection of data A. Functions of statistics
B. Interpretation of data B. Distrust of statistics
C. Analysis of data C. Trust of statistics
D. Presentation of data D. All of these
691. It is a type of question where the re- 696. The percentile represents the
sponse is not limited to a set of options. A. percent of data values that are below.
A. Open-Ended Questions B. percent of data values that are above.
B. Statistical Instruments C. number of data values that are below.
C. Questionnaire D. number of data values that are below.
D. . Closed-Ended Questions 697. What is the empirical relation between
mean, median and mode?
692. The collection of all individuals, items, or
data under consideration in a statistical A. Mode = 3 Median-2 Mean
study. B. Mean = 3 Mode-2 Mode
A. Constant C. Median = 3 Mean-2 Mode
B. Population D. Mode = 3 Median + 2 Mean
C. Sample
698. A survey company was trying to see if
D. Variable people in a state thought the pollution was
too high.Which choice best represents a pa-
693. Inferential statistics is rameter?
A. a techniques to improve the efficiency A. All people in the state.
and effectiveness of the organization.
B. Percentage of all people in the state
B. making generalization about popula- who thought the pollution was too high.
tion by analyzing the sample.
C. 500 randomly selected residents of
C. is a techniques to implement a strate- the state.
gic plan.
D. 71% of the residents surveyed thought
D. is a good representation of a popula- the pollution was too high.
tion
699. Innaproperty drawn graphs that can mis-
694. What is the standard deviation for the represent the data and lead the reader to
data given:5, 10, 7, 12, 0, 20, 15, 22, 8, draw false conclusions, is which type of
2 misuse?
A. 6.89 A. Misleading Graphs
B. 10.1 B. Implied Connections
C. 7.26 C. Detached Statistics
D. 9 D. Changing the Subject

1.4 Econometrics 236
1.4 Econometrics
1. Andi will add a new variable in the data A. Y = α + β · X
analysis that is being carried out, what B. Yi = hat α + hat β · Xi + hat ui
command should Andi use?
C. Yi = α + β · Xi + ui
A. Generate
D. hat Yi = hat α + hat β · Xi
B. Add
NARAYAN CHANGDER
C. Keep 7. Regression analysis is concerned with es-
timating
D. More
A. The mean value of the dependent vari-
2. White Test is used to detecting: able
A. Heteroscedasticity B. The mean value of the explanatory vari-
able
B. Autocorrelation
C. The mean value of the correlation co-
C. Correlation
efficient
D. Homoscedasticity
D. The mean value of the fixed variable
3. TOOL OF ECONOMETRICS 8. Below are the type of discrete data ex-
A. Correlation cept:
B. Substraction A. Ordinal
C. Regression B. Continuous
D. Addition C. Binary
4. (There may be more than one correct an- D. Nominal

swer)When the errors are correlated with 9. Stochastic variables have:
each other, this is described as
A. Deterministic values
A. homoscedasticity
B. Non-random value
B. heteroscedasticity
C. Imply causation
C. serial correlation
D. Have probability distribution
D. autocorrelation
10. studying the dependence of a variable
E. multicollinearity
on only a single explanatory variable is
5. AR(4) is refer to: known as
A. fourth level auto regressive model A. One Variable regression analysis
B. fourth order serial correlation B. Two variable regression analysis
C. fourth order heteroscedasticity C. Three variable regression analysis
D. fourth year autocorrelation D. Multiple regression analysis
6. (There may be more than one correct an- 11. Data collected for a variable over a period
swer)Which of the following represents of time is called:
true observed values? A. Panel data

B. Pooled data C. Summary Statistics

C. Time series data D. Statistics

D. Cross-sectional data
17. Which of the following is true of Chow
12. What does the green caption in the do file test?
mean? A. It is a type of t test.
A. Note Bookmark B. It is a type of sign test.
B. Stata understandable syntax C. It is only valid under homoskedasticty
C. variable or value D. It is only valid under heteroskedastic-
D. non-valued variables (strings, quotes ity
and variable labels)
18. Toolbar on the do file that works to run
13. The cd command is used for? the command?
A. Shows the contents in a directory A. Execute
B. Enter data B. New
C. Changing directories C. Print
D. Indicates the number of observations D. Open
14. One of the properties of OLS estimators is 19. The command to create a new directory
is?
A. Linear A. mkdir “working folder address”
B. Unbiased B. global log “D:/stata nama/log”
C. Minimum Variance C. cd “woking folder address”
D. All of the above D. log using “$log/data.dta”
15. Which of the following is true of dummy 20. Below are the remedies for multicollinear-
variables? ity, except:
A. A dummy variable always takes a value A. Combining cross-sectional and time-
less than 1. series data
B. A dummy variable always takes a value B. Transforming the functional relation-
higher than 1 ship
C. A dummy variable takes a value of 0 or C. Do nothing
1.
D. Decrease the sample size
D. A dummy variable takes a value of 1 or
10. 21. Which of the following causes inappropri-
ate data estimation?
16. In the point & click method, which point
A. Outlier
is used to display the standard deviation,
average, maximum and minimum values? B. Data computation
A. Tabulation C. Interpolation
B. Data Editor D. Data transformation

22. The locus of the conditional means of Y for 27. A variable is used to incorporate qual-
the fixed values of X is the itative information in a regression model.
A. Conditional expectation function A. dependent
B. Population Regression Line B. continuous
C. Intercept line C. binomial
D. Linear Regression Line D. dummy

28. Multiple Answer Question:In the popula-
NARAYAN CHANGDER
23. The choice of one tailed or two tailed test tion model Y=β 0 +β 1 +u, u refers to
depends upon
A. Error term
A. Null Hypothesis
B. Residuals
B. Alternative Hypothesis
C. Disturbance
C. Both D. Innovations
D. None
29. Independent variable is
24. Refer to the model above. The benchmark A. Predictor
group in this model is B. Intercept
A. the group of educated people C. Response
B. the group of uneducated people D. Residual
C. the group of individuals with a high in- 30. The inclusion of an irrelevant variable will:
come
A. Increase the variance
D. the group of individuals with a low in-
come B. decrease the t-scores
C. decrease adjusted r-squared
25. Newey-West Standard Errors and Het- D. all above is correct
eroscedasticity Corrected Standard Errors
are similar in terms of: 31. Stochastic variables are:
A. do nothing A. a. Deterministic values
B. correcting standard errors only B. Non-random value
C. correcting standard errors and chang- C. Imply causation
ing the coefficients D. Have probability distribution
D. correcting standard errors without 32. linear regression model is
changing the coefficients
A. Linear in explanatory variables but
26. Multiple Answer Question:Econometrics may not be linear in parameters
actively uses B. non linear in parameters and must be
A. Economic theory linear in variables
C. linear in parameters and must be lin-
B. Statistics
ear in variables
C. Physics
D. linear in parameters and may not be
D. Mathematics linear in variables

33. Given the data structure as follows:N = B. OLS is incapable of generating esti-
50, T = 7. Which of the following is suit- mates of the p-value
able method to be used?

C. OLS is incapable of generating esti-
A. Static panel mates of the standard error
B. Panel Cointegration D. OLS is incapable of generating esti-
mates of the regression coefficients
C. Dynamic panel GMM
D. Pooled Mean Group (PMG) 39. is a set of elements taken from a pop-
ulation according to certain rules.
34. Proportion of variation in the dependent A. population
variable explained by variation in the in-
dependent variable B. sample
A. R C. statistic
D. element
B. R2
C. residual 40. Data collected at a point in time is called
D. intercept
A. Cross-sectional data
35. The command to use when you want to la- B. Time series data
bel a variable value is?
C. Pooled data
A. Label define
D. Panel data
B. Label values
41. What does the red color in the do file
C. Labelin dong
mean?
D. Tag variable
A. note marker
36. A formula to compute White Test statistics B. syntax that can be understood by stata
is: C. variable or value
A. N*R D. non-valued variables (strings, quotes
B. N*R2 and variable labels)
C. N*2R 42. The file that contains programming notes
D. N*adjusted R2 in Stata is called
A. Logfile
37. The value of R2 lies between
B. Dofile
A. -1 and 0
C. Output
B. -1 and 1
D. Result
C. 0 and 1
43. Which of the following is true of depen-
dent variables?
38. The main consequence of perfect multi- A. A dependent variable can only have a
collinearity is: numerical value
A. OLS is incapable of generating esti- B. A dependent variable cannot have
mates of the t-statistics more than 2 values.

C. A dependent variable can be binary 49. If there is a possibility of x causes y and y

D. A dependent variable cannot have a causes x, and given N = 50, T = 1, which
qualitative meaning of the following is the suitable method?
A. Generalized Method of Moment
44. Autocorrelation is:
B. Two stage-least square
A. the correlation of a time series with its
C. Ordinary Least Square
own past and future values
D. FMOLS
B. related to error term
NARAYAN CHANGDER
C. violates the CLRM 50. Heteroscedasticity is associated with:
D. associates with time series model A. Time series data
B. Cross-sectional data
45. (There may be more than one correct an-
C. Panel Data
swer)When the errors are correlated with
one or more explanatory variables, this is D. Unbalanced Panel Data
described as 51. Which data type does contain observa-
A. homoscedasticity tions in a fixed period of time and from
B. heteroscedasticity individual units?
C. serial correlation A. Panel data
D. autocorrelation B. Time series data
E. multicollinearity C. Cross sectional data

D. Irregularly spaced data
46. Testing each coefficient significance in the
model could be done by the following ex- 52. Observed value minus predicted value of
cept: the response variable
A. t-test A. Residual
B. p-value B. Explanatory Variable
C. F-test C. Intercept
D. none of above D. Lurking Variable

53. one of the properties of OLS estimators is
47. Type of data structure
A. Linear
A. Cross-section
B. Unbiased
B. Time Series
C. Minimum Variance
C. Panel data
D. All of the above
D. All of the above
54. Consider the model C=β 0 +β 1 Income+β 2 Income2 +u.
48. Under the least square procedure the Which one is the average marginal effect
larger the ei the larger is the of Income on C?
A. Standard error A. β 1 +β 2 Income
B. Regression error B. β 1 +2β 2 Income
C. Explained sum of squares C. β 1 +β 2 Income 2
D. Squared sum of Residuals D. β 1 +β 2

55. Testing overall significance of a model C. Pluto

could be done by: D. Earth

A. Chi-square test E. Venus
B. t-test
61. The probability of rejecting the null hypoth-
C. F-test esis when it is true is called
D. None of the above A. Level of confidence
56. In OLS regression, the task is to minimize B. Level of significance
C. Power of test
A. Total Sum Squares
B. Regression Sum Squares
62. “X can cause Y, and Y can cause X”. Which
C. Residual Sum Squares
of the following is suitable to describe the
D. Unexplained Sum Squares above statement?
57. Given the data structure as follows:N = 5, A. Correlation
T = 30. Which of the following is suitable B. Bidirectional causality
method to be used?
C. Relationship
A. Static Pane
D. Unidirectional causality
B. Panel Cointegration
63. (There may be more than one correct
C. Dynamic panel GMM
answer)Correlation between the explana-
D. Pooled Mean Group (PMG) tory variables is described as
58. In an econometric model if relevant vari- A. homoscedasticity
ables are excluded and irrelevant vari- B. heteroscedasticity
ables are included then it is said to be a
C. serial correlation
D. autocorrelation
A. simultaneity bias
E. multicollinearity
B. specification unbias
C. specification bias 64. The command to change directory is?
D. none of the above A. mkdir “working folder address”
59. Toolbar on the do file that works to open B. cd “woking folder address”
the existing do file? C. global directory “woking folder ad-
A. Execute dress/directory”
B. New D. global log “working folder ad-

dress/log”
C. Print
D. Open 65. (There may be more than one correct an-
swer)In OLS regression, the task is to min-
60. What is the 4th planet from the sun? imize
A. Earth A. Explanatory Sum Squares
B. Mars B. Residual Sum Squares

C. Total Sum Squares C. The model is not correctly specified

D. Regression Sum Squares D. There is autocorrelation
E. Unexplained Sum Squares 71. REGRESSION WAS INTRODUCED BY
66. (There may be more than one correct an- A. Francis Galton
swer)Which of the following is an assump- B. Dalton
tion in regression?
C. Malthus
A. homoscedasticity
NARAYAN CHANGDER
D. Kendell
B. heteroscedasticity
C. serial correlation 72. In a regression model, which of the follow-
ing will be described using a binary vari-
D. autocorrelation able?
E. multicollinearity A. Whether it rained on a particular day
67. In regression models, errors are mis- or it did not
takesthe other factors affecting Y (T)the B. The volume of rainfall during a year
explained factorsthe explanatory factors C. The percentage of humidity in air on a
A. the explained factors particular day
B. the explanatory factors D. The concentration of dust particles in
C. mistakes air
D. the other factors affecting Y 73. Multiple Answer Question:Econometrics is

based upon the development of statistical
68. Refer to the model above. The inclusion of methods for
another binary variable in this model that
takes a value of 1 if a person is unedu- A. estimating economic relationships
cated, will give rise to the problem of B. creating economic phenomena
A. omitted variable bias C. testing economic theories
B. self-selection D. evaluating and implementing govern-
C. dummy variable trap ment and business policy.
D. heteroskedastcity 74. The command to create a macro directory

log is?
69. The rules of thumb which commonly use to
measure multicollinearity are: A. mkdir “working folder address”
A. VIFs and coefficient B. global log “D:/stata nama/log”
B. CV and simple correlation coefficient C. cd “woking folder address”
C. VIFs and simple correlation coefficient D. log using “$log/data.dta”
D. covariance and correlation 75. The command used to delete variables is?
70. Te alternative hypothesis for Ramsey Re- A. of the

set test is: B. drop
A. The error term is normally distributed C. clear
B. The model is correctly specified D. list

76. (There may be more than one correct an- C. numeric

swer)In regression models, errors are D. Value variable

A. mistakes
82. What does the black color in the do file
B. the other factors affecting Y mean?
C. the explained factors A. note marker
D. the explanatory factors B. syntax that can be understood by stata
77. A method to choose the omitted variable C. variable or value
is: D. non-valued variables (strings, quotes
A. time series analysis and variable labels)
B. omitted variable analysis 83. Which of the following is a test for auto-
correlation
C. expected bias analysis
A. Durbin Watson
D. correlation analysis
B. park test
78. The dependent variable in regression anal- C. Gjesler test
ysis is assumed to be
D. BPG
A. known values
84. y= bo + b1x or y = a + bx, the regression
B. constant
line
C. non Stochastic
A. Scatterplot
D. stochastic
B. Linear Model (line of best fit)
79. Regression analysis is concerned with the C. Correlation Coefficient
study of the dependence of: D. Re-expression or transformation
A. Two known variables
85. The explanatory variable in regression
B. Explanatory variables on one or more analysis are assumed to be
dependent variables
A. Non stochastic
C. Dependent variables on one or more
B. Constant
explanatory variables
C. Stochastic
D. Both explanatory and dependent vari-
ables on other D. Known values
86. The income of an individual in Budopia de-
80. Omitted variable bias also known as:
pends on his ethnicity and several other
A. systematic error factors which can be measured quantita-
B. specification error (T) tively. If there are 5 ethnic groups in Bu-
dopia, how many dummy variables should
C. error term
be included in the regression equation for
D. unbiasedness income determination in Budopia?
81. Variable data presented in red on the stats A. 1
is called data B. 5
A. String C. 6
B. Value label D. 4

87. Below are the methods on detecting serial 92. (There may be more than one correct an-
correlation, except: swer)A good model has high values in
A. durbin h which of the following?
B. durbin d A. R2
C. park test B. Standard Error of Regression
D. BG test C. Standard Error of Betas
88. (There may be more than one correct an-
NARAYAN CHANGDER
D. t-statistics
swer) The residual is
E. F statistics
A. y − y
B. y − hat y 93. The number in front of the variable
C. hat y y A. Exponent
D. estimates the error
B. Base
E. is estimated by the error
C. Correlation
89. Econometrics is a combination of
D. Coefficient
A. Economics + mathematics
B. Economics + statistics 94. A method for finding the equation of a line
C. Economics+Mathematics + statistics that minimizes the sum of squared residu-
als
A. Form
90. Which of the following Gauss-Markov as-
sumptions is violated by the linear proba- B. Least Squares
bility model? C. Scatterplot
A. The assumption of constant variance
of the error term. D. Association
B. The assumption of zero conditional 95. TOOL OF ECONOMETRICS

mean of the error term
A. REGRESSION
C. The assumption of no exact linear rela-
tionship among independent variables B. CORRELATION
D. The assumption that none of the inde- C. ADDITION
pendent variables are constants
D. SUBSTRACTION
91. Linear regression model is
A. linear in parameters and must be lin- 96. The operator in state which is usually used
ear in variables when you want to calculate something in
state is called?
B. linear in parameters and may not be
linear in variables A. Arithmetic
C. non linear in parameters and must be B. relational
linear in variables
C. Logic
D. linear in explanatory variables but may
not be linear in parameters D. Numerical

1.5 Mathematical Economics 245
97. In correlation analysis we measure the: ables

A. Degree of linear association between
C. Predictability of the two variables

two variables
B. Degree of causation between two vari- D. Regression between the two variables
1.5 Mathematical Economics

1. Maximum demand on a power plant is 5. All of the following explain why humans
A. the greatest of all “short time interval might “follow the herd” EXCEPT
averaged” demand during the period A. People prefer having opinions that are
B. instantaneous maximum value of kVA very different from those of others
supplied during a period B. It can be uncomfortable standing out
C. both (a) or (b) from the crowd
D. none of the above C. Humans evolved to stick with the herd
to survive
2. You’re going to buy a new bicycle. What
should be one of your first steps in com- D. Fighting social pressure can be diffi-
parison shopping? cult to do
A. Decide what bicycle features you care 6. Generating capacity connected to the
most about bus bars and ready to take load when
B. Visit the store that sells the least ex- switched on is known as
pensive bicycles A. Hot reserve
C. Locate a coupon for bicycles B. COld reserve
D. Sell your old bicycle
C. Spinning reserve
3. You buy a stock that has a price of $50 D. Firm power
per share. A week later the stock’s price
drops to $25 per share (it’s lost half its 7. “We should cut taxes in half to increase
value). If you are affected by loss aver- disposable income levels”. This is an ex-
sion you would be likely to ample of
A. Buy more shares A. Normative Statement
B. Sell the shares B. Positive Statement
C. Do nothing C. None of the above
D. Look for other stocks to buy D. none of above
4. An increase in quantity demanded
8. Your friend gives you an item. A day later,
A. results in a movement downward and they offer to trade you another item of
to the right along a fixed demand curve similar value. According to the endow-
B. results in a movement upward and to ment effect, most people would keep the
the left along a fixed demand curve. item
C. shifts the demand curve to the left. A. They received first
D. shifts the demand curve to the right. B. They were offered second

C. They could sell for the most A. A rational decision that is based on re-
D. They think looks the best search and facts
B. The belief that a person should change
9. Pizza is a normal good if their opinions when new facts arise
A. the demand for pizza rises when in- C. The belief that we are right until some-
come rises. one provides information that contradicts
B. the demand for pizza rises when the our belief
NARAYAN CHANGDER
price of pizza falls. D. An error in the way we think that can
C. the demand curve for pizza slopes influence our decisions
downward. 14. Economists make assumptions in order to
D. the demand curve for pizza shifts to
the right when the price of burritos rises, A. mimic the methodologies employed by
assuming pizza and burritos are substi- other scientists.
tutes.
B. minimize the number of experiments
10. Jenny sells cupcakes at the community that yield no useful data.
bake sale for $2.50 each. If it costs her C. minimize the likelihood that some as-
$1.25 to make one cupcake, how much pect of the problem at hand is being over-
profit will she make if she sells 5 cup- looked.
cakes?
D. focus their thinking on the essence of
A. $5.00 the problem at hand.
B. $12.50
15. is the amount of money added to the orig-
C. $6.25 inal amount due to delay of repayment.
D. $4.50 A. interest
B. future worth of money
11. C=f(y) This indicates the relationship be-
tween what? C. engineering economics
A. Use and income D. interest rate
B. Usage and cost 16. How many characteristics of oligopoly
C. Capital and cost market
D. Income and expenditure A. 4
B. 9
12. How many characteristics of monopoly
market C. 5
A. 7 D. 8
B. 5 17. Suppose televisions are a normal good

and buyers of televisions experience a de-
C. 6
crease in income. As a result, consumer
D. 9 surplus in the television market
13. Which of the following best describes A. decreases

what a cognitive bias is? B. is unchanged

C. increases B. People do not always behave in a ratio-

D. may increase, decrease, or remain un- nal way when making economic decisions

changed C. There is no way to predict how people
will make economic decisions
18. Economic models
D. People will always update their view-
A. cannot be useful if they are based on points based on new information
false assumptions.
23. When someone pays for something they
B. were once thought to be useful, but
are doing what with their money?
that is no longer true.
A. spending
C. must incorporate all aspects of the
economy if they are to be useful. B. saving
D. can be useful, even if they are not par- C. earning

ticularly realistic. D. none of above
19. how many characteristics of monopolistic 24. Which of the following is called as cold re-
market serve?
A. 2 A. Reserve capacity available but not
ready for use
B. 5
B. Reserve capacity available and ready
C. 6
for use
D. 7 C. Generating capacity connected to bus
20. Investments of time, effort, and money and ready to take load
that cannot be recovered are D. Capacity in service in excess of peak
load
A. Opportunity costs
B. Sunk costs 25. Kim wants to buy the newest video game
system. It is $200. Kim should
C. Relevant costs
A. BUY IT!!!
D. Avoidable costs
B. make a savings goal
21. Ryan’s Coffee Shop earned $4, 500 in- C. ask her mom to buy it
come last week. Expenses were $4, 900.
What was Ryan’s profit or loss for the D. none of above
week? 26. The knowledge of diversity factor helps in
A. A 9, 400 profit determining
B. B 9, 400 loss A. plant capacity
C. C 400 loss B. average load
D. D 400 profit C. peak load
D. kWh generated
22. Unlike traditional economics, behavioral
economics believes that 27. Load factor of a power station is defined
A. People behave in a rational way when as
making economic decisions A. maximum demand/average

B. average load x maximum demand the profit-maximizing output level, then in

C. average load/maximum demand the long run
D. (average load x maximum demand) A. more firms will enter the market.
B. some firms will exit from the market.
28. Zach charges $12.00 to wash cars and
$6.00 to vacuum the inside. His expenses C. the equilibrium price per tire will rise.
are $2.00 for each car he washes. If he D. average total costs will fall.
washes 6 cars but only vacuums out half
NARAYAN CHANGDER
of them, what will be his profit? 33. Each of the following statements is an ex-
ample of confirmation bias EXCEPT
A. $90
A. Interpreting information to support
B. $72 your existing beliefs
C. $60 B. Seeking information that challenges
D. $78 your beliefs
29. How many Characteristics of perfect com- C. Only remembering details that uphold
petition market your beliefs
A. 4 D. Ignoring information that challenges

your beliefs
B. 9
C. 5 34. used as a medium of payment, trading pur-
poses and measure wealth.
D. 6
A. debit card
30. How many barriers to entry monoply mar- B. cheque
ket
C. money
A. 5
D. gcash
B. 3
C. 6 35. Michael observed he felt the pain of los-
ing a $20 bill more than he felt the joy of
D. 7 finding it on the sidewalk the week before.
31. The law of supply states that, other things This is a result of
equal, A. Endowment effect
A. when the price of a good falls, the sup- B. Loss aversion
ply of the good rises C. Sunk cost
B. when the price of a good rises, the D. Overconfidence
quantity supplied of the good rises.
C. when the price of a good rises, the sup- 36. Power plant having maximum demand
ply of the good falls. more than the installed rated capacity will
have utilisation factor
D. when the price of a good falls, the
quantity supplied of the good rises. A. equal to unity
B. less than unity
32. Tommy’s Tires operates in a perfectly com-
petitive market. If tires sell for $50 each C. more than unity
and average total cost per tire is $40 at D. none of the above

37. Profit is 41. Where does money come from?

A. money left over after paying expenses A. you have to earn it

B. making less money than spend on ex- B. giving it away
penses
C. spending
C. money you make for working
D. none of above
D. none of above
38. You are doing research on a new electric 42. Factors of production are
car that you are interested in buying. You A. used to produce goods and services
only visit the car company’s website and
an online message board of electric car en- B. also called output
thusiasts to do your research. This strat- C. abundant in most economies
egy may lead to
D. assumed to be owned by firms in the
A. Herd mentality
circular-flow diagram
B. The endowment effect
C. Confirmation bias 43. The usual value of
D. Loss aversion A. diversity factor is less than one and de-
mand factor is more than one
39. The distinction between a flow and a stock
is that B. diversity factor more than one and de-
mand factor is less than is one
A. A flow measures monetary values,
while a stock measures real values, such C. diversity factor as well as demand fac-
as factory output; tor is less than demand
B. A flow measures an account on a D. diversity factor as well as demand fac-
monthly basis, while a stock measures it tor is more than one.
on an annual basis
44. Deals with the study of cashflow, interest,
C. A flow measures a quantity over a pe-
discounting, depreciation and the value of
riod of time, while a stock measures a
money corresponding to the time period.
quantity at a specific moment.
D. none of above A. Money
B. Engineering Economy
40. What are social values, as they pertain to
money? C. Invested Money
A. How you, personally, care and think D. Interest Rate
about finances
B. How your family, friends, and commu- 45. Hindu Numerology was discovered in
nity members impact your feelings about which country?
money A. America
C. How companies and advertisements B. India
make you feel about money
C. China
D. How banks and other financial institu-
tions treat you and your money D. England

46. The market demand curve 50. In an interconnected system, the diversity
factor of the whole system
A. . is found by vertically adding the indi-
vidual demand curves A. remains unchanged
B. slopes upward. B. decreases
C. represents the sum of the prices that C. increases
all the buyers are willing to pay for a given D. none of the above
quantity of the good.
NARAYAN CHANGDER
51. Which of the following is an indicator of
D. represents the sum of the quantities total cost?
demanded by all the buyers at each price
of the good. A. C=f(x)
B. C= c(x)
47. People who experience FOMO may
C. C=f-x
A. Save a percentage of their paycheck D. f=c-x
each month
B. Donate money to a cause they care 52. Sean wants to buy a new backpack for
about school. Which of the following factors
should he be LEAST concerned about when
C. Go into debt to keep up with everyone comparison shopping?
else
A. The PRICE of the backpack
D. Create and stick to a monthly budget
B. WHEN the backpack was made
48. Long run equilibirum perfect competitive C. The QUALITY of the backpack
A. in the long run, a monopolist will only D. REVIEWS left by other consumers
earn supernormal profits
53. Georgia sold $70.00 worth of crafts at
B. In the long run, a monopolist will only the fair. If her expenses totaled $22.35,
earn normal profit due to the free entry what was her profit?
and exit A. $44.55
C. firm will only earn zero economic profit B. $42.65
or normal profit in the long run
C. $22.35
D. All inputs are variables in the long run
D. $70.00
49. The law of demand states that, other 54. Load curve is useful in deciding the
things equal,
A. operating schedule of generating units
A. an increase in price causes the quan-
tity demanded to increase. B. sizes of generating units
C. total installed capacity of the plant
B. an increase in price causes quantity
demanded to decrease. D. all of the above
C. an increase in quantity demanded 55. In the circular-flow diagram, in the mar-
causes price to increase. kets for
D. an increase in quantity demanded A. goods and services, households and
causes price to decrease. firms are both sellers.

B. goods and services, households are 60. Suppose the price of gas decreases from
buyers and firms are sellers. $2.45 to $2.25 and, as a result, the quan-
tity of gas demanded increases from 8 to

C. the factors of production, households
12 gallons. Using the midpoint method,
are buyers and firms are sellers.
the price elasticity of demand for gas in
D. the factors of production, households the given price range is
and firms are both buyers.
A. 2.00
56. For Firm A, when four units of output are B. 1.55
produced, the total cost is $175 and the C. 1.00
average variable cost is $33.75. What
would the average fixed cost be if ten D. 4.7
units were produced?
61. is the reserved generating capacity avail-
A. $4 able for service under emergency condi-
tions which is not kept in operation but in
B. $10
working order
C. $40
A. Hot reserve
D. $135 B. COld reserve
57. In economics, decisions are necessary be- C. Spinning reserve
cause are scarce, while are practi- D. Firm power
cally unlimited.
62. A system having connected load of 100
A. luxuries; necessities
kW, peak load of 80 kW. base load of 20
B. opportunities; costs kW and average load of 40 kW, will have
C. producers; consumers a load factor of
A. 0.4
D. resources; wants and needs
B. 0.5
58. When economists say a certain kind of C. 0.6
good is scarce, they mean that
D. 0.8
A. it takes time or energy to acquire
B. it is desired by more than one person 63. In a system if the base load is the same as
the maximum demand, the load factor will
C. it is produced, not naturally occurring be
D. there is limited supply of it A. 1
B. 0
59. is the quantity that tells how fast the
money is growing. usually in percent in- C. Infinity
terest rate per period D. 1 percent
A. online banking system
64. In a load curve the highest point repre-
B. interest sents
C. online money statistics A. peak demand
D. interest rate B. average demand

C. diversified demand C. total plant capacity is not properly

D. none of the above utilised for most of the time
65. Yvonne spent $42.44 on materials to
make bird houses and $10.75 on advertis- 70. Overconfidence bias may lead the majority
ing. She sold 3 bird houses for $35 each. of Americans to think that they are
What was her profit? A. Above average drivers
A. $51.81 B. Average drivers
NARAYAN CHANGDER
B. $61.81 C. Below average drivers
C. $62.56 D. Extremely poor drivers
D. $72.56
71. What is the current rate of unemployment
66. Good X and good Y are substitutes. If the in South Africa?
price of good Y increases, then the A. 25.6%
A. demand for good X will decrease. B. 34.5%
B. quantity demanded of good X will de- C. 40.2%
crease D. none of above
C. demand for good X will increase.
72. Which of the following is the LEAST
D. quantity demanded of good X will in- likely to influence a person’s financial de-
crease. cisions?
67. Coincidence factor is reciprocal of A. What their values are
A. average load B. What their family’s needs are
B. demand factor C. What their budget is
C. capacity factor D. What their friends want
D. diversity factor 73. A monopoly firm can sell 150 units of out-
put for $10 per unit. Alternatively, it can
68. The circular-flow diagram is a sell 151 units of output for $9.95 per unit.
A. visual model of the economy The marginal revenue of the 151st unit of
output is
B. visual model of the relationships
among money, prices, and businesses A. $-2.45
C. model that shows the effects of gov- B. $-0.05
ernment on the economy C. $2.45
D. mathematical model of how the econ- D. $9.95
omy works
74. The three major flows in a macro economy
69. High load factor indicates are
A. cost of generation per unit power is in- A. Total production, total investment and
creased total spending
B. total plant capacity is utilised for most B. Total production, total income and to-
of the time tal spending

1.6 International Economics 253
C. Total production, total spending and to- ume of the income flow
tal savings D. none of above

D. none of above
76. Which of the following represent injections
75. In the circular flow of income and spending into the circular flow of income and spend-
ing?
A. Investment results in a decrease in the
volume of the income flow A. Government spending and imports;
B. mports result in an increase in the vol- B. Imports and saving.
ume of the income flow C. Exports and investment
C. Savings result in a decrease in the vol- D. none of above
1.6 International Economics

1. The ability to produce something using 4. Which of the following is likely to occur
fewer resources than other producers is following the depreciation of the US dollar
called having the A. US Imports will increase
A. Absolute Advantage B. US exports will increase
B. Comparative Advantage C. Demand for US dollar will decrease
C. Better Advantage D. US demand for foreign currencies will
increase
D. Competitive Advantage
E. US goods will become more expensive
2. From a macroeconomic point of view, in- in foreign markets
creases in are an addition to aggregate
5. The exchange of goods, services, and/or
demand, while increases in are a sub-
productive resources among individuals,
traction from aggregate demand.
businesses, and/or governments.
A. rates of return; exchange rates A. Trade
B. exchange rates; rates of return B. Trade Surplus
C. exports; imports C. Trade barriers
D. imports; exports D. Trade deficit
6. An example of a Free trade area

3. Which of the following applies to a real-
world socialistic economy? A. NAFTA
A. Private ownership of all factors of pro- B. EU
duction. C. ASEAN
B. Government ownership of all factors of D. CARICOM
production.
7. When one country can produce a product
C. Government ownership of most of the more cheaply than another country can,
factors of production. this is called
D. Lack of central planning. A. a tariff.

B. free trade. C. Trade

C. comparative advantage. D. National Purchase
D. absolute advantage 13. NAFTA is an agreement between all of the
following countries EXCEPT
8. This is a tax on imports that is used to in-
crease price of foreign products and raise A. United States
government revenue. Sometimes we will B. Mexico
still by the foreign product
NARAYAN CHANGDER
C. Great Britain
A. tariff
D. Canada
B. quota
14. This is a tax on imports that is used to in-
C. subsidy
crease price of foreign products and raise
D. embargo government revenue.
9. free trade agreements among countries in A. tariff
a region B. quota
A. quota C. subsidy
B. trade bloc D. embargo
C. trade block 15. A tax on imported goods.
D. embargo A. Embargo
10. The lowering or elimination of protective B. Subsidy
tariffs and other trade barriers between C. Tariff
two or more nations.
D. Quota
A. Free Trade
B. Embargos 16. An example of a Monetary Union
A. NAFTA
C. Trade Barriers
B. EU
D. Foreign Exchange Rate
C. ASEAN
11. Each country has a new infant industry to
D. CARICOM
promote. Countries use the infant industry
argument to 17. Goods and services that a country pro-
A. control money supply in the economy. duces and then sells to other countries
B. protect new industries from the estab- A. exports
lishment of foreign competitors. B. imports
C. avoid structural unemployment. C. comparative advantage
D. reduce inflation problems. D. absolute advantage
12. Goods and services one country BUYS 18. What are taxes a country places on prod-
from another country. ucts as they cross its borders?
A. Imports A. Laws
B. Exports B. Quotas

C. Tariffs 24. When one country refuses to trade with

D. none of above another country because of political or in-
fringements of human rights it is called:

19. A limit on the number of cars that can be A. standard of care
brought into the country
B. subsidysubsidy
A. import quota
C. embargo
B. tariff
D. revenue tariff
C. customs duty
D. voluntary export constraint 25. Karl Marx published which of the follow-
ing books?
20. A tax placed on goods imported into a
A. Das Kapital
country
A. Quota B. General Theory of Communism
B. Tariff C. Wealth of Nations
C. Embargo D. Capitalist Manifesto
D. Subsidy 26. Which of the following is a characteristic

of capitalism?
21. In the classical model of Ricardo, the direc-
tion of trade is determined by: A. Equality of income.
A. absolute advantage B. Government decision-making is pre-
ferred to decentralized decision-making.
B. comparative advantage
C. Market determination of prices and
C. physical advantage
quantity.
D. which way the wind blows
D. Government ownership of all capital.
22. It is correct to say that countries within a
customs union have 27. Who are the main trading partners of the
US?
A. Common external barriers
A. Germany, Great Britain, China, and
B. Common currency and a common cen- France
tral bank
B. the Central American countries
C. Common policies on product regula-
tion. C. Canada, Mexico, and China
D. None of the above D. the Middle Eastern countries
23. NAFTA is a trade agreement between 28. A main advantage of specialization results
which of the following countries? from:
A. the United States, Cuba, and Brazil. A. Economics of large scale production
B. the United States, Canada, and Mex- B. The specializing country behaving as a
ico. monopoly
C. the United States, Puerto Rico, and C. Smaller production runs resulting in
Cuba. lower unit costs.
D. Brazil, Bolivia, Peru, and Columbia. D. High wages paid to foreign workers

29. Currency depreciation results in 34. The Heckscher-Ohlin theory explains com-
A. Increased exports, increased imports parative advantage as the result of differ-
ences incountries’:
B. Decreased exports, decreased im-
ports A. Economies of large-scale production.
C. Increased exports, decreased imports B. Relative abundance of various re-
sources.
D. Decreased exports, increased imports
C. Relative costs of labor.
30. Comparative advantage refers to the idea
NARAYAN CHANGDER
that countries should D. Research and development expendi-
tures.
A. produce the goods they make with the
highest quality. 35. In an effort to bring down the government
B. produce the goods they can produce of Cuba, the US adopted a policy of refus-
the fastest. ing to trade with Cuba. This is called
C. produce the goods for which the oppor- A. a tariff
tunity cost is the lowest relative to other B. a negative trade balance
countries’ costs.
C. an embargo
D. produce the same goods and exchange
a little of each while keeping some for D. a trade treaty
themselves 36. Internal trade is also called as
31. Import means A. Home trade
A. Buying goods from another country B. Domestic trade
B. Selling goods to another country C. Inter-regional trade
C. Only making one kind of product D. All the above
D. none of above
37. An exchange rate is used to
32. When Mataeo buys Euros through , he
A. promote the argument supporting free
will use his U.S. dollars to pay for them.
trade.
A. the foreign exchange market
B. promote the use of subsidies on for-
B. the currency exchange market eign goods.
C. a floating exchange market C. determine the price of one country’s
D. foreign currency market imports in terms of another country’s im-
ports.
33. In 1962, the United States sanctioned
Cuba and prohibited all imports and ex- D. determine the price of one country’s
ports to and from Cuba. This is an example currency in terms of another country’s
of which trade barrier? currency.
A. A sanction implemented as a tariff 38. Why does the United States need to im-
B. A sanction implemented as an em- port products?
bargo A. The US does not import products
C. A sanction implemented as a quota B. Some are easier and cheaper to make
D. A sanction implemented as a standard in other countries

C. The US makes all of its own products B. increasing variety of goods

D. none of above C. lowering prices

D. increasing consumption
39. Which of the following would be a reason
for the United States to place an embargo 44. Purchasing the right to use a company
on a particular country? name or business process in a specific way
A. Human Rights Violations ex. McDonald’s, Burger King, KFC and
Pizza Hut * *
B. Nuclear programs/projects
A. Licensing
C. Links to Terrorism
B. Joint venture
D. All of the above
C. Franchising
40. The difference between money paid to, D. Infrastructure
and received from, other nations in trade
is BEST described as 45. Which statement BEST reflects the differ-
A. balance of trade ence between tariffs and quotas?
B. absolute advantage A. Tariffs raise prices on exports, while

quotas set limits on imports.
C. balance of payments
B. Tariffs raise prices on imports, while
D. comparative advantage quotas set limits on exports.
41. An increase in the international value of C. Tariffs raise prices on exports, while
United States dollar will tend to cause quotas set limits on exports.
A. United States exports to fall D. Tariffs raise prices on imports, while
quotas set limits on imports.
B. the national income of the United
States to increase 46. International trade MOST OFTEN takes
C. employment in the manufacturing sec- place because of differences in
tor of the United States to increase A. absolute advantage
D. the inflation rate in the United States B. trade barriers
to increase C. exchange rates
E. the growth rate of the United States D. comparative advantage
economy to increase
47. The measure of the price of one nation’s
42. Goods or services that a country buys from currency in terms of another nation’s cur-
other nations. rency is a/n
A. Duty A. appreciation
B. Tariff B. depreciation
C. Export C. exchange rate
D. Import D. floating exchange rate
43. Tariffs and Quotas can benefit nations im- 48. Promotes free trade within 10 Southeast
posing them by Asian countries.
A. Raising revenue A. NAFTA

B. ASEAN B. Exports
C. EU C. Transfers & Remittances
D. Free Trade D. Purchase and sale of stocks and bonds
49. In economics, natural sunlight is classified 54. The US bans beef imports from Canada af-
as a free good. What is the reason for ter a Mad Cow Disease outbreak there.
this? This is an example of which type of bar-
rier to trade?
A. Sunlight is a gift of nature
NARAYAN CHANGDER
A. Standards
B. Sunlight is a renewable resource
B. Quota
C. There is no opportunity cost of using
sunlight C. Subsidy
D. Unlimited amounts of sunlight can be D. Tariff
consumed. 55. Which of the following is not a benefit of
50. What is a quota? trade between nations?
A. A government order to stop trade. A. More stuff

B. Better stuff
B. A limit placed on imports.
C. cheaper stuff
C. A tax placed on imports.
D. similar stuff
D. none of above
56. Currency depreciation could be caused by
51. Higher income levels in the US would re-
sult in A. Supply Increase or Demand Increase
A. Increased exports and appreciation of B. Supply Increase or Demand Decrease
the US Dollar C. Supply Decrease or Demand Decrease
B. Increased exports and depreciation of D. Supply Decrease or Demand Increase
the US dollar
57. An agreement between two or more com-
C. Increased imports and appreciation of panies to share a business project-this
the US Dollar business is on a limited basis for control
D. Increased imports and depreciation of A. Licensing
the US Dollar
B. Joint venture
52. Good and services produced at home and C. Franchising
sold in other countries
D. Infrastructure
A. Imports
58. To focus on producing one thing or spe-
B. Exports
cific product and to improve productivity
C. Specialization is known as:
D. Globalization A. Specialization
53. Financial Account transactions include B. International trade
items such as C. Absolute Advantage
A. Imports D. Supply and Demand

59. International trade that occurs with little C. EU

to no restriction is BEST described as D. Free Trade

A. free trade
64. Refers to the unrestricted flow of goods,
B. protectionism services, and productive resources be-
C. trade barriers tween countries.
D. trade surplus A. Trade
B. Free Trade
60. NAFTA BEST represents the controversy
that exists over C. Trade Barriers
A. scarcity D. Balance of Trade
B. embargoes 65. An economy with foreign trade is known
C. debt as
D. trade barriers A. a laissez faire economy.
B. an open economy.
61. Suppose the exchange rate between the
US and Japan changes from $1 USD = 100 C. a close economy.
Yen to $1 USD = 110 yen because the dol- D. a planned economy.
lar has increased in value. What would
happen to the prices of American goods in 66. The term is used to describe what
Japan? those in one country buy from those in
other countries.
A. They could increase or decrease
A. exports
B. The will remain the same
B. imports
C. They will decrease
C. trade
D. They will increase
D. surplus
62. According to the law of comparative ad-
67. Tax placed on imported goods that will
vantage, a country should
generate revenue without prohibiting im-
A. Specialize and export goods with the ports
lowest production cost
A. trade deficit
B. Specialize and export goods with the
B. quota
lowest opportunity cost
C. Specialize and export goods with the
lowest average cost D. revenue tariff
D. Specialize and export goods with the 68. How many areas did the RBI hand over to
highest opportunity cost NPCI the responsibility of finding solutions
in?
63. Allows for free trade of many goods
among United States, Canada, and Mex- A. 2
ico. B. 3
A. NAFTA C. 4
B. ASEAN D. 5

69. If a country has low literacy levels, little to C. US lumber importers

no technology and focuses on agriculture D. US lumber firms
or mining, that country is considered to be:
A. Less-developed 74. Which of the following is NOT a trade bar-
rier?
B. Industrialized
C. Industrialized A. an embargo
D. Developing B. a quota
NARAYAN CHANGDER
C. a free trade agreement
70. The sales and exchange of goods and ser-
vices between a buyer and a seller. D. a tariff
A. Imports 75. :Ability to produce a good/service at
B. Exports a lower O.C. than competitor.
C. - A. Opportunity Cost
D. National Purchase B. Absolute Advantage
71. The nation’s ability to produce general C. Comparative Advantage
goods more efficiently than another entity D. none of above
is referred to as?
A. Specialization 76. A combination of things that limit the
flow of goods, services, and productive re-
B. Comparative Advantage
sources between countries
C. Opportunity Cost
A. Trade barriers
D. Absolute Advantage
B. Trade Surplus
72. Which statement explains why the pay of C. Trade deficit
doctors is usually higher than the pay of
nurses? D. Balance of trade
A. Doctors have a higher opportunity cost 77. A quota is
in qualifying
A. an official ban on trade.
B. Doctors have a more elastic supply
than hospital cleaners. B. a limit on or a specific number of im-
ports allowed.
C. Hospital cleaners belong to trade
unions with stronger bargaining powers C. a law that promotes safety.
D. Hospital cleaners have a more inelas- D. a tax on imports.
tic demand than doctors
78. A country being able to make a product or
73. The US and Canada have been experienc- service at a lower cost than other coun-
ing a conflict over US restrictions on im- tries is considered?
ported softwood lumber. Who would be
A. Absolute advantage
MOST LIKELY to support the US restric-
tions? B. Concerning advantage
A. Canadian lumber firms C. Comparative advantage
B. US new home buyers D. Available advantage

79. Which BEST describes exchange rates? C. embargo

A. the difference between the total num- D. tariff

ber of exports minus the number of im-
84. An exchange rate is the number of units
ports
of:
B. the price of ones nation’s currency in
A. a nation’s money that is equal to one
terms of another nation’s currency
unit of another nation’s money.
C. an interest rate charged to consumers B. a nation’s output that is equal to one
who take out a loan unit of another nation’s output.
D. an increase in the price of a market C. gold backing a nation’s money.
basket over a given time period
D. none of these.
80. International economics is an applied
85. Mill’s Theory of reciprocal demand was de-
branch of economics
veloped with the illustration of two coun-
A. Micro tries
B. Macro A. England and Germany
C. Behavioural B. Germany and U.S.A
D. Financial C. U.K and U.S.A
81. The difference between import tariffs and D. none of above
quotas is: 86. A country’s ability to produce a given prod-
A. tariffs are a tax on locally produced uct with greater output per unit of input
goods but quotas limit the quantity of im- than another country
ports A. exports
B. tariffs are a tax on imports and quotas B. imports
are a tax on exports C. comparative advantage
C. tariffs are a tax on imports and quotas D. absolute advantage
limit the quantity of imports
87. is the making, buying, and selling of
D. tariffs are a tax on all products but quo-
products within a country
tas just limit the quantity of imports
A. International business
82. What do you need to produce other goods
B. Global economy
and services?
C. Domestic business
A. consumer goods
D. none of above
B. capital goods
88. A type of trade restriction that sets a phys-
C. nondurable goods
ical limit on the quantity of a good that can
D. Gross Domestic Product (GDP) be imported into a country in a given pe-
riod of time.
83. What Trade barrier is beneficial to both do-
mestic producers and domestic consumers A. Subsidy
of a good? B. Quota
A. subsidy C. Embargo
B. quota D. Tariff

89. Liberals believe that: D. pay taxes to the government

A. Relative and absolute gains are
94. When was NPCI founded?
equally important
B. Relative gains are more important A. 2008
than absolute gains B. 2006
C. Absolute gains are more important C. 2007
than relative gains
D. 2009
NARAYAN CHANGDER
D. Discussion or relative and absolute
gains is unnecessary 95. Which of the following is a likely result
of a depreciation of the Japanese yen (cur-
90. A government payment that supports a
rency) against other currencies?
business or market.
A. Japan will export more goods.
A. Tariff
B. Standards B. Japan will import more goods.
C. Embargo C. Japan will increase protectionism.

D. Subsidy D. Japan will experience an embargo
91. the main benefits of free trade include 96. When a country exports more than it im-
A. peace, better choice, prices and qual- ports, it has a
ity A. trade surplus.
B. less imports because they cant pene- B. trade deficit.
trate strong markets
C. comparative advantage.
C. the sharing of the world s resources
D. absolute advantage.
D. greater benefits for less developed
economies as they can trade more 97. Goods and services one country SELLS to
92. Limit of the amount of a good that can be another country.
imported A. Imports
A. Subsidy B. Exports
B. Quota C. Trade
C. Exports D. National Purchase
D. Appreciation
98. A country that can produce a good using
93. One potential advantage for a country of fewer resources than another country has
encouraging a multinational business to a(n):
set up is that it will:
A. lower opportunity cost of producing
A. always create more jobs than might be the good than another country.
lost
B. absolute advantage.
B. keep all of the profits made within the
country C. specialization in the production of the
good.
C. not compete with the existing national
businesses D. all of these.

99. . A Customer Service Representative is B. a situation where all of the world uses
a product created by what type of re- the same common currency
source?

C. the growing trend for companies to
A. Capital stop making products within their own
B. Land country
C. Labor D. the increase in the world tourist indus-

try leading to more global travel
D. none of above
104. The United States EXPORTS
100. The definition of the exchange rate of a
currency is: A. Kangaroos
A. the price level in the country B. Airplanes
B. the rate at which imports can be C. Cocoa Beans
bought from export revenue D. none of above
C. the price of one currency in terms of
how much it buys of another 105. In the short-run, tariffs and quotas help
protect
D. the price of a currency in terms of the
goods that can be bought with it A. domestic jobs
B. foreign employment
101. Climate and terrain are two examples of
conditions that influence international C. price wars
business. D. consumer choice
A. cultural and social
106. Which of the following defines balance of
B. geographic
trade?
C. economic
A. The prohibition of free trade
D. political and legal
B. The difference between amount ex-
102. Terms of trade is defined as ported and amount imported
A. a statistic that measures the weighted C. The need for all countries to partici-
average of export prices pate in trade equally
B. an index that measures the terms of D. The law requiring fair trade among all
trade in a nation countries
C. a statistic that measures the weighted 107. A strong dollar helps
average of export prices divided by import
prices A. An American traveling to a foreign
country
D. a statistic that measures the ratio of
exports to import B. Businesses that export goods
C. The foreign exchange rate
103. Globalisation is best defined as
D. Competition among foreign competi-
A. increased international trade as a re-
tors
sult of free movement of goods and capi-
tal between countries E. The strength of the European Union

108. Which of the following represents a fi- B. Argue against trade barriers
nancial inflow to the U.S. economy? C. Argue for trade barriers
A. returns paid on U.S. financial invest-
D. believe that trade restrictions harm
ments in Switzerland
consumers.
B. computer chip imports from Israel
114. What kind of economic integration ar-
C. oil imports from Canada
rangement has common policies on product
D. foreign aid from the U.S. to Ethiopia regulation, and free movement of goods,
NARAYAN CHANGDER
services, capital and labour?
109. Completely bans trade with a country,
usually due to political disputes. A. Common markets
A. Tariff B. Preferential trading area
B. Quota C. Free trade areas
C. Embargo D. Custom unions
D. Subsidy
115. The main benefit of free trade between
110. A subsidy is two countries is that
A. a cash grant or loan from the govern- A. income distribution in each country
ment to support the business. will become more equitable
B. a law that promotes safety. B. employment in each country will in-
crease
C. a tax on imports.
D. a specific number of imports allowed. C. migration from one country to the
other will increase
111. When domestic currency gain its value in D. each country can consume beyond its
relation to a foreign currency in the inter- constraints of resources and productivity
national money market, it is a situation of:
E. each country will become more self-
A. Currency appreciation sufficient
B. Currency depreciation
116. Who will be hurt by a tariff on medicine
C. Currency devaluation
coming into the US.
D. None of these
A. US medical companies
112. An agreement that will eliminate all tar- B. US government revenue
iffs and other trade barriers is an example
of a C. Sick people in US
A. Free Trade area D. none of above

B. common market 117. Placing taxes on imported shoes from
C. customs union Vietnam is an example of a
D. monetary union A. Balanced budget
B. trade barrier
113. Those in favor protectionist trade policies
would MOST likely C. trade surplus
A. Support a rediction in tariffs D. monetary policy

118. ASEAN is a trade bloc made of southeast- B. money spent by Canadian tourists in
ern nations. the U.S.

A. African C. returns paid to U.S. investors in South-
B. Australian east Asia
C. Asian D. European aid sent to the U.S. to fund

the Iraq war
D. none of above
124. Floating exchange rates are determined
119. When a nation imports more than it ex- by
ports, economists say it has which of the
following? A. supply and demand
A. A trade surplus B. the President of the United States
B. A balance of trade C. the central bank
C. A trade deficit D. the stock of gold reserves
D. A national difference 125. From April 2021, which new subsidiary
did NPCI create to increase growth espe-
120. A person or organization that uses a
cially in the business to consumer segment
product or service is a(n):
for small businesses?
A. consumer
A. NPCI International Payments Limited
B. economist (NIPL)
C. loan shark B. NPCI Bharat BillPay Limited (NBBL)
D. debtor C. Bharat Bill Payment System (BBPS)
121. Which of the following trade barriers is D. Indian Bank’s Association (IBA)
a block on trade with another country?
126. To say that net exports are negative is
A. Tariff the same as saying that
B. Embargo A. there is a capital account deficit.
C. Quota B. there is a budget deficit.
D. Standards C. the exchange rate has depreciated.
122. What is the increase in the value of a cur- D. there is a current account deficit.
rency?
127. Tax placed on imports to increase their
A. Exchange rate price in the domestic market
B. Recession A. dumping
C. Depreciation B. protectionists
D. Appreciation C. balance of payments
123. Which of the following would most likely D. tariff
be included in the negative side of the cur-
rent account balance? 128. A trade surplus is generally known as a
A. money earned by Canadian firms in the A. positive balance of trade.

U.S. B. negative balance of trade.

C. positive balance of payments. C. embargoes

D. negative balance of payments. D. trade deficits
129. If the U.S. government uses an expan- 134. A nation’s ability to produce goods more
sionary monetary policy to reduce interest efficiently than another entity is referred
rates, then it will: to as?
A. lead to higher imports and lower ex- A. Specialization
ports. B. Comparative Advantage
NARAYAN CHANGDER
B. cause the exchange rate for U.S. cur- C. Opportunity Cost
rency to depreciate. D. Absolute Advantage
C. lower levels of consumption and in-
135. Gross Domestic Product (GDP) is:
vestment.
A. The measure of the amount of money
D. cause the exchange rate for U.S. cur-
a country owes to other countries.
rency to appreciate.
B. The measure of the difference be-
130. A country that concentrates on producing tween what a country sells versus what a
and selling one particular product demon- country buys from other countries
strates this concept C. The measure of the output of products
A. specialization created within a country
B. quotas D. none of above
C. absolute advantage of trade 136. Coming into effect in 1994, NAFTA en-
D. cartel couraged free trade between the United
States and which two other countries?
131. This is the most restrictive of the trade
A. canda and cuba
restrictions a nation can use to close off
all importation of a product. B. japan and china
A. tariff C. Canada and mexico
B. quota D. panama and brazil
C. subsidy 137. The difference between money paid to,

and received from, other nations in trade
D. embargo
is the
132. :The highest valued alternative that A. balance of trade
is given up to engage in activity.
B. absolute advantage
A. Opportunity Cost C. balance of payments
B. Absolute Advantage D. comparative advantage
C. Comparative Advantage
138. Ireland imports bananas from Ghana.
D. none of above The bananas would BEST be described as
133. All of these restrict international trade A. imports
EXCEPT B. exports
A. quotas C. embargos
B. subsidies D. trade barriers

139. A name for money used in economics. B. McDonalds

A. Cash C. Coastal Lumber Company

B. Scratch D. Coca-Cola
C. Moolah
145. In most cases, tariffs and quotas harm
D. Currency consumers by causing
140. What limits the amount of products im- A. higher prices and fewer choices
ported B. higher unemployment
A. Tariff C. surplus and waste
B. Quota D. unexpected deflation
C. Embargo
146. In a command economy, the basic eco-
D. Trade ceiling
nomic questions are answered by:
141. The most likely reason why some govern- A. individuals and sellers
ments impose tariffs on imported goods is:
B. the traditional methods
A. to reduce the rate of inflation
C. central planners
B. to increase employment in foreign
countries D. none of these
C. to reduce the Balance of Payments 147. Not trading with nations who create
D. to increase output in their own coun- products using child labor is used in the ar-
tries gument for
A. Domestic Jobs
142. A US businesses arguing for a trade bar-
rier that would increase their business rev- B. National Defense
enue is MOST LIKELY to lobby for which of C. Human Rights
the trade barriers?
D. Environment
A. tariff
B. monopoly 148. reduces trade barriers and encour-
ages trade between countries.
C. quota
A. Free-trade zones
D. standards
B. Free-trade agreements
143. If I am better at all types of production,
C. non-tariff alliances
I have the in all forms of prodcution.
D. Common markets
A. Comparative Advantage
B. Absolute Advantage 149. If $1.00 U.S. bought $1.40 Canadian dol-
C. Specialization lars in 2006 and in 2010 it bought $1.00
Canadian dollar, then;
D. Developed nation
A. the U.S. dollar appreciated against the
144. Which economic actor would most likely Canadian dollar.
not support free trade? B. the Canadian dollar weakened against
A. Nike the Canadian dollar.

C. the U.S. dollar strengthened against B. the price level in that country has
the Canadian dollar. fallen
D. the Canadian dollar appreciated C. one unit of it buys less of a foreign cur-
against the U.S. dollar. rency than before
150. What is the name of a company that does D. the country’s exports will become
business and has facilities in many coun- more expensive
tries?
NARAYAN CHANGDER
A. World Business 155. A country can have an increased surplus
in its balance of trade as a result of
B. Multinational Corporation
C. World Power A. an increase in domestic inflation
D. None of the above B. declining imports and rising exports
151. Safety, environmental, health, or other C. higher tariffs imposed by its trading
technical requirements set by a govern- partners
ment. Imports must meet these require- D. an increase in capital inflow
ments before they are allowed to come
into the country. E. an appreciating currency
A. Standards
156. China is known as:
B. Subsidy
A. The red invasion
C. Quota
B. The communist threat
D. Tariffs
C. The world’s factory
152. War and unlawful activity are two exam-
ples of conditions that influence inter- D. The best economic system
national business.
A. geographic 157. Exports minus imports or how many
goods a county exports versus imports
B. economic
A. Exports
C. political and legal
D. none of above B. Subsidy
153. A persistent trade imbalance tends to C. Quotas

a country’s dollar. D. Balance of Trade
A. increase
158. When one country can produce a product
B. reduce
at a lower opportunity cost than another
C. raise country, this is called
D. devalue A. a tariff.
154. When an exchange rate of a currency de- B. free trade.
preciates it means that:
C. comparative advantage.
A. one unit of it buys more of a foreign
currency than before D. absolute advantage

159. Top 5 two-way trading partners in 2018 C. Country Y should try to produce the
A. China, Japan, United States, Republic same product.

of Korea, India D. Country X should sell that product to
B. United States, China, Japan, Republic Country Y.
of Korea, India
164. A situation in which a nation exports
C. United States, China, India, Japan, Re- more goods and services than it imports.
public of Korea
A. Balance of Payments
D. China, United States, Japan, Republic
B. Trade Surplus
of Korea, India
C. Trade Deficit
160. What are tariffs?
D. Balance of Trade
A. political boundaries between nations
165. The relationship between the value of a
B. military blockades of specific coun-
country’s exports and the value of its im-
tries
ports.
C. disputes between state governments
A. Trade Deficit
over boundaries
B. Trade Surplus
D. taxes on the import or export of goods
from a country C. Balance of Trade
D. Balance of Payments
161. An office building is a product created by
what type of resource? 166. Which is a benefit of the U.S. dollar weak-
A. Capital ening against the Euro?
B. Labor A. Americans will buy more European
C. Land made cars.
D. none of above B. People will buy more European goods

in the U.S.
162. The current transfer includes the follow- C. Europeans will travel to the U.S. be-
ing items EXCEPT cause it will be a better bargain.
A. gift. D. Americans will travel more to Euro-
B. military aid. pean destinations.
C. financial aid. 167. One advantage to the business of becom-
D. investment ing a multinational is that:
A. it will be able to produce goods closer
163. Country X can manufacture a particu-
to each country’s market
lar product better and at a lower cost
than country Y can.What conclusion can be B. it will have fewer factories and operat-
drawn from this situation? ing bases
A. Country X has solved the problem of C. communication will be easier within
scarcity. the business
B. Country X should discontinue making D. it will tend to produce the same basic
that product. product for markets throughout the world

168. The field of international political econ- 172. If the Malaysia ringgit (RM) is said to be
omy: depreciated relative to the U.S dollar, then
the dollar
A. Examines the relationship between na-
tional and international politics A. will be less expensive to Malaysians.
B. Examines the relationship between B. will appreciate relative to Malaysian
economics and politics ringgit.
C. Draws upon disciplines such as his- C. will depreciate relative to Malaysian
NARAYAN CHANGDER
tory, political science, economics, and so- ringgit.
ciology D. either will appreciate or depreciate rel-
ative to Malaysian ringgit.
D. All of the above
173. Which of the following is the gain to na-
169. terms of trade is calculated by multi- tions from international trade?
plying the commodity terms of trade index
by productivity changes in domestic export A. The world output will increase
industries B. Greater advancement in technology.
A. Gross Barter C. Widened choices to the domestic
trade.
B. Double Factoral
D. All the above.
C. Single Factoral
D. none of above 174. A good that is sent to another country for
sale
170. If a country has a bowed out (concave to A. export
the origin) production possibility frontier,
B. import
thenproduction is said to be subject to:
C. quota
A. constant opportunity costs.
D. subsidy
B. decreasing opportunity costs.
175. An agreement that will eliminate trade
C. first increasing and then decreasing
barriers as well as the barriers for the
opportunity costs.
flow of FOP is an example of a
D. increasing opportunity costs.
A. Free Trade area
171. What was the name of the roadmap RBI B. Preferential trade area
called? C. customs union
A. Financial Sector Computing Vision Doc- D. common market
ument (2005)
176. requirements a good must meet before it
B. Financial Sector Science Vision Docu-
can enter the country as an import.
ment (2005)
A. Free Trade
C. Financial Sector Technology Vision
Document (2005) B. Standard
D. Financial Sector Telecommunications C. Subsidy

Vision Document (2005) D. National Security

177. Country A can produce 10 apples or 3 D. encourage countries to establish quo-

oranges.Country B can produce 12 apples tas.
and 3 oranges.Which country has an abso-

lute advantage? 182. Which of the following organizations is
MOST LIKELY a supporter of free trade?
A. A
A. the United Steelworkers of America
B. B
C. Neither B. Coca-Cola Corporation
D. Both C. the Anti-Globalization Coalition

D. US electronics producers
178. The Malaysian government buys a new
Boeing 787 from the U.S. This transaction 183. A good is a product that you can see
is recorded as and touch.
A. current account A. spiritual
B. financial/capital account B. imitation
C. official reserves C. physical
D. none of above
D. imaginary
179. According to the factor endowment model
of Heckscher and Ohlin, countries heavily 184. System under which the price of one cur-
endowedwith land will: rency remains unchanged in relation to the
value of another currency
A. Devote excessive amounts of re-
sources to agricultural production. A. dumping
B. Devote insufficient amounts of re- B. protective tariff

sources to agricultural production. C. fixed exchange rate
C. Export products that are land- D. North American Free Trade Agreement
intensive.
D. Import products that are land- 185. Comparative advantage is determined
intensive. by:
A. actual differences in labor productivity
180. What is the GDP of the U.S.? between countries.
A. 5 Trillion Dollars
B. relative differences in labor productiv-
B. 12 Trillion Dollars ity between countries.
C. 1 Trillion Dollars C. both (a) and (b)
D. 18 Trillion Dollars D. neither (a) nor (b)
181. The principal objective of WTO is to: 186. Who was know as the father of modern
A. reduce the level of all tariffs and en- economics and believed in capitalism?
courage trade
A. Karl Marx
B. to increase tariffs on all imported
B. Adam Smith
goods
C. prevent the trading of services across C. Robert Smith
nations’ borders. D. Jeffrey Sachs

187. The value of a nations currency in relation C. it is pegged to currency in Asia so that
to a foreign currency. CVhina maintains its dominance
A. Equilibrium Rate D. all of these options
B. Export Rate
192. Which of the following is international
C. Exchange Rate trade?
D. Import Rate A. Trade between countries
188. refers to a world economy with move- B. Trade between regions
NARAYAN CHANGDER
ment of products and labor across interna- C. Trade between provinces
tional borders.
D. Both (b) and (c)
A. Global economy
B. Domestic business 193. Currently, the foreign exchange rate for
all world currencies is
C. International business
A. fixed exchange rate, based on the U.S.
D. none of above dollar.
189. Foreign debt is B. a floating exchange rate, based on the
A. The measure of the output of products U.S. dollar.
created within a country C. a fixed exchange rate, based on mar-
B. The measure of the difference be- ket forces of supply and demand.
tween what a country sells versus what a D. a floating exchange rate, based on
country buys from other countries market forces of supply and demand.
C. The measure of the amount of money
194. When a country has the ability to produce
a country owes to other countries.
a product at a lower opportunity cost than
D. none of above another country.
190. One possible disadvantage to businesses A. Comparative Advantage
of globalisation is that: B. Favorable Advantage
A. all products will become more expen- C. Absolute Advantage
sive
D. Positive Net Export
B. there will be more international com-
petition 195. Trade allows each country to take advan-
C. there will be less choice and variety for tage of in the other country.
their consumers A. economies of scale
D. they will tend to produce on a small B. lower opportunity costs
scale and this will raise costs
C. specialization
191. China has a pegged exchange rate which D. worker productivity
means
A. it always keeps below US $ and main- 196. When the Japanese Yen decreases in
tains its advantage in trade value relative to another currency, it has
B. it is part fixed and part floating depend- A. Appreciated

ing on world events B. Depreciated

C. Fixed 202. A protective tariff is intended to protect

D. Floated the

A. consumer from higher prices on for-
E. Inflated
eign goods.
197. Labor, human capital, entrepreneurship, B. consumer from higher priced domestic
natural resources, and capital are all ex- goods
amples of which of the following?
C. manufacturers from higher prices on
A. Outputs domestic materials used in their products
B. Substitutes in Production D. manufacturers from lower priced
C. Absolute Advantage goods imported into the country.
D. Factors of Production 203. The buying and selling of goods and ser-
vices within your own country.
198. A trade agreement between 27 countries
A. Commerce
of with the same currency and open trade
between those nations. B. Business
A. NAFTA C. Sales
B. EU D. Domestic Trade
C. WTO 204. If we export more than we import, we
D. ABC are said to have a balance of trade. If
we import more we are said to have a
199. Promotes free trade within the 28 Euro- dollar
pean member countries. A. favorable, weak
A. NAFTA B. unfavorable, weak
B. ASEAN C. favorable, strong
C. EU D. unfavorable, strong
D. Free Trade 205. An agreement among the United States,
Canada and Mexico designed to remove
200. decrease in value of one currency relative
tariff barriers between the three coun-
to the other
tries.
A. depreciation
A. NAFTA
B. appreciation
B. ASEAN
C. quota C. EU
201. Infant industries can be helped in the 206. Higher interest rates
world market by giving those industries a
A. Make foreigners decide to buy more of
A. subsidy a country’s government bonds
B. quota B. Attracts portfolio flows to a country
C. embargo C. Controls inflationary pressures
D. tariff D. All the above

207. A good or service brought in from another C. higher real interest rates abroad
country for sale. D. expansionary monetary policy in the
A. import U.S.
B. export 213. If Germany imports $12 million worth
C. tariff of goods and exports $9 million worth of
D. none of above goods, they would be described as having
a
208. limit the flow of goods, services, and pro-
NARAYAN CHANGDER
A. trade barrier
ductive resources between countries.
B. free trade
A. trade surplus
C. trade deficit
B. trade barriers
D. trade surplus
C. balance of trade
D. none of above 214. Export means
A. Buying goods from another country
209. This occurs when imports and exports are
equal B. Selling goods to another country
A. Happy Countries C. Only making one kind of product
B. Trade Equality D. none of above
C. Trade Balance 215. The value of one currency for the purpose
D. Trade Domination of conversion to another
A. exchange rate
210. Importance of the study of International
economicsSelect the wrong one B. monetary rate
A. Optimum use of resources C. conversion rate
B. Growth and development D. fiscal rate
C. Greater choice for consumers 216. An agreement that will reduce tariffs and
D. Currency minting other trade barriers is an example of a
A. Free Trade area
211. Current account in the Malaysian Balance
of Payment (BOP) contains B. Preferential trade area
A. receipts and payments on goods and C. customs union
services. D. common market
B. receipts on goods and services.
217. Which trade barrier is implemented when
C. payments on goods and services. countries have strong political disputes
D. receipts and payments on goods. or disagreements? (Example:The United
States and Cuba)
212. Which of the following is most likely to
cause an increase in the international value A. Standards
of the dollar? B. Quota
A. Higher U.S. interest rates C. Embargo
B. lower U.S. government spending D. Tariff

218. The EU is better seen as an example of C. Whatever sellers of goods are willing
to take

A. A Economic and monetary union D. Investors decide the value of the cur-
B. Free trade area rency they wish to invest
C. A Customs Union 224. Economist believe which of the following
D. A Complete Economic integration are benefits of international trade:
219. A major cost of free trade from poor na- A. there can be increased consumption
tions is that they will for all.
A. Get cheaper goods B. global production will be increased.

B. Get more goods C. world resources will be used more ef-
ficiently.
C. Get environmental damage
D. Get a greater variety of stuff D. all of these are true.
220. A tariff can be defined as a: 225. If you are going to visit America and have
$2999 to spend, how much currency could
A. tax on imports.
you obtain? (1AUD = 0.68USD)
B. tax on exports.
A. = 1x 0.68
C. legal limit on imports.
B. = 1 / 0.68
D. legal limit on exports.
C. = 2999 x 0.68
221. Which of the following is a country in
D. = 2999 / 0.68
which the United States currently has an
embargo?
226. Assume the exchange rate of US dollars
A. Germany to Indian Rupees changes from $1=500 ru-
B. Egypt pees to $1= 200 rupees. Which group will
be helped by the change?
C. Sudan
A. US exporters of US goods to India
D. Nicaragua
B. Indian Manufacturing firms
222. To focus on producing one thing to im-
prove productivity is known as: C. Indian citizens holding Us dollars
A. Specialization D. US importers of Indian goods

B. Absolute Advantage 227. What do NAFTA, EU, and ASEAN have in
C. International Trade common?
D. Supply & Demand A. all 3 groups use the same currency
223. How is an exchange rate determined in B. they are all interested in promoting
the money market? free trade
A. The forces of supply and demand C. the US is a member of all 3
B. Government/the Federal Reserve D. each group attempts to enforce trade
Bank barriers rigidly

228. If the value of a country’s exports fall 233. refers to the rate at which the goods
short of the value of its imports of one country exchange for the goods of
A. trade deficit another country.
A. terms of trade
B. trade surplus
B. balance of payment
C. balance of trade
C. real cost
D. none of above
D. quotas
NARAYAN CHANGDER
229. A student decides to buy a ticket for
a concert instead of buying a new shirt. 234. Members do away with duties and other
What is the opportunity cost of buying the trade barriers-they allow companies to in-
ticket? vest freely in each member’s country *ex.
EU (European Union)
A. the concert
A. Free-trade zones
B. the price of the ticket to the concert
C. the shirt
D. the time spent purchasing the ticket
D. Common markets
230. In order to have a positive balance of
235. the price of one country’s currency ex-
trade, a country would need to
press in terms of another country’s cur-
A. import more than it exports rency
B. have an equal number of imports and A. currency
exports
B. exchange rate
C. export more than it imports
C. capstone
D. decide not to trade with other coun-
D. none of above
tries
236. What is the purpose of NAFTA?
231. What are some positives of globaliza-
tion? A. To increase trade between the coun-
tries of North America
A. Cheap sneakers and clothes
B. To help Canada become a more inde-
B. Cheap electronics pendent nation
C. Information is easy to access and it C. To eliminate the environmental issues
travels quickly (internet and social media) between the nations involved
D. All of the answers are correct D. none of above
232. An argument that supports the use of 237. The ability to produce a product most ef-
trade barriers when a new industry is in ficiently given all the other products that
the early stages of development. could be produced.
A. Free Trade A. Absolute Advantage
B. Infant Industries B. Comparative Advantage
C. National Security C. Positive Advantage
D. Balance of Trade D. Negative Advantage

238. Which of the following is not included in 244. Given the same amount of resources, if
the current account balance? a country can produce more of particular
commodities compared to another country,

A. Net income.
that country is said to have
B. Current transfer.
A. productive advantage.
C. Financial account.
B. an absolute advantage.
D. Balance of goods and services
C. a comparative advantage.
239. which of the following would decrease
D. ratio of export price index to import
the demand for A$ by the British
price index.
A. more UK students go on gap year in
australia 245. Exchange rate fluctuations will cause
B. UK buy more australian exports A. an increase in the domestic price
C. Uk invest in australian mining projects which leads to inflation.
D. UK tourists decide to stay in Majorca B. a decrease in the international price

rather than go all tge way to australia which lead to employment.
C. imported goods and services to face
240. Which of the following is not part of the heavy profit.
arguments about trade protection?
D. none of the above.
A. The national security
B. A souree of the government revenue 246. Goods and services that one country buys
from other countries
C. The potential for corruption
A. exports
D. The protection of domestic jobs
B. imports
241. An increase in the value of a currency
C. comparative advantage
A. apprecation
D. absolute advantage
B. depreciation
C. quota 247. If a country trades with other countries
because it has more than it needs of a cer-
D. subsidy tain product, the trade reason is:
242. Measure the price of one nation’s cur- A. Surplus
rency in terms of another nation’s currency B. Increased competition
A. appreciation C. Specialization
B. depreciation
D. Political/Historical
C. exchange rate
248. The European Union has encouraged all of
D. balance of trade
the following EXCEPT
243. The definition of TRADE is A. common currency-Euro
A. Importing goods B. free trade between European coun-
B. to buy or sell goods or services tries
C. Exporting goods C. positive relationships among leaders
D. none of above D. common enemies

249. A trade agreement between 27 countries, B. Mexico benefits from increased pur-
using the same currency and allows open chasing power
trade between those nations.
C. Mexico would have more Chinese in-
A. NAFTA vestors
B. EU D. They would be invaded by China
C. WTO
255. Japan has a 100% tariff on Corvette im-
D. ABC
ports. If a Corvette costs $80, 000.00
NARAYAN CHANGDER
250. First Economist who introduced basic idea in the United States, how much would a
of International Economics Japanese person pay for it? Would this in-
crease or decrease U.S. exports to Japan?
A. Adam Smith
A. $80, 000.00 decrease
B. David Ricardo
C. Hume B. $80, 000.00 increase
D. J M Keynes C. $160, 000.00 decrease

D. $160, 000.00 increase
251. An example of a Common Market
A. NAFTA 256. A situation in which a country specializes
B. EU in the production of a good or service at
which it is relatively more efficient?
C. ANZAC
A. Absolute advantage
D. CARICOM
B. Concerning advantage
252. What are some negatives of globaliza-
tion? C. Comparative advantage
A. Workers are exploited in sweatshops D. Available advantage

B. Pollution and deforestation 257. Japan claims that the snow in Japan is
C. Low wages for factory workers in Asia different from other places. Because of
and Africa this, their laws prevent skis from being im-
D. All of the answers are correct ported into the country unless they meet
specific standards. This is called a
253. Underdeveloped nations tend to trade A. tariff
what type of goods
B. quota
A. Low skill products
C. standard-based trade barrier
B. High tech goods
C. finished products D. non-trade-related restriction
D. High skill products 258. The most serious type of trade barrier.
254. If the Mexican Peso depreciates in rela- A. Quota
tion to the Chinese Yuan, how is Mexico
B. Excise Tax
affected?
C. Tariff
A. Mexico has less purchasing power in
Chinese currency D. Embargo

259. A restriction on the quantity of a good 264. When an exchange rate of a currency de-
that can be imported into a country is a(n): preciate s, the following will be likely to
happen:

A. tariff.
B. quota. A. import prices will fall and export prices
C. embargo. will rise
D. restricted exchange rate. B. export sales will fall and import pur-
chases will increase
260. A benefit, profit, or value of something
that must be given up to acquire or achieve C. export prices will fall and import prices
something else. will rise
A. Opportunity Cost D. prices of all products will not change
B. Comparative Advantage
265. A resource that can’t be replaced in a
C. Specialization short period of time
D. Production
A. Scarcity
261. Comparative advantage is central to:
B. Renewable Resource
A. Liberalism
C. Nonrenewable Resource
B. Economic nationalism
C. Critical thought D. Economics
D. Feminism 266. Free international trade’ means that:
262. Declining costs per unit of output results A. goods can be transported between
from international trade especially if: countries free of charge for ever
A. International trade affords producers
B. all countries use the same currency so
monopoly power.
it does not cost anything to convert cur-
B. National governments levy import tar- rencies
iffs and quotas.
C. there are no tariffs or quotas to limit
C. Producing goods entails increasing
trade between countries
costs.
D. economies of scale exist for produc- D. businesses can produce in any country
ers. without any legal controls
263. What is a potential benefit of free 267. Which group benefits when the US dollar
trade? depreciates against other currencies?
A. More employment in sunrise indus- A. US citizens buying foreign goods and
tries services
B. Specialization in commodity produc-
B. US citizens traveling in foreign coun-
tion
tries
C. Less unemployment in sunset indus-
tries C. foreign governments with US Treasury
Bonds
D. Access to goods that are not produced
in the domestic market D. foreign citizens vacationing in the US

268. An import quota is meant to (blank) the 273. A regional trade organization made up of
number of a particular good brought into European nations
the country.
A. NAFTA
A. affect
B. EU
B. benefit
C. ASEAN
C. restrict
D. CARICOM
D. increase
NARAYAN CHANGDER
274. How a country manages its resources is
269. For scholars intent on consolidating the an example of its condition, which in-
field of IPE the main task is to: fluences international business.
A. Integrate cultural studies approaches A. cultural and social
B. Build upon agreed theoretical ap- B. economic
proaches and problems
C. geographic
C. Challenge existing theoretical and
D. political and legal
epistemological approaches
D. Discover new topics to explore 275. The price of one nation’s currency in
terms of another nation’s currency is called
270. People who favor trade barriers to pro-
A. foreign exchange
tect domestic industries from imported
products B. exchange rate
A. trade deficit C. foreign exchange rate
B. quota D. currency converter
C. balance of payments 276. Goods and services brought in from other
D. protectionists countries
A. supply
271. Religion and language are two examples
of conditions that influence interna- B. exports
tional business. C. imports
A. economic D. tariff
B. political and legal
277. A traditional economy:
C. geographic
A. answers the What, How and For Whom
D. cultural and social questions the way they have always been
answered
272. Limits the quantity of a good imported
into a country. B. answers the What, How and For Whom
questions by central authority
A. Tariff
C. answers the What, How and For Whom
B. Quota
questions using prices determined by the
C. Embargo interaction of supply and demand
D. Subsidy D. none of above

278. A trade agreement between Canada, 283. NAFTA is an agreement among the U.S.,
Mexico, and the US Canada, and Mexico primarily intended to
promote

A. NAFTA
A. environmental protection
B. EU
B. military defense
C. WTO
C. human rights
D. ABC
D. free trade
279. Nations that are the target of embargoes 284. Government payments to a local supplier
are forced to deal with which of the follow- to reduce the supplier costs. This helps lo-
ing? cal businesses survive because it is getting
A. falling prices direct aid from the government
A. Balance of trade
B. lower tariffs
B. protectionism
C. increased scarcity
C. exchange rate
D. more foreign competition
D. subsidy
280. An association of 12 member nations 285. What is a decrease in the value of a cur-
of southeast Asia to promote economic rency?
growth, free trade and economic collabo-
ration between member nations. A. Appreciation
B. Depreciation
A. ASEAN
C. Inflation
B. EU
D. Absolute advantage
C. NAFTA
286. A country that lacks ability to logistically
D. none of above transport imports & exports would be con-
cerned with which component of the inter-
281. Which is an example of a quota?
national business environment?
A. The U.S. stops trade with China. A. Geography
B. The U.S. limits the amount of foreign B. Culture
cars brought into our country.
C. Economy
C. The U.S. pays a high tax on BMW cars D. Infrastructure
brought into the country.
287. Specialization is
D. none of above
A. dependence on others to get products
282. This occurs when the supply is low and you do not produce and needing to pur-
the demand is high chase items from them.
A. Natural Resource B. items purchased from other countries.
B. Scarcity C. items sold to other countries.

D. producing specific goods and less
C. Economics
goods faster, cheaper and better than oth-
D. Demand ers can.

288. When a country imports more than it ex- 293. the value of its exports minus the value
ports, it has a of its imports for measurable during a spe-
A. trade surplus. cific time
B. trade deficit. A. balance of imports
C. comparative advantage. B. balance of exports
D. absolute advantage. C. balance of trade
289. When a nation imports more than they D. none of above
NARAYAN CHANGDER
export, that nation has a 294. US President Donald Trump’s ‘America
A. Free trade agreement First’ policy is an example of:
B. Trade surplus A. Liberalism
C. Trade deficit B. Economic nationalism
D. Trade free economic system C. Neo-Marxism
290. What is MOST LIKELY to happen to US im- D. Neo-liberalism
ports and exports if the US dollar becomes
295. International organization that settles
stronger relative to other currencies?
trade disputes and organizes trade nego-
A. imports will decrease, exports will in- tiations
crease
A. United Nations (UN)
B. both imports and exports will increase
B. European Union (EU)
C. both imports and exports will de-
crease C. World Trade Organization (WTO)
D. imports will increase, exports will de- D. North America Free Trade Agreement
crease (NAFTA)
291. What is an official ban on trade or other 296. is any activities needed to create,
commercial activity with a particular coun- ship, and sell products across national bor-
try? ders
A. Tariff A. Global economy
B. Product standard B. International business
C. Embargo C. Domestic business
D. Quota D. none of above
292. If a country has a deficit in its current ac- 297. Which of the following strategies in-
count, there will be a volves increasing the supply of a prod-
A. Surplus in the financial account (for- uct so much that its prices drops severely,
merly called capital account) forcing similar products out of the mar-
ket?
B. surplus in the trade balance
A. specialization
C. surplus in the balance of payments
D. deficit in the financial account(formerly B. dumping
called capital account) C. setting quotas
E. deficit in the balance of payments D. trade restrictions

298. The United States IMPORTS 303. INTERNATIONAL TRADE is

A. Corn A. the exchange of goods, and services

B. Airplanes across international borders or territories
C. Toys B. the exchange of capital, goods, and

services
D. none of above
C. the exchange of capital, goods, and
299. In 2014, India was in the top of the coun- services across international borders or
tries with the percentage of account territories
holders. D. the exchange of goods across interna-
A. lowest tional borders or territories
B. highest
304. A limit to the number of imports that may
C. modest enter a country
D. largest A. tariff
300. Why would a country impose a tariff or B. embargo

quota on imported goods? C. demand
A. to raise the price of imported goods D. quota
and encourage people to buy local
B. to raise the price of imported goods to 305. External trade is also called
help other countries make more money A. Foreign trade
C. to be mean! B. International trade
D. none of above C. Both
301. If a nation limits the import of goods D. none of above
such as clothing, using various trade re-
strictions, who will benefit? 306. Developed nations have all of the follow-
ing except
A. Domestic Consumers of clothing
A. better education
B. Domestic producers of clothing
B. high levels of technology
C. Foreign Producers of clothing
C. better health
D. department stores who sell clothing
D. higher populations
302. a reason why some countries use fixed
exchange rates-often set at low values is 307. . If a country has a highly educated
so population, advanced technology, and fo-
cuses on international business and foreign
A. exports are encouarged and imports
trade, that country is considered to be:
made more expensive
A. Less-developed
B. to improve their budget surplus
B. Developing
C. to allow investment in capital infras-
tructure C. Industrialized
D. all of these options D. none of above

308. In recent years more golf courses, which 313. What is the difference between the value
use large quantities of water, have opened of imports and the value of exports
in China. What is the opportunity cost of A. Balance of trade
this?
B. Trade differential
A. cost of water
C. Trade deficit
B. loss of farmland
D. Trade surplus
C. sales of golf equipment
NARAYAN CHANGDER
D. wages of golf course staff 314. Sports teams having their logo on memo-
rabilia is considered?
309. An export can be defined as any product A. Licensing
that is:
B. Joint venture
A. made from goods bought from another
country C. Franchising
B. sold to another country D. Infrastructure
C. bought from another country 315. Refers to free trade agreements among
D. made in another country countries in a region (ex:EU, ASEAN, and
NAFTA).
310. A useful material found in the environ- A. Free Trade
ment
B. Trade
A. Natural Resource
C. Balance of Trade
B. Scarcity
D. Trading Bloc
C. Renewable Resource
D. Economics 316. :Ability to produce more of a good or
service than a competitor with the same
311. A farmer decides to grow potatoes in- resource.
stead of wheat. What is the opportunity A. Opportunity Cost
cost of growing the potatoes?
B. Absolute Advantage
A. the output of wheat
B. the price of seed potatoes
D. none of above
C. the profit from growing potatoes
D. the time spent preparing the potato 317. Globalisation means
field A. no trade restriction in the entire globe
312. What happens when a nation’s currency B. trade between India and USA
depreciates? C. Multinational Company
A. Its products become more expensive D. Foreign Aid
to other nations
318. The difference between the money a
B. Its products become cheaper to other country pays to, and receives from, other
nations and exports may increases nations when it engages in international
C. Nothing trade
D. It halts all trade A. free traders

B. protectionists C. legal limit on the amount of a good that

C. balance of payments can be imported into a country.
D. legal incentive for members of WTO to

D. tariff
increase their exports of a good or ser-
319. An argument that seeks to protect work- vice.
ers of a country from becoming unem-
324. Services are provided to you by other
ployed due to competition from products
made by workers in developing countries A. countries
who usually work for much lower wages B. companies
and benefits. C. employees
A. Domestic Employment D. people
B. National Security 325. When determining comparative advan-
C. Trading Bloc tage one must determine
D. Balance of Trade A. Opportunity cost
B. Specialization
320. established by the interacion of the
market forces of demand for and supply C. Absolute Advantage
of the currency D. Embargos
A. Fixed Exchange Rate 326. Top 5 countries to which Australia sends
B. Flexible Exchange Rate it’s exports:
C. floating exchange rate A. China, Japan, Republic of Korea, USA,
India
D. none of above
B. China, Japan, New Zealand, USA, India
321. A strong dollar leads to C. China, Japan, Republic of Korea, Singa-
A. cheaper imports. pore, India
B. more expensive imports. D. China, Japan, USA, Republic of Korea,
India
C. no change in international prices.
D. cheaper exports. 327. If a country has a linear (downward slop-
ing) production possibilities frontier, then
322. Goods a country brings into the country, production issaid to be subject to:
produced by other countries. A. constant opportunity costs.
A. Import B. decreasing opportunity costs.
B. Exports C. first increasing and then decreasing
C. Quota opportunity costs.
D. Embargo D. increasing opportunity costs.
323. An import quota is a 328. FDI stands for

A. Foreign domestic Investment
A. tax on import quantities above the le-
gal limit. B. Foreign Direct Income
B. way to increase tariff revenues for the C. Foreign Dispute Evaluation
exporting country. D. Foreign Direct Investment

329. If nations limit trade in clothing who will 334. Which of the following would be MOST
benefit? supportive of British tariffs?
A. Domestic consumers of clothing A. a US company hoping to export goods
to Great Britain.
B. Foreign Producers of Clothing
B. a British company hoping to export
C. Domestic producers of clothing goods to other countries.
D. Depart stores who sell clothing C. British consumers.
NARAYAN CHANGDER
D. British manufacturers who sell their
330. Comparing the value of one currency vs.
products domestically.
another is called
A. Trade Value 335. What is described as a policy in which
there is no government regulation and
B. Exchange Rate countries may trade as they please?
C. Trade Balance A. Free trade
D. Monetary Dominance B. Balance of trade
C. Imports
331. What is the theme song for international
trade? D. Exports
A. Randy Newman, “You Got a Friend In 336. The use of trade barriers to protect a na-
Me” tion’s industries from foreign competition
B. The Rembrandts, “I’ll Be There For A. Balance of trade
You” B. NAFTA
C. Biz Markie, “Just a Friend” C. Quotas
D. Dionne Warwick, Elton John, Gladys D. Protectionism
Knight & Stevie Wonder, “That’s What 337. Which situation correctly describes a
Friends Are For” trade deficit?
332. If the value of a country’s imports ex- A. tariffs are higher than income taxes
ceeds the value of its exports. B. exports are greater than imports
A. Balance of trade C. tax revenue is higher than government
spending
B. Trade Surplus
D. imports are greater than exports
C. Trade deficit
338. Which of the following groups gains
D. Trade barriers
when the US dollar appreciates?
333. The factor endowment model of interna- A. Foreigners who want to buy American
tional trade was developed by products
A. Adam Smith B. American companies who export
goods
B. David Ricardo
C. Americans traveling in foreign coun-
C. John Stuart Mill tries
D. Eli Heckscher and Bertil Ohlin D. Foreign visitors to the USA

339. What is a tariff? B. Quota

A. A government order to stop trade C. Embargo

B. A limit placed on imports D. Subsidy
C. A tax placed on imports
345. Rules used to try to limit trade with other
D. none of above
countries
340. What type of exchange rate system do A. embargo
most countries operate under?
B. tariff
A. Flexible
B. Floating C. trade barriers
C. Fictitious D. quota
D. Fixed
346. When one country can produce a prod-
341. Public goods are things that: uct with a lower opportunity cost than an-
other country it is said to
A. Can be enjoyed by more than one per-
son without any reduction in the good A. have an absolute advantage.
B. People cannot be excluded from their B. have a comparative advantage.
consumption
C. have a more efficient production possi-
C. Are unlikely to be provided by individ- bilities curve.
ual rational actors
D. be operating outside the production
D. All of the above possibilities curve.
342. Transactions that bring money into a
country are BEST described as 347. The Panamanian balboa (currency) al-
ways exchanges at a rate of 1 balboa =
A. Credit 1 US dollar. The balboa has a(n)
B. Debit A. floating exchange rate
C. Trade Barriers
B. appreciating exchange rate
D. Tariffs
C. depreciating exchange rate
343. The exchange of goods and services by
D. fixed exchange rate
sale or barter driven by the need for re-
sources.
348. An import standard is
A. Fair Trade
A. tax on import quantities above the le-
B. Globalization gal limit.
C. Trade B. rules about the quality of products be-
D. Standard of Living ing imported into a country
344. This trade barrier limits the number of C. legal limit on the amount of a good that
products that can be brought into a coun- can be imported into a country.
try. D. a complete ban on imports/exports
A. Tariff from a particular country

349. A command economy: C. exchange block

A. answers the What, How and For Whom D. regional block
questions the way they have always been
answered 354. Government payments transferred ex-
B. answers the What, How and For Whom porting companies allowing the companies
questions by central authority to compete with other nations at the inter-
national market price without having to in-
C. answers the What, How and For Whom cur the costs associated with selling at the
NARAYAN CHANGDER
questions using prices determined by the lower price.
interaction of supply and demand
A. Tariff
D. none of above
B. Embargo
350. The ability to produce more of a given
C. Standard
product using a given amount of a re-
source. D. Subsidy
A. Absolute Advantage
355. What does it mean when an economist
B. Comparative Advantage says a currency is stronger?
C. Positive Advantage A. It can be exchanged for more of a
D. Negative Advantage lesser foreign currency
351. The president has promised trade barri- B. It can be converted to prices in any cur-
ers against China and a lot of people are rency
worried that China might retaliate and en- C. There a few things it could buy
act the same trade barriers? This sounds
D. It will buy fewer foreign goods
like the beginnings of a
A. Trade war 356. A standard is
B. A misallocation of recources A. a cash grant or loan from the govern-
C. The national security ment to support the business.
D. The national of domestic jobs B. a tax on imports.
352. is a tax that a government places on C. an official ban on trade.

certain imported products D. a requirement that promotes safety on
A. Tariff all products.
B. Embargo 357. The president Trump has enacted tariff
C. Quota barriers China against China and a lot of
D. Deal people worried that China might retaliate
and enact the same tariff barriers? This
353. A formal agreement between 2 or more event involving:
regional countries that removes tariffs be- A. Trade war
tween those countries but keeps them for
other countries B. A misallocation of recources
A. free trade C. The national security
B. trade block D. The national of domestic jobs

358. Goods a country sells to other countries. 363. Which among the following is/are an
A. Import example/s of International economics
theory? a) Balance of receipt theo-

B. Export ryb) Malthusian theoryc) Heckscher-Ohlin
C. Quota theoryd)Peacock-Wisemen theory
D. Subsidy A. Balance of receipt theory
359. The purchase of United States govern- B. Malthusian theory
ment bonds by Japanese investors will be
C. Heckscher-Ohlin theory
included in Japan’s
A. current account D. Peacock-Wisemen theory
B. financial account
364. A barrier is meant to
C. trade deficit
A. encourage the flow of trade
D. foreign direct investment
B. block or slow down trade
E. imports
C. make people obey the government
360. Country:Output per Labor HourA BProd-
uct X 3 9Product Y 4 2Country A has an D. none of above
absolute advantage in
A. Product X 365. A ban on trade with a particular country.
B. Product Y A. Subsidy
C. Neither X nor Y B. Embargo
D. Both X and Y C. Tariff
361. Which headline below is an example of D. Quota
using standards as a trade barrier?
A. Limit of 1 million tons of sugar to be 366. An increase in the value of one currency
imported in terms of another currency is a/n
B. US producers of wheat get big payday A. appreciation
from congress
B. depreciation
C. Mexican imports completely abolished
C. fixed exchange rate
D. Only professionally cleaned oranges
allowed in US D. floating exchange rate
362. Those in favor of protectionist trade poli- 367. Political economy involves:
cies would most likely
A. The integration of politics and eco-
A. Believe that restrictions harm con-
nomic
sumers
B. Argue in support of free trade B. The application of economic methods
to political problems
C. Support a massive reduction in tariffs
C. The application of Marxist methods
D. Cite the need to preserve domestic in-
dustries and jobs D. All of the above

368. President Trump has enacted tariffs D. France should export cars to Britain
against China and a lot of people worried
that China might retaliate and enact tar- 373. Absolute advantage is determined by:
iffs against the U.S. What is this event A. actual differences in labor productivity
called? between countries.
A. A trade war B. relative differences in labor productiv-
B. A misallocation of recources ity between countries.
C. A national security issue C. both (a) and (b)
NARAYAN CHANGDER
D. A loss of domestic jobs D. neither (a) nor (b)
369. A country concerned about lack of skilled 374. A primary reason why nations conduct in-
workers to complete jobs in emerging ca- ternational trade is because:
reers would have potential business part- A. Some nations prefer to produce one
ners concerned with which component? thing while others produce another
A. Geography B. Resources are not equally distributed
B. Culture to all trading nations
C. Economy C. Trade enhances opportunities to accu-
D. Infrastructure mulate profits
D. Interest rates are not identical in all
370. People who favor few or no trade restric- trading nations
tions
A. free traders 375. The value of a country’s exports minus
the value of its imports during a specific
B. protectionists time.
C. balance of payments A. Balance of trade
D. tariff B. Trade Surplus
371. These are typically found in airports & C. Import
seaports and do not follow the regular
D. Export
trade customs and are considered duty-
free 376. Study on economic interdependence
A. Free-trade zones between countries and its effects on
economies is known as
A. International Economics
B. Business Economics
D. Common markets
C. Gender economics
372. If Great Britain has a comparative advan-
tage over France in the production of cars,
which of the following is true? 377. An export is
A. Britain and France should not trade A. items purchased from other countries.
B. Britain should export cars to France B. dependence on others to get products
C. Neither Britain nor France will gain you do not produce and needing to pur-
from trade chase items from them.

C. items sold to other countries. Goods 382. A government order stopping trade with
exit the USA. another country

D. producing certain goods very well and A. tariff
for a reduced cost. B. embargo
378. An individual, firm, or country using the C. quota

fewest inputs to produce the same amount D. none of above
of output or the individual, firm, or coun-
try producing the largest number of units 383. Occurs when the value of exports ex-
of output given the same productive re- ceeds the value of imports
sources. A. dumping
A. Comparative advantage B. protective tariff
B. Infant industries C. trade surplus
C. Absolute advantage D. fixed exchange rate
D. Balance of trade 384. In country A, it takes 10 labor hours to

produce cloth and 20 labor hours to pro-
379. A means of preventing a foreign product duce grain. In country B, it takes 20 labor
of service from freely entering a nation’s hours to produce cloth and 10 labor hours
territory. to produce grain. Which country should
produce grain?
A. Trade War
A. A.
B. Trade Off
B. Both A and B should produce grain.
C. Trade Association
C. B.
D. Trade Barrier
D. No country should produce grain.
380. Which party does NPCI cooperate with? 385. According to the classical theory of inter-
A. Discover Financial Services national trade:
B. Japan Credit Bureau A. Only countries with low wages will ex-
port
C. China UnionPay International
B. Only countries with high wages will im-
D. All of the above. port
C. Countries with high wages will have
381. How would inexpensive lumber from
higher prices
Canada affect the U.S. market for new
homes? D. All the above are false
A. Prices of new homes would increase. 386. What determines the value of a cur-
rency?
B. Credit available for new homes would
increase A. Federal Reserve Board
C. Prices of new homes would decrease B. Congress
D. Transaction costs for new homes C. The Market-Supply and Demand

would decrease. D. Council of Economics Advisers

387. If the value of a country’s exports ex- C. A trade surplus in the US

ceeds the value of its imports.
D. A trade deficit in Canada
A. Balance of trade
B. Trade Surplus 392. International Economics is a eco-
nomics
C. Trade deficit
D. Trade barriers A. Positive
B. Normative
388. If the USA exports $100 million of goods
NARAYAN CHANGDER
and imports $150 million, what does the C. Public
USA have?
D. Traditional
A. a trade deficit
B. a trade surplus 393. When would two countries decide not to
trade?
C. a budget deficit
D. a budget surplus A. When one country has the absolute ad-
vantage in producing a product
389. When determining comparative advan-
B. When one country has the comparative
tage, one must determine by looking
advantage in producing a product
at what I can produce after specialization.
A. Opportunity cost C. When each country’s opportunity
costs are exactly the same
B. Specialization
D. When each country’s resources are ex-
C. Absolute Advantage
actly the same
D. Embargos
390. The purpose of a tariff, when used for 394. If the US $ were to appreciate in relation
protectionism, is to to the Euro, what effect would this have?
A. limit the number of foreign goods im- A. European consumers would have more
ported into the country. purchasing power in US
B. make an imported good more expen- B. US consumers can buy more European
sive than its domestically produced coun- goods and services for fewer $$
terpart.
C. US consumers can buy more English
C. raise revenues to pay subsidies to do- goods and services for fewer $$
mestic producers.
D. European tourists to the US will spend
D. stall importation while perishable more $$
items rot.
391. Suppose that there is a balance of trade 395. Exchange of goods and services among
in both the US and Canada. Then, the the nations of the world
US dollar appreciates against the Canadian A. comparative advantage
dollar. What would the likely outcome
be? B. absolute advantage
A. A trade deficit in both countries C. international trade

B. A trade surplus in Canada D. imports

396. Which of the following economic factors E. An open-market sale of bonds by the
is MOST LIKELY to support free trade? central bank

A. the United Steelworkers of America 401. The classical trade theories of Smith and
B. Coca-Cola Corporation Ricardo predict that
C. the Anti-Globalization Coalition A. Countries will completely specialize in
the production of export goods.
D. US electronics producers
B. Considerable trade will occur between
397. A company that would like to build a countries with different levels of technol-
golf course that could be played year ogy
round would need to consider which com- C. Small countries could obtain all of the
ponent of the international business envi- gains from trade when trading with large
ronment? countries
A. Geography D. All of the above.
B. Culture
402. Selling products abroad for less than it
C. Economy cost to produce them at home
D. Infrastructure A. dumping
398. The value of all monetary transactions B. protectionists
between a country’s economy and the rest C. balance of payments
of the world. D. tariff
A. Balance of Trade
403. The ability of one person or nation to pro-
B. Trade Deficit duce more of a good than another person
C. Balance of Payments or nation
D. Trade Surplus A. Comparative Advantage
B. Absolute advantage
399. France introduced import quotas in
C. exports
A. 1931
D. protectionism
B. 1934
404. Which of the following would benefit the
C. 1831
most from protectionist policy?
D. 1835
A. big firms.
400. Following a decrease in exports, what B. domestic industry.
fiscal policy action would restore the econ- C. importers.
omy to equilibrium?
D. unemployed.
A. An increase in the income tax rate
405. Stopping the export and import of a prod-
B. An increase in government transfer
uct is known as?
payments
A. Tariff
C. A reduction in government budget
deficit B. Embargo
D. An open-market purchase of bonds by C. Quota
the central bank D. Deal

406. An economic nationalist believes that re- C. Trade Surplus

lations between states are: D. Trade Deficit
A. Not as important as relations between
firms 411. An embargo is
B. Not as important as class conflict A. a tax on imports.

B. a cash grant or loan from the govern-
C. A plus or positive sum game
ment to support the business.
D. A zero-sum game
NARAYAN CHANGDER
C. an official ban on trade.
407. The account which records a nation’s for- D. a specific number of imports allowed.
eign economic transactions is called the:
412. All of the following restrict international
A. Trade Account. trade EXCEPT
B. T account. A. quotas
C. Exchange Market. B. subsidies
D. Balance of Payments. C. embargoes
408. which of the following would decrease D. trade deficits
the demand for A$ by the Japanese
413. In 2010, $1.00 U.S. bought 8.24 Chinese
A. a fall in their unemployment yuan and in 2012 it bought 6.64 Chinese
B. increased Japanese exports of steel yuan. How many U.S. dollars could 1 Chi-
and cars nese yuan purchase in 2010 and 2012?
C. decreased Japanese imports of iron A. 2010:.12 U.S. dollars; 2012:.15 U.S.
ore dollars
D. a free trade agreement between B. 2010:1.2 U.S. dollars; 2012:1.5 U.S.
Japan and Australia dollars
C. 2010:.82 U.S. dollars; 2012:.66 U.S.
409. Someone who strongly opposes a trade dollars
barrier like quotas and tariffs would MOST
LIKELY argue that the barrier D. 2010:.15 U.S. dollars; 2012:.11 U.S.
dollars
A. would lead to lower government in-
volvement in the economy 414. The payments that the government gives
to certain industries to provide financial
B. would completely eliminate imported
help are known as a(n)
goods
A. embargo
C. might cause more unemployment in
domestic industries B. quota
D. will lead to higher prices and fewer im- C. tariff
ported goods D. subsidy
410. A situation in which a nation imports 415. A resource that Earth or people can re-
more goods and services than it exports. place is
A. Balance of Trade A. Economics
B. Balance of Payments B. Renewable Resource

C. Nonrenewable Resource D. whether or not the US dollar currently

D. Scarcity enjoys a comparative advantage in trade.

416. All of the following are terms used to de- 421. Setting a limit on the quantity of a prod-
scribe limitations on trade except? uct that may be imported or exported
within a given period to regulate interna-
A. Trade Barriers tional trade is called?
B. Sanctions A. Tariff
C. Trade restrictions B. Embargo
D. EU C. Quota
417. Consumer surplus in a market for a good D. Deal
exists because:
422. An individual, firm, or country has the
A. Some producers charge different lowest opportunity cost for producing the
prices for the good in different markets good or service.
B. Producers don’t have the ability to set A. Absolute advantage
their own price
B. Comparative advantage
C. When the price of goods decrease,
most consumers buy more C. Opportunity Cost
D. Some consumers are willing to pay D. Balance of trade

more than the equilibrium price 423. Free trade means
418. Which term is defined as a tax on im- A. the countries use the same currency
ported goods? B. No trade barriers
A. embargo C. there is a quota on some goods
B. quota D. trade is quick and easy
C. subsidy
424. A trade agreement between Canada,
D. tariff Mexico, and the US, , has been a source
419. A tax on imports of contention among many including our
President.
A. tariff
A. NAFTA
B. import tax
B. EU
C. supply
C. WTO
D. embargo
D. ABC
420. To plan for his business trip to Denmark,
Tony needs to know how many Danish kro- 425. An increase in the value of a currency is
nes his US dollars are worth. Tony needs
to be aware of A. subsidy
A. the exchange rate. B. quota
B. any currency embargoes. C. appreciation
C. international tariffs. D. depreciation

426. If a country can produce a certain good B. able to increase prices as there will be
at a lower opportunity cost than another less competition
country is has the C. more likely to be able to create a
A. absolute advantage monopoly
B. competition D. able to buy a wider range of imported
C. specialization materials and products
D. comparative advantage 431. A recession tends to make a
NARAYAN CHANGDER
427. A stronger British pound is beneficial for: A. trade surplus smaller
A. U.S. exchange students studying in B. trade deficit smaller
Britain with a U.S. scholarship. C. trade deficit larger
B. British firms selling goods and ser- D. both a and b above
vices in Canada.
432. What is the impact of a quota on im-
C. British investors who have invested
ported goods?
money in Australia.
A. Government tariff revenues will in-
D. exchange students with a British schol-
crease
arship studying in Canada
B. Prices will decrease
428. People who favor trade barriers that pro-
tect domestic industries C. Employment will increase
A. dumping D. There will be efficiency gains
B. protectionists 433. Limit on the quantity of a product that

C. balance of payments may be imported
D. tariff A. protectionists
B. quota
429. Assume the United States can use a given
amount of its resources to produce either C. trade deficit
20 airplanes or 8 automobiles and Japan D. balance of payments
can employ the same amount of its re-
sources to produce either 20 airplanes or 434. The comparative advantage model of Ri-
10 automobiles. The U.S should specialize cardo was based on
in A. intra-industry specialization and trade
A. automobiles. B. inter-industry specialization and trade
B. airplanes. C. demand conditions underlying special-
C. both goods. ization and trade
D. neither of the goods. D. income conditions underlying special-
ization and trade
430. One possible opportunity for a business
as a consequence of globalisation is: 435. Liberals argue that international cooper-
A. able to sell products successfully in ation:
all foreign markets without changing the A. Can be facilitated by international or-
products ganisations

B. Requires a hegemonic state A. jobs might be lost in existing national

C. Primarily benefits the strongest states businesses

D. Is impossible because of anarchy B. tax revenue to the government will fall
C. these companies never export any
436. Which of the following will cause the ex- products from the countries they operate
change rate of a currency to go up? in
A. An increase in the demand for imports. D. costs of production are likely to be high
B. A decrease in the supply of exports. and this will raise prices
C. Speculation that the exchange rate will 441. Choose all of the following that are fac-
fall. tors causing globalisation:
D. An increase in investment flows into A. Changes in technology
the country
B. Changes in government policies reduc-
437. The benefit or advantage of an economy ing protectionism
to be able to produce a commodity at a C. Increased cultural understanding
lesser opportunity cost than other entities
D. Growth in MNCs
is referred to as
A. Opportunity Cost 442. a problem with a fixed exchange rate is
that if it is set too low
B. Absolute Advantage
A. it will slow exports
B. it will reduce imports
D. Growth
C. it will increase the level of debt a gov-
438. An argument that cites the importance of ernment must pay back
maintaining industries critical to the coun-
D. it will force up interest rates
try even when the industry cannot effi-
ciently compete at the international level. 443. Tariffs are different from assigned import
A. Domestic Employment quotas in that tariffs will
B. Infant Industries A. restrict imports
C. Free Trade B. increase the price of imported goods
D. National Security C. benefit domestic consumers of im-
ported goods
439. Only producing certain goods instead of
D. hurt domestic producers of goods fac-
everything you need is known as
ing import competition
A. importing
E. generate additional revenue for the do-
B. specialization mestic government
C. balance of trade 444. Agreement that will eliminate all tariffs
D. absolute advantage and other trade barriers between Canada,
Mexico, and the US
440. One potential disadvantage for a country
of encouraging a multinational business to A. NAFTA
set up is that: B. EU

C. ASEAN B. flying
D. CARICOM C. flexing
445. The next best alternative. D. none of above
A. Opportunity Cost 450. The main justification for an embargo on
B. Trade Surplus foreign goods is to
C. Trade deficit A. Punish a nation
NARAYAN CHANGDER
D. Comparative advantage B. raise revenue
446. If a country has improving educational C. Increase consumption or the good

systems, increasing technology and ex- D. none of above
panding industries, that country is consid-
ered to be: 451. Which economic system uses the “invisi-
ble hand theory”?
A. Developing
A. a traditional economy
B. Less-developed
C. Industrialized B. a command economy
D. none of above C. a market economy

D. a communist economy
447. A definition of a multinational business is
one that: 452. In 1962, the United States prohibited all
A. has a foreign sounding name imports and exports to and from Cuba.
B. imports goods from one country and A. Tariff
exports them to another one B. Embargo
C. exports goods to many different coun- C. Quota
tries
D. none of above
D. has factories or operations in more
than one country 453. Which organization promotes and en-
forces trade laws
448. A market economy:
A. International Monetary Fund
A. answers the What, How and For Whom
questions the way they have always been B. World Trade Organization
answered C. European Union
B. answers the What, How and For Whom D. NAFTA
questions by central authority
C. answers the What, How and For Whom 454. What is the impact of an increase of tar-
questions using prices determined by the iffs on imported goods for domestic pro-
interaction of supply and demand ducers
D. none of above A. Government revenues will increase
B. Prices will decrease
449. A Flexible exchange rate is also called as
C. Imports will fall
A. floating D. Domestic firms will produce more

455. exchange rate is not fixed by the 460. What is India’s financial motto?
monetary authorities. A. 360◦ Finance.

A. Fixed B. Money talks, cash screams.
B. Flexible C. Cash is king, digital is divine.
C. quotas D. Think big, cash bigger.
D. tariffs
461. Which of the following is NOT an argu-
456. A depreciating U.S. dollar is because ment in favor of protectionism?
it is worth in terms of other currencies. A. Protectionism shields infant industries
A. strengthening; more from competition
B. weakening; less B. Protectionism safeguards workers’
jobs
C. a problem for exporters; less
C. Protectionism promotes industries
D. beneficial to importers; more that are essential to national security
457. A company is worried that about ex- D. Protectionism makes domestic firms
change rate would need to consider which more competitive in the long run
component of the international business
462. Tariffs and quotas can benefit nations im-
environment?
posing them by:
A. Geography
A. Raising revenue
B. Culture
B. Increasing the variety of goods
C. Economy
C. Lowering prices
D. Infrastructure D. Increasing consumption
458. Which of the following is usually an ef- 463. Who signed NAFTA into law?
fect of an embargo?
A. George W. Bush
A. Prices fall because consumers have
more options. B. Bill Clinton
B. Prices rise because consumers have C. Barack Obama

fewer options. D. Ronald Reagan
C. Countries benefit because open trade 464. A country’s ability to produce a prod-
is encouraged. uct relatively more efficiently than another
D. Smaller countries give in to the de- country
mands of larger countries. A. comparative advantage
459. Silk is a product created by what type of B. absolute advantage
resource? C. exports
A. Land D. international trade
B. Labor
465. Goods or services that a country sells to
C. Capital other nations
D. none of above A. Duty

B. Tariff 471. What does a protective tariff seek to pro-

C. Export tect?
D. Import A. Protectionists
B. Free Trade
466. What is currency appreciation
C. Revenue
A. Value of currency decreases
D. Domestic Industries
B. Value of currency increases
C. Import more than you export 472. Having a comparative advantage in a
NARAYAN CHANGDER
D. Export more than your import good means that a country can produce the
good
467. A tariff raises the price of foreign goods A. at a lower opportunity cost compared
while a subsidy to another country
A. lowers the price of foreign goods
B. comparatively faster than any other
B. lowers the price of domestic goods country
C. raises the price of domestic goods C. better than every other country in the
D. raises the price of foreign goods world
468. An import is D. cheaper than most countries
A. producing certain goods very well and 473. How will AfCFTA help member coun-
for a reduced cost. tries?
B. items sold to other countries. A. It will reduce trade.
C. dependence on others to get products B. It will create a common currency.
you do not produce and needing to pur- C. It will help countries protect domestic
chase items from them. industry.
D. items purchased from other countries.
D. It will decrease tariffs.
Goods come into the USA.
474. A company is worried that about the
469. Suppose the exchange rate between the
norms and customs of a country would
United States and Japan changes from $1
need to consider which component of the
= 100 yen to $1 = 110 yen. What would
international business environment?
happen to the prices of American goods in
Japan? A. Geography
A. increase or decrease B. Culture
B. decrease C. Economy
C. remain the same D. Infrastructure
D. increase 475. If I am better at all types of production
470. The first economist who introduced the or I can simply produce more than you, I
basic idea of International Economics have the in all forms of production.
A. Adam Smith A. Comparative advantage
B. David Ricardo B. Specialization
C. Hume C. Absolute advantage
D. J.M Keynes D. developed nation

1.7 Public Economics 301
1.7 Public Economics

1. Individuals who take the risk of producing 7. Goods and services provided at free or re-
a product for a profit are duced prices like medicaid, medicare, HUD
A. Consumers housing, food stamps, etc
B. Producers A. Cash transfers
C. Chief Executive Officer (CEO) B. In-Kind Benefits
D. Entrepreneurs C. welfare
D. social security
2. Money that is set aside for a specific pur-
pose, such as defense spending, is called 8. A good that is rival but non-excludable will
A. appropriations be a:
B. transfer payments A. Private good
C. grants-in-aid B. club good
D. discretionary spending C. Common good

D. Public good
3. Which is not a GST slab in India at
present? 9. The part of the economy that is owned by
A. 5% individuals and is operated for their per-
sonal benefit is known as
B. 25%
A. Private Sector
C. 12%
B. Public Sector
D. 18%
C. Profit
4. Public goods scale is optimal when D. Individual Decision Making
A. MRT=MRS1-MRS2
10. Unlike high-income countries, low-income
B. MRT=MRS1xMMRS2 countries rely most on their
C. MST= MRS2/MRS1 A. human resources.
D. MRT=MRS1+MRS2 B. produced capital.
5. Which of the following is NOT an example C. natural capital.
of a public good? D. intangible capital.
A. Fireworks display
11. The goal of government welfare programs
B. National Defense is to
C. Public transportation A. maintain a poverty threshold that
D. Lighthouse matches the median income.
6. What is the problem with public goods? B. eliminate the dependence of people on
the welfare system.
A. Lacks rivalry
C. eliminate the income gap between the
B. Lacks a excludability richest Americans and the poorest.
C. Lacks consumer and producer surplus D. raise the standard of living of certain
D. None of the above less-fortunate members of society.

12. The recent rise of the Chinese economy is 17. See a friend’s account story on Instagram
associated with
A. Public goods
A. the adoption of rigid centralized plan-
B. Common goods
ning.
C. Club goods
B. the elimination of economic systems.
D. Private goods
C. the adoption of economic policies
widespread in the former Soviet Union. E. Inferior goods
NARAYAN CHANGDER
D. a switch to free-market policies. 18. Money that is given to states to cover ex-
penses like roads, education, and health-
13. What is the free rider problem? care is
A. scarcity even when you pay for a good A. appropriations
B. Reaping all the benefits without con- B. grants-in-aid
tributing
C. discretionary spending
C. Common goods that don’t have a price
D. mandatory spending
19. Goods that lack a price tend to result in a
14. A good that is non-rival but excludable is market failure. The market failure can be
considered a: attributed to a lack of:
A. Private Good A. Rivalry
B. Club Good B. Equity
C. Public Good C. Excludability
D. Common Good D. None of the above
15. Which one of the following is not an exam- 20. Common goods are:
ple for direct tax?
A. Non rival, excludable
A. Personal Income Tax
B. Non rival, non excludable
B. Corporate tax
C. rival, excludable
C. Goods andServices Tax (GST)
D. rival, non excludable
D. Land tax
21. In some cases, states and the federal gov-
16. Which type of goods would be over pro- ernment make direct payments to the poor
duced if left to market forces? such as welfare, social security, unemploy-
A. Public Goods ment benefits and worker’s compensation.
These are called.
B. Goods with positive consumption ex-
ternality A. Cash transfers
B. In-Kind Benefits
C. Goods with negative consumption ex-
ternality C. charity
D. private goods D. socialism

22. Government programs that provide people D. Rivalry dan non-excludable

with services as long as they qualify are E. Paid and Limited quantity
referred to as

28. A transfer payment is one in which the
A. mandatory spending
government
B. entitlements A. directly purchases goods and services
C. discretionary spending B. provides states or local governments
D. appropriations with money for things like education, in-
frastructure, etc.
23. Which one of the following is not a non-
C. loans given to foreign countries for a
tax revenue of Govt?
variety of reasons
A. grant
D. money given to people that do not pro-
B. Fines and penalties vide goods or services, such as Social Se-
C. Surcharge curity checks
D. Profit 29. How many principles of project evaluation
according to CBA method?
24. An example of a public good is
A. 2
A. Firefighters
B. 3
B. police officers C. 4
C. parks D. 5
D. all of thee above
30. Which of the following is a Central Govt
25. The private sector is primarily controlled Tax?
by A. Land Tax
A. public decision makers B. * Property tax
B. public and individual decision makers C. * Personal Income Tax
C. individual choice D. Professional Tax
D. government 31. A percentage of money taken from individ-
uals or businesses is referred to as
26. Large stocks of fish in the great lakes rep-
resent A. property tax
A. nonrenewable natural capital. B. excise tax

C. income tax
B. renewable natural capital.
D. sales tax
C. intangible capital.
D. produced capit 32. A shared good and service for which would
be impractical to make consumers pay in-
27. Which of the following are characteristics dividually and to exclude nonpayers.
of public goods? A. Externality
A. Rivalry dan excludable B. Public sector
B. Non-rivalry dan excludable C. Public good
C. Non-rivalry dan non-excludable D. Private sector

33. Most governments are likely to pay for A. tax base

public goods and services through-
B. revenue base
A. donations from wealthy politicians
C. money base
B. donations from abroad
D. money stream
C. revenue from sales and income taxes
D. borrowings from abroad 39. Sustainable development and the protec-
tion of public health require
34. Which one of the following tax is collected
NARAYAN CHANGDER
by Local Self Governments? A. the generation of electricity from fossil
fuels.
A. Professional Tax
B. Corporate tax B. governments to recognize personal lib-
erties as the highest priority.
C. GST
C. the independence of private landown-
D. Stamp duty ers to develop individual policies.
35. The part of the economy that involves the D. public policies that protect the environ-
transactions of individuals and businesses. ment.
A. Public sector
40. A market is expected to have no distortion
B. Externality
at all. What is this market called?
C. Private sector
A. Night market
D. Public good
B. Morning market
36. Goods and Services Tax (GST) wasintro-
C. goods market
duced in India on
A. 21st July 2017 D. Efficient market
B. 1st June 2017 E. Free market

C. 1st July 2017 41. The fiscal year for the US government runs
D. 21st may 2018
A. January-December
37. The World Trade Organization B. February-January
A. mainly regulates the use of global en-
C. October-September
vironmental resources.
D. July-June
B. guards human rights and the environ-
mental resources of the world.
42. Which following answer is
C. is widely recognized as the leader of
global trade regulation. A. Needs a common measurement unit
D. has steadily lost the power to regulate B. Analysis of a project should not include
international trade. a comparison
C. It is important to avoid double count-
38. Revenue is the money that the govern-
ing benefits and costs
ment brings in for use on government ex-
penditures. The term used to define the D. The benefits are often judged by mar-
source of revenue is ket choice

43. Which of the following is a method of pro- 48. What is one reason that local law enforce-
viding public goods and services? ment is considered a public good?

A. The State only provides finance and A. Everyone in the community benefits
the State does not organize public provi- from it.
sion goods and services
B. Nobody in the community has to pay
B. The private sector is not financed and for it.
the private sector must organize itself
C. Private firms make a profit from pro-
C. The state and the private sector work
ducing it.
together to finance and provide public
goods and services D. Individual citizens pay directly for it.
D. none of above
49. From an ecological economist’s perspec-
44. The United States government provides tive, without sustainability, as economies
the following services EXCEPT- grow,
A. interstate highways A. gross national product grows too.
B. satellite radio B. natural resources are renewed.
C. postal service C. the natural world is depleted.
D. national defense
D. natural ecosystems are replenished.
45. A tax that takes a higher percentage of
money from higher incomes is what type 50. Costs to producers of producing one more
of tax? unit of a good
A. sales tax A. Market Failure
B. progressive tax B. Externality
C. proportional tax C. Marginal Private Costs
D. regressive tax D. Marginal Social Costs
46. We would expect that in a community with
51. The installation costs of a new computer
mounting air and water pollution prob-
room is classified as
lems, the
A. economy of the region would decline. A. Revenue Expenditure
B. unemployment rates would drop. B. Income Expenditue
C. population would increase. C. Capital Expenditure
D. health care would become less impor- D. Reserve Expenditure
tant.
52. The government pays for public goods and
47. Which of the following is an example of a
services through-
private good?
A. donations from wealthy politicians
A. School WiFi
B. Park bench B. donations from foreign nations
C. Netflix C. revenue from sales and income taxes
D. Apples D. revenue from the lottery

53. Government mostly provide the following C. 3

services EXCEPT- D. 4
A. education
59. An Economic side effect of a good or ser-
B. entertainment vice that generates benefits or costs to
C. healthcare someone other than the person deciding
how much to produce or consume.
D. infrastructure
A. Public good
NARAYAN CHANGDER
54. A public good is1 rival2 nonrival3 exclud-
B. Free rider
able4 nonexcludable
C. Externalities
A. 1 and 3
D. Private sector
B. 1 and 4
C. 2 and 3 60. Environmental public policy is intended to
D. 2 and 4 A. promote the harvesting of natural re-
sources.
55. What is the tragedy of the commons? B. improve human welfare and protect
A. Finite resources of a private good the natural world.
B. Finite resources, zero excludability C. ensure access to natural resources for
industry.
C. Unlimited resources, zero excludabil-
ity D. measure the impact of industrial
wastes on the environment.
D. Never heard of it
61. Which are the GSTs collected by Central
56. When the government spends more money
Govt?
than it receives in revenue, it is referred to
as A. CGST alone
A. debt B. SGST alone
B. deficit C. CGST and SGST
C. national debt D. CGST and IGST
D. banrupt 62. The part of the economy that involves the

transactions of the government.
57. Free riders are examples of
A. Private sector
A. public sector
B. Free rider
B. public good
C. Public sector
C. Externality
D. Externality
D. Market Failure
63. The national demand for public goods eas-
58. How many purposes does CBA have in ily because every locality wants to be
measuring efficiency of public expendi- allocated more or earlier budget than other
ture? places.
A. 1 A. correct and distorted
B. 2 B. misleading and increase

C. misleading and distorted 68. A government might subsidies education

D. increase rapidly because the subsidy

A. Reduces production cost and there-
64. Natural capital includes ecosystem capital fore encourages consumption
plus
B. Means the firm receives money to
A. natural forms of energy, such as solar, spend on what it wants
wind, and flowing water.
C. Benefits may be lower than its costs
B. nonrenewable resources such as fos-
sil fuels. D. Might correct government failure
C. money available to invest in growing 69. Which one of the follwing is a feature of
industry. indirect tax?
D. all of the products of photosynthesis in A. Expenditure on tax collection is more
the biosphere.
B. Paid by the person on whom itis im-
65. Someone who would not choose to pay for posed
a certain good or service, but who would C. Tax payer undertakes theburden of the
get the benefits of it anyway if it were tax.
provided as a public good.
D. The tax is included in the pricepaid by
A. Market failure the consumer
B. Externality
70. Is a situation in which the market, on its
C. Public good own, does not distribute resources effi-
D. Free rider ciently.
A. Public good
66. Which of the following explains why a city
fireworks display on the Fourth of July is B. Private sector
provided as a public good? C. Externality
A. Fireworks displays usually take place D. Market Failure
in a public area.
71. How many steps does the public expendi-
B. Fireworks are a scarce resource.
ture management process include?
C. Nonpayers cannot be prevented from
A. 7
seeing the fireworks.
B. 6
D. Each consumer pays a fee to see the
fireworks. C. 5
67. Which is not an effect of public expendi- D. 4

ture 72. The concept of sustainability requires that
A. Foreign trade effect A. economic growth does not exceed the
B. Encourage or inhibit an economic activ- renewal of natural capital.
ity B. all sources of energy used in an econ-
C. Solve market failures omy must come from the sun.
D. Impact on the supply-demand relation- C. global economic systems are based on
ship the harvesting of natural products.

1.8 Money and Banking 308
D. economies use equal portions of land, D. Urbanisation

labor, and capital.
74. Some decisions to produce goods and ser-
73. Which of the following is not a reason for vices generate unintended costs, called
increasing Public expenditure. A. positive externalities
A. Increase in the defence expenditure B. Negative private sector
B. Imposing new tax C. Negative externalities
NARAYAN CHANGDER
C. Welfare activities D. Positive private sector
1.8 Money and Banking

1. Money whose value is based on the type 5. Which one is the Bank of the Public?
of material from which it is made is called A. Commercial Bank
A. FIAT B. Central Bank
B. Representative money C. Both (a) and (b)
C. Commodity money D. None of the above
D. near money
6. Money is functioning as a standard of
2. In 1913, Congress created “the Fed” re- value when you
sponsible for A. Use it to compare two houses that are
A. managing the budget different prices.
B. regulating banks B. Buy jeans at the mall.
C. establishing trade agreements C. Buy a rare baseball card that you ex-
D. none of above pect will increase in value.
D. Trade a cup of sugar for two eggs.
3. Carl wants a new computer. He goes to 6
different stores on the weekend compar- 7. What type of policy does the Fed use to
ing prices. Carl is using money as counteract a contraction?
A. a store of value. A. fiscal policy
B. a medium of exchange. B. tight money policy
C. commodity money. C. easy money policy
D. a unit of account. D. policy lags
4. Expenses that can or go up or down each 8. The item must physically last and will not
month wear out too quickly to be useful as money
A. Merry-go-round Expenses A. Durable
B. Fixed Expenses B. Acceptable
C. Shifty Expenses C. Divisible
D. Variable Expenses D. Scarce

9. Two units of the same type of money must 14. What is the annual percentage rate (APR)
be the same in terms of what they will
A. annual rate (including fees) paid for
buy.

borrowed money
A. Durability
B. interest on a mortgage
B. Limited Supply
C. a bank fee
C. Portability
D. all of the above
D. Uniformity
15. If the reserve requirement is 20%, the ex-
10. A banking system that keeps only a small istence of $100 worth of excess reserves
portion of deposits on hand and lends out in the banking system can lead to a maxi-
the rest. mum expansion of the money supply equal
A. Fractional Reserve Banking to
B. Federal Reserve System A. $200
C. Federal Deposit Insurance Corpora- B. $500
tion C. $750
D. Credit Union D. $1000
11. Which of the following will increase money
16. The term used to describe the ease and
supply?
speed with which you can convert savings
A. Fall in repo rate or an investment to cash is:
B. Purchase of securities in open market A. Convertibility
C. Decrease in cash reserve ratio B. Principal
D. All of these C. Liquidity
12. What is the value of money multiplier D. Rate of return

when initial deposits are |500 crores and
LRR is 10 percent? 17. Each of the following FED actions will con-
tract the money supply except
A. 0.1
A. raise the reserve ratio
B. 0.2
B. raise the discount rate
C. 10
C. raise the Federal Funds rate
D. 20
D. buy bonds
13. An agreement to purchase or sell stocks
for a specified price until a date in the fu- 18. Which of the following refers to checks
ture is reached that have been written but not cashed?
A. Options A. cancelled check
B. Default B. demand deposits
C. Mutual Fund C. outstanding checks
D. Diversification D. bank statements

19. The buying and selling of government 24. When one share is divided into half or
bonds in financial markets is more (because the price has increased and
A. Monetary Policy deterred investors)
A. Stock Split
B. Responsibilities of the FED
B. Return
C. Golden Standard
C. Principal
D. Open Market Operations
D. Interest
NARAYAN CHANGDER
20. Government-issued coins and paper notes
25. The sale of an investment for less than its
that may be used to exchange goods and
purchase price
services; essentially, the physical repre-
sentation of money A. Options
A. Currency B. Capital Gain

C. Maturity
B. Representative Money
D. Capital Loss
C. Fiat Money
D. Commodity Money 26. As his aunt’s only beneficiary, he came
a fortune on her death.
21. Which of the following is NOT a function A. upon
money serves in the economy? B. across
A. medium of exchange C. into
B. store of value D. up against
C. standard of value 27. The current chairperson of the Federal Re-
D. value added commodity serve is:
A. Jerome Powell
22. In India there are four alternative mea-
sures of money supply:M1, M2, M3, and B. Alan Greenspan
M4 of these M1= C. Ben Bernanke
A. Currency with people D. Janet Yellen
B. Currency with people+ Demand de- 28. The currency created by the central bank is
posdit a part of
C. Currency with people+ Demand de- A. High powered money
posdit+ Other deposit with RBI B. Money
D. none of these C. Bank money
23. A collection of funds from many individuals D. Money supply
and invested in stocks, bonds, and other 29. To trade goods or services without the use
assets of money is
A. Mutual Fund A. Bartering
B. Stock B. Trading
C. Stock Split C. Economy
D. Diversification D. Debt

30. Which of the following is not a tool of fis- 35. Which of the following is a commonly ac-
cal policy? cepted definition of money?

A. Taxing A. Any good which is commonly uiesd as
a store of value
B. Spending
B. Any good which is exchanged foe gold
C. Interest Rates
at a fixed rate.
D. All of these options are tools of fiscal
C. Any good which is acceptable to a bank
policy.
D. Any good which is commonly accepted
31. A U.S. government agency that provides as medium of exchange
insurance on customer’s deposits in a bank
account. 36. Term deposits are those
A. Federal Reserve System A. against which no cheque can be issued
B. Credit Union B. against which no interest is paid to the
depositor
C. Federal Deposit Insurance Corpora-
tion C. which are fixed deposits
D. Fractional Reserve Banking D. Both (a) and (c)
32. Money that has value because the govern- 37. When the Fed sells bonds, their action
ment has ordered that it is an acceptable
A. increases the money supply.
means to pay debts
B. decreases the money supply.
A. Currency
C. increases excess reserves in the bank-
B. Representative Money
ing system.
C. Fiat Money
D. reduces interest rates.
D. Commodity Money
38. Which of the following statements is true/
33. is the ratio of deposits which bank
A. Money is a medium of exchange
keep with the central bank
B. Money is a unit of account
A. CRR
C. Money serves as a store of value
B. SLR
D. all of the above
C. Bank rate
D. Reverse repo rate 39. A demand deposit is better than a time
deposit in serving the function of
34. A demand deposit account subject to with- money.(1) medium of exchange(2) unit of
drawal of funds electronically or by check account(3) store of value
A. Savings account A. (1) only
B. Mortgage B. (1) and (2) only
C. Loan C. (2) and (3) only
D. Checking account D. (1), (2) and (3)

40. A bank is an institution 45. The Demand for Money is made up of

A. owned by merchants. A. M1
B. that collects taxes for the government. B. Savings Bonds and Securities
C. for receiving, keeping, and lending C. Real GDP

money. D. Transactions Demand + Assets De-
mand
D. that regulates interstate commerce.
NARAYAN CHANGDER
46. The ability to easily convert financial as-
41. When you pay for a new CD with a debit sets into cash without loss in value.
card, you are using the electronic form of
a payment by (ya’ll probably never even A. Inflation
bought a physical CD. These days it is all B. Annuity
streamed) C. Liquidity
A. money order. D. Onions
B. credit card.
47. Money secured by the equity in a con-
C. personal check. sumer’s home.
D. cashier’s check. A. HELOC
B. ARM
42. Purchasing power remains constant.
C. FDIC
A. scarcity
D. Mortgage
B. acceptability
48. What do many people consider to be the
C. stability chief advantage of sole proprietorship?
D. portability A. The owner has unlimited liability.
43. A woman borrows money to buy a house. B. The owner keeps all the profits.
If she does not repay the money the bank C. The owner has unlimited start-up
loaned her, the bank will take the house. funds.
What is the house?
D. The owner does not have to obey labor
A. interest laws.
B. collateral 49. She gives each of her children fifty pence
C. budget a week money.
D. financial institution A. pocket

B. free
44. What is a business owned and managed
C. ready
by a single person called?
D. spare
A. conglomerate
50. Investing in a money market mutual fund
B. general partnership
in a certificate of deposit because unlike
C. limited partnership CDs, money market funds
D. sole proprietorship A. are not insured by the FDIC

B. are not protected by the Securities and 55. An important financial institution that as-
Exchange Commission sists in the initial sale of securities in the
primary market is the

C. do not earn a fixed interest rate
A. Investment Bank
D. must be held for a preset amount of
time B. Commercial Bank
C. Stock Exchange
51. If the money supply stays constant but
the demand for money decreases, the D. none of above
equilibrium interest rate and quantity of 56. commercial banks collect and (1)
money will change in which of the fol- cheques on behalf of their (2)
lowing ways? Interest Rate/Quantity of
A. clear, (2) owners
Money
B. lend, (2) country
A. Increase/decrease
C. clear, (2) clients
B. Increase/not change
D. count, (2) creditor
C. Decrease/decrease
57. The use of a mobile (cell) phone to make
D. Decrease/increase
payments is an example of which function
E. Decrease/not change ofmoney?
52. Which of the following are banking ser- A. a medium of exchange
vices B. a standard of deferred payment
A. Issuing credit cards C. a store of wealth
B. Issuing loans D. a unit of account
C. storing money 58. What is the value of multiplier if LRR is
D. all of the above 10%
A. 20
53. The Federal Reserve is in charge of what?
B. 10
A. Distributing info about the economy
C. 5
B. conducting the nations monetary pol-
D. 50
icy
C. supervise and regulate banks 59. The ease with which assets can be con-
verted into cash
D. all of the above
A. Liquidity
54. An inventor needs a huge amount of B. Return
money to start a business but does not
C. Futures
want to give up control of how the product
will be made. What business organization D. Options
is he likely to choose? 60. Dollars and cents
A. sole proprietorship A. Currency
B. general partnership B. Money
C. limited partnership C. Certificate of Deposit
D. limited liability partnership D. Money Market

61. Our money supply is C. engrave coins

A. hard to disperse D. gain power
B. hard to regulate 67. They were left a lot of money in their
C. easy to control aunt’s
D. none of above A. will
B. testtament
62. Decisions regarding purchases and sales of
C. heritage
NARAYAN CHANGDER
government securities by the Fed are made
by the: D. inheritance
A. Federal Funds Committee. 68. The risk of ending up with the equivalent
B. Discount Committee. of a never-ending loan is one of the disad-
vantages of using
C. Federal Open Market Committee.
A. debit cards.
D. FDIC.
B. credit cards.
63. What is the Federal Reserve? C. savings accounts.
A. Agency responsible for international D. checking accounts
trade
69. the money supply increases, what happens
B. Central credit union in the money market? (Assuming money
C. Agency responsible for collecting demand is downward sloping)
taxes A. The nominal interest rate rises
D. Central bank of the U.S. B. The nominal interest rate falls
C. Transaction demand for money falls
64. Money that has value because the Govern-
ment declared that it is money. D. The nominal interest rate does not
change
A. Fiat Money
70. What is the Cash Reserve Ratio (CRR)?
B. Commodity Money
A. the fraction of the deposits that com-
C. Currency
mercial banks lend to the customers
D. Coins B. the fraction of the deposits that RBI
65. All of the following are components of the must keep with commercial banks
money supply in the United States EXCEPT C. the fraction of the deposits that com-
A. paper money mercial banks must keep with RBI
D. none of above
B. checkable deposits
C. gold bullion 71. This is a formula that the FED uses to cal-
culate the amount of total deposits each
D. demand deposits bank has to have accounted for.
66. main responsibility of the Federal Reserve A. Responsibilities of FED
System B. Fiat Money
A. establish monetary policy C. Reserve Requirement
B. print money D. Gold Standard

72. If the reserve requirement is 20%, and a 77. The quantity of investment demanded
customer deposits $100, what is the max. most likely increases when
change in the money supply once all money

A. real GDP increases
has been loaned out?
B. the cost of acquiring and maintaining
A. $500 capital equipment rises
B. $100 C. the real rate of interest rates de-
C. $400 creases
D. $0 D. taxes on business investment rise
E. $450
78. Money multiplier is
73. Money must be scarce. A. 1/ CRR
A. Limited Supply B. 1/ SLR
B. Medium of Exchange C. 1/ LRR
C. Store of Value D. NONE OF THESE
D. Fiat Money
79. If a $20 bill is still worth $20 in 10 years,
74. A commercial bank sells $10k in securities. which function of money is being used?
The reserve requirement is 10%. How A. Medium of Exchange
much of the money can the bank lend?
B. Store of Value
A. $10, 000
C. Unit of Account
B. $9, 000
D. Acceptable
C. $1, 000
80. The function of money that provides a
D. $0
means for comparing the values of goods
75. A listing of financial assets owned by an and services.
individual A. Unit of Account
A. Portfolio B. Store of Value
B. Diversification C. Medium of Exchange
C. Stock Split D. Acceptability
D. Principal
81. If the nominal interest rate is 6 percent
76. Why would investors buy a junk bond? and the expected inflation rate is 4 per-
cent, what is the real interest rate?
A. They want to invest in a particular com-
pany although it may not pay off. A. 10%
B. They want a steady source of income B. 4%
with low risk. C. 2%
C. Junk bonds have a higher rating than D. -2%
municipal bonds.
D. Junk bonds pay a potentially higher 82. what is the function of a central bank?
level of interest than other bonds. A. controlling the money supply

B. deciding on the amount of government 87. Which of the following is the source of the
expenditure supply of loanable funds?
C. issuing shares A. The stock market
D. raising taxes B. Investors
C. Banks and mutual funds
83. is money that is deemed legal tender
by the government, and it is not based on D. Savers
or convertible into a commodity.
NARAYAN CHANGDER
88. Why does a bank sometimes hold excess
A. money supply
reserves?
B. liquidity
A. to be sure they can meet their cus-
C. fiat money tomers’ demands
D. commodity money B. to protect against high prices
C. to make check clearing easier
84. Bartering is difficult if the items being
traded are physically difficult to transport D. to keep from lending too much money
A. Double coincidence of wants
89. Printed on a Federal Reserve note is this
B. Portability statement:“THIS NOTE IS LEGAL TENDER
C. Divisibility FOR ALL DEBTS, PUBLIC AND PRIVATE. “
This reflects money’s function as
D. none of above
A. all of these
85. What condition is necessary for a fiat B. store of value
money system to work?
C. medium of exchange
A. Money owed must be paid on time.
D. portability
B. The government must control the
money supply. 90. Why does the Federal Reserve alter mon-
C. Banks must hold sufficient gold to etary policy?
cover any paper money they give out. A. to regulate the banking industry
D. Customers with checking accounts B. to provide services to member banks
cannot earn interest on those accounts.
C. to enable banks to clear checks
86. What is the gold standard? D. to lessen the effect of natural business
A. A system that used actual gold coins cycles
as a country’s money.
91. A stock split is most likely to occur when
B. A system in which a country’s money is
A. a company is losing money
backed with gold.
B. stockholders demand higher dividends
C. A currency system in which each dollar
is worth 1/20 of a pound of gold. C. the price of a stock becomes too high
D. A money system in which paper cur- D. the stock market as a whole is doing
rency is good for more than one country. poorly

92. An example of equity is 97. If a customer deposits $10, 000 when the
A. a treasury bond reserve ratio (rr) is 0.2. That bank may

B. a share of stock A. Loan out $10, 000
C. a treasury bill B. Loan out $9, 000
D. a long-term certificate of deposit C. Loan out $8, 000
D. Loan out $2, 000
93. Which of the following is the LEAST risky
investment? 98. What is a mortgage used to purchase?
A. corporate bonds A. car
B. stocks B. real estate
C. U.S. Treasury bonds C. college tuition
D. mutual funds D. business expenses
94. What is the reserve deposit ration (rdr)? 99. Money goes from the FED to the bond-
A. the proportion of money RBI lends to holder and the bondholder then spends or
commercial banks invests it. The net result
B. the proportion of total deposits com- A. The money supply disappears from cir-
mercial banks keep as reserves culation
C. the total proportion of money that com- B. The money supply decreases
mercial banks lend to the customers C. Money is added to circulation
D. none of above D. The money supply increases
95. Money is demanded for speculative mo- E. 3 and 4
tives in order to
100. One way in which the Federal Reserve
A. generate profit from the change in
works to change the United States money
price of bonds and speculated change in
supply is by changing the
interest
A. Discount rate
B. overcome any uncertainty in the price
of goods and services B. Velocity of money
C. purchase goods and services that are C. Price level
difficult to obtain in the market D. Number of banks in operation
D. avoid the risk of a drop in the value of
101. Penny is an artist, and John is a carpen-
money
ter. Penny agrees to paint a portrait of
96. In case of a bank failure, customer de- John’s family in exchange for a handmade
posits up to $250, 000 per account are table created by John. How do Penny and
guaranteed by the John pay for their goods in their transac-
A. Federal Reserve Bank. tion?
B. Federal Reserve Board. A. using a store of value
C. 2nd Bank of the United States. B. through credit
D. Federal Deposit Insurance Corpora- C. through bartering

tion D. with currency

102. Why would a person invest in junk 107. ‘Money enables people to borrow and
bonds? lend’. Which function of money does this
describe?
A. He does not know anything about in-
vestment A. measure of value
B. Junk bonds can pay very high interest B. medium of exchange
rates
C. standard for deferred payment
C. Most junk bonds have low interests
D. store of value
NARAYAN CHANGDER
rates
D. Junk bonds have high bond ratings 108. The currency the Federal Reserve puts
into circulation is called or is paper
103. A recession would lead to money.
A. an increase in DLF A. Federal Paper
B. a decrease in DLF B. Federal Reserved Notes
C. an increase in SLF C. Federal Coins
D. a decrease in SLF D. Federal Cash
104. Advocates of supply-side economics ar- 109. If you write a check on a bank to purchase
gue that spending by the federal govern- a used Honda Civic, you are using money
ment . as:
A. can crash the economy completely A. A medium of exchange
B. slows economic growth B. a store of value
C. has no effect on economic growth C. a unit of account
D. helps stimulate economic growth D. an economic investment
105. All the following are characteristics of 110. The item used must have a standard ap-
money EXCEPT pearance so that it is recognised and seen
to represent an agreed fixed amount
A. durability.
A. Durable
B. uniformity.
B. Acceptable
C. divisibility.
C. Uniform
D. accountability.
D. Scarce
106. Which of the following refers to the
payee’s signature on the back of the 111. Which is the most liquid measure of the
check? money supply?
A. signature card A. M4
B. check register B. M3
C. endorsement C. M2
D. bank statement D. M1

112. Credit control means- 117. Which of the following is one of the three
FUNCTIONS of money?
A. Contraction of credit only

A. scarcity
B. Extension of credit only
B. portability
C. Extension and contraction of money
supply C. divisibility
D. none of these D. store of value
113. During periods of inflation, money does 118. which of the following agency is respon-
not function well as sible for issuing Rs 1 currency note in In-
dia?
A. Standard of Value
A. RBI
B. Medium of Exchange
B. Ministry of commerce
C. Store of Value
C. Ministry of finance
D. Commodity money
D. Niti aayog
114. Money supply is concept
119. Money is expected to have value and be
A. Stock used by all to make purchases.
B. Flow A. Acceptability
C. Variable B. Uniformity
D. All the above C. Durability
D. Divisibility
115. The fact that money must withstand the
wear and tear that comes from being used 120. Name the credit control method which
over and over again is a measure of its refers to difference between the amount
A. Portability of loan and market value of the security
offered by the borrower against the loan.
B. Currency
A. Moral Suasion
C. Durability
B. Margin Requirement
D. Age
C. Legal Reserve Requirement
116. What does the New York Stock Exchange D. Direct Action
do?
A. buys and sells stocks but not bonds for 121. Stable
wealthy private investors A. to be acceptable authentic money
B. handles stock and bond trading on the must be immediately recognizable.
Internet only B. must be a way to divide money into
C. arranges stock and bond trading of smaller units.
many large and established companies C. maintains value over time.
D. arranges the buying and slling of blue D. to purchase people must be able to
chip stocks only carry money on them.

122. An institution for receiving, keeping and C. Government

lending money D. Public
A. Bank
128. Emilio borrows $1200 from a bank with
B. Bond 8% simple interest per year. How much
C. Stock will he have to pay back total in 2 years?
D. Company (I=prt, then add I to p to get the answer)
A. $150
123. You’ll have to go into the bank if you
NARAYAN CHANGDER
want money, the cash machine isn’t B. $192
correctly. C. $1350
A. practising D. $1392
B. serving
129. money enables people to save. Which
C. functioning function of money does this describe?
D. exercising A. medium of exchange
124. All units of money must be identical so B. store of value
that people recognize it. C. unit of account
A. Divisibility D. standard for deferred payments
B. Unit of Account
130. The security feature in U.S. money that
C. Uniformity has been the most difficult to counterfeit.
D. Portability A. Tinting the paper
125. The largest and most changeable part of B. Watermarks
the money supply is C. Security Strip
A. currency D. All of the above
B. interest payments
131. Which of the following is described by
C. demand deposits these characteristics:one seller, barriers to
D. none of above entry, no product differentiation
A. monopolistic competition
126. As a function of money, means that
money is a common measure of the worth B. pure competition
or price of a good or service. C. oligopoly
A. banknote D. monopoly
B. store of value
132. Which of the following would improve
C. monetary system your credit score?
D. unit of value A. keeping credit card balances as high
127. Institution that accepts deposits for lend- as possible
ing purpose is known as B. checking credit cards regularly
A. Commercial Bank C. consolidating credit cards
B. Central Bank D. paying off all debts

133. Divisibility means that money can be eas- C. Fiat money

ily divided into D. Gold

A. smaller units of value.
139. What function does a central bank fulfil?
B. currency and coins.
A. It prints and issues currency.
C. representative money and fiat money.
B. It offers overdraft facilities to individ-
D. different units of exchange.
uals.
134. People make money by discounting C. It operates deposit accounts.
bonds, how?
D. It raises taxation.
A. The interest rate.
140. What is the purpose of the Federal De-
B. Buying the Bond for less than the other
posit Insurance Corporation (FDIC)?
person paid for it.
A. to make sure that banks do not fail
C. The value of the Bond increased.
B. to make sure that customers do not
D. The company’s rating dropped.
lose money if a bank fails
135. A bank can only lend out it’s C. to make sure that banks charge a fair
A. required reserves amount of interest on loans
B. total checkable deposits D. to make sure that the government has
enough gold to cover its expenses
C. excess reserves
D. actual reserves 141. M1 and M2 makeup all of this in the U.S.
economy.
136. Which of the following is not the main
A. Fiat money
forms of money?
B. Representative money
A. cash
C. Currency
B. bank deposits
D. Money supply
C. central bank reserves
D. gift certificate 142. Which of the following option is the func-
tion of the central bank as a banker to com-
137. Travelers checks, often used for vaca- mercial banks?
tions:
A. Managing the national debt
A. Travelers checks, often used for vaca-
B. Control foreign exchange
tions:
C. Policy maker for monetary policy
B. Are free at most banks
D. Lender of the last resort
C. Function as cash and are easily re-
placed if lost 143. Barter system is now replaced by
D. Are FDIC insured A. Banking system
138. What is the currency of the US called? B. International system
A. Coins C. Monetary system
B. Representative money D. Financial system

144. The interest rate the bond issure pays to 149. The amount one must pay to borrow
the bondholder is called the money from someone else
A. coupon rate A. Interest
B. maturity rate B. Portfolio
C. discount rate C. Diversification
D. value rate D. Principal
NARAYAN CHANGDER
145. Electronic transfer of money in terms of 150. Why is representative money more use-
credit/debit entries of the account holders ful than commodity money?
in the banks is called A. Representative money can be used for
A. e-marketing other things besides currency.
B. e-business B. Representative money has value be-
cause the government says it does.
C. e-money
C. Representative money exists in unlim-
D. e-banking ited supply, so more people use it.
146. Our company made a record last D. Representative money is portable,
year. durable, divisible, and acceptable.
A. profit 151. Your portfolio is diversified. You have
B. earn investments.
C. benefit A. preferred and common
D. winning B. financially based
C. many different
147. Medium of Exchange
D. completely successful
A. used to exchange for goods and ser-
vices needed. 152. During times of hyperinflation
B. means, money is a common measure A. people often adopt something other
of the worth or price of a good than the official currency to use as money
C. means it can be saved or stored for B. people hoard the official currency
later, without the value decreasing. C. the purchasing power of the currency
D. money placed into an account. increases rapidly
D. the money supply is decreasing
148. The simple interest formula is I=Prt. The
P represents the principal. What is PRIN- 153. how useful cacao beans might be as
CIPAL in an economic sense? money today./ unclear what the beans are
A. the amount of money borrowed or de- worth or how to measure them against
posited other items
B. the percent interest for his year A. Medium of exchange
C. the head administrator of a school B. Standard of value
D. the amount the bank owes you for be- C. Store of value
ing a customer at their bank D. none of above

154. Anything that is used to determine value 159. If they are not more careful with their ac-
during the exchange of goods and services. counts, they will go

A. Store of Value A. penniless
B. Unit of Account B. broken
C. Medium of Exchange C. bankrupt

D. poor
D. Barter System
160. If a large segment of the population ex-
155. Written order for the bank to pay a spe- pects their income to fall in the future
cific amount to the person or organization
to which the check is written. A. an increase in DLF
B. a decrease in DLF
A. Deposit
C. an increase in SLF
B. Finance company
D. a decrease in SLF
C. Investment bank
D. Check 161. Money must withstand physical wear
and tear from being used over and again.
156. Money which is accepted as a medium A. Uniformity
of exchange because of trust between the B. Durability
payer and the payee is called-
C. Divisibility
A. full bodied money
D. Portability
B. fait money
162. Which is the primary source of revenue
C. fiduciary money for the federal government?
D. None of these A. fees
157. Deposits which are payable after the ex- B. taxes
piry of a fixed period are called- C. duties
A. time deposits. D. borrowing
B. 163. To reduce the money supply, the Fed will
C. NONE most likely
D. none of above A. buy bonds from the banks

B. sell bonds to the banks
158. Law passed in 1991 that lifted the last
C. invade the bank through the use of
of banking restrictions allowing banks, in-
armed forces
surance companies, and investment compa-
nies to all offer similar products. D. call the United Nations for a loan
A. Federal Reserve Act 164. When I purchase a corporate , I am

lending the corporation funds for a specific
B. Financial Services Act
time. When I purchase a corporation’s ,
C. Banking Deregulation Act I become an owner in the corporation.
D. Banking Regulation Act A. bond; stock

B. stock; bond B. discourage

C. stock; debt security C. disallow
D. bond; debt security D. invalidate
165. The amount of a deposit that the bank 170. If you lose a check and want to prevent
currently keeps and puts into their vault someone else from using it, you can issue
A. Reserve Requirement this type of order to the bank:
A. stop payment
NARAYAN CHANGDER
B. Total Reserve
C. Excess Reserve B. demand deposit
D. Interest Rate C. outstanding check
D. cancelled check
166. When you use money to purchase your
lunch, money is serving which role(s)? I. 171. money or things which can be quickly and
Medium of exchange II. Store of value III. easily converted into money with little or
Unit of account no loss of purchasing power.
A. I only A. Liquidity
B. II only B. Central Bank
C. III only C. Member Bank
D. I and III only D. Default
167. What is the difference between a credit 172. A good that is used as a medium of ex-
and debit card? change but also has intrinsic worth be-
A. a credit card can be used to borrow cause it has other uses. Gold or silver
money or make purchases, a debit card coins are commodity money.
uses your own money. A. Currency
B. you can borrow money with both B. Representative Money
C. credit card is connected to your per-
C. Fiat Money
sonal bank account and a debit card is
used for borrowing money D. Commodity Money
D. with a debit card you have to pay the 173. Young Metro begins trusting banks and
money back he deposits $10, 000 in his. The reserve
requirement is 20%. How much can his
168. Amount held bank:
bank now lend out?
A. $10, 000
B. Required Reserve Rate Changes
B. $2, 000
C. Discount Rate Changes
C. $8, 000
D. Interest Rate Paid on Reserves
D. $0
169. An increase in interest rates might
saving because more can be earned in in- 174. What possess general acceptability?
terest income. A. Bank draft
A. encourage B. Money

C. Bill of exchange 180. Redirecting resources from being con-

D. none of above sumed today to create future benefits

A. FDIC
175. There are Regional Federal Reserve
Banks, and one Federal Reserve Board of B. Mortgage
Governors.
C. Investment
A. 50
D. Bond
B. 4
C. 12 181. The most basic service a bank provides is
D. 52 A. a safe way to store and save money.
176. Money created by a government decree B. to pay interest.
that has no alternative value or use as a C. to provide credit cards.
commodity
D. to provide mortgages.
A. Commodity Money
B. Bond 182. When James received his paycheck, he
C. Specie planned to cash it at a check cashing store.
You advise him to cash it at his own bank
D. Fiat Money if possible. Why?
177. Depositing a set amount into a bank for A. They typically require a two day wait-
a set amount of time (without touching it) ing period before giving cash
A. Certificate of Deposit B. They typically charge high fees
B. Options
C. There is likely to be a ceiling on the size
C. Futures of the check he can cash
D. Return D. They generally require a co-signor
178. Credit union
183. Bank that can lend to other banks in times
A. a financial institution that offers sav- of need, a “bankers’ bank”.
ings and loan services.
A. Liquidity
B. a financial institution that makes
money by issuing loans. B. Central Bank
C. a nonprofit financial institution that’s C. Member Bank
privately owned and provides banking ser-
D. Default
vices for its members.
D. a financial institution thats involved in 184. Which of the following does the Fed-
trading securities in financial markets eral Reserve use to regulate the nation’s
money supply?
179. What is used to measure inflation?
A. fiscal policy
A. a ruler
B. CPI Consumer Price Index B. proposing legislation
C. a scale C. monetary policy
D. none of above D. regulations

185. You have $1000 dollars that you want C. live out
to save. you know that you will not need D. live down
that money for a year.you want to earn
the most interst possible and you want the 190. What is a bank’s primary source of in-
rate to be guaranteed. Where should you come?
put your money? A. the Fed
A. certificates of deposit (CD) B. China
B. checking account
NARAYAN CHANGDER
C. interest
C. savings account D. housing market
D. money market account
191. Who appoints members of the Board of
186. An institution that receives, lends, bor- Governs.
row, exchange, issues and safeguards A. President
money.
B. Secretary of the Treasury
A. Money Supply C. Congress
B. Gold Standard D. Vice President
C. National Bank
192. Currency, demand deposits and other
D. Bank checkable deposits are considered
187. If you car is said to be worth $20, 000, A. M2
what function of money is being used? B. M0
A. Medium of Exchange C. M1
B. Store of Value D. none of above
C. Unit of Account
193. Which type of tax is levied on the sale of
D. Acceptable an asset held for 12 months or longer?
188. Monetary Policy A. capital gains tax
A. a government adjusts its spending lev- B. flat tax

els and tax rates to monitor and influence C. marginal tax
a nation’s economy. D. sales tax
B. used to exchange for goods and ser-
194. the amount of money that is borrowed.
vices needed.
A. Principal
C. means it can be saved or stored for
later, without the value decreasing. B. Interest
D. an action taken to manage the supply C. Credit Card
of money and interest rates in an economy D. Mortgage
189. When you are an old age pensioner, you 195. The central bank can increase the avail-
have to learn to a very small income. ability of credit by:
A. live up to A. Raising reverse repo rate
B. live on B. Raising repo rate

C. Buying government securities 201. Which of the following is not instrument

D. Selling government securities if monetary policy

A. Bank rate
196. Marcella puts money into her savings ac-
count. Which function of money does this B. Open market operation
illustrate? C. Selective credit control
A. unit of account D. Government spending
B. medium of exchange 202. “The Fed” is short for:
C. store of value A. The Federal Reserve System
D. fiat money B. Congress
197. Compared to salt, jewels are a better C. The Federal Bureau of Investigations
form of money. This is because(1) jew- (FBI)
els are more homogeneous.(2) the supply D. The Federal Deposit Insurance Corpo-
of jewels are more limited.(3) jewels are ration
more durable.
203. What is the price paid for the use of bor-
A. (1) and (2) only
rowed money.
B. (1) and (3) only
A. principal
C. (2) and (3) only
B. interest
D. (1), (2) and (3)
C. mortgage
198. To an economist, investment means: D. tax
A. Purchasing bonds
204. A prearranged amount of credit that is
B. Purchasing capital available for a business to use as needed
C. Purchasing stocks is a
D. Putting your money in a savings ac- A. Line of credit
count B. Treasury note
199. A written contract between a borrower C. Letter of credit
and a lender that sets the terms and con- D. Bond
ditions.
205. Money taken out of your checking ac-
A. Loan
count.
B. Disclosure
A. withdrawal
C. Forclosure B. stop payment
D. Collateral C. endorsement
200. Includes less liquid assets: D. outstanding
A. M1 206. is a bank that, among other things,
B. M2 can lend money to other banks.
C. Currency A. Congress
D. Debit Card B. Central Bank

C. Department of the Interior D. He wanted to issue greenbacks as cur-

D. National Bank rency.
207. the amount of money in your account 212. Which is not a use of money?
A. DEPOSIT A. Medium of exchange
B. BENJAMINS B. a store of value
C. BALANCE C. unit of account
NARAYAN CHANGDER
D. DOLLARS D. to start a fire
208. The stock market is a physical place. 213. Money that can be directly used for trans-
A. Yes, it’s located in most major cities action is
around the world. A. near money
B. No, trading is all done online. B. broad money
C. Yes and No, there are physical places C. M1
where stocks are sold, but they are also D. M2
sold virtually.
D. none of above 214. The price paid for borrowed money
A. Barter
209. what is the main aim of a commercial
bank? B. Loan
A. to act as banker to the government C. Mortgage
B. issue bank notes D. Interest
C. manage the national debt 215. with money it is possible to buy goods on
D. to make profit credit. which function of money it shows?
210. For something to be money, the item used A. store of value

must be limited in supply for it to have B. standard of deferred payments
value C. unit of account
A. Acceptable D. none of the above
B. Divisible
216. You can easily carry money in a pocket or
C. Scarce
a purse. This reflects what CHARACTERIS-
D. Uniform TIC of money?
211. Why did President Andrew Jackson op- A. durability
pose the Second National Bank of the B. legal tender
United States?
C. divisibility
A. He thought smaller, state-chartered
D. portability
banks were careless.
B. He thought it favored the rich and pow- 217. This is the governments ability to control
erful. the expansion and/or contraction of the
C. He wanted to repay debts from the money supply
Revolutionary War. A. Gold Standard

B. Discount Rate 223. What is the other name of money multi-

C. Monetary Policy plier

D. Responsibility of the FED A. Deposit multiplier
B. Credit multiplier
218. A bond has a coupon rate of 5 percent per
year, and a par value of $2, 000. How C. Cash reserve ratio
much interest will you recieve each year?
D. None of these
A. $2500
B. $200 224. When the Federal Reserve wants to en-
courage the economy to grow, what does
C. $100 it do with the money supply?
D. $500
A. increase the money supply
219. Demand deposits include B. decrease the money supply
A. Saving account deposits and fixed de- C. sell all of its assets
posits
D. issue more government securities
B. Saving account deposits and current
account deposits
225. Items used to facilitate barter, keep
C. Current account deposits and fixed devalue, and comparison shop
posits
A. Money
D. All type of deposits
B. Currency
220. The phrase used for putting money into a
C. Principal
savings account is:
D. Portfolio
A. Making a deposit
B. Making a withdrawal 226. Safe-deposit boxes are:
C. Reconciling an account A. A free benefit for accounts with de-
D. Balancing an account. posits starting at $50, 000
221. Which of the following is not part of the B. Safe and can be accessed only by the
Federal Reserve System? owner of the box
A. Council of Economic Advisors. C. Available at all banks
B. Board of Governors. D. Convenient and accessible at any hour
C. Federal Open Market Committee. of the day or evening
D. 12 Federal Reserve District Banks. 227. Which of these forms of money are in-
cluded in M1:
222. The largest source of most banks revenue
is A. checking accounts,
A. payroll taxes B. coins,
B. savings deposits C. paper money,
C. interest from loans D. checking accounts, coins, paper
D. none of above money, travelers’ checks

228. Which of the following is a function of 234. The Fed keeps a certain amount of money
money? out of circulation. This is referred to as the
A. acceptability
B. medium of exchange A. Reserve requirement
C. portability B. Emergency Fund
D. relatively scarce C. Stockpile

D. Hoard
NARAYAN CHANGDER
229. A liquid asset is one where the asset is
easily 235. We had to get a bank loan when the
A. converted to the medium of exchange. money finally gave
B. exchanged because of the intrinsic A. in

value of commodity money B. off
C. transported to the bank. C. out
D. circulated throughout the economy in D. over
a given year.
236. If an economy is to control recession like
230. Who pays interest on a loan? most of the Euro-zone nations, which of
the following is appropriate
A. creditor
A. Reducing repo rate
B. credit union
B. Reducing CRR
C. borrower
C. Both (a) and (b)
D. lender
D. None (a) and (b)
231. The price paid for the use of borrowed
money. 237. What is included in M2 but not in M1?
A. Barter A. currency
B. Loan B. demand deposits
C. Mortgage C. other checking deposits
D. Interest D. savings deposits
232. Assets that have liquidity are 238. Income tax rates is to one’s annual
income.
A. easy to borrow or lend.
A. associated
B. easy to convert into silver or gold.
B. based
C. easy to turn into cash.
C. related
D. difficult to convert to cash.
D. dependent
233. What is a line of credit?
239. This is the interest rate that the FED
A. lends money to be used anytime charges to banks for loans from the the
B. gives you a credit card FED.
C. helps your credit score A. Discount Rate
D. none of the above B. Gold Standard

C. Open Market Operations 245. If the Federal Reserve raised the reserve
D. Monetary Policy requirement ratio from 8 percent to 10
percent, other things the same this will

240. The 2008 Financial Crisis was caused by: A. increase the amount the bank can loan
A. Too much regulation in the US financial B. decrease the amount the bank can
sector loan
B. Not enough money flowing around in C. not change the amount the bank can
the economy loan
C. Thousands of “sub-prime” loans made
D. decrease the money multiplier and in-
by banks looking for quick profit
creased the potential growth in the money
D. A decrease in taxing by the federal gov- supply
ernment
246. A severe economic downturn results in
241. The agency responsible for regulating the .
money supply in the United States is
A. rising prices
A. the President of the United States
B. increased aggregate demand
B. the U.S. Treasury
C. falling prices
C. the Secretary of the Treasury
D. decreased government regulation
D. the Federal Reserve
247. In bartering economies, people trade
242. If you are estimating your total expenses what they for what they
for school next semester, you are using
money primarily as: A. Own; buy
A. a medium of exchange B. Buy; sell

B. a store of value C. Want; need
C. a unit of account D. Have; need
D. an economic investment 248. Which statement best explains why
money was invented?
243. Out of the following characteristics,
money must be effective. Which one di- A. Money was invented to facilitate the
rectly affects its value? exchange of goods and services.
A. Durability B. Money was invented to support a
barter economy.
B. Limited supply
C. Money was invented to strengthen
C. Uniformity
government power and control.
D. Portability
D. Money was invented to lift people out
244. Commercial banks are also called of poverty.
A. mortgage companies 249. are a paper currency issued by the
B. full-service banks FED. this is the real name for our bills.
C. half-service banks A. Specie
D. credit unions B. Federal Reserve Notes

C. Disney bucks C. The central bank sets the govern-

D. Shilling ment’s tax and spending policies.
D. The central bank supplies foreign cur-
250. commercial bank create credit money by rency to members of the public.
way of
255. Who circulates all mint and one rupee
A. Time deposit
notes in India?
B. Treasury Bill A. Ministry of Finance
NARAYAN CHANGDER
C. Bill of Exchange B. RBI
D. demand deposit C. Ministry of External Affairs
251. What is the place responsible for creating D. State Government
and printing U.S. paper money?
256. The percentage of each deposit that the
A. U.S. Mint bank must hold in their vault, or on record
B. Federal Reserve Bank with the Fed, is determined by the
C. Bureau of Engraving and Printing A. discount rate
D. FDIC B. required reserve ratio

C. federal funds rate
252. Which of the following statements de-
D. money multiplier
scribes a function of money? I. Money is a
medium of exchange.II. Money is a store 257. central banks
of value.III. Money is a unit of account. IV.
A. lend and borrow money
Money is a factor of production.
B. accept deposits from clients
A. I and IV only.
C. make overdrafts
B. I, II and IV only.
D. manipulate interest rate
C. II, III and IV only.
258. Specific type of loan used to buy real es-
D. I, III, and IV only.
tate
253. The amount of new money the banking A. Principal
system generates with each dollar of de-
B. Interest
posits
C. Credit Card
A. Money Multipliers
D. Mortgage
B. Legal Reserves
C. Excess Reserves 259. The following is information about the
central bank and its description:To main-
D. Member Bank Reserves tain the scarcity of money, the central
bank is normally the only institution that
254. Which statement about a country’s banks
can generate physical money
is correct?
A. The sole issue of notes and coins
A. Commercial banks hold the financial
accounts of the government. B. The government’s bank
B. Commercial banks offer loans to con- C. The bankers’ bank
sumers and firms. D. Lender of the last resort

260. average time a paper bill is in circulation C. Medium of exchange

A. <2 years D. Checking account

B. 5 years 266. Investing in several types of investments
C. 10 years to reduce the risk of financial loss
D. 20 years A. Diversification
B. Speculation
261. RR
C. Return
A. Excess Reserve
D. Futures
B. Legal Reserve
C. Money Multiplier 267. What is the stock market considered,
when it is in the positive?
D. Reserve Requirement
A. Bull
262. If a loan is repaid at a commercial bank B. Bear
then
C. Neutral
A. commercial bank assets are in-
creased. D. all choices
B. money is destroyed. 268. If the money supply increases, what hap-

pens in the money market?
C. commercial bank assets are de-
creased. A. The nominal interest rate rises
D. money is created. B. The nominal interest rate falls
C. Transaction demand for money falls
263. The ease with which an asset can be con-
verted into payment for goods & services. D. The nominal interest rate does not
change
A. Medium of Exchange
E. Indeterminate
B. Legal Tender
C. Liquidity 269. It is an important day to day job of the
Fed to collect
D. Banking
A. taxes
264. What are the four physical characteristics B. and to clear checks
of money?
C. tariffs
A. durable, scarce, acceptable and
D. none of above
portable
B. portability, durability, divisibility and 270. The total value of financial assets in
uniformity the economy that are considered money.
These are several different measures of
C. green, small, uniform and durable
the money supply, called monetary aggre-
D. none of above gates.
265. Prearranged amount of credit that is A. Money Supply
available for a business to use as needed. B. Gold Standard
A. Government bond C. National Bank
B. Line of credit D. Bank

271. In the 1800s, people in mining towns in A. The Fed will lend money to a bank in a
the west often paid for goods with gold. financial emergency.
What was the function of the gold? B. The Fed makes decisions about who a
A. It was used as part of the barter sys- bank can lend money to.
tem. C. The Fed has the power to decide how
B. It was used as a currency. much money a bank can lend out.
C. It was used as representative money. D. The Fed decides interest rates for in-
NARAYAN CHANGDER
terbank loans.
D. it was used a fiat money.
277. Government, businesses, and individuals
272. The of living has risen by 25% in the in the United States all accept US currency
last six months. because:
A. expenditure A. Currency is valued higher than coins
B. cost B. They have confidence in the govern-
C. expense ment
D. price C. Currency is the only type of money
D. All currency is backed up by gold
273. Which of the following is not a function
of the central bank? 278. Which is a common difficulty for a new
A. Lender of last resort sole proprietorship?
B. Managing monetary policy A. paying all the legal and governmental
fees required in the first year
C. Controlling money supply
B. finding enough workers in order to ex-
D. Accepting deposits pand quickly
274. A legal process in which property that is C. having enough money to stay in busi-
collateral for a loan may be sold to help ness while building a customer base
repay the loan when the loan is in default. D. finding enough investors to purchase
A. Appraisal company stock
B. Collateral 279. a narrow measure of the money supply
C. Mortgage that examines currency, demand deposits
& checkable deposits.
D. Foreclosure
A. M1
275. Which option is a characteristics of B. M2
money?
C. D1
A. medium of exchange
D. D2
B. unit of account
280. Securities firm
C. portability
A. financial institution that offers savings
D. store of value
and loan services.
276. What does “lender of last resort” mean B. a financial institution thats involved in
with respect to the Federal Reserve? trading securities in financial markets

C. a financial institution that accepts 285. Savers and borrowers are linked through
money from customers and deposits it financial institutions when
into the customer’s account.

A. both savers and borrowers invest in
D. financial institution that makes money the same markets.
by issuing loans. B. savers deposit money that is then used
to lend money to borrowers.
281. In our country a(n) of $250 is paid
weekly to a family with more than three C. the financial institutions offer the
children. same rate of exchange to each.
A. fee D. borrowers take money from financial
institutions to invest with savers.
B. allowance
C. income 286. Objects that have value in themselves
and are also used as money.
D. wage
A. Representative money
282. This is when two banks come together B. Commodity money
and the FED watches over the banks
C. Simple money
A. Responsibilities of the FED D. Credit cards
B. Adjust/control the money supply
287. When was the stock market crash?
C. Regulates bank holding companies
A. 1930s
D. Check clearing process
B. 1940s
283. Which of the following is not a character- C. 1920s
istic of money? D. 1910s
A. It will physically last over time
288. The bond markets are important because
B. It is uniform in apperance they are
C. It is difficult to forge A. easily the most widely followed finan-
D. It can settle debts in different time pe- cial markets in the United States.
riods B. the markets where foreign exchange
rates are determined.
284. In the short run, a contraction in the
money supply will most likely change the C. the markets where interest rates are
nominal interest rate and aggregate de- determined.
mand in which of the following ways? D. the markets where all borrowers get
Nominal Interest Rates/Aggregate De- their funds.
mand
289. What does Inflation do to the value of
A. Increase/decrease money?
B. Increase/increase A. Makes it go up
C. Increase/not change B. Makes it go down
D. decrease/decrease C. Makes it stay the same
E. decrease/increase D. none of above

290. A sudden panic by depositors to with- B. SLR

draw their paper money from banks.
C. Bank rate
A. bank run
D. Reverse repo rate
B. demand deposits
C. fractional reserve banking 296. Which of the following is the function of
a Central bank?
D. default
A. Issue of notes
NARAYAN CHANGDER
291. Money must be easily divided into
B. Banker to the Government and Banks
smaller denominations (ex. making
change). C. Supply and control of money
A. Durability D. All of these
B. Divisibility
297. Anything that’s accepted in exchange for
C. Acceptability goods & services.
D. Uniformity A. Currency
292. What agencies insure banks and credit B. Money
unions?
C. Liquidity
A. IRS and DHS
D. Deferred Payment
B. DHS and FDIC
C. FDIC and NCUA 298. Demand deposits are
D. NCUA and FICA A. checking accounts

B. savings accounts
293. Why would a company need to issue
stock? C. certificates of deposit
A. To increase its’ customer base. D. money market accounts
B. To raise money.
299. What is the name of Central Bank in In-
C. To stop the government from regulat- dia?
ing it.
A. SBI
D. To show customers that it’s success-
ful. B. RBI
C. PNB
294. Which of these is NOT a reason to save
money? D. none of above
A. retirement 300. The buying an selling of government se-
B. unexpected emergency curities in financial markets is an example
C. major purchases of
D. so you can loan it to your friends A. open market operations

B. prime rate
295. is the rate at which commercial banks
borrow from central bank in emergency C. discount rate
A. CRR D. tight money policy

301. Which one of the following items would C. Deposits

be the most liquid (able to be used in an
D. none of above
exchange immediately)?

A. Pizza 307. capital gain
B. Ticket to next week’s basketball game A. the difference between the selling
C. Stereo price and purchase price that results in a
large financial gain for the seller
D. Dollar bill
B. the difference between the selling
302. Savings and loan associations were es- price and purchase price that is a huge fi-
tablished to nancial loss for the seller
A. start businesses C. a market in which money is lent for pe-
B. pay for college riods of one or more years
C. buy homes D. none of above
D. none of above
308. Financial institution that is involved in the
303. Which of these is a function of the Federal trading of securities in the financial mar-
Reserve? ket.
A. loaning money A. Securities firm
B. acting as the state government’s fiscal B. Finance company
agent
C. Credit Union
C. supervising international banks
D. Commercial bank
D. setting reserve requirements
309. What is one difference between Banks
304. required reserve ratio determines the
and Credit Unions?
A. required reserves
A. Banks have Checking accounts and
B. excess reserves Credit Unions have Savings Accounts
C. lending capacity B. Banks are for profit. Credit Unions are
D. money multiplier Non-profit.
305. We need guaranteed financial before C. Banks can give loans and Credit
we can even start the design work. Unions cannot
A. backing D. Credit Unions allow everyone to join

and Banks are selective
B. analysis
C. agreement 310. what are 2 characteristics dollars must
D. plans have to be acceptable in our society?
A. green and gold
306. The primary liabilities of a commercial
bank are B. portable and durable
A. Bonds C. old and new
B. Mortgages D. residue from filthy places

311. In order to encourage investment in the 316. Christine her money from the ATM
economy, the Central Bank may and went on a big shopping spree.
A. Reduce Cash Reserve Ratio A. withdrew
B. Increase Cash Reserve Ratio B. pulled
C. Sell Government securities in the open C. ejected
market
D. extracted
D. Increase Bank Rate
NARAYAN CHANGDER
317. Which of the following is not a way
312. When Mary paid the bill, she was given ATM’s changed the nature of banking
a for her money.
A. fewer banks were being constructed
A. stamp
B. customers can access their accounts
B. cheque anytime
C. receipt C. fewer in-person transactions
D. ticket D. banks allowed to charge more for ser-
vices
313. Bill and Wilma preferred to use
A. cash 318. Which of the following financial institu-
tions does NOT have to meet minimum re-
B. credit cards
serve ratios? i. the Fedii. commercial
C. checks banksiii. credit unions
D. none of above A. iii only
314. What does the phrase a medium of ex- B. i, ii, and iii
change mean when describing a function of C. i only
money?
D. ii and iii
A. Price of an item can be measured in
terms of money units. E. ii only
B. Money is generally accepted means of 319. primary role of the Federal Open Market
payment Committee?
C. You can save money because it keeps A. sell bonds
its value
B. regulate the volume of money in the
D. Borrowers know how much they need economy
to pay back on a loan
C. set mortgage rates for member banks
315. The cowrie shells was used as money so D. make loans for district banks
widely because it is hard-wearing and long
lasting. Which characteristics of money 320. He manages to get his monthly salary
does this describe? in a couple of weeks.
A. divisibility A. over
B. acceptability B. round
C. scarcity C. by
D. durability D. through

321. A document that discloses information 326. Financial institution that makes money by
about a company’s earnings, assets, and issuing loans.
liabilities A. Finance company

A. Corporate Bond B. Investment bank
B. Treasury Bond C. Nondepository institution
C. Prospectus D. Securities firm
D. Contract 327. Which has the potential to be both an
advantage and disadvantage of partner-
322. Of the list below, which ones are the Re- ship?
sponsibilities of the FED?
A. joint decision making
A. Adjust/control the money supply
B. additional resources
B. loaning money to federal governments C. specialization
C. consumer legislation such as truth in D. few regulations
lending laws
328. Financial institution that does not accept
D. check clearing process deposits.
E. loaning money to presidential candi- A. Nondepository institution
dates
B. Depository institution
323. What does ATM stand for C. Finance company
A. Automatic Teller Machine D. Securities firm
B. Automatic Token Money 329. Under the ECOA, a written request for
C. Automatic Teller Money credit made in accordance with the proce-
dures established by a creditor.
D. Automatic Teller Man
A. Disclosures
324. Which type of money has no value of its B. Loan application
own but is valuable because it can be ex- C. Credit score
changed for something else of value?
D. ARM
A. fiat
330. The Feds attempts to sway the level of
B. representative inflation and real GDP in our economy
C. commodity A. Monetary Policy
D. specie B. Fiscal Policy
325. What type of policy does the Federal Re- C. Diversification

serve use to counteract an expansion that D. Share
is causing high inflation?
331. If you defaulted, you failed to .
A. fiscal policy A. give money to charity
B. contractionary money policy B. qualify for health insurance
C. expansionary money policy C. apply for financial aid
D. reduced policy lags D. pay back a loan

332. What is the usual reason why citizens B. a credit card

trust their country’s banknotes? C. a checking account
A. They are acceptable for trade and ex- D. a savings account
change.
B. They are backed by gold at the central 338. Being able to save our money to use later,
bank. means that money acts as
C. They are convertible into the US$ or A. standard of value
NARAYAN CHANGDER
Chinese Yuan. B. medium of exchange
D. They are recognisable and in infinite C. store of value
supply.
D. none of above
333. What are the alternative measures of
money supply in India? 339. Which of the following is not a tools of
credit control?
A. M1
A. CRR
B. M2
B. SLR
C. M3 and M4
C. Moral suasions
D. All of these
D. Managed floting
334. Who created the First Bank of the United
States? 340. How does a bank make most of its profit
on its business?
A. George Washington
A. By collecting fees on credit card pur-
B. Andrew Jackson
chases.
C. Thomas Jefferson
B. By collecting fees on safety deposit
D. Alexander Hamilton boxes, traveler’s checks and certified
checks
335. The Fed can increase loans by
C. By receiving fees from the government
A. increasing bonds
for handling federal and state accounts
B. lower discount rates
D. By paying out less interest on deposits
C. raising interest rates than it earns in interest on loans
D. none of above
341. which of the following are components
336. The paper money used in the United of monetary policy implemented by central
States is: bank of country?
A. National Bank Notes A. taxes
B. Treasury Notes B. interest rate
C. United States Notes C. exchange rate
D. Federal Reserve Notes D. money supply
337. Which of these can cost you money in 342. SLR requires the commercial bank to build
large interest payments? their liquid assets by way of
A. a debit card A. Reserve of cash

B. Reserve of gold 348. An asset that can be easily converted to

cash is
C. resurve of unencumbered secirities

A. a withdrawal
D. all of these
B. liquid
343. Checking accounts can also be referred to
C. overdraft protection
as
A. commodity accounts D. an ATM
B. pay as you go accounts 349. The fee charged by a financial institution

C. demand deposits when you borrow money
D. none of above A. deposit

B. withdraw
344. Any organization that provides services
related to money is a C. interest
A. corporation D. loan
B. business 350. What are the following ways that Fiscal

C. store policy impacts the economy?
D. financial institution A. Through changing the discount rate

B. Through taxing and spending
345. The US government began printing paper
money during the C. By raising or lowering interest rates
A. War of 1812 D. By printing more money
B. Civil War 351. Which of the following are considered a

C. Spanish-American War “financial institution?
D. none of above A. bank

B. insurance company
346. In the early years of the United States,
the federalists favored C. savings and loan
A. the use of banks to limit trade. D. all of the above
B. a centralized bankin system. 352. During recessions, which of the following
C. state control of their own banks. monetary policies is appropriate?
D. repeal of the gold standard. A. Purchase of government securities by
the Fed
347. where is the federal reserve bank?
B. An increase in government spending
A. Stockholm, Sweden
C. An increase in transfer payments
B. Mumbai, Maharashtra
D. An increase in the discount rate
C. Washington, D.C.
E. The selling of government securities by
D. Thimphu the Fed

353. Federal Reserve pays banks for their re- C. remain the same
serves. D. shift left
359. The financial intermediaries that the aver-
B. Required Reserve Rate Changes
age person interacts with most frequently
C. Discount Rate Changes are
D. Interest Rate Paid on Reserves A. exchanges.
NARAYAN CHANGDER
B. over-the-counter markets.
representative money?
C. finance companies.
A. A fur coat
D. banks.
B. Gold earrings
C. Diamonds 360. Well-functioning financial markets pro-
mote
D. An IOU note
A. inflation.
355. What does the fractional reserve system
B. deflation.
mean?
C. unemployment.
A. Banks keep a small portion of deposits
& loan the rest D. economic growth
B. Banks use fiat money as well as coins
361. If the reserve requirement is 8 percent,
C. Banks report daily to the Federal Re- how much of a $100 deposit must be kept
serve by a customer’s bank and not loaned to
D. Banks use cash and debit transactions other customers?
A. $8.00
356. When people can take their money with
them easily B. $92.00
A. Portability C. $80.00
B. Uniformity D. $12.00
C. Durability
362. One of the primary functions of financial
D. Divisibility institutions is:
357. What should I study for Tuesday’s test? A. provide access to capital
(More than 1 answer) B. create investment portfolios
A. The power point notes
C. prepare taxes
B. the vocabulary study guide
D. offer incentives for investing
C. the banks v credit unions paper
D. this quizizz review 363. Who has the right of note issue?
A. Commercial Bank
358. When the money supply increases, nomi-
nal interest rate will B. Central Bank
A. increase C. Government
B. decrease D. Co-operative Bank

364. Stock prices are 369. Antifederalists opposed the national

A. relatively stable trending upward at a bank because

steady pace. A. they thought national government
B. relatively stable trending downward at would do a better job of regulating banks.
a moderate rate. B. they feared the wealthy would use it to
C. extremely volatile (suddenly changed increase their power.
in a short period of time)
C. they wanted ta uniform money suppply
D. unstable trending downward at a mod- throughout the country.
erate rate.
D. they wanted to be able to secure loans
365. Checkable deposits are classified as with foreign countries.
money because
370. A share of common stock is a claim on a
A. They can be readily used in purchasing
corporation’s
goods and paying debts
B. banks hold currency equal to the value A. debt.
of their checkable deposits B. liabilities.
C. they are ultimately the obligations of C. expenses.
the Treasury
D. earnings and assets.
D. they earn interest income for the de-
positor 371. The Federal Reserve has a total of
366. During the Free Banking Era, bankin in districts.
the U.S. was dominated by which of the A. 10
following?
B. 11
A. small independent banks with no char-
ters C. 12
B. the national bank of the U.S. D. 13
C. state-chartered banks
372. If the nominal interest raises from 4% to
D. savings and loan banks 7% then the
367. All of the following are examples of M2 A. real interest rate fell by 4%.
EXCEPT
B. expected inflation rose by 3%.
A. Savings deposits
C. expected inflation fell by 3%.
B. Demand deposits
D. real interest rate must rise.
C. Small denomination time deposits
D. The total of all M1 373. is a U.S. government institution that
provides insurance on depositor’s accounts
368. The common name for U.S. currency is:
A. Congress
A. orange backs
B. blue backs B. Department of the Interior
C. green backs C. FDIC
D. yellow backs D. Department of Homeland Security

374. Money thai is issued by the authority of 379. is money by government decree, has
the government is called- no alternative value
A. full bodied money A. Gold standard
B. fait money B. Specie
C. fuduciary money C. Barter
D. all the above D. Fiat money
NARAYAN CHANGDER
375. The Fed provides to banks. 380. The Federal Reserve often sells govern-
ment
A. currency
A. bonds
B. liquidity
B. notes
C. tax benefits
C. both
D. none of above
D. none of above
376. Suppose the required reserve ratio is
20% and there is no currency drain. Then 381. A medium of exchange is
a $100 increase in the monetary base re- A. a bottle of water
sults in the banking system increasing the
quantity of money by B. the dollar
A. $80. C. a package of meat
B. $400. D. none of above
C. $1, 000. 382. The difference between representative

D. $500. money and fiat money is that
A. representative money is worth more
E. $100.
than fiat money.
377. The Federal Reserve is responsible for im- B. fiat money is counted in coins; repre-
plementing sentative money is counted in paper dol-
A. monetary policy lars.
B. fiscal policy C. fiat money is more durable than repre-

sentative money.
C. federal policy
D. representative money is backed by sil-
D. demand policy ver or gold, ; fiat money is not.
378. When an individual is unable to repay a 383. In the Money Market graph, the
loan
A. demand for money is perfectly elastic
A. Default
B. supply of money is perfectly inelastic
B. Speculation
C. the price axis is labeled real interest
C. Liquidity rate
D. Interest D. the supply curve is leaning

384. Money can withstand physical wear and 389. what condition is neccessary for fiat
tear money to work?

A. Uniformity A. Money owed by customers must be
B. Durability paid on time.
C. Divisibility B. The government must control the

money supply.
D. Portability
C. Banks must hold enough gold to cover
385. The Federal Reserve is the bank’s paper money they give out.
A. lending institution. D. Customers with checking accounts
B. hospital cannot earn interest.
C. government 390. As an investor if you wanted to diversify

D. bank. your retirement portfolio which financial
product should you select .
386. What is a credit union? A. Stock
A. bank that takes deposits but does not B. Mutual Fund
give out loans
C. Bond
B. a bank that specializes in retirement
savings accounts D. Bitcoin
C. a type of savings and loan that makes 391. The guarantees your bank deposits
housing loans up to $250, 000?
D. a cooperative lending institution for a A. Chinese Government
particular group B. FDIC (Federal Deposit Insurance Cor-
387. American leaders in the early United poration)
States wanted to establish a stable bank- C. The President
ing system in order to D. The Bank
A. provide competition for merchant
lenders 392. People can take their money with them
easily.
B. promote international trade and eco-
nomic growth A. Portability
C. help all Americans build wealth B. Uniformity

through savings accounts C. Durability
D. allow individual merchants to charge D. Divisibility
fees for loans and other services
393. Higher-than-normal interest rates caused
388. Which of these results from the imple- by heavy government borrowing hurts pri-
mentation of a tight money policy? vate borrowers through
A. increase in wage-price controls A. “pay-as-you-go” provision
B. increase in the price of credit B. crowding out effect
C. decrease in the price of credit C. spending caps
D. decrease in interest rates D. deficit spending

394. Means of comparing goods and services C. salary

A. Medium of Exchange D. interest
B. Unit of Account
400. anything that people will accept as pay-
C. Store of Value ment for goods and service
D. Uniformity A. Money
395. What is the ratio of deposits which com- B. debit cards
NARAYAN CHANGDER
mercial banks are required to keep with C. medium of exchange
themselves called?
D. barter
A. CRR
B. SLR 401. Inflation is to be combated the RBI-
C. both A. Raise in CRR and lower SLR
D. none of above B. Lower CRR and raise SLR
C. Raise both CRR and SLR
396. A commercial bank chartered by the fed-
eral government. D. none of these
A. Money Supply 402. which of the following is characteristic of
B. Gold Standard good money?
C. National Bank A. durable
D. Bank B. portable
397. The delivery of financial services electron- C. changeable
ically is called: D. homogeneous
A. E-Business
403. The federal funds rate is the rate:
B. E-Finance
A. a private borrower would pay a bank
C. E-Commerce for a loan.
D. none of above B. one bank would pay another bank for
398. Money is the most liquid of all the asset a loan.
because C. a bank would pay the Federal Reserve
A. it is a medium of exchange for a loan.
B. it is an unit of account D. the Federal Reserve would pay to bor-

row money from government.
C. it act as a store of value
D. it is a standard of deferred payment 404. what of the following is a typical start
up requirement for a sole proprietorship?
399. Now that he has retired, he lives partly
A. obtaining a business license
on his pension and partly on the his
post office savings account. B. selling shares on the stock market
A. income C. signing a contract with a partner
B. wages D. hiring officers to run the company

405. If Rose purchased a new computer and B. cheese

paid by credit card, she is using money as C. tomtoms

A. a store of value D. wampum
B. a measure of value
411. When money serves as a mechanism for
C. a medium of exchange transforming current income into future
D. a standard of deferred payment purchases, it is functioning as a
A. Medium of exchange.
406. Money that can be easily divided into
smaller units of value has the character- B. Standard of value.
istic of C. Standard of account.
A. Divisibility D. Store of value.
B. Denominations 412. Financial institution that provides ser-
C. Exchange vices for businesses.
D. Durability A. Investment bank
B. Credit union
407. Who appoints the chairman of the Federal
Reserve? C. Securities firm
A. Congress D. Savings and loan institution
B. Supreme Court 413. In the 1800’s, people in mining towns in
C. President the West often paid for goods with gold
nuggets or gold dust. What was the func-
D. the American poeple tion of gold?
408. The potential amount of money that A. It was used as part of a barter system
banks can create based on the initial de- B. It was used as a currency
posit.
C. It was used as respresentative money
A. Bank Failures
D. It was used as fiat money
B. Money Multiplier
414. John asked his parents if they would pay
C. Potential Money Creation Formula
off his
D. Open Market Operations A. debts
409. Buying and selling US government secu- B. credits
rities (bonds) to raise and lower interest C. accounts
rates
D. rents
A. Fed Fund Rate
415. The process of spreading your assets
B. Reserve Requirement Rate
among several different types of invest-
C. Discount Rate ments to reduce risks
D. Open Market Operation A. Emergency Fund
410. Which of these is a fiat currency used in B. Common Stock
the colony of Connecticut in 1645? C. Diversification
A. wigwam D. Dividends

416. What is the current central banking sys- 421. Which of the following describes the risk
tem of the United States called? and return profile of savings bonds?
A. National Bank A. high risk, high return
B. 1st Bank of the United States B. high risk, low return
C. Federal Deposit Insurance Corpora- C. low risk, low return
tion (FDIC) D. low risk, high return
D. Federal Reserve System
NARAYAN CHANGDER
422. People work mainly to money.
417. Bartering is difficult if high value items A. pay
cannot be broken up into smaller value
B. finance
items in order to exchange for low value
items C. earn
A. Double coincidence of wants D. win
B. Portability 423. An essential function for a bank is to
C. Divisibility A. Maximize its assets.
D. none of above B. Create money through lending.
418. Bonds are very safe investments. Which C. Lend all of its deposits.
is true of AAA ratings. D. Minimize its reserve ratio.
A. They mature quickly. 424. Bank belonging to the Federal Reserve
B. They have high interestrates. System.
C. They are hihg-risk investments. A. Liquidity
D. They have low interest rates. B. Central Bank
C. Member Bank
419. The higher the LRR credit creation will be
D. Default
A. Higher
B. Lower 425. Bank account that allows the account
owner to make deposits, write checks, and
C. Constant withdraw money.
D. None of these A. Savings account
420. What happens during a bank run? B. Treasury account
A. The federal government orders all C. Mutual fund account

banks to close D. Checking account
B. States charter more banks than their 426. Financial Institutions include:
citizens need
A. Banks
C. the price of gold specie suddenly in-
creases B. Savings & Loans
D. customers try to withdreaw more C. Credit Unions

money than the bank has on hand D. All of the above

427. Which is not the function if central bank 432. In the United States, the money supply
(M1) is comprised of:
A. Banker to the government

A. coins, paper currency, and checkable
B. Controller of the money supply
deposits
C. Bankers bank
B. . currency, checkable deposits, and Se-
D. Overdraft facility ries E bonds
C. coins, paper currency, checkable de-
428. A condition that exists when a borrower
posits, and credit balances with brokers
cannot repay a loan
D. paper currency, coins, gold certifi-
A. Liquidity
cates, and time deposits
B. Central Bank
433. What is fractional reserve banking?
C. Member Bank
A. Only some deposits must be paid on de-
D. Default mand
429. The following is information about the B. Banks lend onnly some of their money
central bank and its description:As with toward mortgages
households, governments need a bank ac- C. People transfer money and pay bills
count and the central bank fulfills this func- electgronically.
tion.
D. Banks keep some money on hand and
A. The sole issuer of notes and coins lend out the rest.
B. The government’s bank 434. Anything of value that is accepted in re-
C. The bankers’ bank turn for goods or services is
D. Lender of last resort A. products
B. credit
430. After the Civil War, the National Bank-
ing Acts gave the federal government the C. money
power to do all of the following EXCEPT: D. cash
A. insure banks against failure 435. Purchases made with your debit card are
B. charter banks usually:
C. require banks to hold adequate gold A. deducted immediately from your
and silver reserves checking account
D. issue a single national currency B. deducted from your credit card bal-
ance
431. The central banking system of the United C. added to your credit card balance
States.
D. put on your credit card bill as a cash
A. Federal Deposit Insurance Corpora- advance
tion
436. Reducing risk through the purchase of as-
B. Federal Reserve System
sets whose returns do not always move
C. Representative Money together is
D. Fractional Reserve Banking A. Intermediation

B. Discounting C. FCC
C. Diversification D. FDIC
D. none of above
442. The most commonly used currency in the
437. If governments print too much money and world is the
flood the market with currency it causes A. dollar
This is bad for the overall economy be-
B. euro
cause prices will rise quickly and savings
NARAYAN CHANGDER
will be lost. C. yen
A. Tariffs D. none of above
B. Deregulation
443. A certain % of checkable deposits that
C. Inflation banks keep on reserve.
D. More demand for money A. Reserve Requirement
438. The outstanding balance on a loan, ex- B. Excess Reserves
cluding interest and fees. C. Savings
A. Principal D. Fractional Reserve
B. Collateral
444. M2 includes
C. Loan
A. All of M1
D. Balance
B. Small time deposit
439. Financial markets promote greater eco-
C. Savings Account Deposits
nomic efficiency by channeling funds from
to D. All of the Above
A. investors; savers 445. Checks are not money because they
B. borrowers; savers A. can bounce when there are not enough
C. savers; borrowers funds to cash them.
D. savers; lenders B. are just instruments to transfer money
between banks.
440. All of the money available in the US econ-
omy C. are not always accepted when trying
to purchase goods or services.
A. Treasury
D. are not issued by the government.
B. Money Supply
E. are not guaranteed by banks.
C. Banks
D. Congress 446. Store of Value:
A. Money can maintain value over time
441. To monitor/supervise state banks (keep
an eye on how much they loan people) is B. Money is a measurement of value
the main responsibility of the C. Money is accepted in exchange for
A. FED goods/services
B. FDA D. none of above

447. When investors use algorithms to make A. monetary policy

stock purchases and hold them for a short B. medium of exchange
amount of time

C. financial exchange
A. Day Trading
D. financial services
B. Diversification
C. Federal Reserve Bank 453. You realize that many students who come
to early morning hockey practice do not
D. Monetary Policy get up early enough to eat breakfast. you
448. institution is a firm that manages borrow $500 form your parents to start
money. a bagel delivery service to the hockey rink
int he early mornings. You are acting as
A. Mental
A. a supplier in the capital market
B. Financial
B. an entrpreneur
C. Social
C. a financial capital investor
D. Religious
D. an intermediary
449. The central bank of the United States.
454. How did the United States government
A. the Federal Reserve System make the American public have confidence
B. advisory councils in the nation’s currency in the 1870’s?
C. monetary policy A. The government backed the currency
D. discount rate with cotton
B. The government permitted state-
450. Buying and selling of government securi- chartered banks to issue currency
ties by the central bank from/to banks is
called? C. The government established the First
Bank of the United States
A. open market operations
D. The government adopted the gold stan-
B. margin dard
C. banking
455. What is the electronic transfer of a pay-
D. none of above ment directly from the payer’s bank ac-
count to that of the party being payed?
451. The following is information about the
central bank and its description:A bank A. Direct deposit
with temporary difficulties can seek assis- B. Mortgage
tance from the central bank if needed
C. Collateral
A. The sole issuer of notes and coins
D. Deposit
B. The government’s bank
C. The bankers’ bank 456. More money supply includes
D. Lender of the last resort A. All deposits in Bank

B. Double coincidence of wants
452. The process of transferring money from
one individual or organization to another C. Unit of account
is D. Currency with the banks

457. What is the difference between how sim- 462. $100 pair of shoes is worth two $50
ple and compound interests are paid? haircuts or four $25 tickets to a baseball
A. simple interest:as long as money is in game. This example represents money as
the bank; compound interest:a year at a A. a physical commodity
time
B. a standard of value
B. simple interest:once a year; compund
interest:quarterly C. a medium of exchange
C. simple interest:on principal only; com- D. a store of value $100 pair of shoes is
NARAYAN CHANGDER
pound interest:on both principal and inter- worth two $50 haircuts or four $25 tickets
est to a baseball game. This example repre-
sents money as
D. they are the same thing
458. How many functions of money are 463. Which of the following has contributed to
there? the recent banking crisis?
A. 1 A. sub-prime mortgages
B. 2 B. wildcat banks
C. 3 C. bank fraud
D. 4
D. greenbacks
459. Influencing the economy by changing the
reserve requirement is called: 464. Deposit creation process comes to an end
when
A. Fiscal policy
A. fresh deposit with bank become zero
B. Monetary policy
C. Tight Money B. LRR become zero
D. Easy Money C. money multiplier becomes zero
460. Typically, borrowers have superior infor- D. total reserves equal initial deposits
mation relative to lenders about the poten-
465. A form of electronic banking to access ac-
tial returns and risks associated with an
counts with a smart phone.
investment project. The difference in in-
formation is called A. DTI
A. Moral Selection B. PITI
B. Risk Sharing C. Credit report
C. asymmetric information
D. Mobile banking
D. none of above
466. Money that is valuable because the gov-
461. Coins and paper that are used as money;
ernment says it is.
‘legal tender’.
A. Fiat
A. Money
B. Transfer Payments B. Comodity
C. Currency C. Representative
D. Liquidity D. Billz

467. type of account that pays little to no in- B. fractional reserve banking
terest, write checks from this account C. The Federal Reserve system

A. CHECKING D. representative money
B. SAVINGS
472. To start their business, the Kowalskis
C. CD
needed a
D. CHRISTAMAS
A. lease
468. Anything that serves as a medium of ex- B. grant
change, a unit of account, and a store of
C. loan
value
D. none of above
A. Money
B. Unit of Account 473. Which of the following is the most liquid
monetary aggregate?
C. Goods
A. M1
D. Services
B. M2
469. Amelia receives a card from her finan-
cial institution that allows to her use C. M3
an ATM for depositing and withdrawing D. dollar bills
money, checking her account information,
and more. Amelia has a what? 474. Money comes into the FED, and in ex-
change, the FED issues a bond certificate
A. ATM Card to the buyer of the bond. the Net result is
B. Savings Account A. Money disappears from circulation
C. Debit Card B. The money supply decreases
D. Cash Card C. Money is added to circulation
E. Credit Card D. The money supply decreases
470. You are a financial advisor whose client is E. 1 and 2
concrenced about losing his investment if a
company goes out of business. You advise 475. Minnesota is a part of the Reserve
her to buy District.
A. income stock. A. 5th
B. growths tock. B. 11th
C. common stock. C. 9th
D. preferred stock. D. none of above
471. Maria makes a deposit of $10, 000 476. If the reserve ratio is 25% and Ray de-
into her Smalltown Bank savings account. posits $100 in the bank the result will be
Smalltown Bank holds 20% of her deposit, A. $400 in money creation.
then lends the remaining $8, 000 to Ben
to buy a new car. This practice of retaining B. $100 in money creation.
only a portion of deposits on hand is called C. $400 in money destruction.
A. the gold standard D. $100 in money destruction.

477. M1 money supply in Malaysia consists of C. it is recognizable

A. coins, currency notes and cheques D. it is perishable
B. currency in circulations and saving de-
posits 483. One of the disadvantages of operating a
barter system is that trading is
C. fixed deposit, saving deposits and ne-
gotiable certificates of deposits A. taking place without currency.
D. currency in circulation, saving deposit B. carried out in very large markets.
NARAYAN CHANGDER
and time deposit
C. limited by availability and demand of
478. Which function of money encourages peo- goods traded.
ple to save money? D. conducted without consumer protec-
A. Medium of Exchange tions.
B. Store of Value
484. All of the following are low-risk invest-
C. Unit of Account ments EXCEPT
D. Acceptability A. junk bonds
479. Interest earned on both principal and pre- B. treasury bonds
vious interest earnings
C. municipal bonds
A. Special Interest
D. savings bonds
B. Complex Interest
C. Complicated Interest 485. When the Fed buys bonds, which of the
D. Compound Interest following occurs?
A. the money supply increases, and inter-
480. How easy it is to convert an asset into
est rates increase.
cash
A. liquidity B. the money supply increases, and inter-
est rates decrease.
B. reconcile
C. the money supply decreases, and in-
C. fiat money terest rates decrease.
D. savings account
D. the money supply decreases, and inter-
481. The largest portion of the money supply est rates stay the same.
is
486. Scarcity is important as an economic char-
A. currency
acteristic of money because
B. demand deposits
A. We need to have plenty of money in cir-
C. traveler’s checks culation
D. none of above B. too much money in circulation makes
482. what would make an item unsuitable to it worth less
act as money? C. the more you have the better off you
A. its is easy to carry are
B. it is generally acceptable D. none of above

487. Which is not a Characteristic of Money? B. Foreclosure

A. Durability C. Interest rate

B. Portability D. Credit score
C. Divisibility
493. Which bank enjoys monopoly power of
D. Invincibility Note issue?
488. Which one is the difficulty of the Barter A. NABARD
System? B. Commercial Bank
A. Lack of Double Coincidence C. Central Bank
B. Difficulty of Division of the Goods
D. none of above
C. Lack of General Acceptable Measure
of Value 494. A member of the Board of Governor
serves for
D. All the above
A. 4 years
489. One of the physical properties of money
is B. 8 years
A. acceptability C. 10 years
B. portability D. 14 years
C. scarcity 495. What kind of interest includes “interest
D. stability of value paid on interest”?
A. simple interest
490. If you’re got a student card, you can get
into the exhibition free of B. compound interest
A. cost C. complex interest
B. price D. profit
C. expense
496. After my business failed, I was declared
D. charge by the court.
491. High powered money consists of: A. profitless
A. Currency and coins held by the public B. bankrupt
B. Currency and demand deposits C. insignificant
C. Currency, cash reserves with banks D. uneconomical
and demand deposits
497. When Mr. Moore gets his paycheck, he
D. Currency held by the public and cash
knows he doesn’t have to spend it all at
reserves with banks.
once because money is
492. The amount paid by a borrower to a A. Standard of Value
lender in exchange for the use of the
B. Medium of Exchange
lender’s money usually expressed as a per-
centage. C. Store of Value
A. Loan D. Representative money

498. people can trade in goods and services C. Medium of Exchange

which feature of money does this de- D. Portability
scribe?
A. unit of account 504. Representative money gets its value
from the fact that
B. standard of deferred payments
C. medium of exchange A. it represents objects of value for which
it can be exchanged.
D. store of value
NARAYAN CHANGDER
B. it is backed up by silver or gold.
499. The direct exchange of one set of goods
C. the government states that it is an ac-
or services for another
ceptable means to pay debts.
A. Store of Value
D. it is a valuable commodity.
B. Currency Exchange
C. Medium of Exchange 505. Before money we used
D. Barter System A. labor

B. legal tender
500. What services do banks provide?
C. bartering
A. store money
B. customers can earn money D. none of above
C. borrow money 506. Open market operation as an instrument

D. all of the above of credit control are performed by
A. Central bank of country
501. Kanye has $12, 000 in cash and he
deposits it in Kardashian National Bank. B. the commercial bank pof country
How much does M1 change? C. Both a and b
A. $12, 000 x the monetary multiplier
D. none of these
B. $12, 000
507. The loan a bank gives you to purchase a
C. it doesn’t change, cash and checks are
house is called a
both M1
D. $12, 000 less the required reserves A. Mortgage
B. Default Loan
502. The earliest financial-services company
was formed by the C. Equity Loan
A. Knights Templars D. Building Loan
B. Egyptians 508. This characteristic of money refers to the
C. Greeks ability to carry it with you lightweight
D. none of above and easy to transport.
A. portability
503. Something that keeps its value when its
stored rather than used B. uniformity
A. Store of Value C. acceptability
B. Unit of Account D. stability

509. Money creation by the banking system 515. The amount of money that banks charge
will decrease if to each other for loans is the

A. the velocity of money increases A. discount rate
B. real interest rates are increase B. required reserve ratio
C. unemployment is low C. federal funds rate
D. people keep cash in their mattresses D. money multiplier
510. A recession often leads to 516. Which of the following functions is/are
A. higher production performed by the Hong Kong Monetary
B. lower profits for businesses Authority? (1) carrying out monetary poli-
cies in Hong Kong(2) issuing banknotes of
C. lower unemployment all face values(3) determining the market
D. none of above interest rate in Hong Kong
511. The most liquid of assets: A. (1) only
A. M1 B. (1) and (3) only
B. M2 C. (2) and (3) only
C. Currency D. (1), (2) and (3)
D. Fiat Money 517. Which monetary policy action could the
512. The process of reducing debt through reg- Fed implement in order to control infla-
ular installment payments of principal and tion?
interest that will result in the payoff of a A. Target a lower overnight interbank
loan at its maturity. lending rate
A. Payment B. Sell government bonds to the public
B. Amortization C. Lower the discount rate
C. Interest rate D. Lower the required reserve ratio
D. Principal E. Increase the monetary base
513. Currency in circulation is part of:
518. Medium of exchange:
A. M 1 only.
A. Money is accepted in exchange for
B. M 2 not including M1 goods/services
C. neither M1 nor M2 B. Money is a measurement of value
D. both M1 and M2 C. Money can maintain value over time
514. Maria borrowed $3, 000 at a simple in- D. none of above
terest rate of 4% per year. How much did
she have to repay after 4 years? 519. Who regulate money supply
A. $480 A. Govt. of India
B. $3, 480 B. RBI
C. $4, 800 C. Planning Commission
D. $7, 800 D. Commercial bank

520. Which of the following would be the ini- 525. A key factor in producing high economic
tial effect of an individual making a $10, growth is
000 cash deposit in a bank?
A. eliminating foreign trade.
A. The money supply would rise by $10,
B. well-functioning financial markets.
000.
C. high-interest rates.
B. The money supply would fall by $10,
000. D. stock market volatility.
NARAYAN CHANGDER
C. The money supply would not be af-
526. The main purpose of the Bank Negara
fected by the deposit.
Malaysia is to
D. The money supply would fall, but by
A. invest in property
less than the $10, 000 deposit.
B. print money
521. In the U.S. economy the money supply is
controlled by the: C. grant loans
A. U.S. Treasury D. accept deposit from public

B. . Federal Reserve System 527. What is the largest source of income for
C. Senate Committee on Banking and Fi- banks?
nance A. the interest they receive from loans
D. . Congress B. fees charged to customers for ac-
522. What was created by President Abraham counts
Lincoln to combat counterfeiting? C. money deposited in savings accounts
A. Secret Service D. special accounts such as NOW ac-
B. Federal Reserve System counts
C. Bureau of Engraving and Printing 528. Which of the following is money in the
D. Mutilated Currency Division form of gold or silver coins?
523. Credit unions, banks and savings and A. fiat money

loan associations are all examples of B. commodity money
A. Money houses C. specie money
B. financial institutions D. bitcoin
C. ATM’s
529. Basic function is as an accepted medium
D. none of above of exchange, standard of value, and a
524. You can easily carry money in a pocket or store of wealth. Allows all goods and ser-
purse. This reflects what characteristic of vices to be valued in the same objective
money? way:i.e. in relation to a monetary value.
A. portability A. Medium of Exchange
B. durability B. Barter
C. limited supply C. Money
D. legal tender D. Store of Value

530. The largest source of income for banks is 536. As a property of money, means that
A. interest received from loans. money must maintain its value over time
in order to be widely accepted.

B. fees charged for checking accounts.
A. stable
C. money deposited in savings accounts.
B. portable
D. payments from the FDIC.
C. durable
531. A blank endorsement on a check: D. recognized
A. Has no effect on the check
537. Which of the following is used to describe
B. Cancels the check money that is in your pocket, your check-
C. Creates a check that can be cashed by ing account, and your piggy bank?
anyone A. specie money
D. Restricts the use of the check B. fiat money
532. Buys and Sells government bonds: C. M1
A. Open Market Operations D. M2
B. Required Reserve Rate Changes 538. What does EFT stand for?
C. Discount Rate Changes A. Electronic Fund Transfer
D. Interest Rate Paid on Reserves B. Electronic Fund Transfer payment
533. If you deposit funds into a savings ac- C. Electronic Fund Text
count, money is functioning as a D. Electronic Funds Tax
A. Medium of Exchange 539. Coins and paper money in people’s pock-
B. Measure of Value ets are
C. Unit of Currency A. included in both M1 and M2.
D. Store of Value B. included in M2 but not in M1.
C. included in M1 but not in M2.
534. What kind of assets are traded using fu-
tures contracts? D. excluded from M1 and M2.
A. stocks 540. Who has to confirm after the President
B. bonds appoints the managers of the fed?
C. commodities A. The Supreme Court Justice
D. real estate B. The Senate

C. No one has to confirm
535. Kim K. deposits $200 in her checking ac-
D. The people
count. Later that day Kanye gets a loan
for $3, 000 from the same bank. What 541. The standard of value and a means of ex-
happens to the money supply change or payment is
A. increases by $200. A. food
B. increases by $2800. B. financial
C. decreases by $3000. C. money
D. increases by $3000. D. candy

542. A monetary system in which paper 547. The ability of money to be accepted by all
money and coins are equal to the value of parties in a transaction
a certain amount of gold A. Medium of Exchange
A. Money Supply B. Measure of Value
B. Gold Standard C. Store of Value
C. National Bank D. Portability
D. Bank
NARAYAN CHANGDER
548. Banks use savings account deposits to:
543. Money function as: A. Make their services and products at-
tractive for new depositors
A. A store of value
B. Pay for employee special projects
B. a unit of account
C. Give loans to consumers and busi-
C. a medium of exchange nesses
D. all of these D. Improve the quality of life in low-
income communities
544. According to monetary neutrality if the
price level raises by 5 and the value of of 549. This is a system where a reserve, or part,
$200 game system was equal to 10 prime of a deposit needs to be kept on hand.
steaks, how many prime steaks would be
A. Aggregate Measures
required to be equal to the $1000 price of
the game system? B. Fractional reserve system
A. 2 C. multiplier effect
B. 10 D. Primary reserve
C. 25 550. An economy was a barter economy. Af-

ter using money in exchange, we can ex-
D. 50
pect that(1) there will be a common mea-
545. The ability to use an asset as a medium sure of value of goods and services.(2)
of exchange describes its there will be a lower degree of speciali-
sation in production.(3) transaction costs
A. portability will decrease.
B. scarcity A. (1) and (2) only
C. durability B. (1) and (3) only
D. liquidity C. (2) and (3) only
546. Which of the following is a type of bank- D. (1), (2) and (3)
ing service that allows your principal to 551. Which bank is called lender of last re-
grow through the adding in of interest? sort?
A. basic checking account A. Commercial bank
B. savings account B. Agricultural bank
C. charge account C. Central bank
D. credit account D. none of above

552. Financial markets promote economic effi- C. automatic stabilizers

ciency by
D. tax cuts

A. channeling funds from investors to
savers. 558. What is the primary way banks earn a
B. creating inflation. profit?
C. channeling funds from savers to in- A. Charging fees for services

vestors. B. Borrowing money from the Fed
D. reducing investment. C. Selling Piggy Banks
553. Money allows the comparison of differ- D. Collecting interest on loans made to
ent values and this function is referred to customers
as
A. medium of exchange 559. Commodity money can only work in
B. store of value A. a financial industry.

C. measure of value B. a complex economic system.
D. standard of deferred payment C. a highly regulated system.
554. Hiram Wakefield began a bank in D. a simple economic system.

A. Colorado 560. Fee charged to borrow money
B. North Carolina A. Inflation
C. California
B. Interest
D. none of above
C. Discount rate
555. The currency created by the central bank D. Reserve requirement
is called
A. High powered money 561. Money used in exchange for goods and
B. Money services needed by individuals, businesses,
and governments.
C. Bank money
A. Store of value
D. Money supply
B. Unit of value
556. Which describes a bear market?
C. Bond
A. stocks are staying the same
D. Medium of exchange
B. some stocks are going up and some
are going down 562. This type of card allows you to withdraw
C. most stock prices are rising money directly out of your checking ac-
count to pay for things
D. most stock prices are falling
A. Credit Card
557. Which of these is an example of a discre-
tionary fiscal measure? B. Debit Card
A. state unemployment programs C. Gift Card
B. Social Security D. E-Card

563. Of the list below, which are responsibili- 568. What is measured on the Y axis of the
ties of the FED? Loanable funds market?
A. Printing and coining currency A. real interest rate
B. Approving bank mergers B. nominal interest nominal interest rate
C. Printing foreign currency C. quantity of loanable funds

D. quantity of money
D. Supervise/regulate foreign banks
which operate in the US 569. The Federal Reserve System started in
NARAYAN CHANGDER
E. Regulate bank holding companies A. 1910
B. 1913
564. The central bank of the United States is
the: C. 1923
A. Federal Reserve Banking System. D. 1932
B. Comptroller’s Bank. 570. To make a profit banks charge inter-

est on the money they loan than the inter-
C. United States National Bank. est they pay on savings accounts.
D. U.S. Treasury Bank. A. equal
565. Which of the following is the apex bank B. not as much
of India? C. less
A. SBI D. more
B. RBI 571. Anything used as a medium of exchange
C. HDFC A. Interest
D. PNB B. Money
C. Inflation
566. Money must be able to withstand the
wear and tear of many people using it. D. Taxes
A. Divisibility 572. Calculate the LRR, if initial deposits of Rs.

200 crore lead to creation of total deposits
B. Durability of 1600 crore .
C. Limited Supply A. 12.5%
D. Acceptability B. 10%
C. 15%
567. If the money supply increases from
$4000 to $6000, and the real output of D. None of these
video games is 50. What will happen to
573. Which institution perform the activity of
the price level?
credit creation
A. It stays the same A. COMMERCIAL BANK
B. It will decrease to $80. B. Central bank
C. It will increase to $110 C. Both
D. It will increase to $120 D. None of these

574. Financial intermediaries include 580. What is Commodity Money?

A. savings and loan associations, credit A. Money that has value because the gov-

unions, and pension funds ernment says so.
B. stockbrokers, brokerage firms, and
B. Money that is backed by silver or gold.
speculators
C. all buyers, savers, traders, and in- C. It have value because the item is
vestors. worth something.
D. financial asset markets and the stock D. none of above

exchange.
581. A nonprofit financial institution that is
575. Transfer of value has become easier with privately owned and provides banking ser-
A. evolution of money vices for its members is called a
B. storage of money A. trust department
C. measure of value B. credit union
D. all of these
C. insurance agency
576. A Store of Value involves
D. bank
A. spending money when it’s available
B. putting money in the bank 582. availability restricted to maintain its
value
C. budgeting your monthly income
D. none of above A. scarcity
577. If on receiving a $300 deposit, the banks B. acceptability

excess reserves increase by $255, the cur- C. stability
rent reserve requirement must be:
D. portability
A. 15%
B. 10% 583. deposited funds are taken out through
C. 5% checks, debit cards and ATM
D. 12% A. checking
578. Credit Multiplier is: B. credit
A. 1/CRR C. savings
B. Cash X 1/CRR D. money market
C. Cash x CRR
D. None of these 584. Derives its value from the type of mate-
rial from which it is composed
579. Today most of our money is issued by
A. Commodity Money
A. the states
B. representative money
B. Congress
C. the president C. FIAT money
D. the Federal Reserve D. store of value

585. Everything else held constant, a decline in C. Bank Failures

interest rates will cause spending on hous- D. Money Multiplier
ing to
A. fall. 590. Which documents should be stored in a
safe-deposit box?
B. remain unchanged.
A. Checkbook statements.
C. either rise, fall, or remain the same.
B. Copies of current and past budgets.
D. rise.
NARAYAN CHANGDER
C. Current paycheck stubs.
586. A financial action taken today that will D. Mortgage loan papers
create financial benefits in the future?
591. A major result of bank deregulation in the
A. Portfolio 1980’s and 1990s was hundreds of
B. Maturity A. bank mergers
C. Investment B. new startup banks
D. Buying a Ski Doo C. large banks splitting up
587. Two unites of the same type of money D. bank failures
must be the same in terms of what they
592. Without money, people would be forced
will buy, which is the principle of
to ?
A. functionality.
A. Trade
B. value.
B. Barter
C. pricing.
C. Exchange
D. uniformity. D. All the above
588. How does a pension fund act as an 593. The coins and paper bills used as money
ivestor? in a society
A. The fund lends money to those whoa A. Prices
re also investors in it.
B. Currency
B. The company invests the money col-
C. Bond
lected from employers and/or employees
D. Checks
C. The company uses money collected
from the employees to finance the com- 594. Who appoints the managers of the Fed?
pany.
A. The First lady
D. The fund uses its own money to invest,
B. The people
not the money that is invested in it.
C. The Vice President
589. A system that requires banks to hold re- D. The President
serves equal to some fraction (%) of their
checkable deposits. 595. a card you use to withdraw money at an
A. Expansionary Effect on Economy of a ATM or to pay at a store
Bank Deposit A. CREDIT CARD
B. Fractional Reserve Banking System B. CHECK

C. DEBIT CARD/ATM CARD D. House of Representatives

D. ID CARD
601. We have arranged special insurance to

596. What would happen of a commercial bank cover medical in the event of an acci-
decided to hold more than required re- dent.
serves? A. prices
A. decrease in checking accounts B. money
B. decrease the amount of potential C. accounts
loans made by the bank
D. expenses
C. increase the interest rate offered by
the bank 602. Money is used because:
D. decrease the reserve ratio of the bank- A. It serves as a unit of account
ing system
B. Good ‘store of value’
597. Which of the following would NOT be in- C. Makes lending and borrowing easy,
cluded in M1? compared to using ‘things’
A. $20 in your pocket
D. All of the above
B. $1000 in your checking account
603. Objects that have value because the
C. $50, 000 in your Roth IRA
holder can exchange them for something
D. $6, 000 buried in your back yard else of value
598. a broad measure of the money supply A. Currency
that examines savings accounts, money B. Representative Money
markets, and timed deposits.
C. Fiat Money
A. M1
D. Commodity Money
B. M2
C. D1 604. Which of the following is an example of
D. D2 money as a unit of account?
A. Purchasing a toy for $8.99.
599. Which of the following is not a function
of a commercial bank? B. Lending a friend $25.00.
A. Accepting deposits C. Opening a saving account at a bank.
B. Credit creation D. Checking the price of a camera at sev-
C. Making advances eral stores before buying it at the lowest
price.
D. Controlling money supply
605. A signature on the back of the check that
600. How does the Federal reserve control the transfers ownership of the check.
amount of money in circulation?
A. Signature card
A. by threatening the banks
B. Disclosure
B. by being faithful
C. by requiring banks to hold a certain C. Endorsement
amount in the bank D. Payment

606. What are the three functions of money? 611. An item that serves as money must be
A. medium of exchange, store of value, treated as money by all in that economy,
unit of account i.e. all must agree that iti s a valid form
of money
B. medium of exchange, store of value,
A. Durable
provides barter
B. Acceptable
C. store of value, medium of exchange,
creates instability C. Divisible
NARAYAN CHANGDER
D. none of above D. Scarce
607. When money is saved and used at a later 612. Which of the following is NOT a use of
date. money?
A. Medium of exchange A. as a medium of exchange
B. Divisible B. as a unit of account
C. Store of value C. as a store of value
D. Payment D. as a means of barter
613. Who was the leading Federalist that pro-

608. Markets in which funds are transferred
posed chartering the First Bank on the
from those who have excess funds avail-
United States in 1791?
able to those who have a shortage of avail-
able funds are called A. Alexander Hamilton
A. commodity markets. B. Thomas Jefferson
B. fund-available markets. C. George Washington
C. derivative exchange markets. D. DeWitt Clinton
D. financial markets. 614. This is the organization which directs and
controls the activities of the FED. (The
609. The Federal Reserve has three tools at folks that control everything.)
their disposal. Which of the following is
NOT a tool of monetary policy? A. The president
A. open-market operations B. The cabinet
B. changes in reserve requirements C. The Board of Governors

D. Congress
C. changes in interest rates
D. changes to foreign policy 615. What is the equation of exchange?
A. 1/RR
610. A U. S. corporation insuring deposits in
the US against banking failure for up to B. 1/MPS
$250, 000 C. MV=PQ=GDP
A. FDIC D. Excess=Actual-Required
B. IRS
616. A line of credit for checks your account
C. FOMC can’t cover.
D. The Fed A. overdraft protection

B. endorsement 622. As commercial banks keep more excess

reserves, money creation
C. stop payment

A. increases.
D. canceled check
B. decreases
617. The amount banks hold beyond required C. remains the same.
reserve; amount that banks can lend.
D. could either increase or decrease.
A. Reserve Requirement
623. A is type of financial investment is-
B. Excess Reserves
sued by a corporation, government, or
C. Multiplier other organization.
D. Expansionary Effect A. loan
B. security
618. Debt security that pays interest over a
term of ten to thirty years. C. banknote
A. Treasury note D. financial exchange
B. Treasury bill 624. What is a prospectus?

C. Government bond A. a pool of momey from various in-
vestors
D. Security
B. a report for an individual’s invest-
619. Uniformity of currency means that it is ments
A. easily divided. C. a collection of financial assets
B. easy to count and measure. D. a report for possible investors
C. accepted by everyone in a society. 625. Which of the following is NOT an exam-
D. scarce. ple of M1 money?
A. currency
620. Fiat money is accepted as payment be-
B. mutual fund
cause
C. travelers’ checks
A. it is backed by silver
D. a checking account
B. it has separate value as another re-
source 626. is a designation printed on paper cur-
rency that says it must be accepted as pay-
C. the government says it must be ac-
ment
cepted
A. Barter
D. none of above
B. Fiat
621. The Federal Reserve C. Legal tender
A. Regulates the amount of money. D. Specie
B. Supervises Banks.
627. The interest rate the Fed charges commer-
C. Provides Financial Services. cial banks for loans
D. All of the above. A. Fed Fund Rate

B. Reserve Requirement Rate A. It would be hard to use money if every-

C. Discount Rate one did not accept it.
B. It would be confusing if some dollar
D. I.O.U Rate
bills were worth more than others.
628. Which term describes the act of swapping C. If we could not carry money with us, it
items in exchange for other items in the would be hard to use.
absence of money?
D. If money did not last a long time, we
A. bartering
NARAYAN CHANGDER
could not use it to store value.
B. double coincidence of wants 633. Which of the following people is most
C. negotiation likely to succeed as a sole proprietor?
D. unit of account A. film studio
B. dry cleaner
629. Refers to the turn over rate, or how of-
ten money is used on average in a given C. kitchen appliance maker
year. D. football helmet manufacturer
A. Real Output 634. are called legal tenders
B. Monetary Growth Rule A. Demand deposit
C. Velocity B. Time deposits
D. Monetary Policy C. Inter-bank deposit
630. What is the main purpose of the FDIC? D. currency notes and coins
A. to make sure that commerical and in- 635. Master and Visa are what?
vestment banks do not fail A. credit cards
B. to make sure that customers do not B. interest
lose money if a bank fails
C. collateral
C. to make sure that banks charge a fair
D. withdrawal
amount of interests on loans
D. to make sure that the government has 636. The concept of global economy has come
enough gold to cover its expenses into existence due to
A. store of value
631. You need a new computer, and you will
need a loan in order to buy one. which B. transfer of value
lender is most likely to charge you the high- C. measure of value
est interest rate on your loan? D. none of these
A. savings and loan association
637. Which of the following could be consid-
B. savings bank ered a synonym for FICA?
C. credit union A. payroll tax
D. finance company B. corporate income tax
632. Why is portability an important charac- C. excise tax
teristic of money? D. intergovernmental revenue

638. What type of money is issued by the 643. Commercial banks can create money by
United States government?
A. transferring depositors’ accounts at

A. commodity money the Federal Reserve for conversion to
B. fiat money cash
C. near money B. lending excess reserves to customers
D. representative money C. maintaining a 100% reserve require-

ment
639. Mortimer transfers $100 from his sav- D. buying Treasury bills from the Federal
ings account to his checking account. The Reserve
effect on the money supply will be
A. M1 increases, M2 decreases, M3 is un- 644. The amount we take out as a loan
changed. A. Principal
B. M1, M2, M3 all increase. B. Interest
C. M1 will increase, M2 and M3 are un- C. Portfolio
changed.
D. Stock
D. M1 will increase, M2 will increase, M3
falls. 645. You have invested $500 at 9 percent
interest. According to the Rule of 72,
640. What loan do you borrow for buying a
how soon will the money double in value?
house?
(72/r = time)
A. commercial
A. 4 years
B. line of credit
B. 6 years
C. mortgage
C. 8 years
D. indivdiual
D. 12 years
641. how useful cacao beans might be as
money today. / not durable enough to re- 646. An important job of the Federal Reserve
tain value over time. is to
A. Medium of exchange A. protect the nation
B. Standard of value B. manage and control the money supply
C. Store of value C. make sure all goods are safe
D. none of above D. All of the above
642. If the Fed set the reserve requirement at 647. To finance a new police station, a local
20%, the money multiplier would be government is most likely to issue a
A. 5 A. junk bond.
B. 4 B. treasury bond.
C. 10 C. municipal bond.
D. indeterminant D. money market bond.

648. You your account when you write 653. To become a member of the Fed
checks for more money than you ahve in A. Banks buy shares of stock
the bank.
B. Banks ask the government permission
A. debit card
C. Banks have to have a minimum of 1000
B. service fee branches around the country
C. overdraw D. Banks have to have at least 1 million
D. deposit customers
NARAYAN CHANGDER
649. When describing a function of money, 654. This is when the FED restricts the growth
what does ‘a store of value’ mean? of the money supply, which drives up the
A. Money is used to exchange for goods interest rates and makes credit hard to
and services get.
B. Money circulates around the economy A. Monetary Policy

over time B. FED Action
C. Money may be kept for future spend- C. Easy money policy
ing D. Tight money policy
D. Money does not lose its value over
time 655. Which aggregate is the most liquid?
A. M1
650. Demand deposit created by the commer-
cial bank are called B. M2
A. High powered money C. M3
B. Money D. M4
C. Bank money 656. Which of the following is one of the three

D. Time deposit functions of money?
A. scarcity
651. Why was the Federal Reserve System
created? B. portability
A. To serve as the nation’s first true cen- C. divisibility

tral bank D. store of value
B. All nations are required to join 657. Each of the following RBA actions will
C. All state-charted banks were eligible contract the money supply except
to join A. raise the reserve ratio
D. Bank’s bank is the Federal Reserve B. raise the discount rate
652. The act of evaluating and setting the C. raise the Federal Funds rate
value of property D. buy bonds
A. Overdraft
658. A detailed report of an individual’s credit
B. Appraisal history, used by a lender to determine a
C. Amortization loan applicant’s creditworthiness.
D. Principal A. Credit score

B. Credit report 664. The Congress of the United States printed

C. Credit card Greenbacks to help fund the

D. Debit card A. Korean War
B. Civil War
659. Our bank for banks
C. World War I
A. Federal Reserve Bank
B. Fractional Reserve Banking D. Spanish-American War
C. Monetary Policy 665. Patty is selling her car through a news-

D. Fiscal Policy paper advertisement. When she finds a
buyer, she wants a form of payment which
660. What is true about a debit card? is guaranteed to be good. Which form of
A. it’s like a check but comes out of your payment should she avoid?
account automatically A. Certified check
B. it’s more convenient than writing a B. Cash
check
C. Cashiers check
C. you use a PIN number to authorize pur-
chases D. A check
D. all of the above 666. Banks keep a portion of deposits in-
661. What is NOT a government bond? house and loan the rest
A. savings A. Fractional Reserve Banking
B. treasury bill B. Federal Reserve Bank

C. municipal C. Certificate of Deposit
D. junk D. Speculation
662. The interest rate charged to member 667. Plastic card that allows the holder to
banks for borrowing reserves from the make credit purchases up to an authorized
Fed. amount.
A. Open Market Operations A. Debit card
B. Required Reserve Rate Changes B. Credit card
C. Discount Rate Changes C. Line of credit
D. Interest Rate Paid on Reserves
D. Government bond
663. The principal plus accrued interest-to-
date (not just principal) is calculated for 668. All of the following belong in M1 ex-
each time period as more interest accrues cept?
A. Simple Interest A. Bills

B. Compound Interest B. Coins
C. Loan Interest C. Checking Accounts
D. Credit Card D. Saving Accounts

669. The rate at which central bank lends to B. consider

commercial banks is called? C. postpone
A. SLR D. contemplate
B. CRR
675. markets transfer funds from people
C. bank rate
who have an excess of available funds to
D. none of above people who have a shortage.
A. Commodity
NARAYAN CHANGDER
670. What is the best example of an action(s)
that the Federal Reserve (Fed) can take to B. Fund-available
stabilize our economy?
C. Financial
A. Print money
D. Derivative exchange
B. Raise interest rates
676. During mild recessions, if policymakers
C. Require other banks to keep a mini-
want to reduce unemployment by increas-
mum balance.
ing investment, which of the following
D. All of the above policies would be most appropriate?
671. The United States today uses which kind A. Purchase of government securities by
of currency? the Federal Reserve
A. representative money B. An increase in government expendi-
B. fiat money tures only
C. scarce money C. An increase in transfer payments
D. commodity money D. Equal increases in government expen-

ditures and taxes
672. The exchange of goods without the ex-
change of money 677. Which of the following agency is respon-
sible for issuing |1 currency note in India?
A. trade
A. RBI
B. Barter System
B. Ministry of commerce
C. credit cards
C. Ministry of finance
D. checking
D. Niti Ayog
673. If they aren’t more careful with their
money they’ll get into 678. Assets that are offered by the borrower
to secure a loan.
A. debt
A. Appraisal
B. loss
B. Collateral
C. overdraft
C. Endorsement
D. problem
D. Payment
674. High-interest rates might cause a corpo-
ration to building a new plant that 679. Lowering interest rates to stimulate the
would provide more jobs. economy is called:
A. complete A. Fiscal policy

B. Easy Money D. The demand curve for money will shift

C. Tight Money to the right

D. Monetary policy 685. Poorly performing financial markets can
be the cause of
680. supply of money is a
A. Flow variable A. wealth.
B. Stock variable B. poverty.

C. real flow C. financial stability.
D. none of these D. financial expansion.
681. A(n) is an example of a nondeposi- 686. The cost of using money.

tory financial institution.
A. Loan fee
A. credit union
B. Overdraft
B. mutual savings bank
C. Interest
C. insurance company
D. commercial bank D. Payment
682. This is the total amount borrowed: 687. All of the following are considered liquid
assets EXCEPT
A. Principal
B. Interest A. traveler’s checks.
C. Maturity B. money market mutual funds.

D. Investment C. currency.
683. Why is using money as a medium of ex- D. deposits in checking accounts.

change preferable to bartering?
688. Certain information that Federal and
A. the relative value of bartered goods re- State laws require creditors to give to bor-
mains the same over time. rowers relative to the terms of the credit
B. the value of money fluctuates over extended.
time. A. Disclosures
C. the relative value of goods is difficult
B. Fine print
to establish in a barter system.
C. Loan application
D. the value of bartered goods decreases
after they are purchased. D. Amortization
684. Which of the following will most likely 689. Expenses that do not change every
occur in an economy is more money is de- month, such as rent
manded than is supplied?
A. Variable Expenses
A. The amount of investment spending
will increase B. Static Expenses
B. Interest rates will decrease C. Fixed Expenses
C. Interest rates will increase D. Never Change Expenses

690. is the rate at which commercial banks 695. In case of credit money
borrow short term funds from the central A. money value=commodity value
bank by selling their financial securities to
the central bank B. money value>commodity value
C. money value<commodity value
A. CRR
D. none of these
B. SLR
C. Bank rate 696. What is an important characteristic of m1
money?
NARAYAN CHANGDER
D. Repo rate
A. liquidity
691. The progressive income tax is an exam- B. durability
ple of .
C. flexibility
A. government dependency
D. solidity
B. an automatic stabilizer
697. who are co-operative banks owned by?
C. priming the pump
A. RBI
D. an entitlement
B. normal people
692. The main advantage of diversification as C. government
an investment policy is that it D. Islamic bank
A. reduces risk to investors
698. A reserve ratio is the:
B. increases investors’ access to their
A. proportion of cash and security re-
money
serves the bank needs to hold.
C. offsets the effects of inflation on in-
B. fraction of deposits that the bank is re-
vestments
quired to hold.
D. guarantees a fixed rate of return on an C. loan to deposit ratio in the bank’s bal-
investment ance sheet.
693. An advantage of savings accounts is D. money belonging to the bank’s largest
depositors.
A. they provide interest for deposited
money 699. Money put in a bank account is called a
B. easy access to funds and money taken out is called a
A. Batman and Robin
C. no limits on withdrawns
B. Deposit and Withdraw
D. none of above
C. Sponge bob and Patrick
694. Which is a good synonym for the word D. withdraw and direct deposit
barter in the term barter economy?
700. government bond
A. monetary
A. A security that pays interest over
B. specie
terms of ten to thirty years
C. fiat
B. A security that pays interest over
D. trade terms ranging from 2 to 10 years

C. Type of financial investment Issued by C. Other Banks

a corporation, government, or other orga- D. The Savings of Depositers
nization.

D. Anything of value that is accepted in re- 706. An adjustable rate mortgage in which
turn for goods or services. the interest rate and payment may change
over the life of the loan as market condi-
701. This type of money is considered legal tions change.
tender and gets its value from the people’s A. APR
faith in the government.
B. ARM
A. commodity money
C. Interest rate
B. representative money
D. Principal
C. fiat money
D. gold standard 707. Which of the following system is fol-
lowed by RBI for issuing currency?
702. A card that gives the holder an option
A. Proportionate system
to borrow money, usually at the point of
sale. B. Simple deposit system
A. Debit card C. Minimum reserve system
B. Loan D. Fixed fiduciary issue system
C. Signature card 708. U.S. money today has value because the
D. Credit card government has ordered it as acceptable
means to pay debts.
703. Holds its value over a period of time
A. Representative money
B. Currency
B. Barter
C. Commodity money
C. Money
D. Fiat money
D. Store of Value
709. Which part of the Fed decides when to
704. The National Banking Acts of 1863 and raise or lower interest rates?
64 gave the federal government power to
A. Board of Governors
do all of the following EXCEPT
B. Advisory Committee
A. charter banks.
C. Chairman
B. require banks to hold gold and silver
reserves to cover their bank notes. D. Federal Open Market Committee
C. seize the assets of any individual. 710. All of the following are basic components
D. issue a single national currency. of bonds EXCEPT
705. Where do Banks get the money they use A. maturity

to loan out to others? B. treasury bonds
A. The Government C. par value
B. The Federal Reserve D. coupon rate

711. When you retire at the age of sixty-five, D. money that is counted in M2 but not in
you receive a(n) from the government. M1
A. allowance
716. The main difficulty of a barter system is
B. fine finding
C. pension A. a form of money that both parties will
D. grant accept
712. Everything else held constant, an in- B. two people who have what each other
NARAYAN CHANGDER
crease in interest rates on student loans wants
A. increases the cost of a college educa- C. a third party to evaluate the goods to
tion. be traded
B. reduces the cost of a college educa- D. trade goods that will retain their value
tion. over time
C. has no effect on educational costs. 717. Money market deposit accounts are in-
D. increases costs for students with no cluded in:
loans. A. M 1 only
713. What happens to a company’s stock price B. M 2 only
when the compnany makes a profit? C. neither M1 nor M2
A. The stock price stays the same. D. both M1 and M2
B. The stock price goes in the same direc-
tion as the stock market. 718. The amount received in addition to the in-
vested amount
C. The stock price goes up.
A. Return
D. The stock price goes down.
B. Day Trading
714. In the U.S. free enterprise system one of
the primary roles of the government is to: C. Share
A. provide new sources of funding for D. Stock
technology start ups
719. which is the main aim of a commercial
B. ensure the safety of products through bank?
regulation
A. to act as banker to goverment
C. guarantee that investors profits are
secure B. to issue bank note
D. employ a majority of the workforce C. to make profit

D. to manage the national debt
715. What are liquid assets?
A. assets that are or that can easily be- 720. How do production costs affect aggre-
come currency gate supply?
B. fluids, such as mercury, that were his- A. Aggregate supply decreases when pro-
torically used as commodity money duction costs remain the same
C. assets that flow from one type of bank B. Aggregate supply increases when pro-
account to another duction costs increase.

C. Aggregate supply decreases when B. Standard of value

production costs decrease. C. Store of value

D. Aggregate supply increases when pro- D. none of above
duction costs decrease.
726. If the RR is 5 %, what is the money mul-
721. Many elderly people have to live on the tiplier?
money they when they were working.
A. 20
A. laid up
B. 10
B. put back
C. 5
C. put aside
D. 50
D. set up
727. is anything accepted in exchange for
722. Which bank operate in public interest goods and services.
without profit motive
A. barter
A. SBI
B. money
B. RBI
C. currency
C. UBI
D. none of above
D. PNB
728. Of the reasons listed below, why does
723. Credit cards are:i. a generally accepted the FED NOT keep reserves?
form of payment and therefore part of
M1.ii. are included in M1 because you A. maintain wealth
write a check to pay your monthly bill.iii. B. loan money to other banks
a means of borrowing money. C. use money for emergencies (like hurri-
A. i only canes/earthquakes)
B. i and iii D. pay back the national debt
C. ii only 729. A type of money that has value because
D. i and ii it can be exchanged for something else of
E. iii only value (ex. gold).
A. certificate money
724. Why is using coins as money easier than
using gold bars? B. representative money
A. Coins are more durable C. fiat money
B. coins are more uniform D. commodity money
C. coins are more limited in supply 730. What are the 3 functions of money?
D. coins are more portable A. get rich influence people and flaunt
725. how useful cacao beans might be as B. medium of exchange standard of value-
money today / could be cumbersome or store of value
unacceptable. C. it doesn’t have a function
A. Medium of exchange D. deposit withdrawal interest

731. Our money is valuable because of 736. A company owned by families or a small
number of investors and do not issue stock
A. it’s worth
to the public.
B. the government
A. public company
C. both B. industry
D. none of above C. private company
732. A function of money is to act as a mea- D. portfolio
NARAYAN CHANGDER
sure of value. What does this mean?
737. Which would be the best inflation rate?
A. It is used to compare the worth of dif- A. -4%
ferent goods.
B. 3%
B. It is used to enable monthly payments
for expensive goods. C. 15%
D. none of above
C. It is used to pay the price of a good.
D. It is used for future savings. 738. If you sell something and choose not to
spend the money earned right away, the
733. Money enables people to save, which money is acting as a
function of money does this describe? A. Unit of Account
A. medium of exchange B. Store of Value
B. store of value C. Medium of Exchange
C. unit of account D. Demand Deposit
D. standard of deferred payments 739. What percentage of banks failed in
1980?
734. What is a function of a central bank?
A. 50%
A. controlling money supply
B. 80%
B. deciding on the amount of government
expenditure C. 30%
D. 20%
C. issuing shares
D. raising taxes 740. The Federal Reserve System was offi-
cially established in
735. Items that are used as money must be ca- A. 1790
pable of being used as smaller and smaller
denominations so as to enable a range of B. 1811
different values to be represented by the C. 1836
item being used. D. 1913
A. Acceptable
741. Which of these tools in an example of
B. Divisible monetary policy?
C. Scarce A. reducing income taxes
D. Uniform B. changing reserve requirements

C. increasing government spending B. have high interest rates

D. borrowing money through deficit C. take a ling time to mature

spending
D. have low interest rates
742. The definition of Commodity Money can
best be described as 747. Which of the characteristics of money can
be defined as “easily moved”?
A. Paper money distributed by the U.S.
government A. Portability
B. Object that has intrinsic value in itself B. Durability
that also serves as money C. Divisibility
C. Money in the form of cash and coin D. Uniformity
D. Printed money from State banks
748. when your employer automatically de-
743. Which of these are characteristics of posits your paycheck into your bank ac-
money, check all that apply count
A. portability A. DEPOSIT
B. unending supply B. PAYROLL CHECK
C. divisibility
C. ATM
D. acceptability
D. DIRECT DEPOSIT
E. tradability in electronic exchange
749. If the Fed increases the money supply,
744. Money can be used to settle accounts in the economy will see
the future and this function is referred to
as A. a decrease in price level and an in-
crease in real GDP.
A. measure of value
B. an decrease in price level and a de-
B. store of value
crease in real GDP.
C. standard of deferred payment
C. an increase in price level and a de-
D. unit of value crease in real GDP.
745. Divisibility of money is an important char- D. an increase in price level and an in-
acteristic because crease in real GDP.
A. it can’t easily deteriorate 750. Penny is an artist and John is a carpenter.
B. you need to be able to get change Penny agrees to paint a portrait of John’s
when it is more that the price of the good family in exchange for a handmade table
C. it needs to be recognizable created by John. How did Penny and John
pay for the goods in their transaction?
D. none of above
A. using a store of value
746. Since bonds are considered among the
B. with money
safest investments, you would expect that
they would C. through bartering
A. muture quickly D. with currency

751. Bank account used by depositors to accu- B. stock

mulate money for future use. C. unlimited liability
A. Savings account D. vertical merger
B. Checking account
757. An Investment in which investors pool
C. Mutual funds account their money to buy stocks and bonds
D. Certificate of Deposit A. Mutual Funds
NARAYAN CHANGDER
752. A card authorizing the holder to buy B. Preferred Funds
goods or services C. Common Funds
A. Principal D. Diverse Funds
B. Interest
758. A money that can be saved without los-
C. Credit Card ing its value over time acts as a
D. Mortgage A. a fiat money
753. All of the following are examples of fi- B. medium of exchange
nancial intermediaries EXCEPT C. store of value
A. a credit union D. standard of value
B. a stock certificate
759. A business or financial institution that
C. a finance company stores and manages money for individuals
D. a life insurance company and other businesses:
A. ATM
754. This is a moneyless economy that relies
on the “mutual coincidence of wants” to B. Bank
trade C. Credit Union
A. Barter D. Check Cashing Center
B. Commodity Money
760. High levels of unemployment combined
C. Fiat Money with high levels of inflation could indicate
D. Specie that the business cycle has entered into a
period of:
755. Money must be durable because A. investment
A. it has to last for at least a few months B. expansion
B. it can’t fall apart easily or it won’t work C. stagflation
as well
D. recession
C. it needs to be small enough to fit in
your pocket 761. The Value of credit multiplier will be high
D. none of above when Legal Reserve Ratio is:
A. Low
756. What term is defined as an enterprise
that produces goods or services, usually to B. High
make a profit? C. Zero
A. business organization D. Infinity

762. I don’t have any cash just now. I’m 767. Demand deposit include ( Choose the cor-
rect alternative)
A. flat broke

A. Saving account deposit and fixed de-
B. flat broken
posits
C. no money B. Saving account deposits and current
D. less money account deposit
C. Current account deposits and fixed de-
763. This is the price paid for borrowing posits
money:
D. All types of deposits
A. Principal
768. What happens when you make a pur-
B. Interest chase using a credit card?
C. Maturtity A. The credit card issuer pays the store
D. Cost B. The money is immediately deducted
from your account
764. The rate at which central bank lends to
C. The amount of the purchase is de-
commercial banks for long term require-
ducted from a prepaid account
ments is called?
D. The place where you made the pur-
A. SLR chases receives the money within 24
B. CRR hours
C. bank rate 769. Medium of exchange, store of value, and
D. none of above measure of value are all
A. Characteristics of money
765. Currency and coins in circulation + check- B. Functions of money
ing deposits + travelers checks:
C. Types of money
A. M1
D. Measures of money
B. M2
770. If the total deposit created by commer-
C. M3 cial banks is Rs 20000 cr and LRR is 20%,
D. M4 then amount of initial deposit will be
A. Rs 2000 cr
766. Stephanie wants to deposit HK$300,
B. Rs 3000 cr
000 for two months in Hong Kong. Which
of the following financial institutions can C. Rs 4000 cr
accept her deposit? (1) licensed banks(2) D. Rs 14000 cr
restricted licence banks(3) deposit-taking
companies 771. interest
A. (1) only A. price paid for the use of borrowed
money
B. (1) and (3) only
B. the amount of money borrowed
C. (2) and (3) only
C. the act of redirecting resources from
D. (1), (2) and (3) being consumed today

D. none of above C. checking accounts
772. An example of a stored value card is a D. none of above

(n)
778. If $1000 is deposited into a checking
A. debit card. account and excess reserves increase by
B. credit card. $700, the reserve ratio must be
C. prepaid phone card. A. 70%
NARAYAN CHANGDER
D. mortgage. B. 30%
773. All of the following are services provided C. 40%

by banks and other financial institutions D. 90%
EXCEPT
A. storing and saving money. 779. Everyone must agree on the system be-
ing used
B. paying interest.
A. scarcity
C. increasing the amount of money in cir-
culation. B. acceptability
D. providing mortgages. C. stability
D. portability
774. A bond will increase in value if
A. interest rates decrease. 780. Money with intrinsic value that can have
B. interest rates increase. some other use is called
C. the company files bankruptcy. A. commodity money

D. the government increases it’s debt. B. token money
C. fiat money
775. Fiscal policy is carried out by:
D. barter money
A. Congress and the President
B. The Federal Reserve 781. Currency and coins in circulation + check-
C. The PA Reserve Bank ing deposits + travelers checks PLUS near-
moneys
D. The United Nations
A. M1
776. As a form of money, pearls can better
B. M2
perform the function of a than stamps
because pearls are more C. M3
A. unit of account divisible D. M4
B. unit of account portable
782. All of the following are examples of com-
C. store of value durable modity money EXCEPT
D. store of value homogeneous A. an IOU.
777. Demand deposits go into B. cotton.
A. savings accounts C. salt.
B. mutual accounts D. precious gem stones.

783. People have so many reasons to hold 788. Which financial product typically pays the
their money. Choose of the following sit- highest rate of interest?
uation to describe the reasons.I. To pay

A. Savings account
clinic billsII. To buy foods and drinksIII. To
pay transportation servicesIV. To make a B. Money market account
profitable investment C. Certificate of deposit
A. I and II only D. Common stock
B. II and III only
789. What does the term limited life mean?
C. III and IV only A. The business is restricted in size.
D. All of the above B. There is a ceiling on the amount of busi-
ness expenses.
784. You receive money as payment for work-
ing at a grocery store. This best illustrates C. There are many regulations about busi-
which function of money? ness activities.
A. medium of exchange D. The business does not continue if the
owner leaves .
B. store of value
C. unit of account 790. Money supply includes
D. commodity money A. All deposits in banks
B. Only time deposits
785. Owners must apply for a from the
federal government. C. Only demand deposits
A. charter D. Currency with bank
B. loan 791. One of the economic properties of money

is
C. savings account
A. divisibility
D. interest rate
B. durability
786. The cost of credit on a yearly basis, ex- C. scarcity
pressed as a percentage.
D. uniformity
A. APR
B. ARM 792. Supply of money refers to quantity of
money
C. Loan
A. As on 31st march
D. DTI
B. As on any point of time
787. Which of the following function is not per- C. During fiscal year
formed by the central bank?
D. During period of time
A. Banker to the government
793. What is the function of a municipal
B. Overdraft facility
bond?
C. Controller of money supply
A. to provide money for a firm to expand
D. Banker’s Bank its business

B. to provide money for the federal gov- B. decimal

ernment to pay its degts C. ratio
C. to provide money for local government D. dollar amount
to finance public projects
D. to provide money for individuals who 799. Which of the following condition needed
are willing to take high risks for financial institution become a bank
A. Accepting deposit
794. principal
NARAYAN CHANGDER
B. Advancing loans
A. the ability to be used as, or directly
converted into cash C. Both
B. the price paid for the use of borrowing D. None of these
money
800. Which type of account allows your de-
C. amount of money borrowed posited money to be withdrawn at any
D. none of above time by writing a check?
A. Savings Account
795. is a rate that a bank pays customers
for keeping their money B. Certificate of Deposit
A. collateral C. Certified Cash Account
B. interest D. Checking Account
C. currency 801. The architect’s work was superb, but he

D. deposit charged an enormous
A. ticket
796. Which of the following is a job of the Fed-
eral Reserve? B. fare
A. Insure the safety of deposits. C. fee
B. Regulate inflation so it doesn’t get out D. subscription

of control. 802. How does a bank make most of its prof-
C. Acts as the Governments Bank. its?
D. All of the above. A. collects fees from credit card pur-
chases
797. Which of the following is not something
that you fill out on a check? B. collects fees on safe deposit boxes
A. your signature C. federal funding
B. the date D. by paying out less in interest on de-

posits than it earns in interest on loans
C. your birthdate
D. who the check is made payable to 803. deposits earn interest
A. checking
798. The rate is given as a percent (%). Be-
fore using it in the simple interest formula, B. savings
you must first convert it to a C. money market
A. fraction D. mortgage

804. Recognized A. 10%

A. any organization that provides ser- B. $1000

vices related to money. C. 20%
B. to be acceptable authentic money
D. 40%
must be immediately recognizable.
C. a financial institution that makes 810. All of the following are examples of
money by issuing loans predatory lenders EXCEPT:
D. When the economy is slow, it may take A. payday lenders
action to lower interest rates B. check cashing stores
805. Which of following is not included in M1 C. credit unions
A. Inter bank deposits D. pawn shops
B. Currency and coins with public 811. Which is a good synonym for the word
C. Other deposits with RBI “BARTER” in the term barter economy?
D. Demand deposits with banks A. trade
806. Financial institutions that accept deposits B. fiat

and make loans are called C. monetary
A. Exchanges D. specie
B. Banks
812. Allows customers to pay for purchases di-
C. Over the counter Markets rectly from their checking account.
D. none of above A. Credit card
807. the central bank is authority B. Debit card
A. illegal C. Savings account
B. public D. Deposit
C. private 813. Paper money that has no intrinsic value
D. monetary is referred to as
808. The mechanism a nation uses to provide A. curved money

and manage money for itself is called a(n) B. fiat money
C. commodity money
A. banking system
D. federal money
B. monetary system
814. is what money is doing when it
C. financial system
serves as payment for goods or services.
D. inventory system
A. barter
809. Suppose that Captain Crunch bank has a B. currency
customer deposit $5, 000 and the bank’s
excess reserves go up by $4, 000. The C. medium of exchange
reserve ratio is D. none of above

815. What is the term for a business that is co- 820. The terms proportional, progressive, and
owned by two or more people who agree regressive refer to
on how responsibilities, profits, and losses A. goals of tax reform
will be divided?
B. principles of taxation
A. partnership
C. types of taxes
B. general partnership D. criteria for effective taxes
821. This is when the FED allows the money
NARAYAN CHANGDER
D. limited liability partnership supply is allowed to grow and interest
rates fall. This stimulates should stimulate
816. When money is used to acquire goods and the economy.
services, it is functioning as a
A. Tight Money Policy
A. Medium of exchange. B. Monetary Policy
B. Store of value. C. Easy Money Policy
C. Standard of account. D. Financial Policy
D. Equation of value. 822. The biggest problem associated with rep-
resentative money is
817. Trade is made easier because of this func-
tion of money that eliminates the need to A. difficulty in transporting it
barter (trade goods for goods). B. fluctuations in the value of the backing
commodity
A. Store of Value
C. lack of agreement about exchange
B. Medium of Exchange rate
C. Unit of Account D. di strust of the issuing government
D. Divisibility 823. In the 1990s, the Russian people lost con-
fidence in the value of the ruble, and many
818. Maximum credit that commercial bank
were no longer willing to sell goods and
can legally create depends on their
services in exchange for Russian currency.
A. Gold Reserve Which characteristic of money did the Rus-
sian currency lack?
B. legal reserve ratio( LRR)
A. acceptability
C. CRR
B. uniformity
D. SLR
C. limited supply
819. Which is a main goal of the Federal Re- D. durability
serve?
824. Percentage of deposits that the Fed re-
A. Create a high level of inflation quires banks to hold back and not lend out
B. Create a stable, healthy economy A. Fed Fund Rate
C. Print currency for American citizens B. Reserve Requirement Rate
D. Develop new laws for the United C. Discount Rate
States D. I.O.U Rate

825. Money that has value simply because the 830. The ability to be used as, or easily con-
government says it does is called verted into, cash is called

A. Credit A. demand deposit
B. Currency B. money market
C. Fiat money C. amortization
D. Representative money D. liquidity
826. What is NOT one of the three main func- 831. The demand for money consists of
tions of money?
A. M1 plus M2.
B. the tools of the Fed.
B. Store of Value
C. asset demand plus transactions de-
C. Unit of Account mand.
D. Durability D. checkable deposits and savings ac-
counts.
827. Troy has $50 a month transferred elec-
tronically from his checking account to his
832. When you pay for a new CD with a debit
savings account. This is an example of:
card, you authorize the transfer of money
A. An installment payment from your account to the music store’s ac-
B. A savings plan count. In other words, a payment by debit
card is the electronic form of a payment by
C. An ATM transaction
A. money order.
D. A debit card transaction
B. credit card.
828. A commercial bank has two conflicting C. check.
goals;
D. cashier’s check.
A. interest payments and interest ac-
crual. 833. Memphis is in which Federal Reserve dis-
B. liabilities and assets. trict?
C. money creation and money destruc- A. Chicago
tion. B. Dallas
D. profits and liquidity. C. Atlanta
829. If a central bank significantly increases D. S. Louis
its sales of government bonds, it is most
likely responding to which of the follow- 834. Money, property, and other goods that
ing? have value.
A. Slow economic growth A. asset
B. An appreciating domestic currency B. cash
C. Rising unemployment C. credit
D. High inflation rates or Hyperinflation D. physical capital

835. An essential function for banks is creat- D. strengthen the government’s role in
ing money by the economy
A. storing all of the deposits.
840. An investment bank helps issue secu-
B. loaning a portion of deposits. rities
C. loaning all of the deposits. A. A Corporation
B. Government
NARAYAN CHANGDER
836. Bradley digs out $50 from his cookie jar C. Foreign governments
and deposits it in his checking account. The
immediate result of this transaction is that D. none of above
M1 has
841. Which financial product has the most pre-
A. Increased by $50. dictable income?
B. Increased by more than $50. A. Stock
C. Increased by less than $50.
B. Real estate
D. Not changed.
C. Certificate of deposit
837. Which of the following changes would D. Option/future contract
cause an increase in the equilibrium nom-
inal interest rate? 842. Financial institution that offers savings
A. An increase in the monetary base and loan services. Also called “thriftys”
B. An increase in the money supply A. Nondepository institution
C. An increase in real income B. Depository institution
D. A decrease in the amount of cash the C. Savings and loan institution
public wants to hold
D. Credit union
E. A decrease in the price level
843. High interest rates might purchasing
838. Bartering requires that the seller and the
a house or car but at the same time high
buyer want what the other has for ex-
interest rates might saving.
change, otherwise the transaction cannot
take place A. discourage; encourage
A. Double coincidence of wants B. discourage; discourage
B. Portability C. encourage; encourage
C. Divisibility D. encourage; discourage
D. none of above
844. Unit of Account:
839. Supply-side policies aim to .
A. Money is a measurement of value
A. increase regulation of corporations
B. Money is accepted in exchange for
B. reduce the government’s role in the
goods/services
economy
C. Money can maintain value over time
C. strengthen the economy by increasing
taxes D. none of above

845. Which of these is an example of M1? 851. Regressive taxes

A. Savings deposits A. Are higher the more you make

B. Property B. Are lower the more you make
C. Cash C. are the same for everyone
D. Credit D. none of above
846. In the United States, the dollar is 852. Progressive taxes

A. backed by silver. A. are higher the more you make
B. backed by gold and silver B. are lower the more you make
C. fiat money C. are the same for everyone
D. commodity money D. none of above
847. What is the term for a business in which 853. Borrowing money to make risky invest-
none of the co-owners is responsible for ments while hoping to make a large return
the debts or mistakes of the others?
A. Speculation
A. partnership
B. Day Trading
B. general partnership
C. Diversification
D. Share
D. limited partnership
854. If a person makes a deposit of $10, 000
848. The time and money spent in carrying out or more into a bank account, the bank must
financial transactions are called: notify the
A. Liquidity Services A. US Treasury Department.
B. Transaction costs B. Federal Deposit Insurance Corpora-
C. Economies of scale tion. (FDIC).
D. none of above C. State Banking Commission.
D. Federal Reserve Board
849. A stock that signifies partial ownership
of a company 855. If the reserve requirement is 25% and
A. Share banks hold no excess reserves, an open
market sale of $400, 000 of government
B. Return
securities by the Federal Reserve will
C. Portfolio
A. Decrease the money supply by up to
D. Day Trading $1.6 million
850. In fractional reserve banking B. Increase the money supply by up to
$300, 000
A. all funds are held in reserve
C. Increase the money supply by up to
B. annual payments are required $100, 000
C. a percentage is kept in the bank D. Decrease the money supply by up to
D. none of above $100, 000

856. What is the relationship between inter- D. Is equal to the inflation rate
est rates and demand for money?
861. Money placed into an account.
A. As interest rates decrease, demand
for money increases. A. Deposit
B. As interest rates increase, demand for B. Finance company
money increases. C. Investment bank
C. Interest rates are determined by de- D. Line of credit
mand for money.
NARAYAN CHANGDER
862. Which of the following perform the
D. Interest rates and demand for money
fewest functions of money?
are unrelated.
A. banknotes
857. The company fell deeper and deeper into
B. demand deposits
the and then went bankrupt.
C. negotiable certificates of deposit
A. red
D. savings deposits
B. green
C. yellow 863. In institution that accepts deposits and
D. black makes loans is:
A. a bank
858. is the rate at which the central bank
borrow funds from commercial bank B. an insurance company
A. CRR C. a paycheck cashing company
B. SLR D. a loan shark

C. Bank rate 864. All of the options below are the compo-
D. Reverse repo rate nents of quasi money EXCEPT
A. Bank Negara certificate
859. What is the purpose of the Board of Gov-
ernors? B. Negotiable certificate
A. to set the value of money C. Fixed and savings deposits in other fi-
nancial institutions
B. to say how much money will be printed
in a year D. Fixed and savings deposits in commer-
cial bank
C. to help elect the president
D. to set policies for the FED and its mem- 865. a system in which currency could be
bers banks to follow exchanged for a certain amount of gold.
A. Legal tender
860. The federal funds rate is the interest rate
that B. Gold Standard
A. The Fed charges the federal govern- C. FDIC
ment on its loans D. Specie
B. Equalizes the yield on government
bonds and corporate bonds 866. A good tax should be all of these but?
C. Banks charge one another for short- A. Simple

term loans B. Efficient

C. Equal C. on
D. Overbearing D. by

867. To act as money, an item should be ho- 872. How do savings bonds differ from other
mogeneous and recognizable. Which char- forms of bonds?
acteristics of money does this describe? A. higher return rate
A. uniformity B. shorter time period
B. acceptability C. lower price at time of purchase
C. scarcity
D. provides interest payments
D. durability
873. In defining money as M1, economists ex-
868. The following is information about the clude time deposits because:
central bank and its description:By acting
A. the intrinsic value of time deposits is
in this way, the central bank can have
nil
tighter control over the ability of banks to
lend and create credit; it also makes trans- B. the purchasing power of time deposits
fers between banks more efficient. is much less stable than that of checkable
deposits and currency
A. The sole issuer of notes and coins
C. they are not directly or immediately a
B. The government’s bank
medium of exchange
C. The bankers’ bank
D. . they are not recognized by the Fed-
D. Lender of the last resort eral government as legal tender
869. Which of the following is an advantage 874. The Federal Reserve System is often
of partnership but not of sole proprietor- called
ship?
A. The System
A. few regulations
B. Supreme Fed System
B. easy to open and close
C. The FED
C. specialization of skills
D. all of the above
D. limited life
875. The demand for money increases when
870. An agreement made today to purchase or national income increases because
sell a commodity in the future for today’s
price A. the public becomes more optimistic
about the future
A. Futures
B. the budget deficit increases
B. Stock Split
C. the money supply increases
C. Share
D. spending on goods and services in-
D. Portfolio creases
871. I can lend you five pounds to help you 876. Which of the characteristics of money can
until you’re had time to go to the bank. be defined as “able to be broken down into
A. up smaller parts”?
B. out A. Uniformity

B. Durability B. Credit score

C. Portability C. Interest rate
D. Divisibility D. Collateral
877. Which of the characteristics of money can 882. What characteristic of money helps it
be defined as “Consistent or Identical”? keep its value and deters inflation?
A. Durability A. portability
NARAYAN CHANGDER
B. Divisibility B. uniformity
C. Uniformity C. limited supply
D. Portability
D. acceptability
878. What does the “I” in the interest formula
883. exchange of one commodity or service for
stand for?
another
A. Principal
B. Interest
B. Barter
C. Rate
C. Money
D. Time
D. Store of Value
879. How does new money enter into circula-
tion in the United States? 884. The function of money which refers to it
as a way to conduct trade and its being ac-
A. FDIC distributes new money when in-
cepted as a means of payment for goods
surance claims are paid out to Fed stock-
and services is referred to as
holders
B. Large businesses use the Fed to ex- A. measure of value
change their old money for new B. store of value
C. It is distributed to taxpayers each year C. unit of value
in the form of tax refunds.
D. medium of exchange
D. it is distributed by banks, which get it
from the Fed 885. The one rupee note and coins are issued
by:
880. You want to spread out your investment
money into different bussinesses. What A. RBI (Central Bank)
do you invest in? B. Commercial Bank
A. mutual fund C. Ministry of Finance
B. finance company D. Central government
C. a stock
886. In economics terms, what does it mean if
D. credit unions something has liquidity?
881. A number, roughly between 300 and A. The asset can be easily traded for wa-
800, that measures an individual’s credit ter.
worthiness. B. The asset can be easily used or con-
A. Credit history verted into cash.

1.9 Growth Economics 393
C. The asset can be a solid or a gas de- D. The price of previously issued bonds
pending on the temperature will increase.

D. The asset takes a long time to be con- E. The opportunity cost of holding money
verted into cash. will increase.
887. The Fed’s key function is to 889. When the amount of money withdrawn
A. make sure the nation’s banking system from a bank account is greater than the
is sound and safe amount available.
B. maintain an effective payment system A. Interest
for banks and government B. Credit card
C. promote a healthy economy by using C. Overdraft
monetary policy
D. Loan fee
D. all of the above
890. The Board of Governors are
888. Which of the following will happen when
interest rates increase in an economy? A. voted upon by their membersq
A. The cost of borrowing will decrease. B. selected by Congress
B. The spending multiplier will decrease. C. appointed by the President
C. Investment spending will increase. D. none of above
1.9 Growth Economics

1. An economy has a MPC of 0.8. If invest- B. updating factories
ment were to rise by $40m, what would C. high GDP per capita
be the change in GDP?
D. none of above
A. Increase by $40m
B. Increase by $50m 4. Able to read and write in one’s native lan-
guage.
C. Increase by $200m
A. Literacy Rate
D. Increase by $320m
B. Literate
2. What is the name of the “central bank” of
C. Public sector
the United States?
D. Natural Resource
A. Bank of the U.S.
B. The Federal Reserve 5. Some of a country’s most important re-
sources are
C. U.S. Congressional Bank
A. its people
D. The Federal Bank of America
B. skilled workers
3. Investments in capital goods and human
C. different kinds
capital have contributed to in Germany
and the UK D. different set of skills
A. investments in capital goods E. education

6. What role do natural resources play in a 11. Institution that channel savings to in-
country’s economy? vestors, banks insurance companies, sav-
A. They are vital for a country to use or ings and loan associations, credit union
sell in order to make goods A. Savings
B. Natural resources do not play a role in B. Financial intermediaries
a country’s economy C. Credit union
C. The more natural resources you have D. Pension
NARAYAN CHANGDER
the more you have to import
12. To boost economic growth the government
D. Natural resources are only important is most likely to
to their neighboring countries
A. Increase interest rates
7. Monthly, quarterly, semiannual, or annual B. Increase taxation rates
price paid for an insurance policy
C. Provide incentives to invest
A. borrowers D. Provide incentives to save
B. Diversification
13. The measure of the efficiency of the pro-
C. financial system duction of goods and services is
D. Premium A. Specialization
8. The rate of growth of an economy mainly B. Unemployment
depends upon C. Gross Domestic Product
A. The rate of growth of the labour force D. Productivity
B. b)The proportion of national income 14. Something we use
saved and invested
A. resource
C. c) The rate of technological improve- B. scarcity
ments
C. demand
D. d) All of the above
D. supply
9. A material on or in the earth that has eco-
15. Education also improves a country’s
nomic value.
A. highly-skilled workforce
A. Human Capital
B. standard of living
B. Capital Goods
C. different kinds
C. Public sector
D. different set of skills
D. Natural resource
E. education
10. Why were most people opposed to trusts 16. Which of the following explains the term
and monopolies? economic development?
A. Limit competitoin=higher prices A. Improvement in technology
B. Too easy to invest B. Rise in unemployment
C. Too much competition C. Fall in literacy rate
D. none of above D. Rise in death rates

17. Economic growth is 22. With a better salary, you can improve
A. Increase in per capita production your

B. Increase in per capita real income A. can read & write
C. Structural change in the economy B. material comfort

D. All of the above C. educated & skilled
D. pays a higher salary
18. When an economy produces more output
per capital, it is said to be experiencing E. standard of living
A. Inflation 23. What is standard of living?
B. Economic growth A. the ability to read and write.
C. Economic planning B. the percentage of people in a country
D. Living standard that can read and write.
C. It measures how well off people in a
19. Which of the following is an injection into
country are.
the circular flow of income?
A. Taxation D. the average number of years a person
in a country is expected to live.
B. Savings
C. Exports 24. In 2006, the United Nations passed a Res-
olution that prohibits states from directly
D. Imports or indirectly supplying North Korea with
20. What is an unavoidable cost of long-run conventional weapons (battle tanks, ar-
economic growth? tillery, aircraft, missiles, etc.)
A. an increase in inflation A. Tariff
B. an increase in the working hours of the B. Embargo

population C. Quota
C. a sacrifice of potential present con- D. none of above
sumption
25. Having many entrepreneurs in a country
D. greater inequality in the distribution of
will that country’s Gross Domestic
income
Product.
21. What is the usual relationship between a A. decrease
country’s standard of living and the liter-
B. increase
acy rate of that country?
C. not affect
A. The higher the standard of living, the
lower the literacy rate. D. none of above
B. There is no relationship between these 26. The total value of all final goods and ser-
two items. vices produced in a particular economy; the
C. The lower the literacy rate, the lower dollar value of all final goods services pro-
the standard of living. duced within a country’s borders in a given
D. If there is a low population, there will year
be a low literacy rate. A. work ethic

B. gross domestic product 32. If GDP is £300 billion and the population
C. macroeconomics is 30 million. What is GDP per capita?
D. microeconomics A. £270 billion

B. £100, 000
27. What does obsolete mean? This is what
C. £10, 000
describes North Korea’s capital goods.
D. £1, 000
A. old
33. The money a person has available after
NARAYAN CHANGDER
B. modern
taxes have been pd
C. new
A. income per captia
D. perfect
B. fixed income
28. doing or making a lot. C. pre-taxed income
A. productive D. disposable income
B. net
34. A sustained general increase in prices
C. per capita across an economy.
D. none of above A. Disinflation
29. What economic measurement helps to B. Consumer Price Index
monitor the business cycle? C. Deflation
A. gross domestic policies D. Inflation
B. guaranteed domestic product
35. There is no guarantee of success, and if the
C. guaranteed domestic policies business fails, they
D. gross domestic product A. reduce the risk
30. A free-trade zone means: B. fresh ideas
A. You don’t have to pay money to get C. creates more jobs
items. D. invest their own money
B. There are no tariffs between the coun- E. could lose money
tries in this zone.
36. Economic growth measures the
C. Trade happens less often.
A. Growth of productivity
D. Trade does not happen.
B. Increase in nominal income
31. Potential growth measures C. Increase in output
A. The growth of the fastest economy in D. None of the above
the world
37. Which of the following will likely raise the
B. The fastest growth an economy has
GDP of a country?
ever achieved
A. picking trade partners
C. The present rate of growth of an econ-
omy B. tariffs and banking
D. The rate of growth that could be C. imports and exports
achieved if resources were fully employed D. investing in new technology

38. What is the term that refers to the fact B. Economic Growth
that all economies of the world are truly a C. GNP
mix of market and command economies?

D. Economic Development
A. Market
44. Each year, they invest billions of dollars
B. Command
into new technology, , and maintaining
C. Mixed infrastructure
D. Traditional A. investments in capital goods
39. The workers who produce the goods B. updating factories
and service (example-Miners, doctors and C. high GDP per capita
teachers) D. none of above
A. Human Resources
45. If a new factory was built by a company,
B. Capital Resources what would be the effect on their PPF?
C. Natural Resources A. Inward move of the frontier.
D. Scarcity B. Outward move of the frontier.
40. to engage in the exchange, purchase, or C. Movement of the ‘dot’ closer to the
sale of goods frontier.
A. trade D. Movement of the ‘dot’ away from the
frontier.
B. specialization
C. opportunity cost 46. what are the 4 factors of ecenomic growth
D. competition A. human capital

B. capital goods
41. Implies an increase in the capacity of the
C. natural resorces
economy to produce more goods and ser-
vices. D. Entrepreneurship):
A. Economic development 47. Russia:
B. Economic activity A. $50, 425
C. Economic prosperity B. $27, 834
D. Economic growth C. $44, 118
42. This social class grew during the Industrial D. none of above
Revolution. 48. What are the rights of a trade union?
A. Lower Class A. Hold meetings with employees outside
B. Middle Class working hours
C. Upper Class B. Call a strike or stay-away
D. None grew C. Enter and recruit members during
business trading hours
43. The increase in the production of goods and D. Organize reasonable leave, including
services over a specific period is know as possible paid leave, for their office bear-
A. GDP ers

49. Which of these is MOST LIKELY to occur af- 54. It is risky and expensive to be an en-
ter the government increases taxes? trepreneur because they often (or bor-
row it) to start their business
A. Annual deficits increase
A. reduce the risk
B. The national debt increases
B. fresh ideas
C. Consumer spending decreases
C. creates more jobs
D. Government programs decrease
D. invest their own money
NARAYAN CHANGDER
50. You were trained in high school to operate E. could lose money
a machine that builds cars. When you grad-
uated high school, your government gave 55. I calculated the country’s education
you a job. It does not pay much, but that’s spending by diving its education budget by
ok because most products do not cost much. its population.
What type of economy do you live in? A. economy
A. Command B. per capita
B. Market C. net
C. Traditional D. none of above
D. Mixed 56. The degree to which an individual is
healthy, comfortable, and able to partici-
51. The total value of all final goods and ser- pate in or enjoy life events
vice produced by a country’s citizens
A. Quality of Life
A. GDP
B. Economic Growth
B. GNP C. Standard of Living
C. GNI D. Economic Development
D. Real GDP
57. Which country has invested capital goods
52. What is NOT an economic indicator? in the automotive industry?
A. Russia
A. GDP (Gross Domestic Product)
B. Germany
B. Unemployment
C. United Kingdom
C. Equilibrium Price
D. none of above
D. Retail Sales
58. If a country’s government imposes a
53. What are the impacts of differences in on businesses, it can be really hard on an
economic development between countries? entrepreneur
Choose more than 1 A. high taxes
A. high levels of international debt B. loosening regulations
B. protecting industries C. UK has a higher level
C. Differences in income D. lot of regulations
D. High growth of population E. lower in Europe

59. In a command economic system the , 64. What are some things that the United
makes all economic decisions. Nations’ Human Development Index mea-
sure? Check all correct options.

A. Government
B. Legislature A. life expectancy
C. People B. literacy
D. Businesses C. education
D. quality of life
60. An entrepreneur is someone in order
to start a new business E. number of births
A. high taxes 65. High levels of GDP per capita imply

B. loosening regulations A. high levels of happiness.
C. who takes risks B. high material standards of living.
D. lot of regulations C. equal levels of wealth.
E. lower in Europe D. self-sufficient communities.
61. consumers spend a lot of money 66. and strict business regulations have
A. boom lowered overall business freedom in many
European countries
B. slump
A. high taxes
C. recession
B. loosening regulations
D. recovery
C. UK has a higher level
62. Which of the following are likely to be D. lot of regulations
effects of brain drain on the economic
growth of a country? (1) per capita GDP E. lower in Europe
decreases(2) labour productivity becomes 67. In 2005, the United States limited the im-
lower(3) the pace of research and devel- ports of Chinese textiles to 7.5% a year.
opment increases
A. Tariff
A. (1) and (2) only
B. Embargo
B. (1) and (3) only
C. Quota
C. (2) and (3) only
D. none of above
D. (1), (2) and (3)
68. If there has been an increased in economic
63. Countries with a higher GDP per capita growth there has been
have stronger economies, while countries
with lower GDP per capita have A. More goods produced in the economy
A. productive resources B. An increase in the value of goods pro-
duced in an economy
B. goods & services produced
C. an increase in resources available to
C. others do not use in the economy
D. per person D. more goods exported overseas than
E. weaker economies imported into the country

69. An increase in a country’s annual output of C. -14.5%

goods and services is referred to as D. -17%
A. Gross National Product
74. An entrepreneur is someone who takes
B. Economic Development
risks to
C. Economic Growth
A. start a new business
D. Gross Domestic Product
B. fresh ideas
NARAYAN CHANGDER
70. How is gross domestic product used to C. creates more jobs
monitor the business cycle?
A. GDP indicates whether a business is
E. could lose money
expanding or contracting.
B. GDP indicates whether a city’s econ- 75. things that are made or grown and then
omy is expanding or contracting. sold.
C. GDP indicates whether the nation’s A. goods
economy is expanding or contracting. B. productive
D. GDP indicates whether the world’s
C. service
economy is expanding or contracting
D. none of above
71. Iron, minerals, coal and plants are exam-
ples of which productive resource? 76. What are people who risk their time and
money to produce a new product or service
A. natural resources
in order top make money?
B. labor
A. Entrepreneurs
C. entrepreneurship
B. Capital Goods
D. capital
C. Human Capitals
72. Nominal GDP can rise in value because of D. Natural Resources
two of the below reasons. Which reason
is not correct? 77. What can be an impact of a rising literacy
A. The output of the country increases rate within a nation?
B. The general level of prices in the coun- A. Fewer government positions needed.
try decreases B. An improved quality of life with better
C. The general level of prices in the coun- jobs.
try increases C. A decrease in the quality of life.
D. none of above D. A decrease in the nation’s economy.
73. Suppose that in the country of Xanadu, the 78. The abbreviation GDP stands for
real GDP in 2004 was R1883 billion. In
A. Gross Deceptive Proximation
2005, real GDP was R1610 billion. In
Xanadu, real GDP grew by B. General Domestic Product
A. 14.5% C. Gross Domestic Product
B. 17% D. General Demand for Products

79. Economists of a country’s economy by C. distribution

its gross domestic product (GDP)
D. economics

A. measure the health
B. goods & services produced 84. a product sent and sold to another country.
C. others do not A. export
D. per person B. net
E. weaker economies C. import
80. How do you measure the strength of a na- D. none of above
tions economy?
85. The process used to produce a good or ser-
A. Adding up how many natural resources
vice
it has
B. Looking at a nations GDP and GDP per A. technology
capita B. business cycle
C. Adding up how many entrepreneurs a C. work ethic
nation has
D. macroeconomics
D. Asking all citizens to complete the cen-
sus every 10 years 86. Human capital includes the people use
81. Under Communist rule, the government to produce goods and services.
money into capital goods or human cap- A. Raw materials
ital
B. Machinery and technology
A. economic hardships
C. Skills, knowledge, and experience
B. did not invest much
D. Natural Resources
C. outdated technology
D. lacked the skills 87. When did the Lost Decade begin?
E. slow economic growth A. 1990’s
82. Money can be saved where? B. 1980’s
A. Banks:savings account, fixed deposits, C. 1970’s
unit trusts, etc.
D. 1960’s
B. Insurance companies:saving policies,
unit trusts, etc. 88. Does social work affect emigration?
C. Loan sharks:medium or short term A. Negatively since there would be less
savings demand for products.
D. Stokvel:community based saving
B. It would not affect to economy in any
schemes
way.
83. the process of making goods and services C. It has nothing to do with it.
A. production D. Positively since there will be more and
B. consumption more work demand.

89. Which of the following best explains the B. The movement of a person from one
term Marginal Propensity to Consume? social position to another of a different
A. The proportion of total income remain- rank.
ing after consumption C. The position of each individual is influ-
B. The proportion of an extra dollar re- enced by his or her achieved status.
maining after taxation D. Changes in the social position of chil-
C. The proportion of total income remain- dren relative to their parents.
NARAYAN CHANGDER
ing after taxation 94. Which of the following explains the term
D. The proportion of an extra dollar of in- economic growth
come spent on consumption A. Increase in per capita production
90. The growth of towns and cities B. Increase in per capita real income
A. Towns never developed along the C. Structural change in the economy
rivers and main trading routes D. All of the above
B. Towns and cities grew and became
centers for trading and manufacturing 95. Why would a federal government deci-
sion to increase spending be a matter of
C. The use of money contributes towards macroeconomic policy?
an expansion in economic growth
A. Macroeconomics concerns the overall
D. Governments were introduced and performance of the government.
started to dominate the cities and towns
B. Macroeconomics concerns the overall
91. Why might Net Social Welfare be a better performance of the economy.
measure of growth than real GDP? C. Macroeconomics concerns the perfor-
A. It includes inflation mance of households.
B. It shows how incomes are distributed D. Macroeconomics concerns the perfor-
in the economy mance of small businesses.
C. It includes economic and non eco- 96. What does it mean to have a decent job?
nomic factors
A. Earning a lot of money.
D. It only includes non-economic factors
B. Have a job that originates a living wage
92. creates a smarter & more productive protects rights and guarantees gender
workforce and leads to greater economic equality.
growth. C. None answer is correct.
A. Factories D. All answers are correct.
B. Forests
97. The United Kingdom has large deposits of
C. Education coal, petroleum, natural gas, iron ore, lead,
D. Income zinc, and gold. The country will use these
items to create products to sell. Which fac-
93. Absolute Poverty is defined as what? tor of growth is being used to increase the
A. A minimum level of subsistence that no GDP?
family should be expected to live below. A. physical capital

B. human capital B. Productive capacity

C. natural resources C. Net social welfare

D. entrepreneurship D. none of above
98. Which of the following best describes 103. Investment in capital goods typically
gross domestic product? leads to an
A. The growth in the number of goods and A. increase in GDP
services bought over a period of time B. stronger its economy
B. The value of good and services bought C. technology
over a period of time D. more goods & services
C. The number of goods and services pro- E. boosts a country’s exports
duced over a period of time
104. What is the currency in India?
D. The value of goods and services pro-
duced over a period of time A. Dollars
B. Yen
99. What is an example of human capital?
C. Rupee
A. Education
D. Euro
B. Computers
105. What are the three economic questions?
C. Factories
A. What to produce? How to produce?
D. School
For whom to produce?
100. A nation’s determine the strength of B. Who to produce? Why you produce?
its economy Like to produce?
A. productive resources C. Why to produce? Tell who to produce?
B. goods & services produced Things to produce?
C. others do not D. none of above
D. per person 106. Negative consequences of economic

growth include
E. weaker economies
A. Labour productivity
101. determined by subtracting expenses, in- B. Improved standards of living
cluding taxes, from revenue
C. Risk of inflation
A. merger
D. Fall in unemployment
B. net income
107. There are 4 basic factors that influence
C. depreciation
economic growth in any part of the world.
D. multinational They include human capital, natural re-
E. vertical merger sources, entrepreneurship and
A. courses
102. More efficient production methods would
be included in which measure of economic B. capital goods
growth? C. conclusion
A. Real Income/GDP D. cancer

108. Which of the following is an example of A. physical captial

human capital? B. human capital
A. trucks C. natural resources
B. factories D. entrepreneurship
C. education
113. Which of the following is NOT a factor of
D. highways economic growth?
NARAYAN CHANGDER
109. Economic growth can be represented by
A. an outward shift of the production pos- B. human capital
sibility frontier. C. entrepreneurs
B. an outward shift of the consumption D. capital humans
possibility frontier. E. capital goods
C. a rightward shift of the short run ag-
114. Who is the old dictator of Cuba?
gregate supply curve.
A. Fidel Gastrofobic
D. a rightward shift of the aggregate de-
mand curve. B. Fidel Mama
C. Eat yo cereal
110. An individual receives an additional $100
in income and saves $20. Which of the fol- D. Fidel Castro
lowing is true? 115. What do we call it if the economy is doing
A. The average propensity to consume is really well?
0.8 A. a boom
B. The average propensity to consume is B. an explosion
0.2
C. recession
C. The marginal propensity to consume is
D. slump
0.2
D. The marginal propensity to consume is 116. A country investing in education and job
0.8 skills training is investing in which factor
of production?
111. Which point in the economic cycle de- A. Human Capital
notes highest business and consumer con-
fidence? B. Capital Goods
A. Trough C. Natural Resources

D. Entrepreneurship
B. Boom
C. Peak 117. Which of the following is not a cost of
economic growth?
D. Recovery
A. Distribution of income becomes more
112. In Country B, the government has offered unequal.
incentives to companies that invest in im- B. Depletion of natural resources
proved technology and machinery in their
factories. What factor of economic growth C. Decreased inflation
is the country working to improve? D. Pollution and environmental damage

118. Which of the following DOESN’T cause C. $44, 118

economic growth? D. none of above

A. Increased investment
124. Entrepreneurship is
B. Improved technology
A. the willingness and innovation needed
C. Increased labour productivity to risk demolishing a business
D. Less investment in education B. the willingness and innovation needed
119. The concept of Income inequality is to risk starting a business
A. seeing how rich our people are C. the willingness and innovation needed
for infation
B. seen as a measure of the fairness of
the society we live in D. I HAVE NO CLUE
C. comparing our incomes 125. Tools we use to make products

D. comparing how rich New Zealand is to A. capital resources
other countries B. human resources
120. The part of the economy owned and op- C. natural resources
erated by private citizens. D. entrepreneurs
A. Private Sector
126. Barter, trade and emergency of money
B. Public Sector
A. This was a first form of trade
C. Natural Resource
B. There was no formal means of pay-
D. Capital Goods ment and people started to barter with
each other
121. The Human Development Index (HDI) has
3 important criteria, which of these is NOT C. The first means of payment developed
included? was bronze
A. Life expectancy D. Because of the problems with barter-
ing a primitive form of payment was de-
B. Education
veloped
C. Real GDP/Income
127. A period of macroeconomic expansion fol-
D. Pollution
lowed by a period of contraction
122. Economic growth can be seen by an out- A. gross domestic product
ward shift of
B. work ethic
A. The Production Possibility Frontier
C. technology
B. The Gross Domestic Barrier
D. business cycle
C. The Marginal Consumption Frontier
128. Company XYZ produces cheese in Scot-
D. The Minimum Efficient Scale
land and exports the cheese, which costs
123. Germany: $100 per pound, to the U.S. A 20% tax
would require company XYZ to pay the
A. $50, 425 United States government $20 to export
B. $27, 834 the cheese

A. Tariff 134. Which has “Easy to Start up” as an ad-

B. Embargo vantage?
C. Quota A. Sole Proprietorship/Corporation

B. Partnership/Corporation
D. none of above
C. Sole Proprietorship/Partnership
129. Which type of economic growth uses ed-
D. Corporation/Inflation
ucation?
135. Man-made resources used in the produc-
NARAYAN CHANGDER
A. Fish, coal, trees
tion process i.e. machines in a factory.
B. Take risks, and make businesses
A. Labour
C. Factories, shops, six flags
B. Capital
D. Education
C. Household
130. This reflects the value of goods and ser- D. Revenue
vices produced in a year in a nation by an
average person. 136. What are natural resources?
A. G.D.P. A. fish, coal, factories
B. G.D.P. per capita B. computers, factories, fences
C. G.D.P. per person C. Fish, trees, water
D. G.D.P. per product D. Schools, shops, six flags
131. Public finance concentrates on how: 137. Which of the following represents an in-
vestment in human capital?
A. Resources are dislocated
A. creating a robot
B. Income is distributed
B. paving roads
C. To destabilize the economy
C. purchasing new Chromebooks
D. To raise income evenly
D. learning to read and write
132. If the real GDP for a given period is di- 138. What is the currency people use in much
vided by the size of the population for that of the EU called?
same period, it is known as
A. euro
A. GDP at factor cost
B. ruble
B. GDP at market prices
C. dollar
C. real GDP
D. pound
D. GDP per capita
139. Machinery, tools, and trucks to transport
133. The term “factors of production” means: goods are examples of which of the four
A. things or skills needed to produce factors of economic growth?
goods or services A. human capital
B. how we spend our money B. natural resources
C. the resources of the government C. entrepreneur
D. how society creates jobs D. capital goods

140. What is NOT a cost of the purchase, C. capital goods

use, and disposal of personal and business
D. human capital
property?

A. Opportunity cost of what was not pur- 145. Mr. Skinner has quit his job in order to
chased. look for another one. Mr. Skinner
B. Associated cost with upkeep of prop- A. is cyclically unemployed
erty.
B. is frictionally unemployed
C. Potential profit at sale.
C. is structurally unemployed
D. Possible loss of value of property and
loss at the time of sale. D. is not counted as part of the labor
force
141. Improved standard of health care would
be included in which measure of economic 146. Which of the following is LEAST likely to
growth? boost economic growth?
A. Real Income/GDP A. The government increases the subsidy
B. Productive capacity on education.
C. Net social welfare B. The government removes most of the
trade barriers.
D. none of above
C. More resources are allocated by gov-
142. Despite having a literacy rate of 99%, ernment commands.
much of the workforce was untrained and
needed to boost the economy D. The government provides more fund-
ing to universities for research and devel-
opment.
B. did not invest much
C. outdated technology 147. A country’s literacy rate is the percent-
age of adults who
D. lacked the skills
A. can read & write
E. slow economic growth
B. material comfort
143. How has the Internet helped to improve
the economies of many Latin American na- C. educated & skilled
tions? D. pays a higher salary
A. by creating free markets E. standard of living
B. by increasing local manufacturing
148. the result of merging companies that pro-
C. by expanding domestic agriculture
duce unrelated goods and services
D. by improving local entrepreneurship
A. horizontal merger
144. what factor of ecinomic growth is B. conglomerate
this:the factories, machines, and technol-
ogy that people need to make products C. depreciation
A. natural resorces D. multinational
B. (Entrepreneurship) E. vertical merger

149. They play an important role in a country’s C. unlimited life

economy because they are fuel for indus- D. conglomeration
try and are a source of to other coun-
tries. 154. Which country in SE Asia has the highest
literacy rate?
A. materials & labor
A. Japan
B. four main categories
B. India
C. come from nature
C. China
NARAYAN CHANGDER
D. income when exported
D. North Korea
150. GDP (Gross Domestic Product) is the to-
155. Horizontal mergers involve
tal market value of goods and pro-
duced by a country’s economy in a year. It A. two or more firms in different coun-
is used to determine the health of a countries.
try’s B. two or more firms that produce the
A. services, economy same kind of product.
B. services, poverty C. two or more firms involved in different
steps of manufacturing or marketing.
C. customers, wealth
D. two or more firms that produce differ-
D. poverty, wealth ent products.
151. What ecenomic factor is this:people who 156. Brazil is building new factories and using
are willing to take risks to create new newer technology. These are examples of
businesses and products-a person who
owns and operates his or her own busi-
A. Opportunity costs.
ness
B. Gross domestic product.
A. (Entrepreneurship)
C. Investment in human capital.
B. capital goods
D. Investment in capital goods.
C. human capital
D. natural recorces 157. a combination of two or more businesses
to form a single firm
152. Unemployment became a major problem A. merger
that has led to for the country
B. net income
C. depreciation
B. did not invest much D. multinational
C. outdated technology E. vertical merger
D. lacked the skills
158. Which of the following is the reason for
E. slow economic growth an actual economic growth to occur?
153. What is a major reason for conglomerate A. Quality of education improved
mergers? B. Better technology used
A. diversification C. Household’s income level increase
B. multinationals D. Discovery of new resources

159. Which economy allows business owners A. Financial assets

and consumers to decide the basic eco- B. Certificate of deposit
nomic questions?

C. Risk
A. Command
D. Diversification
B. Market
165. Economists measure savings to
C. Traditional
A. predict consumers expectations
D. Mixed
B. predict shortages in the market
160. Germany’s literacy rate is 99%. Based
C. help monitor public consumption
on this information, what can be concluded
about Germany? D. determine the strength of the economy
A. Germany’s workforce has valuable hu- 166. In order to help Russian farmers sell more
man capital. food, some people want to put a tax on the
B. Germany’s businesses have valuable food imported from other countries. This
capital goods. is an example of a(n)
C. Germany has a low gross domestic A. quota
product. B. tariff
D. Germany has a low standard of living. C. embargo
D. voluntary exchange
161. A tax on imports is called a(n):
A. tariff 167. typically refers to improvements in a
variety of indicators such as literacy rates,
B. quota
life expectancy, and poverty rates.
C. embargo
A. Economic Standards
D. currency
B. Economic Growth
162. trade between parties that is not forced C. Economic Development
A. voluntary exchange D. Economic Measurement
B. entrepreneur 168. Water, fish, and trees are all examples
C. opportunity cost of
D. personal budget A. geography
B. basin
163. The number of adults who are able to
read and write in a country is the C. erosion
A. proportion of labor D. natural resources
B. GNI 169. Which of the following is a cost economic
C. literacy rate growth?
D. per capita rate A. Mobility
B. National Prestige
164. Stocks or documents that represent a
claim on the income and property of the C. Social Costs
borrower D. All of the above

170. Most countries measure economic growth 175. What did people blame the lost decade on
each quarter originally?
A. fortnight A. Fiscal Policy
B. quarter B. The government
C. year C. Aging Population
D. none of the above D. The people
176. What are benefits of economic growth?
NARAYAN CHANGDER
171. The concept of economic growth is
A. Identical with the concept of economic A. more income
development B. more jobs
B. Narrower than the concept of eco- C. more pollution
nomic development D. more food
C. Wider as compared to that of eco-
177. Which part of Europe has the lowest lit-
nomic development
eracyrates?
D. Unrelated to the concept of economic A. Eastern Europe
development
B. Balkans
172. Many factories in Russia cannot effi- C. Northern Europe
ciently produce goods because they have
old, outdated machinery. Based on this in- D. All of Europe has high literacy rates
formation, what would MOST improve the 178. Some countries encourage entrepreneur-
Russian industrial sector? ship by trying to and expense
A. increased barriers to trade A. reduce the risk
B. investment in capital goods B. fresh ideas
C. investment in human capital C. creates more jobs
D. increased government regulation D. invest their own money
173. a person who takes a change by opening E. could lose money

a business 179. What were the results of Abenomics?
A. competition A. To weak to do anything
B. personal budget B. It worked
C. entrepreneur C. The economy began to decline
D. price incentive D. The economy got stronger
174. The study of economic behavior and deci- 180. It takes different kinds of human capital
sion making of small units, such as individ- to make of goods and services
uals, families, and business A. highly-skilled workforce
A. macroeconomics B. standard of living
B. technology C. different kinds
C. microeconomics D. different set of skills
D. gross domestic product E. education

181. The German government has provided ed- C. growth

ucation and job training to people. How D. freedom
did the German government try to improve

its economy? 186. Some countries have a high GDP, while
A. It made investments in human capital.
B. It took advantage of its natural re- A. productive resources
sources. B. goods & services produced
C. It reduced barriers to starting new C. others do not
businesses.
D. per person
D. It helped companies invest in capital
E. weaker economies
resources.
187. Again, using your common sense, which
182. Why do government experts track the
of the following is a benefit of economic
business cycle?
growth?
A. to provide a record of what has gone A. A rise in the standard of living
wrong in the past
B. Increased pollution
B. to try to predict what will happen to the
U.S. economy C. Increased congestion
C. to help maintain competitive balance D. Inequalities in income and wealth
between businesses
188. What are the characteristics of low eco-
D. to give the government a competitive nomic development countries? choose
advantage over businesses more than 1
183. If a country has many well educated A. low levels of education
healthy workers you would say that coun- B. Low life expectancy
try has invested highly in
C. Low real GDP per head
A. Capital Goods
D. More self esteem
B. Entrepreneurship
189. Improving the economic situation → bet-
C. Natural Resources
ter lives for people
D. Human Capital
A. Urbanization
184. A country investing in newer technology B. Industrialization
is investing in which factor of production?
C. Modernization
A. Human Capital
D. Economic Development
B. Capital Goods
190. Mass production led to:
A. Products being more superior in qual-
D. Entrepreneurship ity
185. Capital accumulation promotes economic B. goods became less expensive
A. fairness C. laborers received higher wages
B. standards D. industries moved to rural areas

191. The following list is describing which fac- A. Capital Resources/Goods

tor of production:education, health, and B. Entrepreneurship
showing up ready to work?
C. Human Capital
A. entrepreneur
D. Natural Resources
B. human capital
197. A farmer buying a tractor for his/her
C. natural resources
farm is an example of
D. capital goods A. investment in capital goods
NARAYAN CHANGDER
192. Why is real GDP considered a better mea- B. investment in human capital
sure of growth than nominal GDP? C. investment in natural resources
A. It includes inflation D. investment in entrepreneurship
B. It takes into account price changes
198. A person who takes the risks to start his
C. It shows the distribution of income in or her own business is called a
the economy
A. customer
D. It includes non-economic factors B. investor
193. United Kingdom: C. leader
A. $50, 425 D. entrepreneur
B. $27, 834 199. Which one is NOT a imitations of GDP as
C. $44, 118 a measure of living standards
D. none of above A. Does not include inflation
B. Does not include voluntary or unpaid
194. Because of its fertile soil, Germany is work
best suited for producing
C. Does not include your feelings
A. train citizens
D. Does not account for the increase in-
B. agricultural goods population
C. shipping & fishing
200. The standard of living is determined by:
D. investments in human capital
A. income
E. 99% literacy rate B. education
195. When you spend money at the store, C. both
you’re contributing to your town’s D. none of above
A. inflation
201. Which of the following BEST represents
B. import the role of an entrepreneur?
C. economy A. A person who creates a new business
D. none of above B. A leader (CEO) who runs the business
196. Your friend and you decide to open a C. A worker in a factory who gets a raise
snow cone stand. The training you give for working hard
to the people you hire to run the stand are D. A student who decides to further their
examples of which factor of production? education and get their masters degree

202. When an economy produces more output 207. What is Mexicos environmental prob-
per capital the economy is said to be hav- lem?
ing

A. Deforestation
A. Inflation
B. Cars breaking down
B. Economic growth
C. Pollution
C. Economic planning
D. Dangerous people
D. Living standard
208. If the consumer price index (CPI) for year
203. workers are an important factor in a 2013 is equal to 180 and for year 2014
country’s economic growth is equal to 198, calculate the inflation rate
level in year 2014.
A. can read & write
A. 10%
B. material comfort
B. 18%
C. educated & skilled
C. 80%
D. 98%
E. standard of living
209. The knowledge, skills, and relative
204. Calculate the economic growth rate if
health of a nation’s labor force/
GDP was £60 billion in Year 1 and £63
billion in Year 2. A. Human Capital
A. 1% B. Capital Good
B. 5% C. Literate
C. 10% D. Standard of living
D. 15%
210. The amount of money we pay for a good
or service
205. What are the four types of economies?
A. currency
A. command, demand, capitalist, commu-
nism B. price
B. traditional, command, market, mixed C. inflation
C. mixed, market, traditional, primary D. economics
211. business combination of firms involved in
differentsteps of manufacturing or market-
206. In 2010, China announced that it would
ing
impose and import a tax on American poul-
try of up 105.4 percent. A. horizontal merger
A. Tariff B. net income
B. Embargo C. depreciation
C. Quota D. multinational
D. none of above E. vertical merger

212. Economic growth can be shown by 217. All of the following are factors of produc-
A. Production possibility frontier tion EXCEPT:
A. Land
B. Gross Domestic frontier
B. Labor
C. Marginal consumption frontier
C. Capital
D. Minimum efficient scale
D. Technology
213. Why did railroad companies hire Chi-
218. Why decent work is important for peo-
NARAYAN CHANGDER
nese and Irish immigrants to construct the
Transcontinental Railroad? ple?
A. Because it allows the satisfaction of
A. They would work for low wages.
economic needs.
B. They had adapted to the harsh climate
B. Because it contributes to the develop-
they would be working in.
ment of the country.
C. They were especially skilled in explo- C. All answers are correct.
sive devices.
D. Because it transform society for the
D. none of above better.
214. business combination involving firms that 219. What are some disadvantages of eco-
producethe same kind of product nomic growth?
A. horizontal merger A. environmental pollution
B. net income B. greater stress on workers to produce
C. depreciation more
C. higher standard of living
D. multinational
D. more choice of products
E. vertical merger
220. Use the information to answer the
215. In this economic system people barter question.Cattle ranching is important for
and trade goods to get the products that Brazil’s economy. However, large herds
they need. of cattle need lots of space to graze.Which
A. Mixed of the following industries would MOST
LIKELY suffer if cattle ranching expanded
B. Market
in Brazil?
C. Traditional
A. agriculture
D. Command B. lumber
216. If someone says that the country of China C. manufacturing
is worth over $12 trillion dollars, they are D. mining
talking about their
221. How can an economy create long run eco-
A. human capital
nomic growth
B. GDP
A. Decrease the cost of living
C. capital goods B. Improve the quality and/or quantity of
D. GDP per capita it’s factors of production

C. Lower the interest rate 226. Select all the items that are included in
the Human Development Index (HDI).
D. Increase teacher’s salaries

A. Nominal GDP
222. What is GDP?
B. Life expectancy
A. The market value of all goods and ser-
C. Real GDP per capita
vices newly produced in a country in one
year D. GNP
B. The amount one country can export in E. Literacy rates
a year
227. In a recession, the curve of the GNP is
C. The number of geriatric persons living
in a country A. Touches the Trend
D. The net amount of imports being ex- B. In-Line with Trend

ported in a single year C. Above the Trend
223. Among the following determinants of D. Below the Trend

growth, which one is a non-economic fac-
228. The United Kingdom has large deposits of
tor
coal, petroleum, natural gas, iron ore, lead,
A. Natural resources zinc, and gold. The country will use these
items to create products to sell. Which fac-
B. Population growth
tor of production is being used to increase
C. Favourable legislation the GDP?
D. Capital accumulation A. capital goods
B. human capital
224. The knowledge, skills, and relative
health of a nation’s labor force impact C. natural resources
which factor of production?
D. entrepreneurship
A. Human Capital
229. The currency used by most European
B. Capital Goods Union member nations is called the
C. Natural Resources A. peso
D. Entrepreneurship B. ruble
225. Surplus production, trade and transport C. euro
development D. dollar
A. Trade developed between communi-
ties and even between countries 230. Confidence in the economy starts to de-
crease
B. These surpluses never led to trade
A. boom
C. Roads, animals, cart and horses were
first used as a means of transport B. slump
C. recession
D. Land and water transport were devel-
oped and it promoted trade D. recovery

231. What does GDP stand for? C. Trend

A. Grand Domestic Production D. Recession
B. Gross Domestic Product 237. What two factors are able to shift a PPF
C. Great Domestic Produce outwards?
D. Gross Donut Party A. Higher prices and more demand for
goods.
232. What are goods used to make other
goods? B. Higher employment levels and less ma-
NARAYAN CHANGDER
chinery.
A. Capital Goods
C. Higher output of goods and of ser-
B. Human Capital vices.
C. Entrepreneurs D. Higher quality or quantity of resources
D. Natural Reosurces and improved technology.
233. what is mixed economy 238. A country can increase its human capital
A. a free market by investing in
B. the country’s money A. Education for its citizens
C. market-base economics system with B. New machinery for factories

.limited government involvement. C. Railroads and airports
234. What is likely to be the effect of a fall in 239. Pick all of the major cattle trails.
oil prices on the global economy? A. Shawnee/Sedalia
A. a decrease in the rate of economic B. Chisholm
growth
C. Goodnight-Loving
B. a decrease in unemployment
D. Great Western
C. a strengthening of cost-push inflation
E. Vaquero
D. a weakening of demand-pull inflation
240. Which country has invested capital good
235. Having to choose one item over another toward telecommunications?
because of limited resources is a an exam-
ple of A. Russia
A. specialization B. Germany
B. competition C. United Kingdom
C. opportunity cost D. none of above
D. trade 241. Which of the following explains economic

growth
236. Represent the aspect of the Trade Cycle
that shows the average over the viewed A. Increase in per capita production
GNP over time. B. Increase in per capita real income
A. Slump C. Structural change in economy
B. Boom D. All of the above

242. GDP is a measure of 247. Which term is used to describe a situa-

A. the standard of living of a population. tion where most people who are looking
for work are able to find a job?

B. human well being.
A. Full employment
C. the effectiveness of government eco-
nomic management. B. Seasonal unemployment
D. that part of a nation’s output than can C. Frictional unemployment
be fairly accurately measured. D. Cyclical unemployment
243. It shows trends of how a nation’s growth
248. Economic growth can be measured by
rates change over time.
A. Population A. The CPI
B. Demographic cycle B. The CBI
C. Economic growth C. GDP

D. Business cycle D. MPC
244. Even though Russia’s economy has im- 249. In Country A, the government has offered
proved dramatically, its GDP per capita incentives to companies that invest in con-
than other industrialized European na- tinuing education and training for their em-
tions ployees. What factor of economic growth
A. investing billions is the country working to improve?
B. still remains lower A. physical capital

C. who takes risks B. human capital
D. lot of regulations C. natural resources
E. lower in Europe D. entrepreneurship
245. The total value of goods and services pro- 250. As a verb, to gain financially; as a noun,
duced in a country in a year is called the the economic gains of a business
A. Public Sector
A. XYZ
B. Profit
B. GDP
C. Private Sector
C. PGA
D. Entrepreneur
D. ZXY
246. In 2019 the Australian economy grew by 251. Which SE Asian country does not follow
2.3%. This statement necessarily means the regular theory that a high literacy rate
usually equals a high standard of living?
A. inflation occurred.
A. India
B. industrial output rose by 2.3%.
B. South Korea
C. everyone in Australia was 2.3% better
off. C. China
D. None of the above is true. D. North Korea

252. A corporation that has at least four busi- 257. What does productive capacity mean?
nesses, each making unrelated products, A. The rate an economy is growing.
none of which is respon-sible for a major-
ity of its sales, is called a B. The amount of goods and services pro-
duced.
A. multinational.
C. The maximum possible output of an
B. horizontal corporation. economy.
C. conglomerate. D. There is no unemployment.
NARAYAN CHANGDER
D. vertical merger. 258. Let it be
253. The availability of natural resources in a A. natural rights
country greatly affects which there. B. iron law of wages
A. industries develop C. let it happen
B. agricultural goods D. taste buds
C. shipping & fishing 259. Gifts of nature are called
D. investments in human capital A. entrepreneur
E. 99% literacy rate B. natural resources
254. what factor of ecenomic growth is C. capital goods
this:the knowledge, skills, training and D. human capital
health care that workers need to produce
goods or services 260. A state paying for a student to become
a doctor to work in a local hospital is an
A. capital goods example of
B. human capital A. investment in human capital
C. (Entrepreneurship) B. investment in capital goods
D. natural resorses C. investment in entrepreneurship
255. This has caused the countries in Europe to D. investment in natural resources
have a and a high standard of living 261. Which of the following is MOST likely to
A. industrialized economies be true in a country with a high literacy
rate?
B. high GDP per capita
A. a low standard of living
C. Western European
B. a high standard of living
D. none of above
C. little investment in human capital
256. The total GDP divided by the population D. too much investment in capital re-
of the said country sources
A. Real GDP
262. Since the fall of the Soviet Union in 1991,
B. Nominal GDP Russia has suffered many
C. GDP per capita A. economic hardships
D. Ceteris paribus B. did not invest much

C. outdated technology 268. What involves the training, skills, and

D. lacked the skills healthcare of a country’s workers?

E. slow economic growth A. Capital Goods
B. Natural Resources
263. The study of the behavior and decision
making of entire economies C. Human Capital
A. microeconomics D. Entrepreneurship
B. gross domestic product
269. The knowledge and skills possessed by
C. work ethic people that places value on them in the job
D. macroeconomics market is
264. In 2011, the United States Department A. human capital
of Agriculture increased its annual sugar- B. capital goods
import limit to 1.6 million tons for the
year. C. GDP
A. Tariff D. trade
B. Embargo 270. Which cause of economic growth would
C. Quota involve the least cost for present and fu-
D. none of above ture generations of a country’s popula-
tion?
265. Both countries provide public education
A. increased exploitation of a country’s
and they have a
mineral resources
A. train citizens
B. investment financed by borrowing
B. agricultural goods from abroad
C. investment financed by high rates of
D. investments in human capital domestic savings
E. 99% literacy rate D. technological innovations in produc-
266. Which European country currently has the tive processes
strongest economy?
271. Which of the following statements about
A. Ukraine economic growth and economic develop-
B. Germany ment is CORRECT?
C. France A. Economic growth and economic devel-
D. Russia opment are identical.
B. Countries with rapid economic growth
267. Which formula is the correct way to mea-
may not experience economic develop-
sure economic growth rate?
ment.
A. Original GDP / Change in GDP x 100
C. The definition of economic growth is
B. Original GDP-Change in GDP x 100 broader than that of economic develop-
C. Change in GDP / Original GDP x 100 ment.
D. Change in GDP-Original GDP x 100 D. None of the above.

272. The things that nations invest in to 277. Colleges and vocational schools to be
increase productivity and manufacture productive members of the workforce
things more efficiently are
A. train citizens
B. agricultural goods
B. capital goods
C. trade barriers
NARAYAN CHANGDER
E. 99% literacy rate
273. Which of the following is generally re-
garded as the true index of economic 278. The of entrepreneurship than Ger-
growth many and Russia
A. An increase in national income at con- A. high taxes
stant prices during a year B. loosening regulations
B. A sustained increase in real per capita
income
D. lot of regulations
C. An increase in national income at cur-
rent prices over time E. lower in Europe
D. An increase in national income along
279. Which of the following represents the
with a corresponding increase in popula-
term for “a product of the earth that peo-
tion
ple use to meet their needs”
274. Economic growth is shown on the PPF A. physical capital
model by
B. natural resource
A. an inward shift of the whole PPF.
C. human capital
B. an outward shift of the whole PPF.
D. entrepreneurship
C. a movement to the right along the PPF.
D. a movement to the left along the PPF. 280. The qualitative measure of progress in an
economy is
275. Which is an example of a natural re-
source? A. Economic Development
A. Forests B. Economic growth

B. Highways C. Economic planning
C. Education D. Economic Living standard
D. Factories 281. If someone says that Japan’s citizens
276. total value of all goods and services pro- make an average of $48, 919 a year, they
duced in a country are describing Japan’s
A. Gross Domestic Product (GDP) A. natural resources
B. Independent Produced Product (IPP) B. GDP per capita
C. Developmental Products (DP) C. capital goods
D. Disgusting Domestic Produce (DDP) D. GDP

282. Characteristics of a recession C. differences in population growth

A. high unemployment rate D. Lowering the price of the products

B. high prices
288. A decent job is one that
C. low investment
A. Originates honest work.
D. high production rate
B. Protect the rights.
283. Greater leisure time would be included in
C. Ensure labor protection.
which measure of economic growth?
A. Real Income/GDP D. All of the above are correct.
B. Productive capacity 289. According to an article in The Moscow

C. Net social welfare Times from 2015, “Russia came first in
the world for its rate of primary school
D. none of above
completion, 10th for secondary education
284. Mercantile law and the development of and 13th for post-secondary education.”
business forms This shows that Russia is investing in
which factor of production?
A. Mercantile law had no roots from the
medieval times A. capital goods
B. The rules became law B. human capital
C. When individuals contravene the code C. natural resources
they were kicked out by fellow traders
D. entrepreneurship
D. The rules were accepted by local and
international governments and protected 290. Which are important for their ability to
both parties to the trading contract move resources, products, and financial
capital across national boundaries with rel-
285. In a recession, GDP ative ease?
A. Grows negatively
A. corporations
B. Grows slowly
B. conglomerates
C. Grows by 0%
C. mergers
D. Grows rapidly
D. multinationals
286. This value is adjusted for inflation
A. Real GDP 291. Self-sufficiency and dependency on agri-
culture includes the following
B. Nominal GDP
A. The earliest humans were nomadic
C. GDP per capita hunters
D. Ceteris paribus
B. Agricultural development started
287. What are the causes of differences in slowly
economic development between countries? C. Later on they tamed animals to assist
You can Choose more than 1 them to farm
A. acts as a banker to the government D. They did not gather their food from
B. differences in investment wild plants and animals

292. If GDP increased from $3685 million to C. educated & skilled

$3791 million in 1 year, what is the eco- D. pays a higher salary
nomic growth rate? (Note:the formula is
the change divided by the original value, x E. standard of living
100.)
297. Which of the following is the term for
A. 2.87% “the value of the output of all goods and
B. 3.42% services produced within a country in a
year”
NARAYAN CHANGDER
C. 1.84%
A. human capital
D. 2.35%
293. What is an example of an investment in C. capital goods
human capital?
D. entrepreneurship
A. A company pays for its workers to go
to graduate school. 298. The idea that resources are limited; we
don’t have an unlimited supply of what we
B. A company buys a new computer sys-
want
tem to improve productivity.
A. scarcity
C. A company hires a lobbyist to fight gov-
ernment regulations. B. supply
D. A company starts using better materi- C. demand
als to improve product quality. D. inflation
294. Is that what you earn before taxes 299. If a nation’s GDP per capita rises from
and other expenses, or is that your $32 500 to $32 800 the rate of economic
salary? growth is
A. net A. 0.92%
B. productive B. 9.2%
C. inflation C. 0.91%
D. none of above D. 3%
295. All of the following make up the human 300. Regular allowance for someone who has
development index EXCEPT worked a certain number of years
A. life expectancy A. Pension fund
B. per capita income B. Pension
C. education level and literacy rate C. Diversification
D. gender equality D. Risk
296. If you can read, you can learn and im- 301. Which economic system involves govern-
prove your work skills to get a better job ment ownership of land and resources, as
that well as major industries?
A. can read & write A. Market
B. material comfort B. Traiditional

C. Command D. invest their own money

D. Mixed E. could lose money

302. Which of the following policies can at- 306. What do we call the period when the
tract more foreign direct investment? (1) economy improves again after a reces-
lowering government rent(2) offering tax sion?
exemption to foreign companies(3) lower-
A. recovery
ing the minimum wage rate of domestic
workers B. redone
A. (1) and (2) only C. reborn
B. (1) and (3) only D. slump
C. (2) and (3) only
307. The technique of spreading funds over
D. (1), (2) and (3) large number of investments to reduce the
portfolios overall risk
303. What was is the Open Door Policy of
China about? A. Pension
A. Document stating America’s control B. Risk
over China. C. Diversification
B. Principles stating that all countries D. Savings
have equal acess to Chinese Ports.
C. Document explaining the intense com- 308. An auto parts store only selling auto
petion between world powers. parts is an example of
D. Document explaing the “spheres of in- A. specialization
fluence.” B. opportunity cost
304. Adolf Dassler was the founder of the C. voluntary exchange
German sportswear company Adidas. His D. competition
brother Rudolf founded Puma. Both of
these Germans are examples of which fac- 309. Who is the recent dictator of Cuba?
tor of growth?
A. Raul
A. physical goods
B. Trump
B. human capital
C. Fidel Castro
C. natural resources
D. Obama
D. entrepreneurship
310. What improves peoples’ living stan-
305. Entrepreneurs come up with for
dards?
goods or services and then they use nat-
ural resources, capital goods, and human A. Having more money.
capital to bring those ideas to life B. Being able to buy more goods and ser-
A. reduce the risk vices.
B. fresh ideas C. Having a command style economy.
C. creates more jobs D. Having more businesses.

311. Estimated total value of goods and ser- B. Capital Resources

vices produced in nation in a years time: C. Natural Resources
A. Wage D. Scarcity
317. What is the best way to measure eco-
C. Entrepreneurship
nomic growth?
D. Per Capita
A. Gross national product
NARAYAN CHANGDER
312. The alternative combinations of final B. Inflation
goods and services that could be produced,
C. monetary policy
in a given time period with available re-
sources and technology, are known as D. Gross Domestic Product
A. Production possibilities. 318. How do literacy rates affect their stan-
B. Consumption possibilities. dard of living?
C. Real GDP. A. The higher the literacy rates the lower
D. Nominal GDP. the standard of living.
B. The higher the standard of living the
313. A person who takes the risk and starts lower the literacy rate.
up a company is known as a
C. The higher the literacy rates the higher
A. human capitalist the standard of living.
B. capital goods D. The lower the literacy rates the higher
C. entrepreneur the standard of living.
D. natural resource
319. Wealth, power and accumulation
314. Which Cuban industry depends mostly on A. Power was vested in the kings,
a labor force with a high human capital? churches and landlords
A. Cuba’s tourist industry B. Owning land was not the main form of
B. Cuba’s health care industry wealth
C. Cuba’s tobaccos industry C. Peasants were allowed to live on the
landlords land but had to pay their land-
D. Cuba’s sugar and agri-businesses
lord with their surplus production
315. A garbage truck driver is an example of D. People settled down permanently on
which Factor of Production? farms and it led to the growing of sur-
A. human capital pluses
B. land (natural resources) 320. Final output products value that is pro-
C. entrepreneurship duced by citizens in a country, regardless
of where they are located is known as
D. capital
A. GNP
316. Resources created by people to help pro-
duce other things such as tools, machinery, B. GDP
and equipment. Money is one! C. GNI
A. Human Resources D. GNE

321. In order to have long-lasting economic 326. What are the factors of production?
growth, a country must have a smart, Check all that apply.

A. highly-skilled workforce A. land
B. standard of living
B. labor
C. different kinds
C. capital
D. different set of skills
E. education D. free market
322. A recession is defined as 327. Laissez faire is a belief that?

A. Two months of negative economic A. The more government intervention the
growth better.
B. Two quarters of negative economic
B. The economy and society will tend to
growth
do better with less or no government in-
C. A fall in GDP terference.
D. A fall in national income
C. Technology is the key to growth.
323. Nonprofit service cooperative that ac- D. None of the answers are correct.
cepts deposits, makes loans, and provides
other financial services 328. Materials found in nature such as trees,
A. Credit union oil, minerals and water.
B. Premium A. Human Resources
C. Financial assets
B. Capital Resources
D. Risk
324. Which factor has been least associated
with the rapid growth of many economies D. Scarcity
recently?
329. The percentage change in real GDP, from
A. high savings rates as a percentage of
one period to another, is called
national income
B. more efficient mechanisms for trans- A. Real GDP.
mitting funds from savers to investors B. Nominal GDP.
C. more emphasis on detailed govern-
C. The rate of economic growth.
ment planning
D. more openness to foreign trade and in- D. GDP per capita.
vestment
330. Which is not a phase of the economic cy-
325. Use your common sense, which of the fol- cle?
lowing DOESN’T cause economic growth?
A. boom
A. Increased investment
B. slum
B. Improved technology
C. Increased labour productivity C. recession
D. Less investment in education D. recovery

331. Which of the following are possible costs C. Balkans

of economic growth? D. Germany
A. A higher rate of inflation.
336. The factories, machinery, technology, etc.
B. Market concentration that are necessary to sustain a service or
C. Some structural unemployment. industry
D. Pollution and resource depletion. A. Human Capital
B. Natural Resource
NARAYAN CHANGDER
332. Which of the following are favourable to
the sustainable development of an econ- C. Capital Goods
omy? (1) encouraging waste separa- D. Literate
tion(2) subsidising the use of solar en-
ergy and wind energy in agriculture(3) pro- 337. America’s is calculated by adding up
viding financial support to technology re- consumer spending, government spending,
search and development national investments and net exports.
A. (1) and (2) only A. per capita
B. (1) and (3) only B. gross domestic product
C. (2) and (3) only C. inflation
D. (1), (2) and (3) D. none of above
333. Countries need to fill jobs within the 338. Which type of trade barrier involves a
economy limit on goods brought into the country?
A. highly-skilled workforce A. tariff
B. skilled workers B. quota
C. different kinds C. embargo
D. different set of skills D. voluntary exchange
E. education 339. Consumers save due to:
334. Between 2014 and 2015 the Polish econ- A. Become not financially secure
omy expanded at a rate of 3.3%.What B. Build a house, buy a car, etc.
necessarily follows from this statement?
C. Pay for unforeseen expenses
A. There was increased demand which
D. Provide a safety net for emergencies
caused inflation.
B. The cost of living rose by 3.3% 340. What will result in the short run from ris-
ing unemployment in an economy?
C. There was positive economic growth
A. The government’s budget deficit will
D. The output of the industrial sector rose fall.
by 3.3%
B. Any existing inflationary pressure will
335. The countries of Europe’s southeastern be reduced.
Balkan peninsula. C. Potential output will fall.
A. Europe D. The economy’s production possibility
B. Northern Europe curve will shift inwards

341. GDP per capita means B. Capital Resources/Goods

A. real GDP per household C. Entrepreneurship

B. real GDP per head D. Human Capital
C. real GDP per worker
347. Literacy is the ability to:
D. none of above
A. read
342. Macroeconomics is a study of
B. write
A. The behavior of individual firms
C. both
B. The entire economy
D. none of above
C. General price level
D. Government units [Kingdom units] 348. What can cause a country to have a low
literacy rate?
343. A limit placed on the number of goods
A. Uneducated Parents
brought into a country is a
A. tariff B. Lack of learning materials
B. quota C. Lack of resources (poverty)

C. embargo D. all of these
D. tax 349. One supply-side mechanism that the gov-
344. Select all the items that DO NOT deter- ernment can use to stimulate economic
mine a country’s standard of living and growth is:
quality of life A. Increasing tariffs
A. Real GDP B. Decreasing tariffs
B. Life expectancy C. Increasing aggregate demand
C. Diet and Nutrition D. Decreasing aggregate deman
D. Freedom and Justice
350. A country’s GDP is the total dollar value
E. All of the above are used to determine
of all in one year.
standard of living and quality of life
A. productive resources
345. Farm helpers are unemployed when the
cropping season is over. B. goods & services produced
A. frictional C. others do not

B. cyclical D. per person
C. structural E. weaker economies
D. seasonal 351. In a boom ?
346. Your friend and you decide to open a A. Unemployment is likely to fall
snow cone stand. The stand and the snow
B. Prices are likely to fall
cone machine are examples of which factor
of production? C. Demand is likely to fall
A. Natural Resources D. Imports are likely to fall

352. Who developed laissez-faire economics 357. Which might make an embargo against a
as a en economic philosophy? country successful?
A. Adam Smith A. Merchants are able to continue doing
business.
B. Karl Marx
B. People in the country are not affected
C. John Locke
by the embargo.
D. Louis XVI
C. The country does not need to trade
NARAYAN CHANGDER
353. What is an Entrepreneur with other countries.
A. A person who makes a business D. The citizens in the country suffer be-
cause of the embargo and demand a
B. A person who works for other people change from their government.
C. A person who doesn’t work
358. The capital-output ratio in a country dur-
D. A person who takes risks, and makes ing the different phases of growth
a business
A. Remains unchanged
354. Productive resources are the used to B. Fluctuates widely
create goods and services
C. Changes within narrow limits
A. materials & labor
D. Shows a secular declining trend
359. Which of the following represents an in-
C. come from nature
vestment in capital resources/goods?
D. income when exported A. providing free healthcare
355. How does improved technology allow the B. modernizing machinery
economy to operate more efficiently? C. providing skills training
A. It enables people to work fewer hours. D. subsidizing the cost of attending uni-
B. It ensures that all of the nation’s re- versity
sources will be used.
360. The of productive resources are natu-
C. It ensures that all of the nation’s work- ral resources, human capital, capital goods,
ers are employed. and entrepreneurship.
D. It helps to make better use of the na- A. materials & labor
tion’s limited resources.
356. Which of following statement is true C. come from nature
about the Economic Growth
D. income when exported
A. It refers to increase in Gross Domestic
Product (GDP) 361. During the roaring expansion what “bub-
ble” accumulated?
B. It refers to the long and sustained rise
in real Gross Domestic Product (GDP) A. Asset Bubble
C. It is characterized by fall in unemploy- B. Housing Bubble

ment rate C. Commodity Bubble
D. Rise in GDP on monetary term D. Stock Market Bubble

362. A document showing that an interest- 367. What is one reason that a country could
bearing loan has been made to a bank or have a high GDP?
other financial institution

A. Because they have high wages.
A. Savings B. Because they have a highly educated
B. Financial intermediaries population.
C. Certificate of deposit(cd) C. Because they have low taxes.
D. Credit union D. Because they love going to space.
363. The increase in unemployment caused by 368. Balanced growth implies

the recession phase of the business cycle A. Simultaneous development of a variety
is called of activities, which support one another
A. Frictional unemployment B. Equal allocation of resources to differ-
B. Structural unemployment ent sectors
C. Cyclical unemployment C. Different sectors growing at their nat-
D. Seasonal Unemployment ural rates of growth
D. Uniform rate of growth of output over
364. Causes of economic growth time
A. Improvement in standard of living
369. What are some causes of inequality?
B. Increase in Employment opportunities
A. Food
C. Factor endowments
B. Education
D. Tax revenues
C. Market failure of distribution of in-
365. For example, doctors, teachers, and fac- come equally
tory workers all have a and they each D. Unemployment
help to produce different goods or services
E. Type of car you drive
A. highly-skilled workforce
B. standard of living 370. Increased financial rewards would be
included in which measure of economic
C. different kinds growth?
D. different set of skills A. Real Income/GDP
E. education B. Productive capacity
366. The most accurate definition of GDP is C. Net social welfare
A. The value of goods and services pro- D. none of above
duced in an economy
371. A government order to stop trade with
B. The value of goods and services pro- another country is called a(n)
duced in an economy in a year
A. tariff
C. The ttotal value of goods and services
produced in a year B. quota
D. The total value of goods and services C. embargo

produced in an economy in a year D. currency

372. Germany and the United Kingdom are 377. Sustainable economic growth depends
also good examples of how can lead upon
to economic strength A. Investment, not saving
A. investments in capital goods B. Saving, not investment
B. updating factories C. Both saving and investment
C. high GDP per capita D. Neither saving nor investment
D. none of above 378. The value that a worker brings to the
NARAYAN CHANGDER
marketplace (his/her job) is called
373. Capital goods are the people use to
A. entrepreneur
produce goods and services
A. Raw materials
C. human capital
B. Machinery and technology
D. capital goods
C. Skills, knowledge, and experience
379. The index to measure economic well-
D. Natural Resources being is
374. Some examples of capital goods include A. GPD per person.

factories, machinery, , buildings, tools, B. All answers are correct.
etc. C. Inflation rate.
A. increase in GDP D. The unemployment growth rate.
B. stronger its economy 380. The maximum potential output of the
C. technology economy is the definition of what?
D. more goods & services A. Real GDP
E. boosts a country’s exports B. Productive Capacity

C. Nominal GDP
375. When a company has near complete con- D. Net Social Welfare
trol of all the business in an industry.
381. Improvements in technology would be
A. Monopoly
included in which measure of economic
B. Dividend growth?
C. Vertical Integration A. Real Income/GDP
D. none of above B. Productive capacity
C. Net social welfare
376. Which countries have the highest unen-
D. none of above
ployment rates?
A. Romania. 382. Network of savers, investors, and fi-
nancial institutions that work together to
B. Portugal. transfer savings to investment uses
C. Greece. A. Risk
D. Spain. B. Inflation

C. Premium 388. Chalk and gypsum deposits found in the

D. Financial system United Kingdom are sources of what type
of resource?

383. The part of the economy owned and op- A. human capital
erated by the national government
B. entrepreneurship
A. Public Sector
B. Private Sector C. a capital resource
C. Profit D. a natural resource
D. Natural Resource 389. What are the two sections of every econ-
omy?
384. What companies were created in Japan
after WWII? A. private sector and public sector
A. Sony B. banking regulations and competition
B. Nitendo C. government control and tariffs
C. Nike D. cultural biases and trade barriers
D. Apple
390. Lung run economic growth can be shown
385. Countries with high literacy rates enjoy a using
high standard of living (the level of wealth
and available) A. A shift to the right of AD
A. can read & write B. A shift to the left of AD

B. material comfort C. A shift to the right of LRAS
C. educated & skilled D. A shift to the left of LRAS
391. For the most part, entrepreneurial activ-
E. standard of living ity is than in the US, Latin America, and
Australia
386. If GDP was $270 million and the popu-
lation was 50, 000, what would GDP per A. high taxes
capita be? B. loosening regulations
A. $47, 650
B. $13, 500
D. lot of regulations
C. $5, 400
E. lower in Europe
D. $185
392. Which is an example of investment in hu-
387. These fund scores of research and devel-
man capital?
opment projects at universities
A. economic choices A. trucks
B. federal agencies B. factories

C. macroeconomics C. education
D. microeconomics D. highways

393. is a major industry in the UK 398. A country investing in the health of their
A. train citizens citizens is investing in which factor of pro-
duction?
B. agricultural goods
A. Human Capital
B. Capital Goods
E. 99% literacy rate C. Natural Resources
D. Entrepreneurship
NARAYAN CHANGDER
394. Select all that are considered economic
causes 399. Which of the following would NOT affect
A. Mobility the economic growth of a country?
B. Technical Knowledge A. a change in production technology
C. Living Improvements B. a change in the price level
D. Capital C. a change in the amount of human cap-
E. Land ital
D. a change in the amount of man-made
395. countries tend to have a higher GDP
resources
and standard of living than countries in
Eastern Europe
400. Economic growth can be measured by
A. industrialized economies ?
B. high GDP per capita A. The CPI
C. Western European B. The CBI
D. none of above C. The GDP
396. Which country has invested capital goods D. The MPC
toward oil and natural gas (energy sec-
tor)? 401. a corporation that has operations in a
A. Russia number ofdifferent countries
B. Germany A. merger
C. United Kingdom B. net income
D. none of above C. depreciation
397. Since the collapse of the Soviet Union, D. multinational

Russia has begun of dollars to update E. vertical merger
its factories and technology to train its
workforce 402. What is one of the things that Abenomics
A. investing billions did?
B. still remains lower A. Heavy Government Spending

C. who takes risks B. Loose Monetary Policy
D. lot of regulations C. Attempt on expanding workforce
E. lower in Europe D. Weak Government

403. This and its gross domestic product 408. The more a country invests in its capital
A. increase in GDP goods, the and higher the GDP

B. stronger its economy A. increase in GDP
C. technology B. stronger its economy
D. more goods & services C. technology
E. boosts a country’s exports D. more goods & services
E. boosts a country’s exports
404. In recent years, several countries have
begun encouraging entrepreneurship by 409. In a boom
lowering taxes, decreasing the time it
takes to start a business, and A. Unemployment is likely to fall
A. high taxes B. Prices are likely to fall
B. loosening regulations C. Demand is likely to fall
C. UK has a higher level D. Imports are likely to fall

D. lot of regulations 410. What is a problem with exchanging cur-
E. lower in Europe rency?
A. People make more money by trading
405. Why is literacy important to people’s suc-
currency.
cess?
B. Most people want to use American dol-
A. Literacy is not important to people’s
lars to trade.
success.
C. Banks do not like to exchange their
B. Literacy is important.
money for other currencies.
C. If adults cannot read and write, they
D. It costs more to do business because
have to take lower paying jobs.
banks charge fees for exchanges.
D. none of above
411. Which activity is an example of investing
406. What was the result of the Financial Min- in physical capital by a company?
istry trying to slow down the economy?
A. constructing a new factory
A. Riots
B. throwing away old delivery trucks
B. The debt crisis
C. giving workers more time off to rest
C. The stock market crashed
D. training workers to do their jobs better
D. The country shutdown
412. Investment in better machines, updated
407. what factor of ecenomic growth is
factories, and new technology leads to
this:something that is in or supplied by our
being produced
natural environment and can be consumed
or used by people A. increase in GDP
A. capital goods B. stronger its economy
B. human capital C. technology
C. natural resorces D. more goods & services
D. stuff E. boosts a country’s exports

413. In 2010, Mexico imposed a limit of 250, 418. the total dollar value of all goods and ser-
000 tons of sugar that could be imported vices produced by a country in 1 year; you
into Mexico. can think of it as the size of the economy.
A. Tariff A. GDP (Gross Domestic Product)
B. Quota B. Child Labor
C. Embargo C. Per capita GDP
D. none of above
D. none of above
NARAYAN CHANGDER
414. The term, “labor” means:
419. The movement from one point beneath
A. Work the people do to produce goods the PPF to another point beneath the PPF
and services. shows a change in
B. The natural resources used to produce
A. capacity.
goods or services.
C. Person who organizes the factors of B. output.
production to produce goods/services; C. both capacity and output.
business owners.
D. neither capacity nor output.
D. Goods not created for their own use,
but to make other goods/services. 420. What factors make up human capital?
Check all that apply.
415. It is the movement of people from rural
areas to urban areas with the aim of find- A. workers’ education
ing jobs.
B. worker’s knowledge
A. Migration
C. workers’ skill
B. Urbanization
D. workers’ paychecks
C. Immigration
D. Immigrants 421. a non-cash charge a firm takes for the
general wearand tear on its capital goods
416. Which of the following is not a factor of
production? A. merger
A. Military Size B. net income
B. Capital Goods C. depreciation
C. Natural Resources D. multinational
D. Human Capital E. vertical merger
417. An increase in which of the following
422. Calculate GDP per capita if GDP is £200
would cause a decrease in aggregate de-
billion and the population is 40 million.
mand?
A. Exports A. £1, 000
B. Imports B. £2, 000

C. Government Spending C. £5, 000
D. Investment D. £10, 000

423. Refers to an increase in the general price B. consumption

level associated with an increase in the
C. four factors of production
cost of production.

D. scarcity
A. Supply Inflation
B. Cost Push Inflation 429. the continual increase in average prices
C. Imported Inflation A. per capita
D. Demand Pull Inflation B. inflation
424. A country with a high literacy rate typi- C. import
cally has a high:
D. none of above
A. standard of living
B. death rate 430. What is the biggest country in Latin
America?
C. number of doctors
A. Mexico
D. none of above
B. Brazil
425. GDP is often measured as “GDP per
C. Cuba
capita” ( )
A. productive resources D. Columbia
B. goods & services produced 431. Fund that collects and invests income un-
C. others do not til payments are made
D. per person A. Pension fund
E. weaker economies B. Pension
426. The Labor Force is C. Credit union

A. Employed plus those who are Unem- D. Financial system
ployed
432. Which factor is being described in the fol-
B. Everyone that currently holds a job
lowing list:oil, plants, water, gold?
C. Government Employees
A. capital goods
D. Everyone over the age of 18
427. Money that people to use to make trade C. human resources
easier is called
D. entrepreneur
A. credit cards
B. taxes 433. A measure of wealth, basic needs and ma-
C. tariff terial comfort a person has access to
D. currency A. Quality of Life

B. Economic Growth
428. The resources required to make a product
(good or service) C. Standard of Living
A. economics D. Economic Development

434. How do patents act as an incentive to 439. An entrepreneur needs to be innovative.

technological innovation? What does that word mean?
A. by protecting a patent holder’s right to A. comes up with new ideas
profit from his or her creativity B. a risk taker
B. by protecting the government’s right C. a follower
to patent creative works
D. a person who is static (not a constant
C. by protecting a business’s right to learner)
NARAYAN CHANGDER
profit from someone else’s creativity
440. The percent of a nation’s population over
D. by protecting unpatented creative
the age of 15 who are able to read and
works
write.
435. Which of the following are the reasons A. Literate
for a potential economic growth to occur? B. Private sector
A. Quality of education improved C. Public sector
B. Better technology used D. Literacy Rate
C. Household’s income level increase
441. Using money to create a new capital good
D. Discovery of new resources
A. venture capital
436. remaining after deducting taxes and B. real investment
other expenses.
C. capital accumulation
A. productive D. captial gain
B. net
442. The ability to read and write at an eighth
C. service grade level is called
D. none of above A. readability rate
437. Which of the following best defines an B. illiterate rate
economy at equilibrium? C. literacy rate
A. Leakages are equal to injections D. writerability rate
B. Aggregate demand is equal to aggre- 443. Many European nations have that
gate supply produce valuable goods and services
C. National income and national output A. industrialized economies
would be equal
B. high GDP per capita
D. All of the above
C. Western European
438. What is not a leakage from the circular D. none of above
flow of income?
444. If a country experienced a substantial
A. expenditure on foreign goods
loss of property due to a natural disaster,
B. indirect taxes what would the impact be on the PPC?
C. undistributed profits A. An upwards shift along the PPC
D. unemployment benefits B. A downwards shift along the PPC

C. An inwards shift of the PPC 450. the performance of a duty or work for
D. An outwards shift of the PPC another person.

A. import
445. Consumption tax was raised from ?
B. service
A. 2%-5%
C. goods
B. 5%-8%
D. none of above
C. 10%-12%
451. What will directly result in an increase in
D. 4%-6%
China’s Gross National Product?
446. A firm purchases a new photocopier for A. increased wages earned in a
its printing room. Which of the following Malaysian-owned factory in China
components of aggregate demand would B. increased imports of goods and ser-
increase? vices
A. Imports C. increased outflows of net property in-
B. Exports come
C. Investments D. increased taxes on domestic expendi-
ture
D. Consumption
452. An improvement in literacy rates can lead
447. With economic growth, the proportion of
to which economic development?
labour-force engaged in agriculture
A. a) the adoption of new technologies
A. Increases
B. b) general improvement in living stan-
B. Decreases
dards
C. Remains unaffected
C. c) transition from agriculture-based to
D. Changes in an uncertain manner industry-based economy
448. Materials on or in the earth that have eco- D. d) creating and/or retaining jobs and
nomic value. supporting or growing incomes
A. Human Capital E. All of the above
B. Capital Goods 453. They help the economy grow by opening

new businesses and developing new prod-
ucts, which
D. Entrepreneurship
A. reduce the risk
449. Capital goods are the that are needed B. fresh ideas
to produce goods and services
C. creates more jobs
A. man-made materials
B. stronger its economy
E. could lose money
C. technology
454. Which economy answers the basic eco-
D. more goods & services nomic questions by following customs and
E. boosts a country’s exports habits of the past?

A. Command C. Vertical Integration

B. Market D. none of above
C. Traditional 460. People that are willing to take risks and
D. Mixed start new businesses or invent new items
help to stimulate their countries economies.
455. Investments in human capital, such as What factor of production does this repre-
and professional training programs are a sent?
great way for a country to improve its
NARAYAN CHANGDER
GDP A. capital goods
A. highly-skilled workforce B. human capital
B. standard of living C. natural resources
C. different kinds D. entrepreneurship
D. different set of skills 461. Germany and the United Kingdom have
E. education both made strong
A. train citizens
456. The level of wealth and material comfort
available to a people. B. agricultural goods
A. Standard of Living C. shipping & fishing
B. Literacy Rate D. investments in human capital
C. Human Capital E. 99% literacy rate
D. Entrepreneurship 462. to concentrate on and become an expert

in a particular area
457. Natural resources are the materials that
, such as land, forests, minerals, water, A. competition
etc. B. Economics
A. materials & labor C. specialization
B. four main categories D. price incentive
C. come from nature 463. Which one of the following is NOT a
D. income when exported method of calculating real GDP?
458. Which of the following about strategy of A. income method

balanced growth is right B. savings method
A. Simultaneous investment in all sectors C. expenditure method
B. All sectors are independent D. none of above
C. Both 464. Which of the following is a benefit of eco-
D. None nomic growth?
459. When workers are represented by their A. A rise in the standard of living
union during negotiations. B. Increased pollution
A. Collective Bargaining C. Increased congestion
B. Strike D. Inequalities in income and wealth

465. What did the government do to try and B. The ability to stay awake longer than
help the economy in 2013? anyone else

A. Nothing C. A byproduct of excessive coffee
B. Made policies D. Making more money with less re-
C. Increased Public Spending sources
D. Increase unemployment rate 471. Economic growth in India will happen nec-
466. A commitment to the value of work and essarily if there is
purposeful activity; system of values that A. Population growth
gives central importance of work
B. Capital formation
A. gross domestic product
C. Technical progress in the global econ-
B. technology omy
C. business cycle D. All the above
D. work ethic
472. Which is an example of an en-
467. As a result, Russia has been left with old trepreneur?
factories and
A. A manager of a business
B. A person who runs a government-
B. did not invest much owned news organization
C. outdated technology C. A plumber who works for a company
D. lacked the skills owned by an individual
E. slow economic growth D. A person who uses his/her money to
start a business selling a product
468. Improvements in technology allows an
economy to 473. Those who risk their own money and re-
A. improve productivity sources to create a new business or ser-
vice.
B. increase GDP’s
C. produce more output from less input A. Literacy Rate
D. make more economic choices B. Standard of living

C. Entrepreneur
469. What is capital goods?
D. Private sector
A. Education
B. Lumber, tools, machinery 474. What was Japan’s economy like after
C. Shops, schools, six flags WW2
D. Cheese, cookies, turkey A. Neutral (Not good, Not bad)

B. Struggling
470. What is productivity?
C. Declining
A. The ability to produce more output, per
worker, per hour D. Very prosperous

1.10 Development Economics 440
1.10 Development Economics

1. Goods and services are exchanged (or 6. A part of most corporations where tasks
sold) dedicated to running the company itself
A. Primary Industry take place. i.e., not in the corporate head-
quarters but in call centers.
B. Secondary Industry
A. back offices
C. Tertiary Industry
NARAYAN CHANGDER
B. commodities
D. none of above
C. cottage industry
2. All of the following are accurate about the D. export processing zone
multiplier effects EXCEPT
A. the ratio is generally 1:2 with regard 7. when two economies exist concurrently,
to jobs created with a modern commercialised industrial
sector developed alongside a traditional
B. it is directly correlated to spatial fix subsistence agricultural sector, then I t is
C. more non-basic jobs are created as a called as
result A. dualism
D. banks’ lending supply and ability is tied B. capitalist economy
to it
C. labour intensive economy
3. Which institute does not provide direct D. traditional society
loans to farmers?
A. NABARD 8. The sectors are classified into public and
private sector on the basis of:
B. Commercial bank
A. Employment conditions
C. Regional Rural Bank
B. The nature of economic activities
D. Cooperative Society
C. Number of workers employed
4. What is the problem that every society D. Ownership of enterprises
must address by creating an economic sys-
tem? 9. The clearing of a forest and its replacement
A. Scarcity by another land use is called
B. Shortage A. forestry
C. Supply B. clear-cutting
D. Demand C. timber harvesting

D. deforestation
5. International Bank for Reconstruction and
Development (IBRD) commonly known 10. GDP plus net flows of foreign factor in-
as? come.
A. World shop A. Per Capita Income
B. World bank B. Gross National Income
C. World mall C. Gross Domestic Product
D. World complex D. I really don’t know

11. There are three broad categories of coun- 16. The connection of producers and consumers
tries we have discussed in development. represented by linkages between livestock
They are: marketers, feedlot owners, packer own-

A. Developing, Secondary, Developed ers, retail store owners, and consumers
represent an example of
B. Developing, Emerging, Developed
A. globalization
C. Low Income, Emerging, 1st World
B. core-periphery model
D. Third World, Growing, 1st World
C. export-import model
12. Gini coefficients are an effective way for D. commodity chain
economists to measure
A. the unemployment rate in a country 17. A defining characteristic of a MDC when
compared to a LDC is
B. the income inequality in a country
A. a GDP of $10, 000 per year
C. the economic growth in a country
B. a population which has on average 5
D. the average income of a country
years of education
13. Out of 200 million children in the school C. at most a literacy rate of 65%
going age group, how many are attending
schools? D. a GDP exceeding $30, 000 per year
A. One-fourth 18. The value of the total output of goods and

B. Two-thirds services produced in a country in a given
time period (normally 1 year).
C. One-fifth
A. FDI (Foreign Direct Investment)
D. Half
B. GDP (Gross Domestic Product)
14. Which of the following is a NOT true about C. HDI (Human Development Index)
a traditional economy?
D. GNP (Gross National Product)
A. The government makes all economic
decisions. 19. India adopted the economic system.
B. Workers do not produce goods specifi- A. Capitalist
cally for trade.
B. Mixed
C. People live by subsistence activities.
C. Socialist
D. There is no formal system of money.
15. A type of industrial competition in which
the countries within a group cooperate 20. The government fixes the minimum sup-
through trade and compete against the port price in order to
other two groups. A. Safeguard the interest of consumers.
A. Export-Processing Zone (EPZ) B. Safeguard the interest of farmers
B. Offshoring C. Enhance export earnings from agricul-
C. Outsourcing tural commodities
D. Trading bloc D. None of these

21. Prior to the rise of the industrial revolu- 26. Typically, slash & burn agriculture leads to:
tion inGreat Britain, textile were manufac- A. shifting cultivation
tured in small, rural factories creating an
industry known as B. plantation farming
A. cottage inductry C. aquaculture
B. light industry D. pastoralism
C. footloose industry 27. Which of the following modes of transport
NARAYAN CHANGDER
D. textile industry has the most line flexibility?
22. Which one is not an important goal of our A. truck

life B. ship
A. Good education C. pipeline
B. -Blood donation D. train
C. High salaried job
28. Per capita income of Kerala is higher than
D. A-Facilities for going abroad that of
23. What is a social system that converts re- A. Bihar
sources into goods (material commodities B. Punjab
manufactured for and bought by individ-
C. Gujarat
uals and businesses) and services (work
done for others as a form of business)? D. none of these
A. economy 29. Which of the following statements is
B. legislation TRUE?
C. manufacturing A. Share-cropping increases the return to
D. government risk averse tenants in good harvest
B. Share-cropping increases the return
24. The total number of children attending to risk averse tenants in bad harvest
school as a percentage of total number of
children in the same age group is called C. Fixed rent increases the return to land-
lord in bad harvest
A. net attendance ratio
D. All the above
B. literacy rate
C. gross enrolment ratio 30. The main difference between commodity
chains and vertical integration is
D. level of education
A. vertical integration has a number of
25. If a business specialises in fishing then it different businesses involved
would be classed as operating in which eco-
nomic sector? B. commodity chain has one company con-
trolling all levels of production
A. Primary
C. commodity chains have a number of
B. Secondary different businesses involved
C. Tertiary D. vertical integration has one company
D. Quarternary controlling all levels of production

31. It is a measure of the amount of income 36. Production of agricultural products for the
earned per person in a nation. market is called:

A. Per Capita Income A. hunting and gathering
B. Gross National Income B. sedentary cultivation
C. Gross National Product C. subsistence agriculture
D. I honestly don’t know D. commercial agriculture
32. The total value of goods produced and ser- 37. When was the planning commission set
vices provided by a country during one up?
year. (GDP + Foreign investments) A. 1949
A. FDI (Foreign Direct Investment) B. 1950
B. GDP (Gross Domestic Product) C. 1951
C. HDI (Human Development Index) D. 1850
D. GNP (Gross National Product) 38. Which of the following BEST represents
variable costs in manufacturing?
33. What is the most common method of
A. a mortgage on a building
measuring the economic development of a
country? B. employee wages on a day to day basis
A. Security C. supplies purchased from assorted lo-
cations
B. Income
D. electricity to run the machinery
C. Freedom
39. RBI doesn’t consist of
D. Equal Treatment
A. Longevity
34. Model of development stating that indus-
B. Knowledge
tries attempt to find the best site or loca-
tion to place their factory that provide the C. Life Expectancy
minimum transportation and labor costs. D. Standard of living
A. Rostow’s Model of Economic Develop- 40. What will be the top priority in the devel-
ment opmental goal of a landless labourer?
B. Wallerstein’s World Systems Theory A. Expansion of rural banking
C. Weber’s Least Cost Theory B. More days of work and better wages
D. Location Theory C. Metal roads for transportation
35. In this stage, modern science and technol- D. Establishment of a high school
ogy are either not available or are not be- 41. Which of the following words BEST de-
ing systematically applied. scribes the characteristics of a city?
A. Transitional Stage A. Rural
B. Traditional Stage B. Suburban
C. Take off Stage C. Urban
D. Pre-take off stage D. none of above

42. Development of a country can generally be 47. Poor people tend to rely more on:
determined by A. the environment
A. Its average literacy level B. rich people
B. Its per capita income C. each other
C. Health status of its people D. the government
D. All of these
48. Why did people move to the cities during
NARAYAN CHANGDER
43. According to the linear-stages approach, in the Industrial revolution?
the absence of government intervention, A. Jobs in factories
how will the growth rate of national in- B. Jobs on the farm
come be related to the savings ratio?
C. Family
A. Inversely or positively related
D. Friends
B. Inversely or negatively related
C. Directly or positively related 49. Which industry employs the largest num-
ber of women in India?
D. Directly or negatively related
A. Tea
44. According to Weber, a bread manufacturer B. Textile
would choose to locate its factory close to C. Jute
a large population of people because
D. Coal
A. bread is very perishable
B. the finished product is bulk gaining 50. Which of the following plays an important
role in meeting micro credit needs in rural
C. baking is a footloose industry areas?
D. the finished product is bulk reducing A. Regional Rural Banks
45. high birth rate B. NABARD

C. Commercial Banks
A. More developed
D. Self Help Groups
B. Less developed
C. Newly industrialized 51. In which type of economic system are the
customs of the past used to decide what
D. none of above and how goods will produced, distributed,
and consumed?
46. Companies keep on hand just what sup-
plies they need for near-term production; A. Command
eliminates wasted goods and frees up cap- B. Mixed
ital.
C. Traditional
A. Economies of scale
D. Market
B. Just-in-time Delivery
52. The president of a major research univer-
C. Commodity chain
sity, the chairman of the board at a For-
D. Trading bloc tune 500 company, and the head of state

of a country are all individuals that would 58. Which of the following is not included in
be part of which economic sector? tertiary sector?

A. tertiary A. ATM
B. secondary
B. Internet cafe
C. quinary
C. Industries
D. quaternary
D. All of them
53. Countries with per capita income of US$
or less are called low-income coun- 59. Countries that are moving from less to
tries. more developed economies are known as
A. 995
B. 885 A. newly industrialized
C. 955 B. emerging economies
D. 855
C. Both
54. Which type of economic activity processes
D. none of above
and distributes information?
A. Primary 60. What type of nation is China?
B. Secondary
A. Developed Nation
C. Tertiary
B. Developing Nation
D. Quaternary
C. Undeveloped Nation
55. Shift cultivation and slash-and-burn farm-
ing are often associated with D. none of above
A. subsistence farming
61. Why is it that the informal lenders have an
B. agribusiness edge over the formal lenders in the agricul-
C. Rostow’s TAKE OFF stage tural credit market?
D. more developed countries (MDCs) A. Informational constraint
56. What is the full form of PDS B. Inter-linked contracts
A. Private Development System C. Rationing
B. Public Department System D. All the above
C. Pure Domestic System
D. Public Distribution System 62. A certain amount of goods and services is
necessary for a minimum standard of liv-
57. Schooling not available to all citizens of ing. This is called
country
A. basic needs
A. Developed Country
B. absolute poverty
B. Developing Country
C. Neither one C. an international standard of living
D. none of above D. the concept of development

63. Modern concept of sustainable develop- D. excellent access to cheap labor and lo-
ment focuses more on cal textile inputs
A. economic development 68. how advanced an economy is
B. social development A. Environment Development
C. environmental protection B. Economic Advancement
D. All of the above C. Economic Development
D. Environment Advancement
NARAYAN CHANGDER
64. A supply side vicious circle of poverty sug-
gests that poor nations remain poor be-
69. The people that buy the products are
cause ( Select all the suitable answer-
multiple answer) A. producers
A. saving remains low B. consumers
B. investment remains low C. marketers
C. Here is a lack of effective government D. none of above
D. investment increases 70. Who’s the most important person in a con-

struction team?
65. Which country below has applied Capital-
A. Site manager
ism Economy?
B. Client
A. Nigeria
C. Surveyor
B. Roman
D. Foreman
C. United State
D. Hong Kong 71. What are the Sustainable development
goals
66. A logical attempt to explain the locational A. Targets, set by the UN, to try achieve
pattern of an economic activity and the by 2030
manner in which its producing areas are
interrelated; example:von Thunen model. B. A competition to see which country can
develop most by 2020.
A. Rostow’s Model of Economic Develop-
ment C. Each country is given certain targets
to reach by 2025
B. Wallerstein’s World Systems Theory
D. The millennium goals reached a level
C. Weber’s Least Cost Theory of development, countries now need to
D. Location Theory keep at that level.
67. Which factors most likely led to the indus- 72. The spatial shift of manufacturing indus-
trial revolution in England 1760s? tries from advanced capitalist countries
to developing countries-an ongoing geo-
A. excellent access to cheap raw materi-
graphic reorganization of production.
als, water power, iron ore, and coal
A. protectionism
B. excellent access to external markets,
iron ore and steel B. new international division of labor
C. excellent access to mineral and geo- C. nationalism
logic deposits D. tariffs

73. Ground water is a 78. Portion of the economy concerned with the
direct extraction of materials from Earth’s
A. Renewable resource
surface.

B. Non Renewable resource
A. Primary sector
C. Reserve stock B. Secondary sector
D. None of these C. Tertiary sector
74. The use of knowledge of tools and ma- D. Quaternary sector
chines used to make or modify a prob- E. Quinary sector
lem, and improve preexisting solutions to
a problem in order to achieve a goal. 79. The difference between GDP and GNI is
that GNI contains
A. tools
A. Life Expectancy
B. knowledge
B. Remittances
C. technology
C. Education Levels
D. innovation D. Natural Resources
75. and is the amount of a commod- 80. The motive of Private sector enterprises
ity, product, or service available AND the is:
desire of buyers (consumers) for it, consid-
A. Profit making
ered as factors regulating its price.
B. Entertainment
A. Communism Capitalism
C. Social welfare and security
B. Socialism Capitalism
D. None of these
C. Supply Demand
81. Portion of the economy containing pro-
D. Demand Supply
fessions that specialize in information;
76. Which of these is NOT a criteria for classi- provide higher-level services; knowledge-
fying economic sectors? based.
A. Primary sector
A. On the basis of ownership
B. Secondary sector
B. On the basis of level of education
C. Tertiary sector
C. On the basis of the way people are em-
ployed D. Quaternary sector
E. Quinary sector
D. On the basis of nature of activity
82. Question-6 Scheme implemented in rural
77. Human Capital formation leads to: areas to eliminate rural poverty and unem-
A. Efficient utilisation of physical capital ployment
B. Increase in income-generating capac- A. Narega
ity of an individual B. Ambedkar-
C. Increase in GDP growth C. Valmiki Housing Scheme,
D. All of the above D. Shri Shakti Yojana

83. Which of the following is an economic sys- C. traditional

tem in which economic decisions are made
D. none of above
according to social roles & culture?
A. Market economy 89. the average number of years an individual
B. Command economy in the country is expected to live
C. Traditional economy A. Life Expectancy

D. Mixed economy B. Mortality Rate
NARAYAN CHANGDER
84. The Neolithic Revolution refers to the time C. Infant Mortality
when early humans- D. Development
A. mastered fire.
90. Which of the following sources provide
B. developed agriculture and settled data on unemployment?
down.
A. Reports of Census of India
C. migrated from Africa.
B. Reports of National Sample Survey Or-
D. organized governments
ganisation
85. How many stages were in Rostow’s C. Data with Employment Exchanges
Stages of economic growth?
D. All of the above
A. 4
B. 3 91. Which of the following is not a source of
C. 8 human capital formation?
D. 5 A. Expenditure on education
B. Expenditure on migration
86. What to produce in Mixed Economy refers
to: C. Expenditure on On-the-job training
A. Public goods D. Expenditure on subsidy
B. Private goods
92. In this study, the authors take the vari-
C. Intermediate goods ables of interest.
D. Public and private goods A. 2
87. Which countries is NAFTA with? B. 3
A. US, Germany, Mexico C. 4
B. US, Germany, Canada D. 5
C. US, Germany, Canada, Mexico
93. percentage of people who can read and
D. US, Canada, Mexico
write
88. A type of economic system in which produc- A. Mortality Rate
tion of goods and services is determined by
the demand from consumers. B. Smart People
A. command economy C. GDP
B. market economy D. Literacy Rate

94. “Laissez-faire” economics is Adam 99. Compares the level of development of

Smith’s term for women with the development of both
sexes combined.

A. Child Labor Laws
B. No Government interference in the A. Gender Empowerment Measure (GEM)
market B. Gender-Related Development Index
C. Profit Margins (GDI)
D. Supply and Demand C. Gender Equity

D. Human Development Index (HDI)
95. According to the linear-stages approach,
how can poor countries compensate for 100. What mean by Purchasing Power Parity
their low level of new capital formation? (PPP)?
A. By increasing foreign aid and FDI A. Calculation of GNI using a common set
of international prices for all goods and
B. By increasing their capital-output ra-
services to provide more accurate com-
tio, k
parison of living standards
C. By decreasing their capital-output ra-
B. Calculation of GDP using a common set
tio, k
of international prices for all goods and
D. By decreasing their export/import ra- services to provide more accurate com-
tio parison of living standards
96. What is the extra money you pay back, the C. Both of them
fee for having a loan. D. none of above
A. Debt
101. Mining uranium is linked to many health
B. trade problems and premature death. What pop-
C. tariff ulation of people did the U.S. government
not warn against these risks?
D. Interest
A. African American
97. Consumer and Business services would
B. Navajo
NOT be prevalent in what stage of Ros-
tow’s Modernization Model? C. Latino
A. drive to maturity D. Chino
B. high mass consumption 102. Kerala has low Infant Mortaliy Rate be-
C. traditional cause:
D. preconditions to takeoff A. it has good climatic condition
B. it has adequate infrastructure
98. In the model of nutritional status, what
are the factors affecting energy intake of C. it has adequate provision of basic
an individual? health and educational facilities
A. Resting metabolism D. it has poor net attendance ratio
B. Energy expended on physical work 103. Tertiary Sector is also known as
C. Energy released from the body A. Service sector
D. All the above B. trade

C. hotel and restaurant B. Decreases the competitiveness of the

D. none of these country in the global market
C. Hinders technological advancement
104. Christaller’s Central Place Theory can be
D. All of the above
used most appropriately to determine the
A. location of language and cultural 109. Development is about
hearths A. Building large cities
B. spread of political phenomenon across B. People getting richer
NARAYAN CHANGDER
an area C. Improving peoples quality of life
C. location for business with regard to po- D. Making people happier
tential customers
110. In regards to Sustainable Development
D. location for a manufacturing plant
the environment acts as/provides
105. According to Malthus, the fixed factor of A. Resources
production is
B. Externalities
A. Labor C. Amenities
B. Capital D. Public Goods
C. Land E. An absorber of waste
D. Entrepreneurship
111. A person is considered as overweight if
106. Choose the correct option which can im- his B M I is
prove public facilities in India. A. More than 25
A. Imparting Educational B. less than 18
B. Improving PDS C. -less than 20
C. Improving infrastructure facilities, for D. less than 22
example, railways
112. Which of the following is not a primary
D. All of the above economic activity?
107. North America’s economic success was a A. carpenter
function of its , or how well its differ- B. lumberjack
ent locations are linked with one another. C. orange grower
A. Economic status D. police officer
B. Location
113. Countries that usually have low levels of
C. Connectivity economic productivity, low per capita in-
D. Resources comes, and generally low standards of liv-
ing.
108. How does a shortage of skilled human A. Core
resources impact the socio-economic devel-
opment of a country? B. Periphery
A. Slows down the pace of economic C. Semi-periphery
growth D. none of above

114. Which of the following works to protect 119. The Human Development Index (HDI) is
against the exploitation of agricultural la- an indicator of how developed a country
bor? is. Select the 2 components that the HDI

A. fair trade considers. (You have extra time)
A. How many cars people have.
B. all agribusiness
B. How many people have access to wa-
C. plantation farming
ter
D. suitcase farming
C. How many people have enough food to
115. Which age group of children is included eat
for calculating Net Attendance Ratio? D. How many people have access to safe
A. 6-10 drinking water
B. 7-11 E. How many people get ill
C. 5-9 120. Farmers need credit for consumption pur-

pose such as on birth, death, marriage etc
D. 14-15
called
116. Uses raw materials to produce or manu- A. Productive credit
facture something new.
B. Unproductive credit
A. Primary Industry C. Both (i) and (ii)
B. Secondary Industry D. None of the above
C. Tertiary Industry
121. Development goal for landless agricul-
D. none of above tural labour is
117. NAFTA has dramatically increased eco- A. high prices for crops
nomic interactions between Canada, Mex- B. more days of work
ico, and the USA. Which of the following
C. cheap labour
is NOT one of the impacts of NAFTA?
D. pollution free environment
A. increased globalization
B. increased gentrification 122. Which is the LIC
C. increased the diffusion of cultural A. Norway

traits B. Germany
D. decreased the price go consumer C. Brazil
goods D. Afghanistan
118. The value of a particular product com- 123. values the well-being of entire species,
pared to the amount of labor needed to communities, or ecosystems over the wel-
make it. fare of a given individual
A. Development A. anthropocentrism
B. Fair Trade B. biocentrism
C. Industry C. ecocentrism
D. Added Value D. enthropocentrism

124. Mining and farming are part of which eco- 129. Which of these are examples of privately
nomic sector? owned assets?
A. Primary A. Railways
B. Secondary B. TATA Iron and Steel Company Ltd.
C. Tertiary C. Post Office
D. Quaternary D. Reliance Industries Ltd.
125. Political stability, robust infrastructure,
NARAYAN CHANGDER
130. A country described as an HIC is
readily available education and healthcare
will lead to A. More developed
A. an increase in the number and type of B. less developed
economic opportunities
C. newly industrialised
B. a shift form a quaternary to primary
D. Money efficient
sector economy
C. an increase in unemployment benefits 131. Model that argues the more developed
being received countries exploit poorer, less developed
D. a shift from a tertiary to secondary countries for their resources, etc. but that
economy these poorer, less developed countries can-
not survive without being exploited.
126. if the share of savings s is 6% and the
A. Christaller’s theory
capital-output ratio k is 4/1, according to
the linear-stages approach, what will be B. least cost theory
the GNP growth? C. bid-rent theory
A. +1%
D. core-periphery model
B. +1.5%
C. +2% 132. In a MDC like Australia, the largest per-
centage of jobs are in this economic sec-
D. +2.5% tor?
127. What are economic activities? A. Quinary
A. rules in a game B. Primary
B. a sport C. Secondary
C. how a government is run D. Tertiary
D. ways in which people make a living
133. Select 2 more components that the HDI
128. If there are four members in a family, considers.
and their total income is |20, 000/-what
would’ve the average income of each per- A. The % of population who are literate
son? (can read and write)
A. |4000 B. How many people own mobile phones

B. |5000 C. Life expectancy
C. |2000 D. how many babies people have
D. |10, 000 E. The continent people live on

134. What does NAFTA stand for? 139. The BRICS countries are
A. North American Free Trade Agreement A. dominated by construction industries

B. North Atlantic Forced Tariff Agreement B. moving rapidly from the periphery into
the semi-periphery
C. National Association of Free Trade Al-
liance C. dominated by service sector jobs
D. National Alliance For Tariffs Amend- D. less developed countries
ments
140. Livestock marketers. feedlot owners,
135. Which of the Agricultural Revolutions did packer owners, distributing company own-
not include increased usage of complex ma- ers, retail store owners, and consumers
chines? represent an example of the linkages be-
tween producers and consumers. This is
A. First Agricultural Revolution
an example of
B. Second Agricultural Revolution
A. a commodity chain
C. Third Agricultural Revolution
B. an export-import model
D. Green Revolution
C. stage four of Rostow’s model
136. Areas within developing countries that D. a core-periphery model
offer incentives and a barrier-free environ-
ment to promote economic growth. 141. Which type of economic activity extracts
or harvests raw materials?
A. Export-Processing Zone (EPZ)
A. Primary
B. Offshoring
B. Secondary
C. Outsourcing
C. Tertiary
D. Trading bloc
D. Quaternary
137. In this study, the authors examined the
production of the region’s three principal 142. The basic material from which a product
staple crops: is made.
A. Maize, wheat, and Soybeans A. rescue resources
B. Maize, Potatoes, and Soybeans B. capital resources
C. Maize, wheat, and rice C. human resources
D. Rice, wheat, and Cassava D. natural resources
138. If Country A has a low growth rate, high 143. Who created Human Development In-
literacy rate, and largely tertiary level eco- dex?
nomic activity, then it is A. Mahabub ul Haq
A. developing B. Amartya Sen
B. in transition C. Abhijit Banerjee
C. developed D. Joseph Stigliz
D. in North Africa E. Pranab Bardhan

144. The way people produce and exchange 149. Which of the following models believed
goods. government intervention is necessary for
economic growth?
A. market economy
A. Marxist
B. demand
B. Keynesian
C. economic system
C. Monetarist
D. none of above
D. Classical
NARAYAN CHANGDER
145. Characterized by small-batch production,
150. The economic growth and significance of
economies of scope (not scale), new in-
cities like Dallas and Atlanta, spurred by
formation technologies, rise of the service
major corporations locating their HQs in
and white-collar worker, and the feminiza-
those cities, is supported by the
tion of the workforce.
A. zones of transition
A. Cottage Industry
B. concept of suburbanization
B. Fordism
C. central place theory
C. Post-Fordism
D. rank size rule
D. Commodity Chain
151. Maquiladoras in northern Mexico depend
146. Which of the following neighbouring on low cost Mexican labor to inexpen-
countries has better performance in terms sively create expensive finished products.
of human development than India This most reflects which geographic princi-
A. Bangladesh ple?
B. Sri Lanka A. core-periphery model

B. dependency ratio
C. Nepal
C. demographic transition
D. A-Pakistan
D. push factor
147. -3 Period of calculation of national in-
come 152. Economic activity concerned with the pro-
cessing of raw materials and manufacture
A. 6 months, of goods in factories.
B. a year A. Development
C. two years, B. Fair Trade
D. 5 years.Question C. Industry
148. Humans have obtained food in a variety D. Added Value

of ways. Which method below emerged 153. What is the primary locational factor for
last? locating a service?
A. Hunting & gathering A. access to transfer points
B. Vegetative planting B. break of bulk points
C. Seed agriculture C. proximity to natural resources
D. The Colombian Exchange D. proximity to markets

154. Why did farming lead to permanent vil- 159. What continent produces and consumes
lages? huge quantities of natural resources?

A. people grew too much food to travel A. Africa
B. people needed to build storage for B. Europe
crops
C. South America
C. people needed to stay and tend their
crops D. North America
D. people had to make pottery to hold fo
160. Factories built by US companies in Mex-
155. How does Europe’s literacy rate affect its ico near the US border, to take advantage
development? of much lower labor cost in Mexico.
A. Low literacy rates bring more tourism A. Technopoles
and boost overall development
B. Maquiladores
B. The literacy rate has little impact on de-
velopment of a country C. Telenovelas
C. Well-developed countries tend to have D. Esperantos

lower literacy rates
161. Economic Development is a concept
D. The higher the literacy rate, the more than economic growth
developed a country tends to be
A. Single Dimensional
156. Nike and Under Armour sell similar prod-
ucts. This leads to a decrease in price and B. Double Dimensional
an increase in quality. C. Multi dimensional
A. Free Market D. None of these
B. Command
C. Traditional 162. The measures a country’s income, life
expectancy, and education level
D. none of above
A. Gross Domestic Product Per Capita
157. Development of an individual refers to (GDP Per Capita)
A. mental development B. Standard of Living Index
B. physical development C. Human Development Index (HDI)
C. spiritual development
D. Literacy Rate
D. overall development
163. TANWA was set up to:
158. An economic principle that describes a
consumer’s desire and willingness to pay A. Train farmers for organic farming
a price for a specific good or service methods
A. economic system B. Train women in latest agricultural tech-
B. mixed economy niques
C. demand C. Practice green Revolution
D. none of above D. Arrange Credit for the farmers

164. Which of the following areas is not con- B. 1959-1954

sidered a value added manufacturing re-
C. 1951-1956
gion?
A. North America D. 1955-1960
B. Eastern South America
170. Underemployment is a situation where
C. Northern and Central Africa
A. people who are willing to work are un-
D. Western Europe able to find jobs
NARAYAN CHANGDER
165. economic activities add value to raw B. many people in the labor force hold
materials by processing them or changing two or more jobs
their form. Ex:wood being made into ta-
bles/furniture C. people are working full-time and hard,
yet have a low marginal product
A. Primary
D. people work in a free labor market
B. Secondary
with a very low wage
C. Tertiary
D. Quaternary 171. When conducting a cost-benefit analy-
sis, people analyze where to spend their
166. GDP is one economic indicator of develop- money to see what will give them the
ment. What does GDP stand for? most
A. Greater Developmental Produce A. Answers
B. Grand Domestic Population
B. Taxes
C. Gross Domestic Product
C. Benefits
D. Gross Development Purchase
D. Consequences
167. Mahalanobis Modal was started in
Five year plan. 172. What was the immediate crisis India
A. First faced in the beginning of the 1990s
B. Second A. Inflation
C. Tenth B. Debt Trap
D. Eleventh
C. Foreign exchange crisis
168. All of the following are examples of why D. All of the above
large cities are so accessible EXCEPT
A. Transportation systems 173. As a country becomes newly industrial-
B. Highways ized in moves from cottage industries to
?
C. Technology
A. Subsistence Agriculture
D. Industry
B. Commercial Agriculture
169. The first five year plan was launched for
a period from C. Commercial Industries
A. 1948-1953 D. Primary Activities

174. The average number of years that a new- African American county in North Car-
born baby is expected to live if the age- olina?
specific mortality rates effective at the

A. Appalachia
year of birth apply throughout their life-
time B. Navajo
A. Life expectancy at birth C. Anderson
B. Mortality rate D. Warren
C. Distributional rate 180. Sustainable Development implies

D. Health rate A. Sustained rise in real GDP
B. Long lasting development without neg-
175. Which of these fall under service sector?
atively impacting the environment
A. Banking C. Full exploitation of natural resources
B. Manufacturing D. Reduction in unemployment and
C. Agriculture poverty
D. Transportation 181. Which type of economic activities would
you most likely find in a newly industrial-
176. The application of Science and technology
ized country?
is a fundamental factor which influences
the pace of economic development. A. Primary
A. True B. Primary and Secondary
B. False C. Secondary and Tertiary
C. Both true and false D. Tertiary and Quaternary
D. Erronious Statement 182. The total value of all goods and services
produced in a country is called
177. North America plays a pivotal role in the
A. Gross National Production
global economy along with &
B. Total Domestic Product
A. Europe & South Asia
C. Annual National Income
B. South Asia & South America
C. Europe & East Asia
D. South America & East Asia 183. Marshallian inefficiency is based on:
A. Efficiency of fixed-rent contracts
178. According to Von Thunen, what type of
agriculture is produced closest to market? B. Inefficiency of share-cropping
C. Appropriate provision of incentives
A. dairying
B. grain agriculture
C. ranching 184. Which of the following statements is
true about Ramesh who is an employee in
D. plantation farming
SAIL?
179. In which county was a protest against A. His rights as a worker are protected by
a toxic waste dump in a predominately Labour legislations.

B. He is entitled to social security bene- A. Primary sector

fits B. Secondary sector
C. He is engaged in a formal sector C. Tertiary sector
D. All of the above D. Quaternary sector
185. Which organisation publishes the human E. Quinary sector
development report
190. Identify the secondary sector jobs.
A. U N O
NARAYAN CHANGDER
A. Farming
B. W H O
B. Bottling soft drinks
C. -U N D P
C. Steel Industry
D. World bank
D. Accountant
186. A company that conducts research, oper- E. App creation
ates factories, and sells products in many
countries, not just where its headquarters 191. What is a cause of desertification?
or shareholders are located. Think Star- A. Cutting down trees
bucks as one of MANY examples. B. Dumping a sand box
A. transnational corporations C. Flooding
B. basic industry D. Dehydration
C. mom and pop stores
192. What is the full form of H D I
D. maquiladoras
A. Human direct index
187. What is the basic support system needed B. Human development index
to keep an economy going called?
C. Human division index
A. economic activity
D. A-only A
B. infrastructure
193. Which of the following are semi-
periphery countries? (Select all that ap-
D. Skills of workers ply)
188. The assumption that increased output of A. Brazil
an economy (along with the pattern of in- B. Mexico
dustrialization) is equivalent to economic
C. South Africa
development is
D. Russia
A. simplistic but correct
E. Southeast Asia (not Indonesia)
B. simplistic and incorrect
C. complex and correct 194. Besides seeking more income, people also
expect
D. complex but incorrect
A. Equal treatment
189. Portion of the economy concerned with B. Social injustice
transportation, communications, and utili-
ties; provision of all goods and services to C. Freedom
people in exchange for payment. D. both (a) and (c)

195. The discontinuous portion in the Aggre- 200. The action plan includes elements
gate Supply Curve of labor represents
A. Development of the means of trans-
which form of unemployment?

port. linking the rural area with the urban
A. Involuntary areas
B. Voluntary B. Provision of power/.energy for the ru-
C. Frictional ral area
D. Seasonal C. Permanent means of irrigation
D. All of the above
196. something that occurs naturally in a re-
gion or environment. 201. What type of economic activity would
A. natural resources serving as insurance actuary analyst be
classified as?
B. human resources
C. land A. quaternery
D. capital goods B. primary

C. secondary
197. The ethical standpoint that people should
protect the natural environment in a pris- D. tertiary
tine, unaltered state.
202. Which pairing of economic sectors is cor-
A. intrinsic ethic rect? (CHECK ALL THAT APPLY)
B. environmental ethic A. Fishing/primary
C. preservation ethic B. Automobile manufacturing/secondary
D. conservation ethic
C. Apple executive/tertiary
198. Who wrote, “A thing is right, when it D. Soft drink bottling plant/tertiary
tends to preserve the integrity, stability,
E. Accountant/tertiary
and beauty of the biotic community. It is
wrong when it tends otherwise.”
203. According to Rostow, what is the main
A. Aldo Leopold factor of development?
B. John Muir A. Political change
C. Gifford Pinchot B. Imports
D. Henry David Thoreau C. Investment in capital
199. Less industrialized countries are more in- D. Education
volved in
204. Which organisation publishes the Human
A. market-oriented and commercial agri- Development Report (HDI)?
culture
A. UNO
B. cottage industries and the pri-
mary/secondary sectors B. WHO
C. commercial industries C. UNDP
D. service sectors (tertiary) D. None of the Above

205. Which of the following is an example of C. Tertiary Industry

a preventive medicine? D. none of above
A. Vaccination
211. A snowballing geographical process by
B. Medical intervention during illness which secondary and service industrial ac-
C. Spread of health literacy tivities become clustered in cities and com-
D. Provisions of clean drinking water pact industrial regions in order to share in-
frastructure and markets.
206. In economic geography and central place
NARAYAN CHANGDER
A. agglomeration
theory, the minimum market needed to
support the supply of a product or service. B. deglomeration
A. threshold C. supranationalism
B. least cost theory D. syncretism
C. range 212. Many corporate HQs are located in the

D. relative theory US for product design but the actual manu-
facturing takes place overseas. What type
207. What does GDP refer to? of economic activity related to these corpo-
A. the value of goods and services pro- rate HQs takes place in the US?
duced by a country A. secondary
B. the number of people living in a coun- B. tertiary
try C. quinary
C. the average wage of the population D. quaternary
D. its how many points the country has
gained on the HDI from the previous year 213. A process of improvement in the mate-
rial conditions of people through diffusion
208. Most people in developing nations earn of knowledge and technology.
their living by- A. Development
A. farming. B. Fair Trade
B. working in offices and companies. C. Industry
C. working in manufacturingindustries. D. Added Value
D. working in service industries.
214. A Country with an HDI of .92 is most
209. Capitalist Economy is controlled and oper- likely what type of country
ated by A. MDC
A. Private sector B. LDC
B. Public sector C. In between
C. Both A and B D. none of above
215. Which of the following did NAFTA get rid
210. Uses natural resources or raw materials off between member nations?
A. Primary Industry A. Tariffs
B. Secondary Industry B. Incentive pay

C. National Bonds D. Economic Growth, Inequality and-

D. Trade deficits Poverty

216. The legal economy that is taxed and mon- 221. Which of the following is NOT one of the
itored by government and is included in a questions every economic system must an-
governments gross national product. swer?
A. Informal economy A. How to produce?
B. Non-basic industry B. What to produce?
C. Basic industry C. How much to produce?
D. Formal economy D. Who to produce for?
217. Measures inequalities between men and 222. Crop rotation & the enclosure movement
women in regards to political and eco- were hallmarks of:
nomic participation and decision making,
and power over economic resources. A. The First Agricultural Revolution
A. Gender Empowerment Measure (GEM) B. The Second agricultural revolution
B. Gender-Related Development Index C. the Third agricultural revolution
(GDI)
D. the Green revolution
C. Gender Equity
D. Human Development Index (HDI) 223. World econ. system characterized by a
more flexible set of production practices
218. It is considered as the lifeblood of the in which goods are not mass produced; in-
business. stead, production has been accelerated and
disappeared around the globe by multina-
A. Country
tional companies that shift production, out-
B. Business Environment sourcing it around the world.
C. Localization A. industrialization
D. Tax B. technopoling
219. Which one of the following criteria is the C. fordist
basis to measure the development of a
D. post-fordist
country according to UNDP?
A. Per capita income 224. What is the role of government in pro-
B. Educational levels of the people moting the development of skilled human
resources in a country?
C. Health status of the people
A. To prevent investment in education
D. All the above
and training
220. In this article, authors study the relation- B. To discourage private investment in
ship between education and training
A. Economic Growth and Poverty C. To provide resources and incentives
B. Economic Growth and Inequality for education and training programs
C. Poverty and Inequality D. None of the above

225. According to the classic bid-rent curve, C. Urbanization

what happens to the value of land as one D. Slum
gets closer to the Central Business District
(CBD)? 230. Every day, the KIA Motors factory in
A. Land gets used more extensively. South Korea receives automobile parts for
assembly three hours before assembling
B. Land gets more expensive. the car. This is an example of
C. Land gets used less intensively. A. Von Thunen model
NARAYAN CHANGDER
D. Land gets more affordable along busy B. Rostows Stages of economic develop-
streets. ment
226. Which is the demerit of classical’s descrip- C. Just-in-time production
tion of labour market? D. Locational interdependence
A. Distinction between labour power and
labourer 231. A social movement whose stated goal is
to help producers in developing countries
B. State of rest or stationarity at the equi- achieve better trading conditions and to
librium level promote sustainability.
C. Prevalence of two wage rates:W(H) & A. Development
W(L)
B. Fair Trade
D. All the above
C. Industry
227. Measures opportunities given to a D. Added Value
woman compared to a man within a given
country. 232. Goods and services are traded without
A. Gender Empowerment Measure (GEM) exchanging money.
B. Gender-Related Development Index A. economic system

(GDI) B. traditional economy
C. Gender Equity C. mixed economy
D. Human Development Index (HDI) D. none of above
228. Which Problem is faced by People in the 233. Specific area within a country in which
Unorganised Sector? tax investment incentives are imple-
A. Social Security Benefits like paid mented to attract foreign (and domestic)
leaves, holidays etc businesses and investment.
B. No assured work and low irregular A. nationalism

wages B. technopoles
C. No security of Employment C. least cost theory
D. Social Discrimination D. special economic zone
229. The process by which the population of 234. Which among the following is not a public
cities grow facility?
A. Counterurbanization A. Transport and electricity
B. Ghetto B. Roads and bridges

C. Private School B. cost of power; union labor contracts;

D. Government hospitals employees’ fringe benefits

C. least cost transportation; adjusting lo-
235. Development is measured of a coun- cation to labor costs; economies of ag-
try’s? glomeration
A. Economic Health D. friction of distance; time-space com-
B. Social Condition pression; vertical integration
C. Standards Of Living 240. Norway is an example of a
D. All The Above A. LIC
236. The per-capita income of different coun- B. MIC
tries is counted in which currency? C. HIC
A. Rupees D. NIC
B. Pounds
241. The number of people who are able to
C. US Dollars work and willing to work is known as
D. Canadian Dollars A. Labour supply
237. Why is Tertiary Sector becoming impor- B. Work force
tant? C. Labour force
A. Requirement of services such as D. Working age population
banks, Transport, Institutions, Hospitals
etc. 242. Identify the primary sector jobs.
B. Development of primary and sec- A. Farming
ondary secondary Leading to demand for B. Oil extraction
transport, trade etc.
C. Steel Industry
C. Development in methods of agricul-
ture D. Teacher
D. Rise of services like Information and E. Space exploration

communication technology 243. NREGA (National Rural Employment
238. Obtaining goods (or a service) from an Guarantee Act of 2005) has guaranteed
outside or foreign supplier, especially in days of employment in a year in many
place of an internal source. districts of India. What are the correct
number of days?
A. Export-Processing Zone (EPZ)
A. 200 days
B. Offshoring
B. 100 days
C. Outsourcing
C. 30 days
D. Trading bloc
D. 60 days
239. Which of the following BEST represents
the Weberian triangle? 244. What is a tertiary industry?
A. income taxes; mortgage costs on a A. Provides a service for people

building; depreciation cost B. Manufactures products

C. Collects or produces natural re- 250. Which economist believed in local en-
sources trepreneurs learning from invited foreign
D. Research and technology capitalists/ industrialists?
A. Adam Smith
245. is not the process of Agricultural Mar-
keting. B. John Keynes
A. Arranging credit C. Milton Friedman
B. Packaging the produce according to D. W.A Lewis
NARAYAN CHANGDER
buyers’ preference 251. MGNREGA was implemented in
C. Storing the produce for future sale A. 1990
D. Selling the produce when the price is B. 1998
lucrative
C. 2000
246. Which of the following organisation D. 2005
looks after the credit needs of agriculture
and rural development in India. 252. The following are means of livelihood, ex-
cept:
A. FCI
A. Farming
B. IDBI
B. Fishing
C. NABARD
C. Dressmaking
D. ICAR
D. Equity
247. When we produce a good by exploiting
natural resources, it is an activity of the: 253. Choose the correct examples of a primary
activity.
A. Secondary sector
A. truck driver, doctor, store clerk,
B. Tertiary sector
restaurant
C. Primary sector
B. manufacturing and construction
D. Organised sector
C. mining, agriculture, fishing
248. Who amongst the following is not recog- D. research and data processing
nised as a worker?
254. A country that is mostly rural and en-
A. A professor in a college
gages in mainly primary level of economic
B. A doctor running his own clinic activity is probably a
C. A women entrepreneurs A. developed nation
D. A homemaker doing household work B. developing nation
249. Which of the following is not a goal of C. industrialized nation
five year plan? D. primary nation
A. Growth 255. Life Expectancy is a factor in a country’s
B. Equality
C. Land reforms A. Human Development Index
D. Modernisation B. Human Division Indigo

C. Gross Domestic Product 261. GDP is the sum total of the value of
D. Literacy Rate produced during a particular year.

A. all goods and services
256. Which of the following is a development
goal for the landless rural labourers? B. all final goods and services
A. To educate their children C. all intermediate goods and services
B. To get house and land D. all intermediate and final goods and
services
C. More days of work and better wages
D. To shift to the towns 262. How old is the NAFTA trade deal?
A. 10 years old
257. Investing in the education or training of
workers of a business or country is an ex- B. 2 decades old
ample of investing in what? C. 8 years old
A. Labor/Human resources D. 3 decades old
B. Land/Natural resources 263. People’s wants and needs are
C. Capital resources A. limited
D. Entrepreneurship B. unlimited
258. When it is time to ship goods that have C. the same as resources
been manufactured, the lowest cost long D. none of above
distance freight is by which of the follow-
ing modes of transport? 264. What is India’s rank in HDR 2020
A. truck A. 10
B. airplane B. 59
C. ship C. 151
D. train D. 131
259. What is the main criterion for comparing 265. The phenomenon of high technology firms
the development of different countries located near other like firms or near re-
A. Family back ground search universities is known as
B. Population A. ecumene
C. Income B. diffusion
D. Education C. agglomeration
D. zone of transition
260. Indicator of level of development combin-
ing income, literacy, education, and life ex- 266. The calculation of per capita income of all
pectancy. countries is made in
A. FDI (Foreign Direct Investment) A. -Rupees
B. GDP (Gross Domestic Product) B. Dollars
C. HDI (Human Development Index) C. Yen
D. GNP (Gross National Product) D. Pounds

267. This type of economy is heavily built on 272. This economic system is controlled by the
subsistence agriculture. government.
A. command A. Traditional
B. traditional B. Command (Communism)
C. market (demand) C. Free Market
D. mixed D. none of above
NARAYAN CHANGDER
268. Choose the correct examples of a sec-
273. usually measured by how many people
ondary activity.
are born or die for every thousand people
A. truck driver, doctor, store clerk, in that nation in a given year
restaurant
A. Birth and Death Rates
B. Birth Rates
C. Death Rates
D. research and data processing
D. Infant Mortality
269. It refers to the total value of the final
output of goods and services produced in 274. both human and nonhuman have intrinsic
a country. value
A. Per Capita Income A. enthropocentrism
B. Gross National Income B. biocentrism
C. Gross Domestic Product C. ecocentrism
D. I don’t know D. anthrocentrism
270. Free enterprise is an economic system in 275. Gross National Income, access to raw
which people- materials, and workers productivity con-
A. are free to buy and sell goods and ser- tribute to which indicator of develop-
vices with little control by the government. ment?
B. can only buy products from govern- A. demographic
ment selected companies.
B. gender empowerment
C. must sell their products at the lowest
C. economic
price possible.
D. social
D. none of above
271. Besides seeking more income, People 276. The industrial revolution was the begin-
also wants ning of
A. Equal treatment A. cottage industries

B. Freedom B. substitence farming
C. security C. making things by hand
D. All of these D. the use of machines and factories

277. A country at the higher end of HDI usu- 282. Which of the following agricultural prod-
ally has which of the following character- ucts are not cash crops?
istics?

A. cocoa
A. adult literacy is comparatively low B. coffee
B. men live much longer on average than C. cotton
women
D. corn
C. net primary educational enrollment is
high 283. A substantial rise in the production of
milk during 1960-2002 is known as
D. GDP is considerably lower on average
A. White Revolution
278. Which sector of the economy is agricul- B. Green Revolution
ture based on? C. Operation Milk
A. primary D. Golden Revolution
B. secondary 284. People in third world countries have
C. tertiary A. the best jobs
D. quarternary B. a greater standard of living
C. a higher literacy rate
279. For calculating Body Mass Index (BMI),
weight of the person is divided by the: D. a lower standard of living
A. Square of the weight 285. As countries around the world continue
B. Square of the height to develop, there is evidence of growth in
which type of economic system?
C. Square root of the height
A. primary activity based systems
D. Square root of the height
B. free market based systems
280. Choose the correct examples of a quater- C. subsistence based systems
nary activity. D. barter systems
A. truck driver, doctor, store clerk, 286. Which of the following explains why an
restaurant economic activity is located where it is
B. manufacturing and construction and how patterns of economic activity are
shaped?
A. Location factors
D. research and data processing
B. Regional factors
281. Which of the following is high-income C. Agricultural factors
country?
D. Sustainable factors
A. Malaysia
287. Which of the following is not a compo-
B. Timor-Leste nant of HDI?
C. Belgium A. Literacy rate
D. Zimbabwe B. Per Capita Income

C. Poverty rate 292. From of mass production in which each

worker is assigned one specific task to per-
D. Life expectancy
form repeatedly.
288. What is a Geographical reason for the de- A. Zelinsky Model
velopment gap? B. Post-fordist
A. The English made good ships C. Fordist
B. Some political leaders bought D. Gravity model
NARAYAN CHANGDER
weapons and tanks rather than built hos-
pitals and schools etc 293. Which of these statements is true about
both the US and China?
C. The Industrial Revolution began in the
U.K. and spread to Europe. A. both countries grow and export huge
amounts of grain products
D. Some countries are more likely to have
B. both countries have capital city that
droughts and floods etc.
also the economic center of the country
289. Which belongs in the tertiary industry? C. both countries have a high tech center
in their western region
A. coffee bean
D. both countries have a deindustrializa-
B. steel worker tion region in the northeast
C. services such as a bank teller
294. Which document provides detailed infor-
D. farmer mation to enable tendering for contracts?
A. Architects working drawings.
290. Which one of the following statements
defines ‘Literacy Rate’? B. Schedule.
A. Total literate population divided by to- C. Bill of quantities.
tal population D. Conditions of contract.
B. Total literate population divided by lit- 295. Investment made by a foreign company
erate population in the economy of another country.
C. Proportion of illiterate population in A. FDI (Foreign Direct Investment)
the 18 and above age group.
B. GDP (Gross Domestic Product)
D. It measures the proportion of literate C. HDI (Human Development Index)
proportion in the 7 years and above age
group. D. GNP (Gross National Product)
296. This sector would include the top exec-

291. Who among the following workers are
utives or officials in such fields as gov-
engaged in a formal sector?
ernment, science, universities, nonprofit,
A. A farmer etc.,
B. Agriculture labour A. Primary sector
C. An employee in Indian Railways B. Quinary sector
D. A mechanic in a small firm with five C. Secondary sector

workers. D. Quaternary sector

297. The following are the criteria of least de- B. False.

veloped country, except? C. Maybe.

A. low income D. None of the above.
B. low economic demand and supply
303. According to Lewis’s model, the dual
C. low human capital economy grows only when
D. low economic vulnerability A. the modern sector increases its output
298. Which of the following is the reason for share relative to the traditional sector.
law human capital formation in India? B. agricultural sector uses modern equip-
A. Brain drain ment.
B. Low academic standards C. agricultural sector hires labor econom-

ically
C. Rising population
D. modern manufacturing sector is labor-
D. All of these intensive.
299. Who was politically active and won fame 304. Who gave theory of unbalanced growth
as an advocate for the preservation of
wilderness? A. Amatya Sen
A. Walt Whitman B. Rajnikant
B. John Muir C. Manmohan Singh
C. Henry David Thoreau D. Hirchman
D. Ralph Waldo Emerson 305. The group of Eight (G8) is a collection of

economically powerful
300. developed by the United Nations in 1990
as a tool for ranking countries based on A. States
their level of economic development B. Cities
A. Level Index C. Nations
B. Human Index D. Countries
C. Human Development Index 306. Identify the quaternary sector jobs.
D. Income Index A. Research and development
301. When a job in one sector of the economy B. Tourism
leads to the creation of jobs in another eco- C. Teacher/professor
nomic sector.
D. Retail
A. gross national income
E. Accountant
B. gravity model
C. multiplier effect 307. Portion of the economy concerned with
manufacturing useful products through
D. post fordist processing, transforming, and assembling
302. Location does not matter in a state’s raw materials.
economy. A. Primary sector
A. True. B. Secondary sector

C. Tertiary sector 313. Potential primary economic activities are

D. Quaternary sector often restricted by which of the follow-
ing?
E. Quinary sector
A. corporate competition
308. What is mass production?
A. The process of creating large numbers B. physical environment
of similar products effectively. C. international exchange rates
B. When each worker specializes in all
NARAYAN CHANGDER
D. local cultural norms
tasks needed to create a product.
C. When a product is produced by only 314. Who is the governor of RBI at present.
one person.
A. Urjit Patel
D. none of above
B. Shakti Kant Das
309. The source of economic growth is NOT
A. technological factor C. Raghuram Rajan
B. institutional factor D. Manmohan Singh
C. trading capital factor
315. The transfer of core country jobs to work-
D. human capital factor
ers in the periphery is a feature of
310. How many percent of Indian farmers get
A. fordism
Minimum Support Price (MSP) in India
A. 100% B. structural adjustment programs
B. 65% C. just-in-time delievery
C. 25% D. the new international division of labor
D. 6%
316. The most abundant raw material, but it
311. a network that connects the different
has lost its relevance over the years is
steps in the production of a good
A. modernization model A. Oil
B. agglomeration B. Coal
C. deindustrialization C. Brass
D. commodity chain
D. Aluminium
312. The practice of basing some of a com-
pany’s processes or services in another 317. Gross Domestic Product is
country in order to take advantage of
A. the total value of all goods and ser-
lower costs. (Ford, AmEx, GE, Cisco, Mi-
vices produced by a nation in a year.
crosoft)
A. Export-Processing Zone (EPZ) B. the value of goods and services pro-
duced in a year in a nation by a person.
B. Offshoring
C. Outsourcing C. a product that is domestically gross.
D. Trading bloc D. none of above

318. Which of the following is the most im- 323. Which Is NOT true regarding MGN-
portant component for comparing different REGA(2005)?
countries?

A. Guaranteed 100 days of employment in
A. Population a year
B. Income B. It was implemented in 625 districts
C. Per capita income C. Referred to as Right to Work

D. 1/3rd of the jobs are reserved for
D. Resources
women
319. Underemployment occurs when people 324. the number of infants who die for every
A. Do not want to work thousand births
B. Are working in a lazy manner A. birth rate

B. GPD per capita
C. Are working less than what they are
capable of doing C. infant mortality
D. Are not paid for their work D. secondary economic activity
325. A situation in which more persons reem-

320. Which type of economic activity provides
ployed on a job than are optimally required
services to people and businesses?
is
A. Primary A. Structural unemployment
B. Secondary B. Disguised unemployment
C. Tertiary C. Cyclical unemployment
D. Quaternary D. Seasonal unemployment
321. Per capita means 326. Low birth rate

A. More developed
A. per country size
B. Less developed
B. for each line of latitude
C. Newly industrialized
C. for each person
D. none of above
D. per dollar
327. Small grants of money to help people
322. Under normal circumstances countries de- start businesses in developing countries
velop gradually over time. Suggest circum- are
stances where a country might actually be- A. remittance
come less developed. Select 2 options.
B. loans
A. Corruption
C. student loans
B. War D. microloans
C. Recession
328. Which south asian country has the first
D. Natural disaster rank in HDI?
E. Poor harvest A. Sri Lanka

B. India C. When someone has something you

C. Pakistan want
D. Nepal D. Interest, paid back on a loan
329. HDI stands for ‘Human Development In- 334. Agriculture marketing does not comprise
dex’ that focuses on with which one of the of
following options: A. Transportation of the produce to the
A. life expectancy marketplace for sale
NARAYAN CHANGDER
B. gross enrolment ratio for three levels B. Grading of the produce according to
of schooling the quality
C. national income C. Storage of the produce for sale in fu-
ture
D. all of the above
D. Credit has been taken to meet expen-
330. Which year Gender Adjusted HDI was in- diture on agricuture.
troduced
335. What is an historical reason for the de-
A. 1990
velopment gap?
B. 1995
A. The English made good ships
C. 2000
B. Some political leaders bought
D. 2005 weapons and tanks rather than built hos-
pitals and schools etc
331. The movement to fence in fields in order
to farm more effectively, at the expense C. The Industrial Revolution began in the
of poor peasants who relied on common U.K. and spread to Europe.
fields for farming and pasture D. Some countries are more likely to have
A. Enclosure droughts and floods etc.
B. Crop Rotation 336. which belongs in the secondary indus-
C. Agricultural Revolution try?
D. Industrious Revolution A. cotton
332. Which model which took on a laissez- B. shoe factory

faire approach? C. coal
A. Rowstow D. sales clerk
B. Keynesian
337. Which of the following is considered as
C. Classical one of the major causes of poverty in the
D. Lewis Philippines?
A. malnutrition
333. What is debt?
B. low economic growth
A. Paying back more than you borrowed
C. child labor
B. When you owe someone something,
such as money. D. crime and thievery

338. Highly organized and specialized system 343. Meaning of development is different for
for organizing industrial production and la- A. different people
bor; mass production for mass consump-

tion. B. alien people
A. Cottage Industry C. same people

D. none of these
B. Fordism
C. Post-Fordism 344. Identify the quinary sector jobs.
D. Commodity Chain A. Research and development
B. Federal government
339. Home-based manufacturing. Exam-
ple:textiles C. Teacher/professor
D. Retail
A. Cottage Industry
E. Space exploration
B. Fordism
C. Post-Fordism 345. When was New Economic Policy intro-
duced in India
D. Assembly Line
A. 1991
E. Commodity Chain
B. 1981
340. In India, the task of measuring GDP is C. 1995
taken up by?
D. 2000
A. Central Government Ministry
346. Abolition of intermediateries and Land
B. Provincial Ministry ceiling are part of
C. Finance Ministry A. Industrial reforms of India
D. State government MInistry B. External sector reforms in India
341. Involves the fair and equitable treatment C. Land reforms in India
of all people with respect to environmen- D. Banking reforms in India
tal policy and practice, regardless of their
income, race, or ethnicity. 347. Most countries today are economies.
A. environmental justice A. Capitalist
B. economic justice B. Communist

C. Socialist
C. neoclassical economics
D. Mixed
D. classical economics
348. Which country has the highest total
342. Name the Finance Minister of India greenhouse gas emissions?
A. Arun Jetly A. Russia
B. Nirmala Sitaraman B. USA
C. Urjit Patel C. China
D. P.Chidambaram D. India

349. Sarah would like to become a doctor 354. When comparing GNI across countries we
when she grows up. Unfortunately, she adjust it by using
lives in a country where her job will be de- A. Powerful Purchasing Parity
cided for her by the government.
B. Purchasing Power Parity
A. Traditional
C. Purchasing Potential Parity
B. Free Market
D. Particular Purchasing Parity
C. Mixed
NARAYAN CHANGDER
355. is the total value of all goods and services
D. Command
produced by a nation in a year
350. he total value of goods and services pro- A. GDP
duced in a country in a year, divided by B. Goods and Services
number in the population
C. percentage
A. GNI per capita
D. development indicators
B. PPP per capita
C. GDP per capita 356. Which year is known as the”Year of
Great Divide”
D. Production
A. 1921
351. Which belongs in the primary industry? B. 1951
A. cotton C. 1981
B. sweater D. 1991
C. shoe factory 357. What could be the possible reason which
D. sales clerk DO NOT result in the overuse of re-
sources?
352. When was Navratna Policy announced A. Excessive use of tube wells etc, for ir-
A. 1992 rigation
B. 1991 B. Lesser Population
C. 1995 C. Lack of awareness
D. 1996 D. Industrial need
358. Industry that sells its products within the

353. Which of the following examples does
community; it does not bring money into
not fall under unorganized sector?
the community.
A. A farmer irrigating his field. A. Basic industry
B. A daily wage labourer working for a B. informal economy
contractor.
C. Formal economy
C. A doctor in a hospital treating a pa-
tient. D. Non-Basic industry
D. A handloom weaver working on a loom 359. What does Gross Domestic Product
in her house. (GDP)?

A. total value of all goods and services 364. The word ‘Sustainable Development’
produced in a country in one year came into existence in the year?

B. total value of all goods and services A. 1992
made by one person B. 1978
C. something that is really yucky at home C. 1980
D. total value of a country’s exports D. 1987
360. The gender empowerment measure is an 365. The role of science and technology in de-
indication of females’ access to velopment should be directed towards re-
A. economic and political decision making duction of between advanced and de-
veloping countries.
B. social and cultural support
A. economic trades
C. agricultural work opportunities
B. tariff
D. higher education opportunities
C. injustice
361. Who quoted, “Everybody needs beauty
D. inequalities
as well as bread, places to play in and
pray in, where nature may heal and give 366. An industry in which the final product
strength to body and soul alike”? weighs less or compromises a lower vol-
A. Gifford Pinchot ume than the inputs.
B. John Muir A. Qutsourcing
C. Ralph Waldo B. Bulk-reducing industry
D. Walt Whitman C. Footloose industry
D. Break-of-Bulk point
362. The Human Development Index does not
contain which of the following measure- 367. What is a primary industry?
ments?
A. Employ people to make things.
A. GDP per Capita
B. Employ people to collect or produce
B. GNI per Capita natural resources
C. Indicators of Education C. provide a service for people
D. Life Expectancy D. Research and technology
363. A model of the spatial structure of devel- 368. Tourism is now the world’s fastest grow-
opment in which underdeveloped countries ing industry. Which of the following is a
are defined by their dependence on a de- deterrent to the growth of the tourism in-
veloped core region (core, periphery, and dustry?
semi-periphery). A. people are earning more income and
A. Rostow’s Model of Economic Develop- have more disposable income
ment B. the silver generation retiring earlier
B. Wallerstein’s World Systems Theory C. the increase in crude oil prices during
C. Weber’s Least Cost Theory times of economic hardship
D. Location Theory D. the overall increase in car ownership

369. Developed by the U.N. in 1990 as a tool 374. What is the third stage of Rostow’s Eco-
for ranking countries based on their level nomic growth?
of economic development.
A. Traditional society
A. Human Development Index
B. Take off
B. Economic Development Index
C. Drive to maturity
C. Human Growth Index
D. Country Development Index D. *High Mass Consumption
NARAYAN CHANGDER
370. The business must be located close to the 375. Call centers and bill processing centers
source of the raw materials to minimize are examples of
transportation costs. A. a bulk reducing industry
A. Agglomeration
B. a telecom industry
B. Bulk-reducing industry
C. a footloose industry
C. Bulk-gaining industry
D. an ubiquitous industry
D. Cottage industry
E. Economies of scale 376. The ethical standpoint that people should
use natural resources in ways that ensure
371. Moving from less to more developed
the greatest good for the greatest number
economies
of people for the longest time.
A. Developed
A. intrinsic ethic
B. Less developed
B. preservation ethic
C. Newly industrialized
D. none of above C. conservation ethic
D. environmental ethic
372. Which among the following is a character-
istic of underdevelopment?
377. a human-centered view of our relation-
A. Vicious circle of poverty ship with the environment
B. Rising mass consumption A. biocentrism
C. Growth of industries
B. enthropocentrism
D. High rate of urbanization
C. anthropocentrism
373. Choose the correct meaning of organised
D. ecocentrism
sector:
A. It covers those enterprises where the 378. What is the best definition of poverty?
terms of employment are regular with
A. Not having the latest iphone
good working conditions.
B. It is outside the control of the govern- B. Not being able to afford new clothing
ment. C. not having enough money to meet ba-
C. Jobs are not regular but working con- sic needs including food, clothing and shel-
ditions are good. ter
D. It provides low salary but tenure is D. Being homeless, not having food and
fixed. wearing old clothes.

379. Development goals of different sections A. Total Fertility Rate

of our society can be achieved by: B. Use of English as a lingua franca

A. Force C. Dependecy ratio
B. Democratic political process D. Transportation infrastructure
C. Violent agitation
385. A place where people and machines join
D. Terrorism together to mass produce goods.
380. Which of the following BEST represents A. Cartel
when market equilibrium is reached? B. Corporation
A. demand exceeds supply and a higher C. Factory
price can be charged D. Urbanization
B. the shopper to store ratio is 100:1
386. economy is the economy in which
C. the price is met at which supply equals means of production are owned, controlled
demand and operated by the government.
D. primary and secondary activities num- A. Mixed
ber the same as tertiary activities
B. Socialist
381. This economic system is based on individ- C. Capitalist
ual freedom.
A. Traditional
387. A job such as a carpenter or a seamstress
B. Command (Communism)
that involves making a product is a
C. Free Market
A. primary
D. none of above B. secondary
382. Which year National Food Security Act in C. tertiary
India Implemented D. quaternary
A. 2001
388. Are Science and technology important to
B. 2017 economic development and nation build-
C. 2013 ing?
D. 2015 A. Yes
383. Each of the following countries are con- B. No

sidered newly industrializing EXCEPT? C. Maybe
A. Hong Kong D. I don’t know
B. Japan 389. Select all the correct answer Which ex-
C. Taiwan plains the term economic growth? ( Multi-
ple answer )
D. Singapore
A. Increase in per capita production
384. Which of the following would be most im- B. Increase in per capita real income
portant to an American corporation look-
ing to outsource their call center opera- C. structural change in the economy
tions? D. Geographical change in the country

390. Who viewed nature as divine and can be 395. Which of the following states have high-
seen as the one of the first ecologists? est literacy rate
A. John Ruskin A. Kerala
B. Ralph Waldo Emerson B. Bihar
C. Henry David Thoreau C. UP
D. Walt Whitman D. A-Punjab
NARAYAN CHANGDER
391. Besides seeking more income, people also 396. Joe owns a shoe store. At the end of
seek other things like- the month Joe decides what to do with his
profits.
A. Equal treatment
A. Command
B. Respect of others
B. Free Market
C. Special treatment
C. Traditional
D. Freedom and security
D. none of above
392. Portion of the economy containing upper-
level management and research jobs. 397. According to the Harrod-Domar growth
model, what is the size of savings ra-
A. Primary sector tio that yields sufficient growth to transit
B. Secondary sector from one stage of development to the next
one?
C. Tertiary sector
A. ≥ 2%
D. Quaternary sector
B. ≥ 6%
E. Quinary sector
C. ≥ 30%
393. Which type of economic activity uses raw D. ≥ 15%
materials to produce something new?
A. Primary 398. GATT stands for
B. Secondary A. Genral Agreement on Trade and Tariff
C. Tertiary B. Government Association for Trade and

Tariff
D. Quaternary
C. General Agreement on terms of Trade
394. Cost advantages to manufacturers that D. Government Agreement on terms of
accrue from high-volume production, since Trade
the average cost of production falls with
increasing output. Think Costco and Sam’s 399. What is the principle reason for market
club. failure of the market for animal power?
A. informal economy A. Dearth of capital
B. economies of scale B. Time bound use of animal power
C. primary sector C. Low availability of healthy animals
D. formal economy D. All the above

400. Those newly industrialized countries B. Bulk-reducing industry

with median standards of living. C. Bulk-gaining industry

A. Core D. Cottage industry
B. Periphery
E. Economies of scale
C. Semi-periphery
406. A type of economic system in which the
D. none of above
production of goods and services is deter-
401. Distress sale by the farmers refers to: mined by a central government, which usu-
ally owns the means of production.
A. Sale of property to repay loans
A. command economy
B. Sale of crops directly to the consumers
B. mixed economy
C. Selling crops at the minimum support
price fixed by the government. C. market economy
D. Selling of crops by farmers at a very D. none of above
low price to meet urgent cash needs.
407. National or global regions where eco-
402. What are the essential components of hu- nomic power, in terms of wealth, innova-
man development index tion, and advanced technology is concen-
A. Health status trated.
B. Literacy rate A. Core

C. Per capita income B. Periphery
D. All of these C. Semi-periphery
D. none of above
403. Choose the correct examples of a tertiary
activity. 408. Goods and Service mean
A. truck driver, doctor, store clerk, A. Goods that are produced in Factories
restaurant
B. For investment by firms
C. Either for consumption by consumers
C. mining, agriculture, fishing or investment by firms
D. research and data processing D. For consumption by consumers
404. The total amount of goods and services 409. Human Development Report is published
produced in a country. by
A. gross domestic product
A. UNDP
B. net consumer product
B. World Bank
C. net domestic product
C. IMF
D. gross international product
D. WHO
405. Economic activity congregates in or close
to a single location, rather than being 410. Buffer stocks are used for
spread out uniformly across space. A. Exporting
A. Agglomeration B. Public Distribution

C. Meeting urgent needs during a period C. Mixed

of low output and scarcity D. Traditional
D. Both for Public distribution and meet-
416. Which of the following is NOT an exam-
ing urgent needs during a period of low
ple of connectivity?
output and scarcity.
A. undersea cables
411. What is America’s GDP?
B. Railroads
A. 20.93 trillion
C. Telegraph
NARAYAN CHANGDER
B. 400 trillion D. Tertiaries
C. 505 billion
417. Calculate the child dependency ratio
D. 759 million knowing that the percentage of those of
412. Which of the following are used to calcu- working age is 75, the percentage of chil-
late HDI? (CHECK ALL THAT APPLY) dren is 5 and the percentage of those who
are non-productive is 25:
A. Literacy rate
A. 33%
B. GNI per capita
B. 7%
C. Poverty rate
C. 40%
D. Life expectancy
D. 250%
E. Average years of schooling
418. In a post-industrial society, hourly work-
413. What does a literacy rate show? ers would most likely be able to find em-
A. a percentage of people who can drive. ployment working in which of the follow-
ing?
B. a percentage of people who can read
and write. A. primary economic activities
B. quaternary economic activities
C. a percentage of people who can speak
English. C. quinary economic activities
D. none of above D. tertiary economic activities
414. Central government in India made a law, 419. Besides materialistic possessions, what
implementing the Right to Work in how enhances the quality of our lives?
many districts of India? A. Relationships
A. 150 districts B. Television
B. 200 districts C. Video games
C. 250 districts D. Shoes
D. 625 districts 420. How many industries are reserved for
public sector at present
415. Sally works in a private company that
has to follow government rules for public A. 4
safety. B. 17
A. Free Market C. 6
B. Command D. 3

421. Mortality Rate means C. Command

A. Sleep Rate D. Communist

B. Life Rate 427. A rapid population growth during the
C. Death Rate 1900s contributed to the aimed to in-
D. Mortal Rate crease food supplies to support the grow-
ing population.
422. Which of the following is most likely a A. 1st Agricultural Revolution
characteristic of a developing country?
B. 2nd Agricultural Revolution
A. Low employment rate
C. 3rd Agricultural Revolution
B. High GDP
D. 2nd Industrial Revolution
C. High technology
D. none of above 428. India according to the World Bank classi-
fication falls in the category of
423. In this article, the authors used the A. Low-income economies
as proxy of poverty.
B. Lower-middle income economies
A. Absolute poverty
C. Upper-middle income economies
B. Relative poverty
D. High-income economies
C. Headcount poverty index
D. multidimensional poverty index 429. Model that describes a country’s progres-
sion in five stages from LDCs to MDCs.
424. Lower production costs as a result of A. Rostow’s Model of Economic Develop-
larger volume of production (Fordism) ment
A. Economies of scale B. Wallerstein’s World Systems Theory
B. Just-in-time Delivery C. Weber’s Least Cost Theory
C. Commodity chain D. Location Theory
D. Trading bloc
430. which of the following is a primary sector
425. Why would land be more expensive in job?
the CBD (Central Business District) of an A. Teacher
urban area?
B. Nurse
A. the lack of skyscrapers.
C. Oil Extractor
B. the lack of residential space.
D. Scientist
C. high threshold and range.
D. competition for limited space. 431. Identify the tertiary sector jobs.
A. Research and development
426. Which of the following economic systems
would have the highest government in- B. Tourism
volvement? C. Steel Industry
A. Ca[italism D. Retail
B. Free Market E. App creation

432. How can a country ensure that its human 437. Development involves thinking about
resources are skilled and employable? which of the following questions?
A. By reducing access to education A. Can life be better for all of us?
B. By investing in education and training B. What are the essential things re-
programs quired?
C. By relying on foreign workers C. How should people live together?

D. All of these
NARAYAN CHANGDER
438. National development is measured by
433. Genetically modified organisms (GMOs)
and hybrid seeds are often associated with A. Average income and per capita income
B. National Income
A. 1st Agricultural Revolution
C. -net attendance ratio
B. 2nd Agricultural Revolution
D. A-H D I
C. 3rd Agricultural Revolution
439. Workers in the sector do not produce
D. subsistence farming
goods.
434. What may NOT be a goal of a landless A. Primary Sector
rural labourer regarding their income? B. Secondary Sector
A. More days of work C. Tertiary Sector
B. Better wages D. none of above
C. Quality education for their children 440. The business must be located close to the
D. None of the above market to reduce the cost of transport, in-
crease profits, and usually lowers the price
435. What stage of Rostow’s Development In- for consumers.
dex does technology first get introduced? A. Agglomeration
A. 1-Traditional Society B. Bulk-reducing industry
B. 2-Preconditions of takeoff C. Bulk-gaining industry
C. 3-takeoff D. Cottage industry
D. 4-drive to maturaty E. Economies of scale
441. Which of the following statement is

436. The total value of goods and services pro-
about microeconomics?
duced in a year in a given country. the
value varies greatly between MDCs and A. The growth increased by 5.0 percent
LDCs and is one of the best indicators of last year
development. B. Inflation is about to increased 3.6 per-
A. gross national product cent this year
C. The factors of production is limited re-
sources
C. gender inequality index
D. The general price level increased by 4
D. gross national income percent last year

442. The Lewis theory of development, also 447. Many corporate headquarters relocated
known as the in the USA where products design takes
place. The actual manufacturing takes

A. Tri-sector model
place overseas. What economic activity
B. Duel sector model is conducted at corporate headquarters in
C. Three sector model this case?
D. Two sector model A. quaternary
B. quinary
443. Which of the following are core coun-
tries? (Select all that apply) C. primary
A. United States/Canada D. secondary
B. Australia 448. Which urban land model uses two CBDs?
C. Mexico A. Latin American
D. Japan B. Multiple Nuclei
E. Russia C. Sector
444. Sam loves science and wants to become a D. Concentric
doctor but he is learning how to make clay
bricks like his father and grandfather. 449. What percentage of GDP ( approximate)
was spent on education during the year
A. Free Market 2011-12?
B. Traditional A. 4% of GDP
C. Mixed B. 5% of GDP
D. Command C. 6% of GDP
445. A combination of command and market D. 7% of GDP
economies to provide goods and services
so that all people will benefit. 450. Which one of these is a central problem
of an Economy?
A. mixed economy
A. What to produce
B. market economy
B. How to produce
C. command economy
C. For whom to produce
D. none of above
D. All of the above
446. What is the correct option to fill in the
blank? GDP is the total value of pro- 451. The money used to purchase factories,
duced. machinery, tools, and building that make
the product or good.
A. all goods and services
A. labor
B. all final goods and services
B. capital
C. all intermediate goods and services
C. resources
D. all intermediate and final goods and
services D. none of above

1.11 nvironmental Economics 484
452. Which of these activities occurs nearest B. situational factors

the market according to Weber’s Least C. threshold
Cost Theory?
D. site factors
A. paper production
B. processing which makes the final prod- 457. Pick out the cause (from below) that en-
uct lighter than raw materials hances environmental degradation:
C. processing of raw materials into heav- A. Planting of trees.
NARAYAN CHANGDER
ier finished products B. Prevention of factory wastes getting
D. environmentally friendly production mixed up with river water.
C. Ban on use of plastic bags.
453. how may growth acc to harrod
D. Allowing increase in the level of ex-
A. 1
haust fumes emitted by cars, buses,
B. 2 trucks, etc.
C. 3
458. Which is an example of investing in capi-
D. 4 tal goods?
454. A large component of survival in many A. Keeping old delivery trucks
countries with low per capita GNIs is the B. Training workers to do their jobs bet-
informal economy. Which of the following ter
does not make up a portion of Mexico’s
formal economy and GNI? C. Keeping old computers in order to
save money
A. manufactoring
D. Constructing a new factory
B. coyote payments
C. tourism 459. Wow do ration shop under the public dis-
tribution system help people
D. export of poinsettias in December
A. By maintaining the nutritional status of
455. In a system, supply and demand sets the people
the prices for goods and services.
B. By making food available at lower cost
A. Command Economic
C. both A and B
B. Market Economic
D. -none of the AboveW
C. Liberal
460. all investment should be in all sectors
D. Socialist
A. balanced
456. Maximum distance people will travel
for a good or service (economic B. unbalanced
reach/hinterland). C. harrod
A. range D. domar
1.11 nvironmental Economics

1. Which one doesn’t belong Ecosystem Ser- C. No externality

vices D. All true

A. Provisioningservices
B. Supportingservices
unskilled labor?
C. Culturalservices
A. building inspector
D. shoping sevices
B. computer technician
2. What is a problem related to clear cut-
C. dishwasher
ting?
D. plumber
A. soil is turned up
B. erosion of soil stops 8. Which of these would NOT be a good way
C. timber companies save money to improve your human capital?
D. wildlife loses large areas of land A. train your work force

B. provide health care for your workers
3. Which of the following is NOT a major con-
tributor to air pollution in Canada? C. opportunities for advanced education
A. factories D. plant new crops
B. coal burning plants
9. The GPI for the United States
C. automobiles
A. has increased dramatically since 1950
D. recycling companies
B. includes a positive adjustment for par-
4. Forests cover about how much land in enting
Canada? C. increases when resource extraction in-
A. one-half creases
B. one-third D. far exceeds the rest of the world
C. one-fourth
10. What are causes of the pollution in the
D. three-fourths Great Lakes?
5. Why is the consumption of fossil fuels high, A. waste from factories
despite high prices? B. run off from ground pollution (fertiliz-
A. no available alternatives ers, grease, pesticides
B. cultural preferences and resistance to C. sewage treatment plants
change
D. All of these
C. political unrest in the middle east
D. bad weather and increase in natural di- 11. Why is Canada’s government and timber
asaters industries working together?
A. to manage the use of forests
6. An activity that has a negative impact on
society and the environment is called? B. to manage the wildlife preservation
A. Negative externality C. to monitor deer population
B. Positive externality D. to attack America

12. How did U.S. environmental policy shift in 17. This country is the world leader in gross
the 1980s? agricultural output.
A. A backlash led to efforts to weaken A. Japan
federal environmental laws.
B. China
B. It was basically the same as in the
1960s and 1970s. C. North Korea
C. Most of the important environmental D. India
NARAYAN CHANGDER
laws were finally passed.
18. In this type of economy all economic deci-
D. There was a large push to achieve sus-
sions are made by the government.
tainability quickly.
A. traditional
13. Environmental Literacy includes all of the
following except B. free market
A. Understanding how the earth systems C. command
function D. mixed market
B. Looks for connections
19. Natural resources are used to produce
C. Seek environmental information over
what two things?
wisdom or philosophy
D. Examine how to move to a sustainable A. human capital and labor forces
economy B. goods and services
14. Which of the following national policies C. services and specialties
would be indicative of a pro-natalist phi- D. GDP and literacy rate
losophy or program within that country?
A. paternity leave 20. What is the word for the number of people
B. national day care coverage who can read and write in a country
C. child based tax credits A. income

D. all of the above B. literacy rate
15. GMO stands for C. life expectancy
A. genetically made organism D. free enterprise

B. genetically modified organism 21. Which school of economics warns that hu-
C. gene manipulated organism man economic systems could exceed the
D. Genetic mutant organism capacity of the environment to handle the
pollutants and wastes we produce?
16. In making environmental policies, govern-
A. classical
ment interacts with
A. organizations. B. neoclassical
B. businesses.. C. capitalistic
C. citizens D. ecological
D. all of the above. E. socialistic

22. is best defined as the knowledge, 27. In what economic system does the govern-
beliefs, values and learned ways of life ment determine what to produce, how to
shared by a group of people. produce it, and how to market it?

A. niche A. Traditional Economy
B. economics B. Market Economy
C. worldview C. Command Economy
D. culture D. Mixed Economy
23. A giveaway of cash or public resources 28. Which people are likely to be against
that is intended to encourage a particular the Great Lakes Water Quality Treatment
activity or lower the price of a product. Agreement?
A. cap-and-trade A. fishermen who catch fish in the lakes.
B. subsidy B. homeowners who live along the lakes.
C. green tax C. factory owners in the area of the lakes.
D. command and control D. people who get their drinking water

from the lakes,
24. A service is something that someone does
29. American transcendentalist writer who
for you. A good is a something you buy
viewed nature as a direct manifestation of
and consume. Which of these examples
the divine
are a good and a service.
A. Robert Wilson
A. You buy a book and the author signs it.
B. Henry David Thoreau
B. You get a hair cut.
C. Roderick Nash
C. You won a book at the book fair.
D. John Ruskin
D. Your brother sells you his old bike.
30. Which of these would not be a reason for
25. would oppose fuel efficiency standards the air pollution in BOTH India and China?
because they believe “we will find more
oil” to solve the fossil fuel crisis. A. heavy population
A. Cassandras B. car emissions
B. Conservationists C. industrial waste
C. Preservationists D. burning animal dung for cooking
D. Cornucopians 31. The branch of the government that creates

new policy and is composed of the House
26. GPI is an acronym for of representatives and the Senate.
A. Gas Price Index A. Legislative branch
B. Genuine Progress Indicator B. Executive branch
C. Global Pollution Index C. Judicial branch
D. Graduated Price Indicator D. Governmental branch

32. Cassandras are 37. The currency of India is called the

A. an invasive species A. rupee
B. people who believe that technology B. yen
will find new resources C. yuan
C. people who acknowledge that the D. won
Earth’s resources are finite
38. Manufactured materials and products that
D. followers of Plato consumers purchase.
NARAYAN CHANGDER
33. The field of economics applies the prin- A. Economics
ciples of Earth’s systems, such as a balance B. Goods
of inputs and outputs, to economics. C. Supply
A. ecological D. Services
B. non-market
39. If one nation’s laws make it impossible
C. market for another nation to sell its goods there,
D. environmental which organization is most likely to get in-
volved?
34. What will happen to the population when A. the World Bank
the birth rate is larger than the death B. the United Nations
rate?
C. the World Trade Organization
A. grow
D. the Environmental Protection Agency
B. shrink
40. What is the total amount of payment re-
C. stay the same ceived from a consumer for a good or ser-
D. none of above vice?
A. Costs
35. Greenpeace, Population Connection, and
Conservation International are examples B. Profits
of C. Deductions
A. international treaties. D. Revenue
B. European Union (EU) member states.. 41. Which of the following include all others
C. World Bank members A. Community
D. Non-governmental Organizations B. Population
(NGOs). C. Ecosystems
36. What area in Canada is most affected by D. Biosphere
acid rain? 42. Ecosystem services include
A. Canadian Shield A. erosion
B. Rocky Mountains B. global warming
C. Great Lakes C. genetically modifying food
D. Arctic Ocean D. pollination of plants

43. Use Values are 49. When a government gives cash to an indus-
A. Actual Use and Option Use try to support an activity of the industry,
this is known as

B. Bequest use and Option Use
A. a tax break
C. Actual Use and Alturism Values
B. a subsidy
D. Existence Use and Bequest Value
C. a green tax
44. In which country was toilet paper first
used? D. command-and-control
A. India 50. Coal, oil, and natural gas are all examples
B. China of
C. North Korea A. alternative energy sources.
D. Japan B. capital resources.
45. A(n) is best defined as one who eval- C. fossil fuels.
uates an action based on its impact on hu- D. renewable resources.
man health, economic costs and benefits
and aesthetic concerns. 51. Which step of the environmental policy
A. biocentrist process usually requires the use of sci-
ence?
B. ecocentrist
A. helping a solution become a law
C. anthropocentrist
B. gaining access to policymakers
D. ethnocentrist
C. pinpointing causes of the problem
46. What country is no longer a part of the
Paris Climate Agreement D. getting organized to take action
A. N.K, U.S, China 52. Services provided by Earth’s systems are
B. North America said to have values-values not usually
included in the price of a good or service.
C. U.S, U.K, Syria
D. U.S A. internal
B. non-market
47. A complete stop or block on trade is called
a(n) C. cost-benefit
A. embargo D. external
B. tariff 53. CV is a method
C. quota A. of recovering information about men
D. subsidy willingness to payfrom direct question
48. The Chinese currency is called the B. of recovering information about
women willingness to payfrom direct
A. rupee
question
B. yen
C. of recovering information about pref-
C. yuan erences or willingness to payfrom direct
D. won question

D. of recovering information about swim- A. climate change.

mers willingness to payfrom direct ques- B. acid rain.
tion
C. flooding.
54. Things that we appreciate for beauty, that D. erosion
help define our culture, or that teach us
about ourselves are said to have 59. Which of these worldviews could also be
called earth centered?
A. market failures.
A. Planetary management worldview
NARAYAN CHANGDER
B. ecolabels.
B. Environmental wisdom worldview
C. non-market values. C. Stewardship worldview
D. cost-benefit analysis. D. Human centered worldview
55. The amount of product people will buy at 60. Which American Persident is famous for
a given price. instituting the protection of the California
A. Economics Wilderness in the early 1900s?
B. Supply A. John Quincy Adams
B. Woodrow Wilson
C. Services
C. William McKinley
D. Demand
D. Theodore Roosevelt
56. Water pollution from factories in Tijuana,
61. What needs to be done first before propos-
Mexico, caused beach closures in San
ing a solution to an environmental prob-
Diego, California, that hurt the local econ-
lem?
omy. Because the pollution did not directly
affect the buyers or sellers of factory prod- A. Help a solution become a law.
ucts, losses due to the pollution are consid- B. Gain access to policymakers.
ered costs. C. Get organized to take action.
A. external D. Identify the specific causes of the
B. internal problem.
C. supply 62. This river flows 1600 miles through In-
D. demand dia and Bangladesh and provides water for
over 400 million people along its path.
57. British utilitarian who promoted the idea A. Ganges
that actions should maximize the overall
B. Yangtze
benefit to the most people.
C. Nile
A. Aldo Leopold
D. Huang He
B. Henry David Thoreau
63. One of the criticisms of the World Bank is
C. Jeremy Bentham
that it
D. John Muir
A. places too much emphasis on protect-
58. Canada’s large amount of granite in its ge- ing natural resources.
ography makes it more at risk to be dam- B. doesn’t always fund projects that are
aged by environmentally sustainable.

C. does not cooperate enough with the 68. When the government determines how
United Nations and the European Union. much of a specific pollution it will allow,
it issues permits that allows a certain

D. has too much power and can overrule
national regulations. fraction of this amount. Permits for this
amount can be bought, sold and traded.
64. What is the main advantage of a system of A. Command and Control
tradable permits relative to a carbon tax?
B. Subsidy
A. The level of total emissions is known
C. Cap and Trade
with certainty.
D. Green Taxes
B. It is easier to understand.
C. It results in a lower level of price in- 69. Acid rain can damage
creases to consumers. A. Drinking water sources
D. The price of permits is known with cer- B. Aquatic life
tainty. C. Architecture/buildings
E. It encourages technological innova- D. All options are correct
tion.
70. This is the federal organization that en-
65. An ecosystem is defined as sures that all Americans are protected
A. the transition zone between grassland against specific hazards to the environ-
and desert ment and human health where they learn,
work and live.
B. a group of interactive species and their
environment. A. Department of Energy
C. a body of freshwater. B. Nuclear Regulatory Commission
D. the lowland area on either side of a C. Environmental Protection Agency

river. D. Energy Policy Act
E. all choices are correct 71. All of the following are nonrenewable re-
sources EXCEPT
66. The currency of North Korea is the
A. wood
A. rupee
B. oil
B. yen
C. coal
C. yuan
D. water
D. won
72. Proposed the categorical imperative,
67. What major entity of the U.S. government which advocates treating others as you
has the chief responsibility for overseeing would like to be treated. This is commonly
environmental regulations? called the “golden rule”.
A. Environmental Impact Statement A. Robert Wilson
B. Environmental Protection Agency B. Henry David Thoreau
C. National Park Service C. Immanuel Kant
D. Supreme Court D. Gifford Pinochot

73. Which of the following pollution control C. Aldo Leopold

policy instruments are marked based?
D. John Ruskin
A. Pollution taxes and tradable pollution
permits 78. What is the first step in the environmental
B. Technology-based regulations and policy process?
emission standards A. guide the solution to law
C. Pollution taxes and emission stan- B. get organized
NARAYAN CHANGDER
dards
C. identify the problem
D. Emission standards and tradable pollu-
tion permits D. gain access to policy makers
74. An international treaty designed to protect 79. What is a good which is produced domes-
the ozone layer by phasing out the produc- tically but sold in a foreign country?
tion of numerous substances that are re-
A. Import
sponsible for ozone depletion. Cut CFCs in
half. B. Export
A. The Paris Accord C. Gross Domestic Product
B. The Montreal Protocol D. Human Development Index
C. The Kyoto Meeting
80. What do you call someone who makes or
D. Resource Recovery Act provides a good or service for purchase?
75. Jenis environmental standard adalah A. Producer
A. Ambient standard B. Consumer
B. Technology-based standard C. Demand
C. Performance-based standard D. Supply
D. Semua benar
81. An example of “greenwashing” is
76. It is never permissible to harm a child in
any way for any reason.This view is most A. ecolabeling
likely held by a B. using biodegradable paints
A. relativist C. discounting future effects
B. realist D. creating the illusion of sustainable
C. universalist practices
D. utalitarian
82. How long a person is expected to live is
77. Californian ecocentrist and anthropocen- called what
trist who argued that we should protect A. labor
America’s natural environment in its pris-
tine, unaltered state. B. high GDP
A. John Muir C. life expectancy
B. Roderick Nash D. low GDP

83. Use the statements below to answer the 87. Seasonal winds that bring wind and rain
next question.1. Fish in lakes die.2. that serve as both a blessing and a curse
Forests begin to die.3. Bicycle use in- to SE Asian countries are called

creases.4. Stone statues begin to lose A. monsoons
their features.Which statements are prob-
lems that result from acid rain? B. hurricanes
C. tornadoes
A. 1, 2, 3
D. El Ninos
B. 2, 3, 4
C. 1, 2, 4 88. People who provide the money to start
and operate a business are called
D. 1, 3, 4
A. servicemen
84. Which of the following gives value to all B. employees
living things, both human and nonhuman? C. entrepreneurs
A. biocentrism D. dictators
B. environmentalism 89. When countries concentrate on producing
C. anthropocentrism fewer goods and services than they con-
sume this is called
D. ecocentrism
A. itemization
85. In the United States, during the 1960s and B. specialization
1970s, what was one of the events that C. downsizing
triggered increased awareness of environ-
ment problems? D. investment
A. the creation of the national park sys- 90. Which act protects fish, shellfish, and
tem wildlife in rivers, lakes, streams and
oceans?
B. the publication of Silent Spring by
Rachel Carson A. Pollution Prevention Act
C. the displacement of millions of Native B. Energy Independence and Security Act

Americans C. Energy Policy Act
D. a rapid increase in westward expan- D. Clean Water Act
sion
91. What is the general increase in prices over
time?
86. Sometimes, a company that generates pol-
lution will pay extra taxes, based on the A. Inflation
amount of pollution it produces. These are B. Deflation
known as
C. Stagflation
A. green taxes
D. Hyperinflation
B. command and control taxes
92. This country’s GDP is 4.56 trillion and it is
C. subsidy taxes ranked 5th in the world.
D. cap and trade taxes A. China

B. India C. making any environmental decisions.

C. North Korea D. None of these are correct
D. Japan E. all choices are correct
93. A power company is given free land by the
98. The # of children who do not survive to one
government to reduce the cost of provid-
year of age per 1, 000 people is known as
ing wind-generated electricity to rural res-
the
idents. This is an example of a
NARAYAN CHANGDER
A. Crude Death Rate
A. command and control approach
B. cap and trade system B. Total Fertility Rate
C. subsidy C. Dependency Ratio

D. green tax D. Infant Mortality Rate
94. Fracking deals with 99. A formal set of plans and principles to ad-
A. Rain Water and Oil Extraction dress problems and guide decision making.
B. Oil Extraction and Drilling A. Police men
C. Rock and Rain Water B. Policy
D. Natural Gas and Oil Extraction C. Veto
95. What international organization issued a D. Enacted
ruling that forced the U.S Environmental
Protection Agency (EPA) to weaken its reg- 100. Which of the following includes volunteer
ulations requiring cleaner gasoline? work and damage from pollution in a coun-
try’s goods and services?
A. the World Bank
A. GDP
B. the European Union
C. the United Nations (U.N.) B. GNP
D. World Trade Organization (WTO). C. GPI

D. GAP
96. What is Crop Rotation?
A. Nothing 101. Developed countries, in the year 2000,
B. Crop growing then chaging after a day pledged to devote 0.7% of their na-
tional income toward reducing hunger and
C. growing multiple or different types of
poverty and moving toward environmen-
crops in the same area in different sea-
tal sustainability. What is the average ac-
sons
tual amount donated by these countries?
D. every two
A. 2.0%
97. Economics factors should be considered B. 1.5%
when
C. 1.5%
A. reducing the number of oil spills
D. 0.50%
B. increasing the amount of waste in log-
ging E. 0.25%

102. “If domestic fuel prices increase to $5 106. In this country farms are run and orga-
per gallon, conservation will increase, al- nized by the government and the people
ternative fuels will be developed, and en- are told what to grow and how much to

ergy efficiency and quality of life will im- grow.
prove”This philosophy is consistent with
A. North Korea
economics
B. Japan
A. environmental
C. India
B. neoclassical
D. China
C. social
D. cooperative 107. The market model that is suitable for an-
alyzing environmental problems is
103. Which statement about environmental
policy in the United States is true? A. Monopoly market
A. All three branches of government are B. Free market

involved in environmental policy. C. Hypothetical market
B. The environmental policies have al- D. All true
ways been successful.
C. All important environmental policies 108. Producing effective environmental policy
are created at the federal level. requires input from
D. Environmental policy is based only on A. ethics.

scientific information. B. economics.
104. Why are government subsidies often con- C. science.

troversial in the United States? D. all of the above
A. They increase the prices of many prod-
ucts. 109. What is a direct cost of driving a domestic
car?
B. They are seen as a limit on individual
rights and freedoms. A. non-renewable resource use
C. Subsidies are unable to encourage ac- B. cost to manufacture
tivities that protect the environment. C. release of greenhouse gases
D. Enormous subsidies are provided for D. disturbing land
nonrenewable fossil fuels.
E. air and water pollution
105. consists of a formal set of general
plans and principles for addressing prob- 110. The Clean Air Act is monitored and en-
lems and guiding decision-making. forced by the
A. Environmental Policy A. The Paris Accord
B. Judicial Branch B. GSA-Government Services Agency
C. Policy C. Virginia
D. All of the Above D. EPA-Environmental Protection Agency

111. Specific examples of potentially renew- 116. Many groups try to influence government
able natural resources are: policies through
A. water, soil, air, and oil A. Crying
B. timber, water, and mineral resources B. Preaching
C. forests, water, and soil C. Lobbying
D. tidal energy, water, and mineral ores D. Doing Nothing
NARAYAN CHANGDER
112. Some people argue that because Earth’s 117. Canada’s acid rain problem comes mainly
resources are ultimately limited, nonstop from what?
economic growth is
A. clearcutting of trees
A. not a problem
B. emissions from factories and vehicles
B. inevitable
C. polluted farmland
C. not sustainable
D. mining waste seeping into ground wa-
D. highly desirable ter
113. Designed to protect the ozone layer by
118. What are two things people rely of
phasing out substances responsible
forests for?
A. Montreal Protocol
A. food and transportation
B. Kyoto Protocol
B. oxygen and filter for pollutants
C. Madrid Protocol
C. shelter and transportation
D. Yucca Protocol
D. water and oxygen
114. Which period of U.S. environmental pol-
icy created the Wilderness Act and the 119. American school of philosophy exempli-
Soil Conservation and Domestic Allotment fied by Emerson and Whitman which saw
Act? nature as a symbol of deeper spiritual
truth
A. the first period (1780s to late-1800s)
A. ecofeminism
B. the second period (late-1800s to mid-
1900s) B. pantheism
C. the third period (mid-to late-1900s) C. transcendentalism
D. the fourth period D. preservationism
115. What country has polluted their water 120. The 2nd period of Environmental Pol-
sources by tossing cremated remains into icy dealt mainly with problems associated
the river? with
A. India A. Westward expansion
B. Japan B. illegal parking
C. North Korea C. illegal National forests
D. China D. illegal National Parks

121. Subsidies and tax breaks for environmen- 126. Body of water that forms Mexico’s east
tally harmful businesses cost the world’s coast
taxpayers what amount per year?

A. Gulf of California
A. $2 trillion B. Gulf of Aden
B. $200 billion C. Gulf of Mexico
C. $150 billion D. none of above
D. $1 billion
127. Material and energy cannot be created
E. $500 million and cannot be destroyed
122. In this type of economic system all deci- A. First Law of Thermodynamics
sions are based on customs and traditions B. Second Law of Thermodynamics
of the past.
C. Third Law of Thermodynamics
A. command
D. Fourth Law of Thermodynamics
B. market
128. What will happen to the population when
C. mixed market
the death rate is larger than the birth
D. traditional rate?
123. A law that prohibits dumping wastes into A. grow

the ocean and punishes people who dump B. shrink
wastes demonstrates which approach to
C. stay the same
environmental policy?
D. None of these
A. green tax
B. command-and-control 129. This country’s fertile land and ample wa-
ter supply are its’ greatest resources but
C. cap-and-trade
it also has the 4th largest coal reserves in
D. subsidy the world.
124. Global increases in carbon dioxide emis- A. China

sions are primarily due to B. India
A. global warming. C. Japan
B. agriculture D. North Korea
C. habitat destruction 130. A cost-benefit analysis is a(n)
D. fossil fuel use. A. study of the factors that influence de-
cisions of buyers and sellers.
125. The country with the highest GDP per
capita is B. economy in which the government de-
cides what is made.
A. China
C. equilibrium between a product’s sup-
B. North Korea
ply and its demand.
C. India D. comparison between what is sacri-
D. Japan ficed and gained by a specific action.

131. This country heavily emphasizes educa- 136. Where in Canada are the most valuable
tion and the people who live there are minerals found?
among some of the highest educated peo- A. Hudson Bay
ple in the world.
B. Canadian Shield
A. North Korea
C. Golden Horseshoe
B. China
D. St. Lawrence Seaway
C. India
NARAYAN CHANGDER
D. Japan 137. What measures might consumers take to
aid in the fossil fuel crisis?
132. This government agency is responsible
A. lobby the government to stop industry
for ensuring food is safe for people
permit trading
A. FDA(food and drug administration)
B. protest high taxes on fossil fuels
B. EPA (environmental protection
C. use public transportation and demand
agency)
high-efficient vehicles
C. NRA (national rifle association)
D. purchase only imported fuel
D. none of above
138. What was the Kyoto Protocol?
133. One approach that can be taken to reduce
pollution by the government is? A. Commits state parties to reduce green-
house gas emissions
A. Sameulson tax
B. Keep Global tempures below 2C
B. Pigouvian tax
C. Commit state Parties to stop green-
C. Abatement tax house gas emissions
D. Pollution tax
D. Commit state parties to go to reduce
134. In this type of economic system all eco- space pollution
nomic decisions are guided by the laws of
139. What statement about cap-and-trade
supply and demand.
systems is true?
A. command
A. It prohibits companies from emitting
B. market any pollution.
C. traditional B. It consistently reduces pollution in all
D. mixed market areas.
C. It always leads to positive environmen-
135. Which statement is consistent with the
tal results.
stewardship worldview of the environ-
ment? D. It issues permits that allow companies
to emit a percentage of the overall amount
A. Bats should be protected because
of a given pollutant.
there is nothing like them.
B. Bats are protected b/c they feed on 140. Which of these is not a problem caused
pests like mosquitoes. by acid rain?
C. None of the above A. trees dying
D. none of above B. increased snowfall

C. fish dying B. natural resources.

D. polluted lakes C. economies.

141. Every policy, including in the environmen- D. ecosystems.
tal sector, must have negative effects. If
in the environmental market, the loss due 146. Fossil fuels are
to this policy is called? A. non-renewable resources
A. Deadweight loss B. political resources
B. Deadweight profit C. cultural resources
C. Deadweight margin D. renewable resources
D. All wrong
147. Work that someone does for others as
142. Which of the following has contributed to their business.
the rapid increase in crude oil prices over
the past decade? A. Economics
A. decrease in demand for oil B. Goods
B. increased availbility of fossil fuels C. Services

C. higher gas taxes D. Supply
D. increase in demand for oil 148. What do you call the tools and equipment
143. Which of the following pollution levels is needed to create a good or service?
the optimal level of pollution according to A. Capital Resources
economists?
B. Human Resources
A. Pollution according to the equimarginal
principle C. Land Resources
B. Unregulated market outcome D. Entrepreneurial Ability
C. When the marginal damage of pollu- 149. Which term refers to what one believes
tion is smaller than the marginal benefits about what is right and what is wrong in
D. Zero pollution our behavior toward the environment?
A. environmental worldview
144. The first laws in U.S. environmental pol-
icy B. environmental justice
A. banned use of certain chemicals C. environmental voting
B. dealt primarily with the management D. environmental ethics
of private land
C. promoted settlement in the West 150. What President instituted the EIS and the
EPA
D. promoted preservation of endangered
species A. Reagan
B. Ford
145. The sun’s energy, fresh water, trees,
rocks, and fossil fuels are all examples of C. Kennedy
A. non-market values. D. Nixon

151. How did the countries in the Kyoto pro- 156. Which school of economics considers nat-
tocol commit to keeping the agreement? ural capital to be important but not indis-
A. International fines imposed by the in- pensable?
ternational committee A. classical
B. Establishment of Adaptation Fund B. neoclassical
C. By setting internationally binding emis- C. capitalistic
sion reduction targets
D. capitalistic
NARAYAN CHANGDER
D. By Military force
E. socialistic
152. This country’s GDP is estimated at $40
157. Mexico and Central America are bordered
billion and it is ranked 103 in the world.
by what ocean on the west?
A. China
A. Atlantic
B. North Korea
B. Gulf of Mexico
C. India
C. Artic
D. Japan
D. Pacific
153. What is the government of Canada doing
to protect the forests? 158. Which is NOT one of our basic needs?
A. planting seeds and seedlings. A. Money to buy lots of things
B. spending billions of dollars selling B. Good physical and mental health

forests. C. A sense of belonging
C. encouraging clear-cutting to keep lum- D. A secure and meaningful livelihood
ber costs down.
159. The weakness of the standard uniform
D. providing new homes for wildlife and
is?
new areas for human recreation.
A. Resources are wasted if emission re-
154. The branch of the government that either duction costs differ from one another
enacts or vetos a new policy or law. The
president is a big part of this branch. B. Resources are put to good use to re-
duce pollution
A. Legislative branch
C. Pollution is very difficult to overcome
B. Executive branch
D. There are companies that make reduc-
C. Judicial branch tions and some do not reduce emissions
D. none of above
160. The decision to produce goods and ser-
155. Commonly used risk management strate- vices that can generate maximum profit
gies are: with existing natural resources is called?
A. Comparative-risk analysis A. Technical efficiency
B. Risk-benefit analysis B. Input efficiency
C. Benefit-cost analysis C. Input output efficiency
D. All true D. All true

161. The laws enacted during this period dealt 166. Which of the following religions is domi-
primarily with the management of public nant in India
lands.

A. Buddhism
A. The third period (mid-to-late-1900’s)
B. Hinduism
B. The first period (1780’s-1800’s)
C. Islam
C. The second period (late-1800’s to mid-
1900’s) D. Confucianism
D. Homestead Act of 1862
167. What branch of the government ap-
162. Trading goods and services without the proves or vetos environmental legisla-
use of money is called tion?
A. stealing A. Legislative
B. bartering B. Judicial
C. purchasing C. Executive
D. debting D. none of above
163. Forest Ranger in Arizona and New Mex-
ico in the early 1900s who advanced 168. Which school of economics views the
preservation of nature’s integrity. He earth’s natural capital as a subset, or part,
wrote “ to keep every cog and wheel of a human economic system?
is the first precaution of intelligent tinker- A. classical
ing “
B. neoclassical
A. Aldo Leopold
C. capitalistic
B. John Muir
D. ecological
C. John Ruskin
D. Gifford Pinchot E. socialistic
164. Where does 50% of Canada’s air and wa- 169. Why don’t environmental management
ter pollution come from? standards work?
A. USA A. Limitations of laws and regulations
B. Europe B. Limited information
C. Mexico C. Non-uniformity of pollution
D. Hudson Bay area
D. All true
165. A team of ecologists and economists es-
timated the yearly ecological services pro- 170. The study of how resources are con-
vided by the earth’s forests amount to verted into goods and services and also
how these goods are used and distributed.
A. $259 billion
A. Economics
B. $551 billion
C. $856 billion B. Supply
D. $1.3 trillion C. Demand
E. $4.7 trillion D. Services

171. Who is best known as the founder of the C. ensure that resources are shared
Sierra Club? fairly
A. Ralph Waldo Emerson D. All of the above
B. Aldo Leopold 177. These three branches of govt. are in-
C. John Muir volved in environmental policy
D. Walter Sierra A. IRS, EPA, EIS
172. Sustainable use of natural resources B. Legislative, Environmental, Judicial
NARAYAN CHANGDER
A. preservation C. Judicial, Executive, Legislative
B. protection D. Environmental, Executive, Judicial
C. conservation 178. The currency of Japan is called the
D. destruction A. rupee
173. Conservationist who advocated protec- B. yen
tion of nature for its beauty and useful- C. won
ness; founder of the US Forest Service.
D. yuan
A. Aldo Leopold
179. Subsistence Agriculture
B. Robert Wilson
A. Food that is raised to sell
C. Gifford Pinchot
B. Food that is raised for personal use
D. Immanuel Kant
C. Food that is not raised
174. Which of the following is one of the main
D. Not food
goals of environmental policy?
A. restrict individual freedoms 180. Decision makers commonly use a method
known as in which they compare what
B. maintain rapid economic growth
they will sacrifice and gain by a specific
C. protect the rights of businesses action.
D. ensure that resources are shared A. Economics
fairly
B. Ecological economics
175. tells consumers which brands are C. Supply and Demand
made with processes that do not harm the
environment. D. Cost-benefit analysis
A. marginal product 181. What does the principle of enoughness

B. non-market value state?
C. ECO-LABELING A. Celebrate and protect biodiversity.
D. none of above B. Earth’s resources should be enjoyed

as long as one works for them.
176. What is the purpose of environmental C. Use matter and energy resources as
policy? efficiently as possible.
A. to protect environmental quality D. Earth provides enough for everybody’s
B. protect natural resources need, but not everyone’s greed.

182. Involves the exchange of goods and ser- B. Erosion of soil stops.C. Timber compa-
vices between nations. nies save money.

A. International trade C. Wildlife loses large areas of habitat.
B. free trade D. none of above
C. trade barriers
188. “If domestic fuel prices rise to $5 per gal-
D. International diplomacy lon, growth will slow significantly and our
quality of life will decline. “This philoso-
183. The amount of a product offered for sale
phy is consistent with economics.
at a given price is
A. environmental
A. benefit
B. neoclassical
B. cost
C. subsistence
C. demand
D. social
D. supply
184. What can you do with fresh water that 189. What is one of the main reasons a city
you cannot do with salt water? like Pittsburgh has strong environmental
policies?
A. fish
A. It is very wealthy and has vast finan-
B. irrigate (water) crops cial resources.
C. sail a boat B. All cities have strong environmental
D. swim in it policies.
185. What is an important resource that Cana- C. It has dealt with the impact of messy
dians share with the United States in environmental cleanups.
which both are looking to prevent chemi- D. It has always been aware of environ-
cals from harming? mental issues.
A. the Great Lakes 190. A set limit on the number of goods that
B. Hudson Bay can be imported into a country is called a
C. Canadian Shield A. blockade
D. the Flint River B. standard
186. With the approach to environmental C. tariff
policy, a government body sets rules and D. quota
threatens punishment for violations.
191. Air pollutants that are emitted in one
A. Command-and-control
country may travel on wind currents far
B. cap-and-trade across the globe and affect other countries.
C. short-term costs and benefits This is an example of a(n)
D. none of above A. internal cost.
187. Which is a problem related to clear- B. command-and-control approach.

cutting? C. international treaty.
A. Soil is turned up. D. transboundary problem.

192. In what economic systems do private cit- 197. Another environmental problem in
izens determine what to produce, how to Canada is what?
produce it, and how to market it?
A. Pollution of Great Lakes
B. Increase in insects
B. Market Economy
C. Erosion of Rocky Mountains
C. Command Economy
D. Mixed Economy D. Increase in snowfall
NARAYAN CHANGDER
193. Ecological economists see all human 198. Common Pool Resource-A characteristic
economies as of the biosphere that de- of public goods is that use of the good by
pend on natural capital provided by the sun one person does not reduce its availability
and Earth. to others. The term for this characteristic
A. subsystems is
B. large components A. Transferable
C. man-made components B. Non-exclusive
D. profit-driven systems C. Non-rival
194. Which act was created by the US Environ- D. Perfectly elastic
mental Protection Agency to authorize the
National Ambient Air Quality Standards 199. A factory owner has permits to release
(NAAQS) to assist in the creations of law 10 units of a certain pollutant, but only
to protect the environment? needs to release 5 units, so the owner
A. National Environmental Policy Act sells the permits for the extra 5 units to a
factory that releases more pollution than
B. Clean Air Act
allowed. This is an example of a(n)
C. Energy Independence and Security Act
A. government subsidy.
D. Energy Policy Act
B. cap-and-trade system.
195. there are 3 aims for modern environmen-
tal policy. 1. Protect environmental qual- C. green tax.
ity. 2. Protect natural resources and 3 D. command-and-control system.
A. Execute violators
200. Which statement about the relationship
B. Create hurrendous laws
between economics and the environment
C. See that resources are shared fairly is true?
D. See that the highest bidder is re- A. Internal and external environmental
warded with the resources costs are usually considered equally.
196. A producer will raise the price and supply B. Harm to the environment can harm
of a product when the economies.
A. demand is low.
C. Long-term effects often receive more
B. demand is high. weight than short-term effects.
C. price is high. D. The relationship usually receives seri-
D. market is in equilibrium. ous consideration.

201. Which branch of the U.S. government 206. The Environmental Impact Statement
is involved in interpreting environmental (EIS) process requires government agen-
laws and hearing lawsuits regarding envi- cies and businesses that contract with

ronmental issues? them to
A. state governors A. conduct every project in a completely
sustainable manner.
B. judicial branch
B. celebrate Earth Day every April.
C. legislative branch
C. evaluate the impact on the environ-
D. executive branch ment before proceeding with a project.
202. There are several models of risk analysis, D. abandon any project that may affect
except the environment.
A. Hazard identification 207. How much pollution comes from the
B. Dose-response analysis United States to southern Canada?
C. Risk exposure A. 30 to 45 percent

B. 45 to 60 percent
D. Exposure analysis
C. 50 to 75 percent
203. What is the trade agreement between D. 40 to 70 percent
Mexico, Canada, and the U.S.?
A. Mexican Cartel 208. Which industry would MOST LIKELY be
found to be profitable in the area known
B. U.S. Trade Agreement as the Canadian Shield?
C. NAFTA A. mining
D. SAFTA B. manufacturing
C. fishing
204. Economics depend on from the envi-
ronment to provide products. SO, no D. farming
= no economy.
209. A human-centered view of our relation-
A. demand ship with the environment is known as
B. resources A. biocentrism
C. cost-benefit analysis B. environmentalism
D. supply C. anthropocentrism
D. ecocentrism
205. Providing low-interest loans to 3rd
world countries to support infrastructure 210. Which of these countries does not have a
is the job of mixed market economy?
A. World Trade Organization (WTO) A. China
B. Greenpeace B. India
C. European Union (EU) C. Japan
D. World Bank D. North Korea

211. When demand for a product is low, the 216. Trading goods and services with people
producer will for other goods and services is called
A. raise price and drop supply A. investment
B. raise price and supply B. blockade
C. drop price and raise supply C. recruiting
D. drop price and supply D. exchange
NARAYAN CHANGDER
217. How does mining in the Canadian Shield
212. Nearly 90% of Canada’s population lives
impact its environment?
A. within 100 miles of the border of the
A. causes damage and ruins the environ-
United States.
ment
B. along the west coast of British
B. destroys pollution
Columbia.
C. attracts more animals and insects
C. beside the St. Lawrence waterway.
D. provides more fresh air
D. in the province of Quebec.
218. Investing in the human capital will most
213. One of the disadvantages of technology- likely result in an increase in a country’s
based standards is:
A. Companies can’t look for the cheapest
B. fossil fuels
technology
C. GDP
B. The company is trying to do pollution
D. labor force
C. Pollution is not the same between re-
gions 219. is the study of how resources are con-
D. All true verted into goods and services and how
these goods and services are distributed
214. A study of how people make decisions and used.
about resources by weighing costs and A. Supply and demand
benefits
B. Cost-benefit analysis
A. Environmenal Science C. Economics
B. Economics D. Socialism
C. Chemistry
220. Environmental quality is almost the same
D. Physiology as the case of public property, the charac-
teristics of public property are?
215. Some resources, such as fossil fuels, are
and cannot be replaced A. Nonrival in consumption-nonexcludable
A. RENEWABLE
B. Rival in consumption-Excludable
B. NON-RENEWABLE
C. Unexpected consumption and exclu-
C. SUSTAINABLE sion
D. none of above D. All true

221. How many periods is US Environmental 226. This country’s major natural resources
Policy divided? are fish and minerals.

A. 4 A. Japan
B. 3 B. China
C. 2 C. India
D. none of above D. North Korea
222. Taxes imposed on companies that partic- 227. “Energy Star, “ “USDA Organic, “ and
ipate in activities that produce products “Fair Trade Certified” are all examples of
harmful to the environment are known as
A. ecosystems.
A. Black taxes B. ecolabelling.
B. Subsidies C. non-market values
C. Green Taxes D. market failure.

D. Command and Control taxes 228. Failure in environmental management
due to?
223. This river is China’s longest river and it
flows 4000 miles through China. A. There are no property rights
A. Yellow River B. Ada property right
B. Nile C. Public property rights
C. Ganges D. All true
D. Yangtze
229. Which is a benefit of mining in Canada?
224. Ultimately, where do economies get their A. Valuable mining lands are located near
resources and put their wastes? cities.
A. factories B. Waterways are polluted in the process
B. cities of mining.
C. households C. Over 1.5 million people work in the min-

ing industry.
D. ecosystems
D. Sulfer dioxide (SO2) is spewed into the
225. What is theocracy? air and lands in waterways.
A. The ruler (usually a king or a queen) in-
230. How can I reduce environmental impact?
herits power.
A. Buy corn syrup based products
B. The monarch is a symbolic head of
state and shares power with a legislature. B. Live in suburbs
C. A government is given power by the C. Use water-saving showers, toilets,
governed. and other devices
D. Government is controlled by a reli- D. Evaluate resource consumption regu-
gious person. larly

231. Hydroelectric power is generated by 236. System in which people produce, sell, and
buy things:
A. coal power plants
B. nuclear reactors
B. Economy
C. water
C. Entrepreneurship
D. windmills
D. Capital
232. Lobbying and making campaign contribu-
NARAYAN CHANGDER
tions are ways to 237. Which of the following environmental is-
sues is most impacted by clear-cutting?
A. pinpoint causes of environmental prob-
lems. A. Acid Rain
B. get people organized to take action. B. Deforestation
C. gain access to environmental policy- C. Water Pollution
makers.
D. Mining the Canadian Shield
D. propose solutions to environmental
problems. 238. The fair treatment and meaningful in-
volvement of all people regardless of race,
233. What is the total amount of a good or color, national origin or income with re-
service available for purchase? spect to the development, implementation
and enforcement of environmental laws,
A. Producer
regulations and policies are the premises
B. Consumer of
C. Demand A. environmental justice
D. Supply B. conservation
234. Which of the following is a reason for con- C. land ethics

flict? D. socialism
A. competition for scarce resources
239. Which of the following is NOT a result of
B. natural disasters clear cutting?
C. ethnic neighborhoods A. reduced water quality
D. economic advantage B. erosion of the soil
235. are materials or substances such as C. loss of wildlife habitat

minerals, forests, water, and fertile land D. reduced amounts of timber for trade
that occur in nature and can be used for
economic gain. 240. A tax on imported goods is called a
A. Fossil fuels A. quota
B. Synthetic resources B. tariff
C. Natural resources C. blockade
D. Common resources D. subsidy

1.12 Demography 509
241. Which branch of the government inter- 245. Which of the following is considered a
prets policy and hear complaints of individ- non renewable resource?
uals or companies if they feel these poli-

A. Iron
cies infringe on their rights.
B. Trees
A. Legislative
C. Soil
B. Executive
D. Water
C. Judicial
246. What does GMO stand for?
D. none of above
A. Genetically Modified Organism
242. Laws requiring hunters to obtain hunting B. Genius Modified Organism
licenses is an example of
C. Genetically Modified Organelle
A. regulation D. Genetically Magical Organism
B. subsidy shifting
247. When a government sets rules for en-
C. microlending vironmental quality and threatens punish-
D. full-cost pricing ment for violations, this is known as
A. Cap and trade
243. The first Canadian-American plan to clean
B. Command and Control
the Great Lakes was to reduce which chem-
ical? C. Subsidy
A. detergent D. Lobbying
B. fertilizer 248. A situation in which the free market, op-
C. pesticide erating on its own, does not distribute re-
sources efficiently is called
D. phosphorus
A. non-market values.
244. Which of these would be MOST impacted B. ecological economics.
by acid rain falling in the Great Lakes re- C. market failure.
gion of Canada and the United States?
D. non-market values.
A. acid raid would slow transportation on
the Great Lakes 249. Which worldview advocates for the con-
cept that humans are a part of Earth’s sys-
B. the timber industry would cease to ex-
tems?
ist
A. human-centered
C. water pollution would damage the fish-
ing industry B. life-centered
D. pollution would cause the lakes to C. Earth-centered

freeze in winter D. environmental
1.12 Demography

1.12 Demography 510
1. The number of children the average C. demography

woman has. D. urbanization
A. Infant Mortality Rate
7. Average number of people who live in a
square mile
C. Physicians Density
A. population density
D. Fertility Rate
B. population average
2. The per capita GDP for India is $6600
NARAYAN CHANGDER
C. population distribution
while it is $64, 767 in the US. A lower
D. population
standing of living and poor income is
A. This is a sign of a developed country 8. Why was fresh water important for early
B. This is near the world average civilizations?
C. This is a sign of a less developed coun- A. to drink and fish

try B. to eat
D. none of above C. to swim in
3. The spread of culture traits from one re- D. to plant crops, fish, drink, and bath in
gion to another.
A. cultural diversity forced migration?
B. ethnic group A. Africans being taken from Africa to be
C. culture sold into slavery
D. cultural diffusion B. A family moving to the US from Mexico
in search of work
4. An activity or behavior in which people of-
ten take part. C. Europeans establishing colonies in the
New World
A. culture
D. People leaving Benin for better farm-
B. culture trait ing conditions
C. culture diversity
10. The GDP divided by a country’s working
D. cultural diffusion age population is and it can indicate
5. Phenomenon by which the inhabitants of how wealthy (or not) the country’s people
the towns went to live in the city to work are.
A. immigration A. Gross Domestic Product Per Capita.
B. emigration B. Physicians Density
C. migration C. Infant Mortality Rate
D. rural exodus D. Gross Domestic Product
6. What term means “ a measure of how 11. Predictors of population growth include all
close people live together”? of the following except
A. population A. Survivorship rates
B. population density B. migration rates

1.12 Demography 511
C. life expectancy rates 17. Where did racism develop.

D. carrying capacity A. Ancient Greece

E. age structure diagrams B. Ancient Rome
C. Ancient Egypt
12. if TFR>2, this a typical indicator for which
countries? D. Chinese Dynasty
A. Developped countries 18. Mr. Lombard’s Great-Great-Grandmother

was born in Poland and moved to the US
B. Developing countries
permanently in 1911. Mr. Lombard’s
C. Not related Great-Great-Grandmother is a(n)
D. none of above A. immigrant to the US and an emigrant
from Poland
13. What term means “A person who moves
B. emigrant from the US and an immi-
to a new location”?
grant to Poland
A. migration C. immigrant to both the US and Poland
B. urban D. refugee and a migrant from the US
C. immigrant
19. The GDP divided by a country’s population.
D. rural It helps to show how wealthy (or not) a
country’s people are.
14. A mutual relationship or connection be-
tween 2 or more things is called A. Gross Domestic Product per capita.
B. Physicians Density
A. a correlation
C. Infant Mortality Rate
B. demography
C. geography
D. population pyramid 20. A population pyramid shows
A. a graph of age groups and gender
15. The number of males per hundred females.
B. a chart of births and deaths
A. Sex Ratio C. a graph of gender and births
B. Dependency Ratio D. a chart of age groups and deaths
C. Demographic Ratio
21. What term means “The charting of popu-
D. Population Ratio lations and population change”?
16. India averages 2.33 births per woman, the A. population

US 2.00 and Pakistan 3.48. This is an ex- B. demography
ample of C. population density
A. mortality rates D. urbanization
B. life expectancy
22. The movement of people from one place to
C. survivorship another is called
D. fertility rates A. Migration

1.12 Demography 512
B. Immigration C. Human Development Index

C. Emigration D. Population Density
D. Movement
28. What determines which social class a per-
23. Which of the following is NOT expected son is in?
from a “describe on a graph” question on A. The amount of wealth they have.
the IB Geo exam?
B. How old they are.
A. statements about the trend/pattern
NARAYAN CHANGDER
on the graph C. What part of the nation they live in.
B. some reference to quantification or D. What skin color they have.
graph data
29. What term means “Where people are lo-
C. identification of anomalies cated in their region? ”
D. justification of the trend/pattern
A. population
shown on the graph
B. population distribution
24. The process of people coming to an urban
C. population density
area is called
A. Urbanism D. demography
B. Urbanization 30. What was the primary motivation behind

C. Urban sprawl rural-to-urban migration?
D. Keith Urban A. steady employment
B. plentiful land
25. greatly increased the speed of urban-
ization. C. religious freedom
A. Civil War D. fear of crime
B. Industrial Revolution
31. These are the South Asian Religions EX-
C. Great Depression CEPT one
D. Population Pyramid A. Hinduism
26. Poor countries tend to have B. Islam
A. Less children C. Christianity
B. More children D. Buddhism
C. Doesn’t affect the child birth numbers E. Zoroastrianism
D. none of above 32. From the reading in Ch.3, Why did the Irish
migrate to America
27. How many years an average person in a
A. Because of War
country or region can expect to live is the
B. Because of Starvation (Famine)
A. Fertility Rate C. Because of low literacy rates
B. Life Expectancy D. Because of the low birth rate

1.12 Demography 513
33. They live in northern and central India 39. diagram that shows the age and
A. Mongoloid male/female distribution of a population,
where the youngest are at the base and

B. Nordic Aryan the oldest at the top
C. Bold
A. dependent population
D. Dravidian
B. population pyramid
34. A country that is not yet rich, but no longer C. food pyramid
poor.
D. population density distribution
A. Underdeveloped Country
B. Developed Country 40. Countries that are industrialized are said
to be
C. Developing Country
A. Developing
D. Don’t click me!!!
B. Capitalistic
35. Crecimento natural
C. Developed
A. Life
D. Communistic
B. Natural life
41. TFR stands for:
C. Natural crecimientetiotos
D. Natural growth A. Average number of children for a cou-
ple during their reproductive years
36. What is a period of large-scale cultural B. Average number of children for every
change called? 1000 persons during their reproductive
A. Revolution years.
B. Tradition C. Average number of children born to
C. Society women during their reproductive years.
D. Conversion D. Average number children mortality to
women in their reproductive years
37. Which religion was started in India by Bud-
dha but today is mostly practiced in East 42. A country that has a high level of infras-
Asia and Southeast Asia? tructure, high GDP per capita, and low in-
A. Judaism fant mortality rate is classified as:
B. Buddhism A. Newly Industrialized Country
C. Christianity B. More Developed Country

D. Christianity C. Less Developed Country
D. none of above
38. Used to study the % of the population
who is likely to survive at a given age. 43. Number of children born each year for ev-
A. Survivorship rates ery 1, 000 people
B. migration rates A. Birth rate
C. life expectancy rates B. Literacy rate
D. carrying capacity C. Death rate
E. age structure diagrams D. Tax rate

1.12 Demography 514
44. of the world’s population now live on less 50. The total number of people in a square mile
than % of the Earth’s surface. or kilometer Is
A. 2 A. population
B. 5 B. population density
C. 10 C. rate of natural increase
D. 15 D. birthrate
45. Better healthcare and improved living con-
NARAYAN CHANGDER
ditions reduce the 51. Out of every 1000 births, the number of
babies who die before their first birth day,
A. Birth rate what is this indicator
B. Food Supply A. Crude Birth rate
C. Population Growth
B. Total fertility rate
D. Death rate
C. Infant mortality rate
46. affect were people settle. D. Life expectancy at birth
A. Factors
B. Environmental Factors 52. If in Country A in 2013, there were 3000
births, 500 deaths, newly arrived expatri-
C. Physical Factors ates of 300 and departing expatriates of
D. Human Factors 500, what was the change in population?
47. How long the average person will live (in A. 3300
years). B. 2300
A. fertility rate C. 4300
B. life expectancy D. 1300
C. Human Development Index
D. Physicians Density 53. Which religion was started in India over
2000 years ago and is still the most pop-
48. If a plane lands in between US and Canada ular religion in India today?
where do you bury the survivors A. Hinduism
A. United States of America
B. Judaism
B. Canada
C. Christianity
C. Neither
D. Buddhism
D. Peru
49. The number you get when you subtract the 54. What is demography
birthrate from the deathrate. It tells you A. Geography of the earth
how fast the population is growing
B. Geography of race, ethnicity and gen-
A. rate of natural increase der
B. population density C. geography of humans and there habits
C. fertility rate
D. infant mortality rate D. none of above

1.12 Demography 515
55. Population pyramids show 60. The number of deaths per 100 individuals.
The in India is 31 deaths per 100. In
A. age groups, gender, and population
the US it is 8.4 per 100.

size
A. mortality rate
B. Ethnicity, age groups, and population
size B. fertility rate
C. age groups, ethnicity, and religion C. life expectancy
D. age groups, gender, and religion. D. age structure diagram
56. To understand and compare how people of 61. What is HDI?

a country live, uses a country’s liter- A. Human Development Index
acy rate, life expectancy, and how much
their money can buy to rank the world’s B. Huge Donut Industry
countries. C. High Development Industry
A. Urban D. Highly Dubious Imagination
B. Human Development Index 62. Average number of children parent must
C. Gross Domestic Product have to replace themselves
D. Rural A. Fertility rate
B. Total fertility rate
57. All are a good reasons to have a settle-
ment site near a river EXCEPT? C. Replacement fertility rate
A. For washing D. Mortality rate
B. For cooking 63. Which are the three parts that make up a
C. For growing crops society’s culture?
D. To swim in A. customs
B. traditions
58. What word means “The belief in one de-
ity”? C. beliefs
A. Monotheism D. nature
B. Deity 64. A developed country has a /an that

meets the needs of its people. Such as
C. Religion
roads, water treatment plants, schools
D. Polytheism and hospitals.
59. In the year 2010, the UAE recorded a to- A. arable land
tal population of 8, 264, 000 and 17, 023 B. infrastructure
deaths. calculate the CDR
C. interstate
A. 2.06
D. demography
B. 0.00206
65. Another way to compare how well the peo-
C. 485
ple of a country live. It uses a country’s lit-
D. 485460 eracy rate, life expectancy, and how much

1.12 Demography 516
their money can buy to rank the world’s 70. Overpopulation, religious persecution, and
countries. lack of job opportunities have been push
A. Urban factors for
B. Human Development Index A. life expectancy
C. Gross Domestic Product B. educational reform
D. Rural C. migration
D. none of above
66. Which is an accurate statement about
NARAYAN CHANGDER
world population trends? 71. Responsibilities on developed countries to
reach sustainability:
A. Population trends include live births,
death rates, and crop distribution. A. Reducing TFR
B. Rural populations are declining as B. More woman education
megacities expand. C. Conduct research for new energy re-
C. Japan is one of the least populated sources
countries in the world. D. Financially supporting poorer coun-
D. Globally, population growth is now tries
zero. 72. Poor medical facilities Low paid jobs
67. Which among these answers are consid- Adult literacy rates 55%-poor education
ered as Advantage of living in a sparsely prospectsLife expectancy 72 yrs40% Un-
populated area employedare considered as:
A. low crime rate A. Pull factors for migration
B. Development of shanty towns B. Push factors for migration
C. More transport cost C. Features for the developing countries
D. Less job opportunities D. typically applies on stable and declin-

ing populations.
E. easy availability of healthcare services
73. Which religion was started in the Middle
68. Which religion was started in the Middle East by Abraham and Moses, and is the
East by Jesus, and is the most widespread major religion with the fewest followers
religion today? today?
A. Judaism A. Judaism
B. Buddhism B. Hinduism
C. Christianity C. Islam
D. Islam D. Christianity
69. A measure of the number of people living 74. Literacy Rate means
in an area. A. the percent of the population that can
A. population read and write
B. population density B. the rate of fertility
C. rate of natural increase C. the rate of urban growth
D. migration D. the rate of population change

1.12 Demography 517
75. The poorest countries where most of the C. Invention

people still work in farming or mining, and D. Acculturation
where industries are few.

E. Evolution
A. Underdeveloped country
B. Developing country 81. A country with a rapidly growing youth
population will need to invest in
C. Developed country
A. retirement communities
B. schools
76. Describes the way the Population is C. farms
spread our over time
D. city halls
A. Population Distribution
82. What term means “located in the city”?
B. Population
A. rural
C. population density
B. urban
D. population’s average
C. migration
77. Having a variety of cultures in the same D. immigrant
area.
A. ethnic group 83. The annual number of births per 1, 000
people.
B. culture trait
A. population
C. culture diversity
B. birthrate
D. culture region
C. death rate
78. Which type of cultural change is the cre- D. rate of natural increase
ation of the smart phone?
84. Which of the following could be a pull fac-
A. cultural diffusion tor?
B. innovation A. a destructive huricane in Hati
C. invention B. Freedom to practice whatever religion
D. acculturation they want
C. Poor quality schools in Cambodia
79. What other cause can cause the arrival of
immigrants in the future? D. Rocky soil that makes growing crops
harder
A. dance
B. climate Change 85. Physical features often influence where
people live. Which type of environment
C. paint
typically has the highest population den-
D. run sity?
80. Which four of these cause cultural A. hills, mountains, and plateaus
change? B. flat, fertile plains and river valleys
A. Cultural Diffusion C. wet bogs and swamps
B. Innovation D. dry and barren desert regions

1.12 Demography 518
86. The GDP per capita of a country is $3600. 91. A country with an aging population is most
A. This is an indicator of a more devel- likely to face rapidly rising costs for which
oped nation. of the following?
B. This is near the world average. A. A growing number of refugees
C. This is a indicator of a less developed B. A rising cost in retirement pensions
nation.
C. A growing threat of pollution
D. none of above
NARAYAN CHANGDER
D. A rise in unemployment
87. The of Indonesians are Muslim
A. 85% 92. Low developed countries tend to have
B. 97%
A. Less children
C. 88%
B. More children
D. 80%
C. Doesn’t affect the child birth numbers
88. What is crude birth rate?
A. the average number of babies born to
D. none of above
a woman in her reproductive lifetime
B. the total number of babies born by re- 93. Countries working towards industrializa-
productively healthy nationals of a coun- tion are said to be
try
C. the average number of babies born in A. Developing
a country per year as a % B. Capitalistic
D. the number of babies born in a given
C. Developed
year in a country per 1000 people
D. Communistic
89. Even though the fertility rates are declin-
ing globally, why the world population
94. Early humans began to settle along what
will still grow for sometime.
geographic feature?
A. TFR and world population are not re-
lated A. mountains
B. A large number of women are already B. prairies
in their reproductive years (15-45 years).
C. rivers/fresh water
C. Food resources will increase
D. deserts
D. Medical inventions
90. Which of these is most likely to be the first 95. Uses patterns or colors to show how many
thing to draw someone from a rural area people live in a given area.
to a large urban city?
A. Population map
A. Job opportunities
B. Density map
B. Sporting events
C. Historic sites C. Population density map
D. Shopping bazaars D. Population saturation map

1.12 Demography 519
96. What is the global gender gap. 101. of the world’s population live within
miles of an ocean.
A. the difference between pay for men

and women A. 100
B. wrong its gender pay equity B. 200
C. measures political empowerment, ed- C. 300
ucational attainment, economic participa- D. 500
tion and opportunity, and overall health.
102. Study characteristics of human popula-
D. none of above tions as well as where people settle.
97. The total value of all goods and services A. Geographer
produced in a country in one year is the B. Cartographer
C. Demographer
A. Gross Domestic Product Per Capita
D. Historian
B. Human Development Index
103. According to the UN, the earth’s popula-
C. Literacy Rate tion will level off at billion by 2100.
D. Gross Domestic Product A. 8 billion
98. The set of beliefs, values, and practices B. 9 billion
that a group of people have in common. C. 11 billion
A. culture D. 10 billion
B. culture trait 104. Demography is the science that studies
C. culture region A. Population using vital statistics such
D. culture diffusion as births, deaths, ages
B. How things change overnight in the
99. The movement of greater number of peo- news
ple into cities.
C. How people react to their climate
A. Industrial Revolution zones
B. Urbanization D. When people want to leave the country
C. City Migration
105. Which type of cultural change was seen
D. Urban Renewal when American veterans began opening
pizzerias after the end of World War II?
100. What is prejudice
A. invention
A. Judging someone without prior knowl-
B. cultural diffusion
edge
C. innovation
B. Judging someone based on appear-
ance D. acculturation
C. Judging someone with prior knowl- 106. average number of years members of a
edge population are expected to live.
D. none of above A. Survivorship rates

1.12 Demography 520
B. migration rates 112. The percentage ( % ) of people in a

C. life expectancy rates country that can read and write is the
D. carrying capacity A. Literacy Rate
E. age structure diagrams B. Life Expectancy
C. Human Development Index
107. Which three of the following things are
cultural? D. Infant Mortality Rate
A. A person’s skin color 113. The number of doctors for every 1, 000
NARAYAN CHANGDER
B. A bank people in a country.
C. A comic book A. Physicians Density
D. A volleyball game B. Fertility Rate
108. A graph that shows the distribution of C. Gross Domestic Product

various age groups in a population is called D. Gross Domestic Product per Capita
A. a line graph 114. The population migrates
B. a bar graph A. To work
C. a pie graph B. To play
D. a population pyramid C. To paint
109. Rate at which a country’s population D. To run
grows
115. The movement of people living in country
A. Birth rate A to living in country B is an example of
B. Literacy rate
C. Death rate A. migration
D. Growth rate B. rate of natural increase
110. The basic facilities and services that sup- C. Human Development Index
port a community is the D. Gross Domestic Product
A. interstate
116. The study of the population is called
B. infrastructure
A. Population
C. mortality
B. People
D. fertility
C. Demography
111. Why is a social class model shaped like a D. Natural growth
pyramid?
A. More of the population is in the lower 117. What kind of reason for migration is the
class. following:A drought causes much of the
crops in rural areas to die.
B. The Egyptians were the first to have so-
cial classes. A. Push
C. The number of people in each class is B. Pull
equal. C. Involuntary
D. The top is where all the wealth is. D. none of above

1.12 Demography 521
118. What term means “located between the 123. The number of babies that die out of 1,
country and a city, made possible due to 000 babies born is the
cars”?

A. Life expectancy
A. Rural B. Population Density
B. Urban C. Infant Mortality Rate
C. suburban D. Fertility Rate
D. immigrant
124. What is the population distribution of the
119. An area in which people have many world today, AFTER the Industrial Revolu-
shared culture traits. tion?
A. culture trait A. Most people live in densely populated
coastal urban centers
B. culture region
B. Most people live in primitive caves
C. cultural diversity
C. Most people only live in the tropical
D. cultural diffusion zone
120. Used to study the ages of the population D. Most people live in villages near rivers
at a given time.
125. If the death rate is less than the birth
A. Survivorship rates rate, what will happen to the total pop-
B. migration rates ulation that that region?
C. life expectancy rates A. It will increase
D. carrying capacity B. It will decrease
E. age structure diagrams C. It will stay the same
D. none of above
121. The total number of people in a given
area. 126. The best definition of an industrialized na-
A. population tion is:
B. population density A. Based on farming
C. rate of natural increase B. Based on literacy rate
D. birthrate C. Based on large industry

D. Based on large government
122. Natalie left Bosnia in 1993. At the time,
the country was at war and she faced dis- 127. The turning point in human history that
crimination due to her ethnicity. Based on allowed for rapid growth due to better liv-
this information, Natalie was a(n) ing conditions
A. immigrant to Bosnia A. Agricultural revolution
B. Serbian emigrant B. Industrial revolution
C. seasonal migrant C. The red scare
D. refugee D. The era or reconstruction

1.12 Demography 522
128. What is the name of the symbol or char- 133. The average person in India lives 68.56
acter in Chinese writing? years from birth to death. This is an ex-
A. Writing ample of
B. Calligraphy A. mortality rate
C. Cursive B. fertility rate

D. None of the above C. life expectancy
D. age structure diagram
NARAYAN CHANGDER
129. Define demography.
A. The study of how people behave 134. development that meets the needs for
B. The study of human populations present generation without compromising
the ability of future generations to meet
C. The study of living things and their pop- their own needs, is referred to as:
ulations
A. Logistic development
D. The study of graphs about human
statistics B. Sustainable development
C. Generation development
130. Emigration
D. Resources development
A. immigration
B. emigration 135. The movement of people from one place
C. migration to live in another.
D. rural exodus A. migration

B. rate of natural increase
131. How many persons lives in Cairo if its
area is 528 km2 and the population den- C. Human Development Index
sity is 46349 people/km2 D. Gross Domestic Product
A. 52 million
136. What kind of reason for migration is the
B. 87.7
following:A high paying factory opens in
C. 24472272 another city
D. 46349 A. Pull
132. Which of the following is the most likely B. Push
effect of building a railroad to reach an C. Involuntary
area rich in natural resources?
D. none of above
A. Railroad owners take control of the
area. 137. Literacy Rate refers to
B. The number of people that settle in the A. the percent of the population that can
area increases. read and write
C. There is a sharp increase in movement
B. the rate of fertility
away from the area.
C. the rate of urban growth
D. Government leaders close the area to
future settlement. D. the rate of population change

1.12 Demography 523
138. A long life expectancy is an indicator of 144. A rapid population growth means
A. longer life expectancy and low birth

A. good health care available rate
B. poor education B. high birth rate and low death rate
C. rapid growth C. low death rate and low birth rate
D. a high percent of the population under D. low birth rate and high death rate
15
145. A long life expectancy is a sign of
139. What are the units for Crude Birth Rate
and Crude Death Rate? A. good health care
A. % of total population B. poor education
B. % of zombie population C. rapid growth
C. per 100 people D. a high percent of the population under
D. per 1000 people 15
140. *BREAKTIME* A flock of crows is known 146. Population change formula is:
as a.. A. (Birth + Emigration)-(Death + Immi-
A. Murder gration)
B. Group B. (Birth + Emigration) + (Death-
C. Team Immigration)
D. killer C. (Birth + Immigration)-(Death + Emi-

gration)
141. Since the mid 1800’s, the human popula-
D. (Birth-Emigration)+ (Death-Immigration)
tion is experiencing
A. exponential growth 147. Which of the following can destroy envi-
ronmental development in sustainability?
B. logistic growth
C. carrying capacity growth A. Manufacturing electric cars
D. limited resource growth B. reduced resources consumption pat-

terns
142. Land that can be used for farming is called
C. deforestation
A. arable land
D. Using solar energy instead of Patrol
B. infrastructure land energy
C. interstate land
148. The countries where most of the people
D. demograpic land suffer in poverty with low GDP per capita,
143. Main areas of sustainable developments high infant mortality rate, and low life ex-
are? pectancy rate is classified as
A. Environment A. Less Developed country
B. Social B. Newly Industrialized country
C. Economic C. More Developed country
D. All of the above D. none of above

1.12 Demography 524
149. An example of racism C. 50

A. The nazi internment camps D. 5
B. Slavery in europe America Australia 155. What kind of population growth has oc-
and Norway etc. curred since 1800?
C. All of the Above A. Exponential
D. None B. Civilized
150. The businesses that provide a manufac- C. Agricultural
NARAYAN CHANGDER
turing activity is a: D. Linear
A. Farm 156. Life expectancy
B. Ranch A. Life
C. Industry B. DEATH
D. Urban area C. Life expectancy
151. What was the change from only hunt- D. rural exodus
ing for food to farming food in villages 157. The study of population trends
called?
A. peopleography
A. Architectural Revolution
B. trendography
B. Agricultural Revolution
C. demography
C. Civilization Revolution
D. populography
D. Industrial Revolution
158. What word means “The belief in many
152. The carrying capacity of the world is deities”?
A. 0 to 5 billion A. Deity
B. 5 to 6 billion B. Religion
C. 8 to 9 billion C. Polytheism
D. 10 to 15 billion D. Monotheism
153. Which statement is mostly true: 159. What do we call the study of human pop-
ulations and how they change?
A. A. Populations in developed countries
are stabilizing A. Demography
B. B. Populations in developing countries B. Biodiversity
are decreasing sharply C. Human geography
C. C. Developed countries are using re- D. Life expectancy
sources at high rates
160. The % of people in a country that can
D. A and C are correct read and write.
154. *BREAKTIME* How many times do wood- A. literacy rate
peckers peck per second? B. life expectancy
A. 120 C. Human Development Index
B. 20 D. Infant Mortality Rate

1.12 Demography 525
161. What invention helped cause civilization B. Language families

to begin? C. Standard of living

A. Farming D. Population density
B. Powered Machines
167. The reason why people migrate from and
C. Writing to an area
D. Hunting A. Push-pull theory
162. What term means “moving to a new lo- B. migration
cation”? C. life expectancy
A. immigrant D. Migration rate
B. suburban 168. The total value of all goods and services
C. migration produced in a country in one year.
D. urban A. Gross Domestic Product per capita
B. Human Development Index
163. Environment performance is for , so-
cial performance is for , and economic C. Literacy Rate
performance is for measures. D. Gross Domestic Product
A. people, profit, planet 169. Which characteristic is common to all four
B. planet, people, profit of these areas? 1. Siberian Plains2. Sa-
C. profit, people, planet, hara Desert3. Amazon Rainforest4. Rus-
sian Steppes
D. planet, profit, people
A. They are all sparsely populated
164. of India’s population is under 15 B. They are all found on the continent of
A. This means there are lots of old people Asia
B. This means that there is a high death C. They are all located near the equator.
rate D. They are all in mountainous areas.
C. This means there is a high birth rate
170. Which religion was started in the Mid-
D. This means that India has a high life dle East by Mohammed, and is the most
expectancy widespread religion in the Middle East?
165. What term means “The movement of A. Islam
people from the country to cities in mod- B. Christianity
ern times”? C. Buddhism
A. population D. Judaism
B. population density
171. Movement of people to cities and the
C. urbanization growth of cities
D. population distribution A. naturalization
166. Yearly income and material goods are fac- B. push-pull theory
tors used to determine C. ruralization
A. Political systems D. Urbanization

1.12 Demography 526
172. “Demo” means 177. Define life expectancy

A. study of A. the average number of years a person
B. population history can expect to live, if the conditions at the
time of their birth remain the same
C. Human population statistics
B. the mean number of years a person in
D. none of above
a developed country will live
173. which of the following is NOT a goal of C. the average lifespan of a person if in-
sustainable development?
NARAYAN CHANGDER
fant mortality decreases
A. Family planning to control population D. the mean lifespan of a newborn in a de-
size veloping country
B. create jobs to reduce unemployment
and poverty 178. What term means “The total number of
people in a region”?
C. Use new technologies such as Tesla ve-
hicles that run on electricity A. population
D. Outbreak of a new disease that is left B. population distribution
untreated C. population density
174. A graph that shows the number of males D. demography
on the left side and the number of females
on the right. 179. The number of babies that die for every
1, 000 babies born.
A. Population pyramid
B. Population bar graph A. Life expectancy
C. Population statistics B. Physicians Density

D. Population dot map C. Infant Mortality Rate
D. Fertility Rate
175. Which of the following is the formula for
doubling time? 180. A country that is among the world’s rich-
A. = crude birth rate-crude death rate x est.
70 A. Developing Country
B. = 70 x natural rate of increase / total
B. Developed Country
population
C. Underdeveloped Country
C. = growth rate-70 * 100
D. = 70 / growth rate
176. Which of the following is NOT a problem 181. Great Great Great Grandpa Heatherly
associated with rapid growth of a human used to live in County Cork Ireland. He
population is on a boat pulling into Ellis Island. He is
from Ireland and to the US
A. Shortage of firewood
A. emigrating and migrating
B. Access to clean, safe water
B. immigrating and emigrating
C. a shortage of arable land
D. better education and economic oppor- C. emigrating and immigrating
tunities D. migrating and immigrating

1.13 Indian Economy 527
182. The average number of children a woman 184. How many people live in a given area.
gives birth to in her lifetime A. Population density

A. Fertility rate B. Density
B. Total fertility rate C. Population area
C. Replacement fertility rate D. Saturation
D. Mortality rate
185. If a location is rural, it is
183. the birth rate minus the death rate is A. outside towns and cities
A. percent population increase B. far away from main centres of popula-
B. percent population under 15 tion
C. life expectancy C. within towns and cities
D. literacy rate D. none of above
1.13 Indian Economy

1. the task of measuring GDP is undertaken A. Economic planning
by B. Economic development
A. district govt C. Economic growth
B. central govt D. Economic infrastructure
C. state govt
5. Both TISCO and Reliance Industries are
D. local govt owned by:
2. Import substitution policy aimed at replac- A. The government
ing or substituting imports with B. Private company
A. Export Promotion C. A cooperative society
B. inward-looking trade strategy D. Jointly by private companies and the
C. domestic production govt.
D. None of these 6. Who is the chairman of the planning com-

mission in India?
3. production of a commodity, mostly
A. prime minister
through the natural process, is an activ-
ity in sector B. president
A. primary C. chief minister
B. secondary D. governor
C. tertiary 7. New economic policy was announced in the
D. information technology year
A. 1990
4. It is a conscious design to shape the socio-
economic processes in order to achieve an B. 1991
objective C. 1992

D. 1993 13. Production of services across countries has

been facilitated by
8. Companies who set up production units in
A. Money
the Special Economic Zones (SEZs) do not
have to pay taxes for an initial period of: B. Machine
A. 10 years C. Labour
B. 3 years D. Information and communication tech-
nology
NARAYAN CHANGDER
C. 5 years
D. 8 years 14. Tariffs and quotas adopted under indus-
trial policy was to
9. Which of the following activities does not
A. increase export
belong to the primary sector?
B. make exported goods cheaper
A. Fishing
C. increase foreign competition
B. Banking
D. restrict imports and protect domestic
C. Mining
firms from foreign competition
D. Forestry
15. The sector of the economy that has be-
10. TISCO and RIL stands for come the least contributor to GDP in recent
A. Tata Iron and Steel Company Limited, years is
Reliance Industries Limited A. Primary sector
B. Tata Iron and Soil Company Limited, B. Secondary sector
Reliance Industries Limited
C. Tertiary sector
C. Tata Iron and Steel Company Limited,
D. none of above
Reliance India Limited
D. Tata Iron and Steel Company Limited, 16. Golden quadrilateral super highways are
Reliance Indian Limited maintained by
A. Zilla Parishad
11. The main reason for decline in handicraft
industry during the colonial rule was: B. PWD
A. Lack of raw materials C. NHAI
B. Lack of Skilled workers D. CPWD
C. Discriminatory tariff policy 17. MNC is a company
D. None of the above A. That owns or controls production in
more than one nation
12. When was NITI Aayog established
B. That owns or controls production in
A. 1951
one nation
B. 2011
C. That owns or controls production out-
C. 2015 side the nation
D. None of these D. All the above

18. Which one is false? C. Between two countries

A. MNCs acquire small companies to ex- D. In different countries

pand production
24. Gross domestic capital formation is de-
B. MNCs enter into joint venture to enter fined as
into foreign markets
A. net addition to stock after depreciation
C. MNCS offer subsidy to the small scale
B. Flow of expenditure devoted to in-
industries
creased or maintaining of the capital
D. MNCs set up own production center in stock
foreign countries
C. expenditure incurred on physical as-
19. The task of collection of data in all three sets only
sectors is done by D. production exceeding demand
A. BPO
25. Introduction of tariff policy by the
B. UNDP Britishers led to the decay of Indian hand-
C. NSSO icraft industries.
D. KPO A. Zamindari
B. Modernization
20. gradually became the most important
in total production and employment? C. Discriminatory
A. primary sector D. None of these
B. public sector 26. GDP I is the sum of
C. tertiary sector A. All the goods and services produced in
D. secondary sector a year
B. All the final goods and services pro-
21. Which sector is also called as agriculture duced in a year
and related sector?
C. All the intermediate goods produced in
A. Tertiary sector a year
B. Secondary sector D. all the services produced in a year
C. Primary sector
27. Which of the following is an activity of pri-
D. None of these mary sector?
22. Investments made by MNCs are termed A. Cotton farming
as: B. Dairy
A. Indigenous investment C. Fishing
B. Foreign investment D. All of these
C. Entrepreneur’s investment
28. MNCs are investing in India because of
D. none of above A. the cheaper production costs
23. Foreign trade connects the markets B. Plenty of raw materials
A. In the country C. good government policies
B. Among neighbouring countries D. none of above

29. When we produce a good by exploiting C. 40%

natural resources it is called ?
D. 80%
A. Tertiary sector
B. Primary sector 35. Production of a commodity, mostly
through the natural process, is an activ-
C. Service sector ity in sector.
D. Public sector A. primary
NARAYAN CHANGDER
30. :Which of the following two programmes B. secondary
are merged with MGNREGA?
C. tertiary
A. SGRY & NFFWP
D. information technology
B. SGRY & SJSY
C. NFFWP & JRY 36. When the value of exports exceeds the
value of imports, it is called
D. None of thes
A. None of these
31. Which of the following is a tertiary sector
B. Favourable Balance of Trade
activity?
C. Unfavourable Balance of Trade
A. Nursing
B. Making pots D. Free Trade
C. Food processing 37. Find the odd one out of these

D. All of the above A. Tourist Guide
32. Globalization was stimulated by B. Washer-man
A. Money C. Tailor
B. Transportation D. Carpenter
C. Population
38. On the eve of independence Indian econ-
D. Computers omy was considered as
33. The process of rapid integration or inter- A. Developed economy
connection between countries through free B. Developing economy
trade, free mobility of capital and labour is
called C. Underdeveloped
A. Foreign trade D. All the above
B. Liberalisation
39. The economic reforms were intended to
C. Globalisation take the Indian economy into three specific
D. Privatisation directions which are
A. LPG
34. What was the share of Service Sector to
GDP, in India on 1950-51 and 1990-91? B. DPG
A. 50% C. LDG
B. 28 % D. DLP

40. The task of collection of data in all the 46. Which one of the following is not charac-
three sectors of economy is done by which teristic of‘ Special Economic Zone’?
of the following anlanizations.

A. They do not have to pay taxes at all
A. NSSO (first 5 years)
B. BPO
B. Government has allowed flexibility in
C. KPO labour laws.
D. UNDP C. They have world class facilities.
41. Railway is an example of: D. Government allows flexibiilty of labour
A. Private Sector laws
B. Public Sector
47. In 1973 and 2003 which sector had maxi-
C. Secondary Sector mum share in GDP in India?
D. None of these
A. 1973-Primary Sector. 2003-Tertiary
42. Our financial system has provided for the Sector.
transfer of resources from the centre to
B. 1973-Secondary Sector. 2003-Tertiary
the states; the important means of re-
Sector.
source transfer are
A. Tax sharing C. 1973-Primary Sector. 2003-Service
Sector.
B. grants in aid
C. loans D. 2003-Primary Sector. 1973-Tertiary
Sector.
D. all the three
43. The Industrial Policy Resolution was 48. India’s jute industry suffered heavily due
adopted in to after partition.
A. 1954 A. Lack of Raw Material
B. 1958 B. Famines
C. 1956 C. Earthquakes
D. 1952
D. None of these
44. Spending is when you
A. save something 49. Which of the following is not applicable for
a worker, who works in the organised sec-
B. invest something tor?
C. budget something
A. She gets a regular salary at the end of
D. purchase something the month
45. Information and technology is a part of B. She is not paid for leave
A. tertiary sector C. She gets medical allowance
B. primary sector
D. She got an appointment letter stating
C. secondary sector the terms and conditions of work when
D. all of these she joins work.

50. On the eve of independence, the propor- 55. Not every good (or service) that is pro-
tion of population was engaged in indus- duced and sold needs to be counted. It
trial sector was: makes sense only to include the to get
the total production?
A. approx. 10%
A. values of goods and services in produc-
B. approx. 20%
tion
C. approx. 15%
B. final goods and services
D. approx. 26%
NARAYAN CHANGDER
C. adding up the actual numbers of goods
51. Which of the following sectors has re- D. goods and services in the three sec-
ceived the highest FDI equity investment tors
in India during 2019?
56. Which sector is also called as service sec-
A. Retail tor?
B. Telecommunication A. Secondary sector
C. Banking B. Primary sector
D. Software C. Tertiary sector
52. The value of all goods and services pro- D. None of these
duced within a country in a certain year
57. Tha number of Banks nationalised since
is called its:
1969 is
A. National Product
A. 8
B. Net Domestic Product
B. 12
C. 14
D. None of these
D. 20
53. How many sectors are there in an econ- 58. Capital market reforms includes which of
omy from these-Primary, Secondary and the following factor?
Tertiary sector
A. Setting up of SEBI
A. Two
B. Special recovery tribunals
B. Three
C. Introduction of capital adequacy
C. One norms
D. None of these D. Deregulation of interest rates
54. Disguised unemployment is 59. Which one of the following activities can
A. when marginal revenue productivity of be included in primary sector
labor is zero A. Giving loans to the farmers
B. the same as seasonal unemployment B. Making sugar from sugar cane
C. the rigid factor proportions C. cultivation of sugar cane
D. due to capital formation and the level D. Providing storage facility for the
of technology remaining constant grains

60. The portion of agricultural produce which is B. gross national income

sold in the market by the farmers is known
C. gross domestic
as,

D. none of above
A. Trade deficit
B. Marketed surplus 66. ‘Take off stage’ in an economy means?
C. Subsidy A. steady growth begins
D. Import substitution B. economy is stagnant
61. Per Capital Income = C. economy is about to collapse
National Income D. all controls are removed
A. Population
B. National Income
Population × 100 67. Which is the characteristics of an underde-
Gross Domestic Pr oduct veloped economy?
C. National Income
A. General poverty
National Income × 100
GDP
D.
B. Significance of industrial sector
62. Which of the following is not true of social
infrastructure? C. Low growth of population
A. It includes the education and health D. Use of higher production techniques

network and skills
B. It is aimed at improving quality of life 68. What is the year of India’s 12th 5-year
C. It is an investment in human capital plan?
D. It is an investment in manufacturing A. 1997-2002
sector B. 2002-2007
63. The one rupee note nears the signature of: C. 2007-2012
A. RBI Governor D. 2012-2017
B. President of India
69. Under liberal policy, there has been re-
C. Finance Minister moval of
D. Finance Secretary A. restrictions
64. What was the percentage of people living B. license
in village and deriving their livelihood from
C. trade
agriculture during British period in India?
D. both restrictions and license
A. 72%
B. 88% 70. Till March 2010, million mobile connec-
C. 79% tions were in India.
D. 25% A. 548.32
B. 845.23
65. The sum of production in the three sectors
gives what is called the of a country? C. 750.21
A. gross domestic product D. 250.60

71. In 2013-14, the sector that contributed 76. Identify the correct answer from the alter-
highest to the GDP was natives provided.Both Tisco and Reliance
Industries are owned by:
A. Primary
A. The government
B. secondary
B. Private company
C. tertiary
C. A cooperative society
D. none of above
D. Jointly by private companies and the
NARAYAN CHANGDER
72. According to Industrial Policy Resolution, govt.
1956, following industries were part of
Schedule A: 77. Rapid integration or interconnection be-
tween countries is known as:
A. Arms and ammunition
A. Privatisation
B. Chemical industry
B. Globalisation
C. atomic energy
C. Liberalisation
D. railways
D. Socialisation
E. shipbuilding
78. GDP is the total value of produced dur-
73. During the time of Indian independence ing a particular year
what was the literacy rate? A. all intermediate goods and services
A. less than 15% B. all final goods and services
B. less than 16% C. all goods and services
C. less than 18% D. none of above
D. less than 12%
79. Employment figures of a country are based
on data collected from 5-yearly survey on
74. India is the largest producer of feature
employment and unemployment. Which or-
in the world.
ganisation conducts this survey?
A. films
A. NSSO-National Sample Survey Organi-
B. magazines sation
C. news papers B. NREGA 2005-National Rural Employ-
ment Guarantee Act, 2005
D. books
C. ILO-International Labour Organisation
75. In which year did the government decide D. Census of India
to remove barriers on foreign trade and
investment in India? 80. Economic survay is published by
A. 1993 A. Finance minister
B. 1992 B. Planning commission
C. 1991 C. Government of India
D. 1990 D. Indian Statistical institute

81. WTO stands for 86. ATM is an example of

A. World Tennis Organization A. primary sector

B. World Trade Office B. secondary sector
C. World Trade Organization C. tertiary sector
D. World Trade center D. all of these
82. Globalisation will result in 87. Full form of GDP

A. Gross domestic product
A. more competition among producers
B. Great domestic products
B. less competition among producers
C. Gross delivery process
C. no change in competition among pro-
ducers D. none of above
D. none of the above 88. At the time of independence of our country

in which industries did we excel?
83. Which of the following activities are cov-
A. Handicrafts
ered under secondary sector
B. Precious stone work
A. It generates services rather than
goods C. Cotton
B. Natural product are changed through D. All of the above
manufacturing 89. Which organisation support liberalisation
C. Goods are produced by exploiting nat- of foreign trade and investment in India?
ural resources A. International labour organisation
D. It includes agriculture, forestry and (ILO)
dairy B. World Bank
84. Underemployment is hidden in contrast to C. World Trade organisation
someone who does not have a job and is D. International monetary fund
clearly visible as unemployed. It is also
called 90. Which activities come under the agriculture
and related sectors?
A. Hidden employment
A. dairy
B. Disguised unemployment.
B. mineral excavation
C. Unstable employment
C. using cotton fiber from the plant
D. Less employment D. Selling agricultural products in the
85. What do you mean by Quotas? market
A. The quantity of goods which can be ex- 91. Which is tha following is tha Banker of
ported Banks?
B. The quantity of goods which can be Im- A. IDBI
ported B. SBI
C. Both (a) and ((b) C. RBI
D. None of these D. SBI and RBI

92. Animal husbandry is a part of B. Secondary sector

A. Primary Sector C. Tertiary sector
B. Secondary Sector D. None of these
C. Tertiary Sector 98. Economic infrastructure includes:
D. All of these A. communication
93. Infosys (IT) and TATA Motors (Automobile) B. banking
NARAYAN CHANGDER
are examples of Indian- C. power
A. Domestic Companies D. all of these.
B. Local Companies 99. What will happen if the government fails
C. Multi Sectoral Companies to provide 100 days employment under
NREGA?
D. Multinational Corporations (MNCs)
A. No extra benefit will be given
94. The first official census of India occurred in
B. The officer-in-charge will be punished
the year
C. Unemployment allowance will be given
A. 1921
D. Food grains will be provided
B. 1821
C. 1881 100. In an unorganised sector,
D. 1871 A. Worker gets wages as per the govern-

ment rules and regulation
95. Which of the following State Government B. Workers get regular work
launched jawahar knowledge centre to
C. Workers do not have fixed working
train rural youth?
hours
A. Delhi
D. Workers are not paid for overtime
B. Karanataka work
C. Andhra Pradesh
101. ‘Globalisation of Indian Economy’ means:
D. Tamil Nadu A. stepping up external borrowings
96. Under the all those who are able to, B. establishing Indian business units
and are in need of work, in a rural area abroad
are guaranteed 100 days of employment C. having minimum possible restrictions
in a year by the government. on economic relations with other coun-
A. Right to work tries
B. Employment Right Act D. giving up programmes of import sub-
stitution
C. National Rural Employment Guarantee
Act 2005 102. Globalisation has been of advantage to
D. none of above A. all the people
97. Which sector is also called as industrial sec- B. the poorer section of the society
tor? C. the richer section of the society
A. Primary sector D. none of the above.

103. The fiscal crisis faced by the Indian econ- C. Ministry of Finance
omy in 1990s was caused primarily by?
D. The Reserve Bank of India

A. Widening gap between imports and ex-
port 109. Which of the following is a public sector
B. Difference between savings and in- enterprise?
vestments A. TISCO
C. Widening gap between government ex- B. Reliance Industry
penditure and revenue
C. Bajaj Auto
D. Difference between aggregate de-
mand and aggregate supply D. SAIL
104. The secondary sector is also called ? 110. We classify economic activities into on or-
ganised and unorganised sector on the ba-
A. Organised sector
sis of
B. Service sector
A. nature of activity
C. Industrial sector
B. Working conditions
D. Public sector
C. Ownership
105. First Industrial resolution policy D. All of the above
A. 1948
111. Inwards foreign direct investment is use-
B. 1956
ful because
C. 1977
A. All
D. 1991
B. Brings in modern technology
106. Converting iron ore to steel is a part of C. Brings in foreign exchange
A. primary activity
D. Brings in management expertise
B. secondary activity
C. tertiary activity 112. Give an example of an intermediate
good?
D. all of these
A. Woven basket
107. Railways are the example of which sec- B. Chair production from wood
tor?
C. Wheat flour
A. Private sector
D. Biscuits
B. Public sector
C. Organised sector 113. what is ‘Laiseez-faire’?
D. None of these A. Mixed economy
108. In India, which one among the following B. controlled economy
formulates the fiscal policy? C. Non-interference of Government in
A. Planning Commission economic affairs
B. Finance Commission D. None of these

114. Small and scatter units which are largely C. 0.5

outside the control of the government, is D. 2.3
called
A. Organised sector 120. Which of the following is an intermediate
good-
B. Unorganized sector
A. Sugar cane used in making sugar
C. Public sector
B. Sugar cane used in making jaggery
D. All of these
NARAYAN CHANGDER
C. Sugar used in making cakes
115. Indian Green Revolution is most success-
ful in:- D. Bread consumed by households
A. Wheat and Rice 121. find the odd one out

B. Wheat and Vegetables A. teacher
C. Rice and Pulses B. doctor
D. Tea and Coffee C. vegetable vendor
116. Which is the primary objective of eco- D. lawyer
nomic planning in India?
122. National Income in India is estimated by:-
A. Reducing Inequalities of income
A. Planning Commission
B. Abolition of poverty
B. Reserve Bank of India
C. Growth with social justice
C. Finance Ministry
D. Removing unemployment
D. Central Statistical Organization
117. Who presented the 1st 5-year plan of the
country? 123. The apex body for formulating plans and
A. Pt. Jawahar Lal Nehru coordinating research work in agriculture
and allied fields is
B. Sardar Ballabh Patel
A. National Bank for Agriculture and Ru-
C. Dr. Rajendra Prasad ral Development (NABARD)
D. None of these B. Indian Council of Agricultural Re-
118. Green Revolution resulting from: search
A. Traditional Irrigation facilities C. State Trading Corporation
B. Use of manure D. State Trading Corporation

C. HYV seeds 124. Which of the following activity can be in-
D. None of these cluded in the primary sector
A. Giving loans to the farmer
119. The rate of growth of per capita output
per year in India during the first half of the B. Making sugar from sugar cane
twentieth century was: C. Cultivating sugar cane
A. 0.8 D. Providing storage facility for the
B. 1.5 grains

125. Which of the following was the main ob- 130. Which of the following is the biggest pro-
jective of NREGA 2005 gramme launched for school children and
has been very successful?

A. To control the unorganized sector in
the rural areas A. Antyodaya Yojana
B. To provide a 100 days of employment B. Food for Work
by the government
C. Mid Day Meal
C. To control the flow of money from the
D. ASHA
primary sector to the tertiary sector
D. None of the above 131. Subsidies mean
A. payment by government for purchase
126. In 1991 Government of India adopted
of goods and services
New Economic Policy and remove barriers
on foreign trade and investment. B. payment made by the government to
business enterprises, without buying any
A. False
goods and services
B. True
C. payment made by companies to share-
C. None of these holders
D. none of above D. payment made by business enter-
prises to factors of production
127. mean change in a set of policies
and rules and regulations from one period 132. The rate of growth of real output during
of time to another to achieve economic the first half of the 20th century in our
growth. country was
A. Tax reforms A. Less than 1%
B. Economic reforms B. Less than 2%
C. Land reforms C. Less than 3%
D. None of the above D. Both (a) and (b)
128. Life insurance is an activity of the 133. The service sector includes activities such
as:
A. primary sector
A. agriculture, dairy, fishing and forestry
B. secondary sector
B. making sugar, gur and bricks
C. service sector
C. transport, communication and banking
D. None of these
129. Removing barriers or restrictions set by
the government is known as 134. Decline of handicrafts industries led to:
A. Globalisation A. Export of finished goods
B. Privatisation B. Massive unemployment
C. Liberalisation C. Both (a) and (b)
D. none of above D. None of the above

135. This quiz based on Sectors of Indian econ- C. Postoffice

omy chapter is prepared by
D. Air India
A. R P Rao KV NEPA BARAPANI
B. SANDEEP TIWARY KV NEPA BARAPANI 141. Which state has the highest literacy rates
in India
C. JAGDEV SUTHAR KV NEPA BARAPANI
A. Kerala
D. MEWA LAL KV NEPA BARAPANI
B. Karnataka
136. Special Economic Zones are being set up
NARAYAN CHANGDER
by and government. C. Tamil Nadu
A. Central D. Andhra Pradesh
B. Local
142. Which one of the following sectors is the
C. State largest employer in India?
D. Central, State A. Primary
137. Foreign exchange reserves mean B. Secondary
A. Stock of Indian currency C. Tertiary
B. The stock of currencies of other coun-
D. IT sector
tries
C. Bombay Stock market reserves 143. Identify the public sector
D. None A. Railways
138. Today, the have become more impor- B. Reliance
tant in our national economy than all other
C. Jio
means of transport put together.
A. roadways D. Samsung
B. pipelines 144. Economic Survey is published by the-

C. waterways A. National Sample Survey Organisation
D. railways
B. Ministry of Statistics
139. World Trade Organisation (WTO) was C. Ministry of Finance
started at the initiative of which one of
the following group of countries? D. Ministry of Commerce & Trade
A. Developed
145. Whiich Indian company was bought over
B. Developing by Cargill Foods-a large American MNC?
C. Under Developed Pick out the name from the alternatives
provided
D. Poor
A. Amul
140. Which of the following is a private sector
enterprise? B. Fun Foods Ltd.
A. TCS C. Agro Tech Foods Ltd.
B. BHEL D. Parakh Foods

146. is also called Tertiary sector. 152. The share of the private sector in In-
A. Manufacturing sector dia’s GDP presently has been estimated at
about

B. Agriculture sector
A. 30 percent
C. Services sector
B. 45 percent
D. Industrial sector
C. 75 percent
147. What was the life expectancy in India
during British rule? D. 85 percent
A. 65 153. Private sector works for

B. 38 A. Profit making
C. 45 B. Social welfare
D. 32 C. Both
148. GDP of a country is based on D. None of the above
A. Total value of goods and services 154. Most of the workers in sector enjoy
B. Final value of goods and services job security.
C. Initial value of goods and services A. Organised
D. All of these B. Private
149. In a market economy, is also called as C. Unorganised
, only those consumer goods will be D. Public
produced that are in Demand.
A. Capitalism 155. FIND OUT THE ODD ONE OUT?
B. Socialism A. TEACHER
C. Both A and B B. DOCTOR
D. None of these above C. VEGETABLE VENDOR
150. In terms of GDP the share of teritary sec- D. LAWYER

tor in 2013-14 is- 156. After which Five Year Plan, there were
A. Between 20 to 30 percent three annual Plan?
B. Between 30 to 40 percent A. Second Five Year Plan
C. Between 50 to 60 percent B. Third Five Year Plan
D. Between 60 to 70 percent C. Fourth Five Year Plan
151. Production of a commodity, mostly D. Fifth Five Year Plan
through the natural process, is an activity
in sector.( choose all that apply ) 157. BMI refers
A. agriculture sector A. Bio Metrics Intelligence
B. primary sector B. Broad Meter Index
C. service sector C. Broad Massive Intelligence
D. manufacturing sector D. Body Mass Index

158. The most important infrastructure during C. Satyam Computers

the British Rule in India was: D. Air india
A. Airways
164. When was the planning Commission es-
B. Railways tablished?
C. Waterways A. 1947
D. None of the above B. 1948
C. 1950
NARAYAN CHANGDER
159. In which year Indian Government an-
nounced New Economic Policy (NEP) D. 1951
A. 1991 165. Which was the most important infrastruc-
B. 2001 ture developed during the British rule?
C. 2011 A. Railways
D. 1981 B. Air transport
C. Water transport
160. Who developed HYV seeds?
D. Roadways.
A. Normal Borlaug
166. Which of the following provisions makes
B. Norten Borlaug
NREGA as the Right To Work
C. Norah Jones
A. Increase in land productivity has been
D. Normal Jones given the preference
161. The most common route for investments B. This act was passed by the parliament
by MNCs in countries around the world is in 2005
to C. This act has been spread to all districts
A. set up new factories in the country
B. buy existing local companies D. If the government fails to provide em-

ployment it will give unemployment al-
C. form partnership with local companies lowance
167. The planning commission was set up in
D. none of above
which year in India?
162. What was the condition of agricultural A. 5th March 1951
sector growth of India on the eve of in-
B. 25th April 1951
dependence
C. 20th March 1951
A. Decreasing
D. 15th March 1950
B. Stagnant
168. Which one of the following has a lower
C. Increasing
Nominal GDP per capita more than India?
D. None of these
A. Estwani
163. pick the odd one B. Kosovo
A. Delhi metro Rail corporation C. Madagascar
B. Delhi transport Corporation D. Gabon

169. What type of economy is followed in In- A. Voluntary unemployment

dia? B. Involuntary unemployment

A. Communist C. Seasonal unemployment
B. Capitalist D. None of the above
C. Mixed Socialist
175. What was the condition of India’s foreign
D. None of these trade under British rule
170. Which one of the following organisations A. Net importer of raw materials
lay stress on liberalisation of foreign trade B. Net exporter of raw materials
and foreign investment?
C. Net importer of finished goods
A. International Monetary Fund
D. Both b and c
B. International Labour Organisation
C. World Health Organisation 176. Which of the following was not a part of
FDI policy 2017?
D. World Trade Organisation
A. Strengthening of FIPB
171. On the eve of independence, only heavy B. Introduction of foreign investment fa-
and basic industries were developed in the cilitation portal
Indian economy.
C. Introduction of standard operating
A. True procedure
B. False D. Issue of convertible notes by start ups
C. None of these
177. MNCs do not increase
D. none of above
A. Competition
172. Cotton is a product and cloth is a B. Price war
product.
C. Quality
A. Natural, manufactured
B. Natural, final
C. Final, manufactured 178. What is the nature of India ‘s First Five
Year Plan?
D. none of above
A. State Oriented
173. When was tha Reserve Bank of India B. Center Oriented
taken over by the Government?
C. Both (a) and ((b)
A. 1942
D. None of these
B. 1949
C. 1952 179. Removing barriers or restrictions set by
the government is called
D. 1959
A. Liberalization
174. If a person is ready to work at the pre- B. Globalisation
vailing wage rate in the market, but he is
unable to find the work, then what type C. Privatisation
of unemployment would it be called? D. Nationalism

180. Hidden unemployment is also called C. Internal trade

A. Seasonal Unemployment D. Trade barrier
B. Disguised Unemployment
186. Which sector has the largest contribution
C. Educational Unemployment
in GDP?
D. None of these
A. Agriculture sector
181. Which of the below is an example of un-
B. Industrial sector
organised sector?
NARAYAN CHANGDER
A. A teacher teaching in school C. Service sector
B. a headload worker carrying a bag of D. Manufacturing sector
cement on his back in a market
187. SEZs are related from-
C. A factory worker going to work in a big
factory A. Export Promotion
D. none of above B. Education Promotion
182. The sectors are classified into public and C. Health Infrastructure
private on the basis of
D. Defence Equipment
A. employment conditions
B. the nature of economic activity 188. Which of the following sector contribute
highest to India’s National Income?
C. ownership of enterprises
D. number of workers employed in the en- A. Service Sector
terprise s B. Agriculture Sector
183. The MGNREGA implemented in C. Secondary Sector
A. 2004 D. Foreign Trade
B. 2005
C. 2006 189. Poultry is concerned with
D. 2007 A. Primary sector
184. To protect goods produced in India from B. Secondary Sector

imports, government made use of: C. Tertiary Sector
A. Quotas D. Organised Sector
B. Tariffs
C. Export promotion 190. What was the % of India’s population
that was dependent on agriculture during
D. All of these agriculture?
185. This helps to create an opportunity for A. 85
the producers to reach beyond the domes-
tic market B. 65
A. Foreign trade C. 55
B. Domestic trade D. 75

191. GDP is the sum of C. P S Mahalnobis

A. All the goods and services produced in D. Pt. Jawahar Lal Nehru

a year
197. A sole trader operates in the
B. All the final goods and services pro-
duced in a year A. Public sector
C. All the intermediate goods produced in B. Private sector

a year C. Third sector
D. all the services produced in a year D. none of above
192. Who is the father of Green Revolution? 198. Legally stipulated Maximum size beyond
which no individual farmer can hold any
A. Dr Norman Borlau
land:
B. Dr M.S.Swaminathan
A. Tenancy Reform
C. Dr A.P, J Abdul Kalam
B. Land consolidation
D. Mrs Indira Gandhi
C. Abolition of intermediaries
193. The first wholly Indian Bank was set up D. Land Ceiling
in
199. Where are the employment and non-
A. 1891
employment figures taken from to study
B. 1894 the data?
C. 1921 A. Real time handbook of statistics on In-
D. 1821 dian Economy
B. National Statistical office (NSO)
194. Sustainable development does not in-
clude which of the following? C. NITI Aayog
A. Economic development D. Statistics information Bureau
B. Social development 200. On which of the following basis the sec-

tors are classified into public sector and pri-
C. Environmental development
vate sector?
D. Educational development
A. Employment conditions
195. What type of unemployment is found in B. The nature of the economic activity
the agriculture sector of India?
C. Ownership of enterprises
A. Disguised Unemployment
D. Number of workers employed in the en-
B. Voluntary unemployment terprise
C. Frictional unemployment
201. Which of the following is a ‘barrier’ on
D. None of the above foreign trade?
196. Who is regarded as the architect of Indian A. Tax on import
Planning? B. Custom Duty
A. Prasanta Chandra Mahalnobis C. Transit permits
B. V K R V Rao D. All of the above

202. Which of the following was the main fea- 207. MTNL is an example of Entrprise
tures of Indian economy on the eve of in- A. Public sector
dependence?
B. Private sector
A. Semi-feudal economy
B. Urbanized economy C. Both public sector and private sector
C. Industrial economy D. Public private partnership

D. All of these 208. disguised employment is a situation
NARAYAN CHANGDER
203. Which of the following activities are cov- A. when a person does not have a job
ered in the secondary sector? B. when he is jobless
A. It generates services rather than
C. when a person is incapable
goods
D. when more people r employed then
B. Natural products are changed through
needed
manufacturing
C. Goods are produced by exploiting nat- 209. Selling off the share of public sector com-
ural resources panies to the private individuals and insti-
D. It includes agriculture, forestry, and tutions is known as
mining A. Amendments
204. In which sector government owns most B. Delicensing
of the assets and provides all the ser- C. Dereservation
vices?
D. Disinvestment
A. Primary Sector
B. Secondary Sector 210. Service is both
C. Public Sector A. tangible
D. Private Sector B. intangible
205. Subsidies are C. physical product
A. rights to increase trade with Great D. both 1 and 2
Britain and her colonies
211. Objectives of planning in India are
B. extra payments or bonuses to grow or
produce certain crops. A. growth
C. permission to trade directly with other B. self reliance
countries. C. modernization
D. land payments which made it easier to
D. all of these
remain in the colony.
206. Find the odd one 212. What you mean by tariffs?
A. tourist guide A. Tax Imposed on Imported Goods

B. dhobi B. Tax Imposed on exported goods
C. tailor C. Tax Imposed on starting an Industry
D. potter D. None of these

213. period of 2nd five year policy C. industrial

A. 1951-56 D. activity

B. 1956-61
219. What is happening with the import of Chi-
C. 1961-66 nese toys in India?
D. 1966-71 A. Indian toys are selling more
214. Planning commission was set up in India B. Indian consumers are buying less
with the Prime Minister as its Chairperson C. Indian consumers are getting more
in choice at cheap at rates
A. 1947 D. Chinese consumers are failing short of
B. 1950 choices
C. 1951 220. In developed countries, the sector has
D. 1948 become the most important in terms of to-
tal production.
215. What was the motive behind the de-
industrialisation by the colonial Govt. in A. primary
India? B. tertiary
A. To make India a supplier of cheap raw C. secondary
materials
D. none of above
B. India to be a market for British Manu-
factured goods 221. what is the full form of (TISCO) and
C. Both a and b (RIL)?
D. None A. Tata Iron and Steel Company Limited

B. Reliance Industries Limited
216. Life expectancy refers
C. Tata Steel and Iron Company Limited
A. Average longevity of life in a country
D. Tata and Reliance Steel Company Lim-
B. Average birth rate of country in a year
ited
C. Average death rate of a country in a
year 222. using leather we make shoes this is the
example of which sector
D. None of these
A. tertiary
217. Which sector employs a mojority of peo-
ple in India? B. primary
A. Agriculture sector C. secondary

B. Industrial sector D. none of these
C. Services sector 223. POPULATION OF INDIA IN 2011 CENSUS
D. all of the above A. 121.08
218. what is the other name of primary sector B. 130.87
A. service sector C. 120.00
B. agriculture sector D. 130.87

224. Which year is described as a “Year of C. Government

Great Divide”?
D. All of these
A. 1931
B. 1921 230. Economic Survey is published by:
C. 1941 A. Ministry of Finance
D. 1911 B. Planning Commission
225. Choose the meaning of organised sector:
NARAYAN CHANGDER
C. Government of India
A. It covers those enterprises where the D. Indian Statistical Institute
terms of employment are regular
B. It is outside the control of the govern- 231. Foreign Trade
ment A. Increases choice of goods
C. Jobs are not regular
B. Decreases prices of goods
D. It provides low salaries
C. Increases competition in the market
226. The activities in Primary, Secondary and
D. Decreases earnings
Tertiary sectors are
A. interlinked 232. In India in 1973-74, the two sectors that
B. interrelated significantly grew together were
C. interdependent A. Primary and secondary
D. none of above B. Primary and Tertiary
227. Most number of people or majority pro- C. Secondary and Tertiary
portions of population of India was in-
volved in which kind of economic activity D. none of above
on the eve of independence
233. Greater the development of the primary
A. Agriculture and secondary sectors, would be the
B. Manufacturing demand for such services?
C. Services A. Less
D. All of these B. Equal
228. Which of the following person works in C. More
the unorganised sector in the country?
D. Uneven
A. a teacher employed in a govt. school
B. an engineer in Maruti Suzuki Ltd. 234. More than half of India’s foreign trade
C. a domestic helper in a rich family during the British rule was restricted to:
D. a manager of a Nationalised Bank A. China
229. Public health is a liability of B. Britain
A. Private Sector C. Korea

B. Primary Sector D. Sri Lanka

235. Assertion(A):Leela works five days a C. Agriculture Sector

week, receives her income on the last day D. None of the above
of each month and gets medical facilities

from her firm. 240. Which steps are treated as trade
A. Both A and R are true and R is the cor- barriers-
rect explanation of A. A. Decrease in foreign trade
B. Both A and R are true and R is not the B. Decision regarding what kind of goods
correct explanation of A imported
C. Assertion is true, but reason is false. C. decision regarding How much of goods
imported
D. Assertion is false, but reason is true.
D. All of these
236. is the year of divide between the first
and the second stage of demographic tran- 241. How do big private companies contribute
sition. in the development of a nation?
A. 1881 A. By increasing the demands for their
products through advertisements
B. 1891
B. By increasing their profits.
C. 1911
C. By increasing productivity of the coun-
D. 1921
try in the manufacturing of industrial
237. Assertion(A):Rakesh is an educated and goods
skilled worker who earns a high monthly D. By providing private hospital facilities
salary as he is employed in a private bank for the rich.
in a city.
242. The movement of the goods and services
A. Both A and R are true and R is the cor- from their supply locations to demand lo-
rect explanation of A. cations necessitates the need for
B. Both A and R are true and R is not the A. companies
correct explanation of A
B. industries
C. Assertion is true, but reason is false.
C. transport
D. retailers
238. Schedule comprise of industries which
243. A situation when all the people in the
is exclusively by State.
working age group are actually engaged
A. A in some gainful employment
B. B A. Full unemployment
C. c B. Underemployment
D. None of theses C. None
239. Which sector of the economy is the D. Full employment
largest employer? 244. In which sector there is no provision for
A. Service Sector overtime, paid leave, holidays etc.
B. Industrial Sector A. Organised sector

B. Public sector 250. Self reliance means

C. Unorganised sector A. Avoiding imports
D. Primary sector B. Produce goods in India which are im-
ported from abroad
245. At independence, about of the coun-
try’s population was dependent on agricul- C. Export promotion
ture. D. None of these
A. 70%
NARAYAN CHANGDER
251. Which of the following industry was ad-
B. 75% versely affected by partition:
C. 65% A. Silk
D. 80% B. Jute
246. What are the positive impact of Liberali- C. Cotton
sation?
D. Nylon
A. Increase in GDP
B. Increase in Production 252. Who was the Chairman of the Indian’s
First Five Year Plan?
C. Technological Advancement
A. P. C. Mahalanobis
D. Increase in foreign Investment
B. Mahatmas Gandhi
E. All of these
C. Jawaharlal Nehru
247. Which of these are Structural reforms?
D. None of these
A. Short term measures
B. Improve the demand side of the econ- 253. This quiz is based on chapter no 4 Glob-
omy alisation and The Indian is prepared by-
C. Remove growth bottle necks A. Jagdev Suthar KV NEPA

D. Improving subsidy side of the econ- B. H S Verma KV NEPA
omy C. Sandeep Tiwary KV NEPA
248. When the skills of a labour force are not D. A K Mishra KV NEPA
utilized to their full capacity it is known as
254. What is extreme poverty?
A. Employment
A. Living on less than $10 per day
B. Labour Effort
B. Living on less than $5 per day
C. Seasonal Unemployment
C. Living on less than $2.5 per day
D. Underemployment
D. Living on less than $1.9 per day
249. When workers do not utilise their full po-
tential in terms of labour efforts then it is 255. d largest economy in the world as per pur-
called chase power parity
A. Underemployment A. US
B. Disguised unemployment B. China
C. Seasonal employment C. Germany
D. All of the above D. India

256. When was the first postage stamp re- 261. Which of the following in not included in
leased in India? land reforms?

A. 1830 A. Use of high yielding variety seeds
B. 1840 B. The abolition of intermediaries
C. 1847 C. The change in ownership of landhold-
ings
D. 1852
D. Land ceiling.
257. Reserve Bank of India was nationalized
in the year 262. NITI in the NITI Aayog stands for
A. 1950 A. National Institution for Transferring
India
B. 1948
B. National Institution for Transforming
C. 1949
India
D. 1947
C. National Income for Transferring India
258. There are three industries which are re- D. National Institution for Travelling In-
served for the public sector except dia
A. Railway transport
263. The concept of five year plan in India was
B. Atomic energy introduced by
C. Defence equipment A. Lord Mountbatten
D. Electricity B. Gandhi Indira
259. which is the most important sector C. Jawahar lal Nehru
A. primary D. Lal Bahadur Shastri
B. tertiary 264. What was the main channel connecting

C. secondary countries in the past?
D. none of above A. Labour

B. Religion
260. Which one is the correct option for the
given statement? Dairy is a primary sec- C. Technology
tor activity and not secondary sector de- D. Trade
spite the fact that ‘industry’ is attached
to it, because 265. Which of the following is not an activity
of organised sector
A. Dairy products are availed through bi-
ological process of the animals A. Casual labourer
B. Availability of animal feed and fodder B. Domestic workers
C. the main product milk is a natural prod- C. Construction workers
uct
D. A teacher teaching in a government
D. all of the above. school

266. Ownership of asset and delivery of ser- A. A large stock of productive capital
vices is in the hands of private individuals B. A large size of supporting services like
or companies, known as transport and banking
A. Public sector C. An Increase in the efficiency of produc-
B. Private sector tive capital and services
C. Organised sector D. All of the above
D. All of these 272. Mining is an activity under
NARAYAN CHANGDER
267. Those activities, by themselves, do not A. Primary Sector
produce a good but they are an aid or sup- B. Secondary sector
port for the production process, are called
? C. Tertiary sector
A. secondary D. All of these
B. primary 273. In terms of GDP the share of tertiary sec-

tor in 2003 is
C. tertiary
A. between 20 per cent to 30 per cent
D. none of above
B. between 30 per cent to 40 per cent
268. Give an example of Intermediate good?
C. between 50 per cent to 60 per cent
A. Woven basket
D. 70 per cent
B. Wheat flour
274. Deficit financing implies
C. Biscuits
A. printing new currency notes
D. Chair production from wood
B. replacing new currency with worn out
269. Which of the following Acts would not ap- currency
ply to a company like TISCO?
C. public expenditure in excess of public
A. Minimum Wages Act revenue
B. National Rural Employment Guarantee D. public revenue in excess of public ex-
Act penditure
C. Factories Act
275. What are the groups of classification of
D. Payment of Gratuity Act an economy called?
270. Which one is the unorganized activity? A. Sectors
A. A teacher taking class in a school B. Centers
B. A doctor in a hospital treating a patient C. Types
C. A farmer irrigating his field D. Categories
D. A factory worker going to work in a big 276. when we include intermediate goods in
factory the estimation of GDP we face the prob-
lems like:
271. One of the common goals of five year
plans is ‘growth’. What does the growth A. Double accounting
imply? B. Unemployment

C. Poverty B. 1954
D. Overestimation of GDP C. 1955

277. Assertion (A):Service sector covers activ- D. 1956
ities in which natural products are changed 282. MGNREGA guarantee job to poor for
into other forms through ways of manufac-
turing that we associated with. A. 100 days
A. Both A and R are true and R is the cor- B. 90 days

rect explanation of A. C. 60 days
B. Both A and R are true but R is not the D. 50 days
correct explanation of A.
283. What is the duration of plan period in In-
C. A is true but R is false. dia?
D. A is false but R is true A. 10
278. In our country, MNREGA 2005 aims to B. 2
provide to all those who are able to, and C. 3
are willing to work of, a minimum of-
D. 5
A. 200 days of employment in a year
B. 100 days of employment in a year 284. Which of the following best describes hor-
izontal foreign direct investment?
C. 300 days of employment in a year
A. FDI into industry that provides inputs
D. 365 days of employment in a year to the firm
279. Globalisation has led to to improvement B. FDI into industry that uses the firms
in living conditions output
A. of all the people C. Long-term lending to the foreign enter-
B. of people in the developed countries prises
C. of workers in the developing countries D. FDI in the same Industry abroad as the
foreign investor for firm
285. Inward looking trade strategy is also
280. What things affect people’s access to known as policy of
food
A. import relaxation
A. Time
B. import substitution
B. Land
C. import promotion
C. Money
D. none of these
D. Energy
E. Both b and c 286. is called National Highway No.1, be-
tween Delhi and Amritsar.
281. The Village and Small-Scale Industries A. Shah Suri Marg
committee also called the Karve commit-
tee was constituted for the development B. MG Marg
of small-scale industries in C. Akbar Marg
A. 1950 D. Jawaharlal Marg

287. is the biggest port with a spacious 292. Mining as a production activity, belongs
natural and well-sheltered harbor. to sector of the economy.
A. Mumbai A. Primary
B. Chennai B. Secondary
C. Vishakhapatnam C. Tertiary
D. Cochin D. None of these.

293. When did Industrial policy resolution take
NARAYAN CHANGDER
288. “MNCs keep in mind certain factors be-
place in India?
fore setting up production”. Identify the
incorrect option from the choices given be- A. 1957
low B. 1948
A. Availability of cheap skilled and un- C. 1954
skilled labour D. 1956
B. Proximity to markets
294. Literacy rate of a country affects its stan-
C. Presence of a large number of local dard of living of the people
competitors
A. True
D. Favourable government policies B. False
289. What were the focus points of 2nd five- C. Maybe
year plan? D. Dont know
A. Agriculture 295. Full form of GDP is
B. Industry A. Gross domestic part
C. service B. Gross Domestic Product
D. none of these C. Gross Double Product
290. In disguised unemployment we see that D. All of the above.

296. Paper currency first started in India in
A. few people are working A. 1861
B. labour effort is divided B. 1542
C. All are working and they are fully em- C. 1601
ployed D. 1880
D. All People work as per their full poten-
297. Which of the following is NOT a feature
tial
of a Multi-National Company?
291. What is full form Of SEZ A. It owns/controls production in more
A. Security Expert Zone than one nation.
B. It sets up factories where it is close to
B. Special Economic Zone
the markets
C. Surrounding Extraordinary Zone
C. It organises production in complex
D. Secret Export Zone ways.

D. It employs labour only from its own 303. Which of these problems can start a cycle
country. of poverty?

A. Illiteracy
298. Name one type of classification of the
economy? B. Hunger
A. Urban C. War or conflict

D. Lack of shelter
B. Rural
C. Public/private 304. What was the reason of decay of Indian
handicrafts in the colonial period
D. State/National
A. Competition from man-made machines
299. Which sector has emerged as the largest B. New pattern of demand
producing sector in India. Select one from
C. British tariff policy
the following alternatives:
D. all of these
A. Secondary sector
305. Who carries economic activities?
B. Tertiary sector
A. individuals
C. Primary sector
B. firms
D. Science and Technology sector
C. government
300. Information and Technology is a part of D. all of the above
306. Money that is spent to buy assets such as

A. Primary Sector land, building, machines and other equip-
B. Secondary Sector ments is called
C. Tertiary Sector A. Export
D. All of these B. Import

C. Investment
301. Rapid integration and connection be-
D. Infrastructure
tween countries is known as
A. Liberalisation 307. Cotton cultivation falls under sector.
A. Service sector
B. Investment
B. Tertiary
C. Globalisation
C. Primary
D. Interrelation
D. Government Cotton cultivation falls un-
302. GDP is the total value of: der sector.
A. All goods and services 308. Liberalization does not include

B. All final goods and services A. Removing trade barriers
C. All intermediate groups and services B. Liberal policies
D. All intermediate and final groups and C. Introducing quota system

services D. Disinvestment

309. MGNREGA 2005 guarantees how many 315. Which among the following is not an in-
days of employment in a year? ternational agreement centered around Fi-
A. 95 days nance and Economic Cooperation?
B. 105 days A. Abuja Treaty
C. 90 days B. Cooperation Council for the Arab

States of the Gulf
D. 100 days
C. Kyoto protocol
310. Choose one correct statement from the
NARAYAN CHANGDER
following:Underemployment occurs-
316. Liberalisation Policy is announced on
A. when people are not willing to work.
A. 24 July 1991
B. when people are working slowly.
B. 30 July 1991
C. when people are working less than
what they are capable of doing. C. 5 JUly 1991
D. when people are not paid for their D. 20 July 1991
jobs. 317. What is the aim of World Trade Organi-
311. PCI means sation (WTO)?
A. Per capita income A. To promote Health facilities
B. Per capital income B. To liberalize International Trade

C. Domestic infrastructure
C. Per capita income
D. To Increase Literacy
D. Per counted income
318. Which country shares the highest percent-
312. Identify the natural product from the list
age of Indian Imports
of items given below:
A. USA
A. Textile
B. UAE
B. Wheat flour
C. CHINA
C. Cotton
D. BRITAIN
D. Tomato sauce
319. where r most of the people employed
313. Which article of the Constitution envis-
A. primary
ages Budget?
B. secondary
A. Article 280
C. tertiary
B. Article 110
D. none of these
C. Article 360
D. Article 112 320. Which of the following has played a big
role in organising production across the
314. What does HYVP stand for? country?
A. High Yeilding Varieties Products A. WTO
B. High Yeilding Various Programme B. Domestic companies
C. High Yeilding Varieties Programme C. Information technology
D. High Yeilding Various Products D. Consumers

321. Which one of the central problem of an 327. The policy makers of independent India
Economy tried to bring in growth and equity in
the agriculture sector through:i) Bringing

A. what to produce
in land Reformsii) Without using any ‘High
B. How to Produce Yielding Variety’ (HYV) seedsWhich of the
C. For whom to produce above are correct?
D. All of these A. Only I
322. Which of the following is not a long pe-
B. Only II
riod objective of planning in India?
A. GDP growth C. Both I and II
B. Full employment D. Neither I nor II
C. Better quality of life
D. Equitable distribution 328. what is an economy?
323. Which of the following is the primary ob- A. An Economy is the system of produc-
jective of Economic planning in India? tion, distribution and consumption.
A. Abolition of poverty B. An Economy is the system of produc-
B. Removing unemployment tion.
C. Growth with social justice C. An Economy is the system of distribu-
D. Reducing Inequalities of Income tion.
324. Identify the correct secondary sector ac- D. An Economy is the system of consump-
tivity . tion.
A. Production of cotton
B. Production of cloth 329. Which of the following measures did not
form a part of fiscal corrections in 1991?
C. Transportation of cotton
D. None of these A. Lowering of CRR and SLR
325. Find the odd one out B. Lowering of bank rate

A. Tourist guide C. Raising CRR and SLR
B. Dhobi
D. Restricting imports of a essential com-
C. Tailor modities
D. Potter
326. India was merely an exporter of which 330. which sector has considerably grown in
kind of products on the eve of indepen- recent years
dence A. primary
A. agricultural products
B. secondary
B. Capital goods
C. Primary sector products C. teritary
D. None of these D. public sector

331. What is the secondary sector? C. Surplus

A. Production of a good by exploiting nat- D. Deficit
ural resources
336. MGNERGA guarantees jobs to poor for
B. Activities in which natural products
are changed into other forms through
ways of manufacturing A. 50
C. Activities, by themselves, do not pro- B. 100
NARAYAN CHANGDER
duce a good but they are an aid or support C. 200
for the production process. D. 500
D. Mineral excavation
337. An MNC is a company that owns or con-
332. In which sector is most of the population trols production in
of India is employed . A. one country
A. Agriculture B. more than one country
B. Industrial sector C. only developing countries
C. Service sector D. only developed countries
D. None of these
338. Which of the following provision makes
333. Another name for secondary sector is NGREGA as the right to work?
A. primary sector A. Increase in land productivity has been

the preference
B. tertiary sector
B. This act was passed by the parliament
C. service sector in 2005
D. industrial sector C. This act has been spread to all the dis-
tricts in the country
334. Which was the main factor for the change
from primary sector to the secondary sec- D. If the government fails to provide em-
tor? ployment it will give unemployment al-
lowance
A. It was due to the introduction of new
methods of manufacturing during indus- 339. Disguised unemployment can be ob-
trial revolution. served in
B. It was due to the introduction of new A. Rural area
methods of manufacturing during green
B. Urban area
revolution.
C. In both the areas
C. It was due to the introduction of new
methods of irrigation during green revolu- D. None of these
tion.
340. India has
D. none of above
A. socialist economy
335. When expenditure is more than income B. Gandhian economy
A. None C. mixed economy
B. Revenue D. free economy

341. The task of measuring GDP is undertaken C. farming

by the D. urbanization

A. central government
346. The book “Planning Economy for India”
B. state government was written by?
C. provincial government A. V.K.R.V. Rao
D. all of the above B. M.Visvesvaraya
342. The first train steamed off from Mumbai C. K.N. Rai
to Thane in 1853, covering a distance of D. Manmohan Singh
347. If new computers are being installed in
A. 100 KM a company and some employees are fired
B. 34 KM from the job due to lack of computer
knowledge then what kind of unemploy-
C. 50 KM
ment will it be called?
D. 80 KM A. Disguised Unemployment
343. Which of the following statements best B. Structural unemployment
defines FDI? C. Hidden unemployment
A. Buying shares of companies in a for- D. Frictional unemployment
eign country without gaining control over
management 348. Assertion (A):The development of agri-
culture and industry leads to the develop-
B. Loans from multilateral institutions
ment of service sector.
like IMF and World Bank
A. Both A and R are true and R is the cor-
C. Investment in foreign assets to ac- rect explanation of A.
quire lasting business interest
B. Both A and R are true but R is not the
D. Foreign currency deposits of non- correct explanation of A.
resident citizens
C. A is true but R is false.
344. India is said to be in the second stage of D. A is false but R is true
the demographic transition because:
349. Which of the following is not a benefit of
A. birth rate is high but-death rate is de-
green revolution?
clining due to improvement in healthy ser-
vices A. increase in marketed surplus
B. death rates and birth rates are declin- B. increase in price of food grains
ing sharply C. buffer stock
C. none of the above D. self-sufficiency
D. both birth and death rates are high 350. Capilalist is controlled and operated by
345. An industry that experienced immense A. private sector
growth in the 1940s through discovery. B. public sector
A. oil and gas C. both a and b
B. cattle D. neither a nor b

351. Arrange the following taxes in descend- 356. Which sector provides basic services
ing order according to the amount collected A. Tertiary
by the Government.1. Income tax 2. Cor-
poration tax3. Service tax 4. Excise duty- B. Secondary
Codes C. Primary
A. 1 > 2> 3>4 D. none of above
B. 2 > 1 > 3>4 357. What is the year of India’s 12th Five year
NARAYAN CHANGDER
C. 2 > 1 > 4> 3 plan?
D. 1 > 2> 4> 3 A. 1997-2002
B. 2002-2007
352. Which sector has grown by 11 times in
recent years C. 2007-2012
A. Tertiary Sector D. 2012-2017
B. Primary Sector 358. Which of the following is also known as
C. Secondary Sector disguised employment?
D. none of above A. Over employment

B. Factory employment
353. National Development council was set up
in C. Under employment
D. Unemployment
A. 1948
B. 1950 359. The percentage of indirect taxes in the
country’s revenue is approximately
C. 1951
A. 75
D. 1952
B. 86
354. Special Economic Zones (SEZs) are being C. 80
set up to attract
D. 70
A. foreign tourists
B. foreign investment 360. When were the railways introduced in In-
dia?
C. foreign goods
A. 1769
D. foreign policies
B. 1825
355. In the last decade, which one among the C. 1850
following sectors has attracted the high-
D. 1875
est foreign direct investment inflows into
India? 361. Directive Planning is pursued under:-
A. Chemicals other than fertilizers A. Capitalist Economy
B. Services sector B. Socialist Economy
C. Food processing C. Mixed Economy
D. Telecommunication D. None of these

362. What is the most widely used tool of A. kerala

monetary policy? B. west bengal

A. Open market operations C. karnataka
B. Issuing of notes D. both a and b
C. Discount rate E. both b and c
D. None of these
368. Indian economy at the time of indepen-
363. Over the past decade or so, certain new dence was a/an economy.
services such as have become impor- A. Industrial
tant and essential?
B. agricultural
A. information and communication tech-
C. only (a) and not (b)
nology
D. both (a) and (b)
B. private hospitals
C. professional training 369. production of commodity mostly through
natural process is an activity of
D. insurance
A. information technology sector
364. Which one of the following economic ac- B. primary sector
tivities is not in the tertiary sector?
C. secondary sector
A. Banking
D. tertiary sector
B. Bee keeping
C. Teaching 370. Assertion(A):There are several goods
and services that the society needs; how-
D. Working in a call centre ever, the private sector does not produce
365. The first phase of green revolution all of them.
spanned approximately between A. Both A and R are true and R is the cor-
rect explanation of A.
A. mid 1950s upto mid 1960s
B. Both A and R are true and R is not the
B. mid 1960s upto mid 1970s
C. 1980s
C. Assertion is true, but reason is false.
D. 1960-1970
366. Government owns most of the assets and
371. Devaluation of currency leads to
provides all the services:
A. fall in domestic prices
A. Private Sector
B. fall in domestic prices
B. Public Sector
C. no impact on domestic prices
C. Organised Sector
D. erratic fluctuations in domestic prices
D. Tertiary Sector
372. Which of the states got success in Land
367. Land reforms were successful in the fol- Reform?
lowing because these states had govern-
ment committed to the policy of ‘land to A. Kerala and West Bengal
the tiller’ B. Punjab and Haryana

C. Rajasthan and Assam 378. Principal mode of transportation for

D. None of these freight and passengers in India is:
A. Railways
373. The full form of NREGP is:
B. Airways
A. National Rural Employment Gurrantee
Policy C. Roadways
B. National Rural Employment Gurrantee D. Waterways

Program
NARAYAN CHANGDER
379. What is the backbone of Indian economy
C. National Rural Employer Gurrantee A. Agriculture
Policy
B. Industry
D. National Rural Employer Gurrantee
program C. Service
D. None of theses
374. ‘The impact of Globalisation has not been
fair.’ Who among the following people 380. Process of integration of different coun-
have not benefitted from globalisation? tries is called
A. Well off consumers A. Liberalization
B. Skilled and educated producers B. Privatization
C. Small producers and workers C. Globalization
D. Large wealthy producers D. none of above
375. As per Niti Aayog jobs can be created 381. How many sectors of economy are
by improvement of education sector there?
A. 15 LAKH A. 3
B. 10 LAKH B. 4
C. 20 LAKH C. 2
D. 30 LAKH D. none of above
376. Fair Globalisation in WTO is a fight 382. Back ward economy is the one which
against shows:
A. Dissimilarity in interests A. high growth in income.
B. Domination of developed countries B. low level of productivity.
C. Implementation of tax C. slow growth in income.
D. Developing countries D. both (a) and (b)
377. Planning Commission was set up in 383. What is full form of GDP
A. 1948 A. Government Domestic Product
B. 1950 B. Government Direct Production
C. 1951 C. Gross Direct Production
D. 1952 D. Gross Domestic Product

384. Which of these can be considered as basic C. non-economic activity

services? D. private sector

A. Growing of wheat
390. Assertion (A):The value of final goods
B. Transport and services produced within a country in
C. Storage each sector in a particular year is known
D. Police Station as Gross Domestic Product.
385. Which was the last Five years plan in In- rect explanation of A.
dia
B. Both A and R are true but R is not the
A. Eleventh plan correct explanation of A.
B. Twelfth plan C. A is true but R is false.
C. Thirteenth Plan D. A is false but R is true.
D. Fourteenth Plan
391. what is GDP?
386. Over the 40 years between 1973-74 and A. The value of all goods and services
2013-14, while production in all the 3 sec-
tors has increased, it has increased the B. The value of all intermediate goods
most in(choose the most appropriate op- and services
tion) C. The value of all final goods and ser-
A. Tertiary sector vices
B. Primary sector D. The value of all intermediate and final

goods and services
C. Service sector
D. Tertiary or service sector 392. Distribution of working population
among different sectors of the economy
387. New Economic Policy was Introduced in is called:
the year A. occupational structure
A. 1990 B. output structure
B. 1991 C. population structure
C. 1992 D. gender structure.
D. 1993
393. Improvement in transport has helped in
388. Who is known as the father of green rev- promotion of
olution in India? A. globalisation
A. Dr. Varghese Kurian B. liberalisation
B. Dr. M S Swaminathan C. privatisation
C. Dr. Manmohan Singh D. none of these
D. Dr. M S Ahluwalia
394. Who is responsible for the supply of coins
389. house wife teaching her children in the India?
A. economic activity A. Reserve bank Of India
B. public sector B. Ministry of finance

C. Ministry of commerce and industry 400. In how many districts MGNREGA was in-
D. Banker’s association of India troduced
A. 625
395. What is the main motive behind the in-
B. 425
vestments of MNCs?
C. 525
A. The main motive is to increase their as-
sets and earn profits. D. 325
B. The main motive is the welfare of the 401. Minimum Wages Act and Factories Act,
NARAYAN CHANGDER
poor people. Payment of Gratuity Act, Shops and Estab-
C. The main motive of an MNCs is to of- lishment Act are some of the laws associ-
fer financial support to the government of ated with
their country. A. unorganized sector
D. The main motive is to benefit foreign B. organized sector
countries C. Primary sector
396. NITI Aayog was formed on? D. Private sector
A. 1 January 2014 402. private and public sectors run in which
B. 1 January 2015 economy system
C. 1 July 2015 A. socialist
D. 1 July 2014 B. mixed
C. capitalist
397. expand bse
D. both socialist and capitalist
A. Bombay stock exchange
B. Bombay service of electricity 403. Deregulation of Industries is a feature of
economic reforms introduce in 1991 in In-
C. Business services of entrepreneur dia.
D. Business socializing of entrepreneur’s A. True
398. Who is the Architect of Indian Planning? B. False
A. Prasanta Chandra Mahalanobis, C. None of these
B. V K V RAO D. none of above
C. Dr B R Ambedkar 404. Investment made by MNCs is called

D. Mahamta Gandhi A. Investment
B. Foreign Trade
399. The scheme for improving access to sec-
ondary education is? C. Foreign Investment
A. National program for education of girls D. none of above
at elementary level
405. Which Indian company was bought over
B. Model school scheme by Cargill Foods-a large American MNC?
C. Rashtriya Madhyamik Shiksha abhiyan A. Amul
D. Kasturba Gandhi Balika Vidyalaya B. Britannia

C. Agro Tech Foods Ltd. C. Land consolidation

D. Parakh Foods D. Land upgradation

406. The FDI limit in the insurance sector in In-
dia is? 412. Which one of the following refers to in-
vestment?
A. 100 %
A. The money spent on religious cere-
B. 79%
monies
C. 49%
B. The money spent on social customs
D. 26%
C. The money spent to buy assets such as
407. Primary sector is also known as land
A. Agriculture Sector
D. The money spent on household goods
B. Manufacturing Sector
C. Natural Sector 413. Ehich benefits enjoyed by a local company
D. Agriculture and related sector in a joint production with a MNC-
A. Additional investment
408. Human Development Index is not related
to B. Latest technology
A. Life Expectancy C. International market
B. Per Capita Income
D. All of these
D. Education 414. Which of the following sentences would
best describe the Indian economy in
409. Employment in the service sector has 1991?
to the same extent as production.
A. High inflation, low foreign exchange re-
A. increased serve
B. not increased
B. Low inflation, low foreign exchange re-
C. stabilized serves
D. none of above
C. High current account deficit, fiscal sur-
410. Small Scale industries face competition plus
from D. Current account surplus, huge fiscal
A. Rising prices deficit
B. Cheap imports
415. only private interference is exist in which
C. Exports
type of economy
D. Subsidy
A. mixed
411. Fixing the maximum size of land which
B. capitalist
could be owned by an individual is called?
A. Land fragmentation C. other
B. Land ceiling D. none of above

416. The kind of underemployment is hidden in C. Tertiary Activity

contrast to someone who does not have a D. All of these
job is clearly visible as unemployed. It is
also called as 422. Black revolution is related to the
A. Seasonal Unemployment A. Fish Production
B. Structural Unemployment B. Crude Oil Production
C. Disguised Unemployment C. Fertilizer Production
NARAYAN CHANGDER
D. Frictional Unemployment D. Mustard Production
417. Optimum Population is that ideal popula- 423. When income level rise, certain sections
tion which provides of people start demanding many more ser-
A. Minimum Income per head vices like
B. Maximum Income per head A. Poverty
C. Average Income per head B. More food
D. None of the above C. Hospitals
D. Tourism
418. Using sugarcane as raw material, we
make sugar or gur, under what sector does 424. Where will you find the disguised unem-
this activity come? ployment most? Select the correct option
A. Primary from those given below:
B. Private A. Among agricultural workers working
for small farm lands
C. Industrial
B. Among part-time industrial workers
D. Tertiary
C. In most of the government offices
419. Two causes of poverty are:
D. In big private companies
A. Weather and economics
B. Discrimination and economics 425. Which year is known as great division
year in the history of demography or pop-
C. Economics and natural disasters ulation growth of India
D. Economics and weather A. 1881
420. MNC stands for B. 1911
A. Multinational Corporation C. 1921
B. Multination Corporation D. 1991
C. Multinational Cities 426. When did India’s population record a neg-
D. Multinational Council ative growth rate?
421. Converting iron ore to steel is a part of A. 1911-21

B. 1921-31
A. Primary Activity C. 1941-51
B. Secondary Activity D. 1981-91

427. Which of the following statements best 432. Land reforms primarily refer to:
describes economic development?
A. change in the ownership of landhold-

A. It always accompanies economic ings
growth
B. abolition of intermediaries
B. It indicates the increase in GDP
C. use of technology in agriculture
C. It is reflected in the quality of life of
D. fixing the maximum size of land which
the people
could be owned by individual
D. It is a quantitative concept
433. Globalization is not supported by
428. What is MGNREGA? When was it imple-
mented? A. Privatization
A. Mahatma Gandhi National Rural Em- B. Liberalization

ployment Guarantee Act, 2007 C. Information and communication tech-
B. Mahatma Gandhi National Right Em- nology
ployment Guarantee Act, 2004 D. None of these
C. Mahatma Gandhi National Rural Em-
ployment Guarantee Act, 2005 434. Tax on imports is an example of
D. Mahatma Gandhi National Rural Em- A. Investment

ployment Guarantee Association, 2005 B. Disinvestment
429. Which seeds are called miracle seeds? C. Trade barrier

A. Traditional seed D. Privatization
B. British Seed 435. who is called the ‘Father of economics’
C. S.Y.V seed A. Max Muller
D. H.Y.V seed B. Karl Marx
430. The sum total of production of all goods C. Adam Smith
and services in the three sectors are com-
D. none of these
binedly
A. NDP 436. Tertiary sector is called the service sector
as
B. NI
A. it does not produce goods but provide
C. GNI
services to all the sectors
D. GDP
B. it provides the interlink or inter con-
431. SEZ stands for nectivity between all the sectors
A. Special Economic Package C. it provides the support that is needed
by both secondary and primary sector to
B. Special Economic Zone contribute to the GDP
C. Special Ecology Zone
D. All the above options are true to the
D. none of above given statement.

437. Which bank is the first to introduce ATM C. A is true but R is false.
in India? D. A is false but R is true.
A. ICICI
443. Which sector has grown the most over
B. HSBC
forty years?
C. SBI
A. primary
D. UCO BanK
B. tertiary
438. What are the advantages of globalisa-
NARAYAN CHANGDER
C. secondary
tion?
D. none of above
A. Improvement in technology
B. Competition among producers 444. Following was not the risk associated
with use of HYV seeds technology
C. Creation of new job opportunities
A. pest attack
D. Availability of international market
B. excess supply of food grain
E. All of these
C. widening inequalities between rich
439. The opening of Suez canal served as a di- and small farmers
rect route for ships operating between:
D. rich farmers reaping most of the bene-
A. India and America fits
B. India and Sri Lanka
445. The value of all final goods and services
C. India and Pakistan
produced within a country during a partic-
D. India and Britain ular year is called as:
440. Indian economy system is A. Gross Domestic Product
A. capitalist B. Net Domestic Product
B. socialist C. National Product
C. mixed D. Production of Tertiary Sector
D. other
446. too many people working on one area of
441. Landholdings at the time of independence land
were A. under-employed
A. Large B. over-employed
B. Economic C. disguised employment
C. Fragmented D. none of above
D. None of these
447. Conversion of raw material into finished
442. Assertion(A):In India, the primary sector products is an activity of
is the largest employer.
A. Primary sector
B. Secondary sector
rect explanation of A.
B. Both A and R are true and R is not the C. Tertiary sector
correct explanation of A. D. All of the above

1.14 Rural Economics 569
448. Which of the following economic activity B. 1891

is not in the tertiary sector C. 1911

A. Banking D. 1921
B. Bee-Keeping
452. Example of Public Sectors are
C. Teaching
A. TISCO
D. Working in a call center
B. RIL
449. Schedule C industries development were C. Railways
left to:
D. Post Office
A. Public sector
453. Who estimates the GDP of Indian econ-
B. Private sector
omy?
C. Both (a) and (b)
A. CSO
D. None of these
B. NSSO
450. Occupational Structure refers to: C. IMF
A. Nature of workforce D. RBI
B. Size of workforce
454. Underemployment is a situation where
C. Number of people living in a country people:
D. Distribution of workforce among dif- A. do not want to work
ferent occupations. B. are not paid of their work
451. The first census data were collected in C. are working in a lazy manner
during the British rule. D. are working less than what they are ca-
A. 1881 pable of doing
1.14 Rural Economics

1. Major Key Sectoral opportunities for In- D. Animal Husbandry
dian FMCG Sector are
A. Dairy Based Products 3. institutional sources of agricultural credit
B. Packaged Food A. Commercial Banks

C. Oral Care B. Traders
D. Beverages C. Manufacturer
E. All the above D. Regional Rural Banks
2. Rural development mostly depends upon E. Self Help Group
the development of agriculture.
A. Industries 4. The Green Revolution resulted in an in-
crease in production of cereal grains in the
B. Banking system developing world, providing “cheap” calo-
C. Agriculture ries for growing populations. By roughly

what percent did cereal grain production in- C. Rythu Bazars

crease throughout the course of the green D. Uzhavar Sandies
revolution?
A. 200% 10. Rural population require long-term loans
because
B. 100%
C. 25% A. For buying Fertilizers
D. 400% B. Buying agricultural machinery
NARAYAN CHANGDER
C. Buy seeds
5. The alternate marketing channels in Pun-
jab, Haryana, and Rajasthan are known as D. To make minor improvements on land
11. The problem faced in rural banking are

A. Apni Mandi
A. Insufficient rural credit
B. Hadapsar Mandi
B. growing overdues
C. Rythu Bazars
C. Inadequate amount of sanction
D. Uzhavar Mandies
D. All of these
6. Which of the following is a characteristic
of a dairy farm outside of a milkshed? 12. The consists of the actors and forces
A. produces primarily fresh milk outside marketingthat affect marketing
management’s ability to develop and main-
B. has a focus on processed milk; such as
tain successfulrelationships with its target
butter or cheese
customers.
C. needs very few refrigerated trucks
A. marketing organization
D. none of the above are true
B. marketing system
7. The growth of agriculture depends on C. marketing network
A. Infrastructure
D. marketing environment
B. Timely availability of credit
13. People in urban areas tend to have access
C. Cheap labour
to all of the following except.
D. All of the above
A. Better Health Care
8. What type of agriculture is practiced to B. Technology
produce food for sale off the farm?
C. Public Transportation
A. Commercial
D. less pollution
B. Subsistence
C. Cash crop 14. Which of the following is the leading cause
D. Maize of hunger in the world in 2015?
A. Crop failure
9. What is the name of the vegetable and
fruit market in Andhra Pradesh? B. Overpopulation
A. Apni Mandi C. War and political instability
B. Hadapsar Mandi D. Global Warming

15. What agriculture do we primarily find in 20. is the apex body which coordinates
LDC’s? the functioning of different financial insti-
tutions, working for expansion of rural

A. Mediterranean
credit.
B. plantations
A. NABARD
C. truck/fruit farming
B. Self-Help Groups
D. dairy farming
C. Regional Rural Banks
16. Which of the following takes the decisions D. Commercial banks
regarding loans and savings in a self-help
group (SHG)? 21. Which of the following was probably the
A. Government first type of agriculture in human history?
B. Non-government organisation A. Seed Agriculture
C. Bank B. Aquaculture
D. Group members C. Pastoral Nomadism
D. Hunting and Gathering
17. Where would animal grazing take place in
the von Thunen model?
22. What is the contribution of rural areas to
A. First ring FMCG spending?
B. Second ring A. 46%
C. Third ring B. 36%
D. Fourth ring C. 55%
18. What information did Whittlesey’s map D. 26%

from 1936 provide?
23. Following is the importance of studying
A. The relationship between the type of Rural Marketing Environment
agriculture region and climate
A. Helpful in recognizing new market op-
B. The type and quantity of crops around portunities
the world
B. Helpful in taking marketing decisions
C. The areas of undernourishment in the
world. C. All of the above
D. The distribution of farmers and ma- D. Helpful in understanding rural market

chinery around the world. conditions
19. What climate is associated with Pastoral 24. intensive subsistense agriculture
Nomadism? A. uses smaller farms
A. humid-low latitude B. has a high agricultural density
B. arid/semi arid C. uses animal power and some ma-
C. warm mid-latitude chines
D. cold mid-latitude D. All answers are true

25. The person-in-charge of the police station 30. a form of services that provide so-
is known as lution to the financial needs of the con-
A. Stationmaster sumers in Rural areas
B. Superintendent of Police A. Urban Banking
C. Station House Officer B. Industrial Banking
C. Rural Banking
26. Which source of credit had emerged to fully
NARAYAN CHANGDER
integrate the formal credit system into the
overall rural social and community devel-
31. What type of agriculture is practiced to
opment?
feed the farmer and the farmer’s family?
A. Self-help Groups
A. Commercial
B. Regional Rural Banks
C. Commercial Banks B. Substantive
D. Land Development Banks C. Communal
27. Which of the following statements are D. Subsistence

true about drug crops impact on food sup-
ply? 32. An example of racial discrimination coun-
A. Farmers in LDCs grow drug crops for try is
great profit A. South Africa
B. Drug crops use up arable land that
B. South Korea
could be used for food
C. MDC’s produce a majority of the C. South America
worlds Drug Crops D. South India
D. Drug Crops are a parasitic and inva-
sive species 33. The SHO sends a to check the case and
take action based on that?
28. Credit provisions made by self help groups
(SHG) to its different members is known A. Constable
as
B. SP
A. micro credit programme
C. Tehsildar
B. mini credit programme
C. Non Institutional programme D. none of above
D. none of above
34. Which option blocks the poor to get bank
29. What is the main focus of rural develop- loans?
ment?
A. Absence of collateral
A. fishery productivity
B. High rates of interest
B. enhance farming
C. increase rural income C. Complexity of procedure
D. all of the above D. None of the above

35. The primary differences between agri- 40. By March 2003, SHGs had been pro-
culture practices in the world are be- vided credit by the banking system.
tween those of what two types of re-

A. 70 lakh
gions/countries?
B. 7 lakh
A. Africa and Asia
B. MDC and LDC C. 17 lakh
C. Eastern and Western Hemispheres D. 27 lakh
D. Northern and Southern Hemisphere 41. Which is a reason for opposition of GMOs
for places such as Africa?
36. Derwent Whittlesey’s map of agricultural
regions helped to show a relationship be- A. antibiotics may lose their effective-
tween agricultural regions and ness
A. type of crops B. concern about trade with Europe
B. climate C. higher resistance to pests and higher
C. labor distribution profit margins
D. level of development D. all of the above
37. Government closer to home, solve local 42. Which of the following is not a feature of
problems, and administer resources are all an agricultural cash crop?
reasons for A. Frequently grown as a monoculture
A. federal government B. Produced according to market trends
B. state government
C. Not suitable for subsistence farming
C. local political divisions
D. Only kept by the producer and never
D. local government agreements distributed
38. The following are the four components of 43. What is an economic difficulty faced by
the Project and the Global Environment Ob- dairy farmers?
jectives, except one.
A. It is labor intensive.
A. focuses on local and national level
planning B. There are too many regulations.
B. infrastructure development C. Cows need to be moved to different
grazing regions based on seasons.
C. enterprise development
D. Loss of farmland to urban sprawl.
D. improving natural resources
39. Which of the following is not commercial 44. The 1:4 rule & license procedure was
farming? frozen in the year
A. Pastoral nomadism A. 1970.

B. Agribusiness B. 1980.
C. Mediterranean C. 1990.
D. Livestock and Cattle Ranching D. 2000.

45. Where is shifting cultivation found? 50. Number of people living in villages in India
as per 2011 census
A. Tropical regions with relatively high
temperatures and abundant rainfall. A. 0.8684
B. Developed countries with a low num- B. 0.8468
ber of farmers. C. 0.8864
C. Less developed countries with a heavy D. 0.6884
reliance on subsistence agriculture.
NARAYAN CHANGDER
51. To increase yields what practice to farmers
D. Societies that rely on hunting and gath- in SE China engage in?
ering.
A. double cropping
46. How much do the “inland sources” con- B. slash and burn
tribute to the total fish production in In-
C. threshing
dia?
D. crop rotation
A. 64 percent
B. 39 percent 52. Where were cattle, sheep, and goats first
domesticated?
C. 50 percent
A. Central America
D. 75 percent
B. Northeastern Africa
47. lead to increased production of milk C. Southeast Asia
and made India largest producer of milk. D. Northern China
A. Green revolution
53. Which one of the following is a non-farm
B. White Revolution area of employment?
C. Cooperatives A. Livestock farming
D. Milk Dairy System B. Horticulture
C. Fisheries
48. It is a strategy to improve the economic
and social life of people in rural areas, D. All of the above
specifically the rural poor.
54. Phase III in the evolution of rural market-
A. Development Education ing belongs to the time period
B. Rural Development A. 1960-1980s
C. Urban Development B. 1990s-2010s
D. Professional Development C. Before 1960s
D. 1980s-1990s
49. Major Indian Companies
A. HINDUSTAN UNILEVER 55. What is fallow soil?
A. Soil that is left uncultivated so that it
B. AMUL
can rest and regenerate nutrients.
C. DABUR INDIA LIMITED
B. Soil that has been depleted on nutri-
D. All the above ents.

C. The process of desertification. 61. National Bank for Agricultural and Rural
D. Soil that has been cleared and fertil- Development was established in

ized by a process called shifting agricul- A. July 1982
ture. B. July 1992
56. What is the agricultural activity associated C. July 1972
with the raising of domesticated animals D. July 2002
such as cattle, horses, sheep, and goats?
62. The period between is known as
A. Animal farming
Golden Revolution period
B. Ranching
A. 1991-2001
C. Animal husbandry
B. 1991-2003
D. Livestock
C. 1993-2001
57. cutting and burning trees for farming: D. 1990-2003
A. subsistence agriculture 63. The scheme of Micro finance is extended
B. slash and burn through
C. pyroagriculture A. Self-help Groups
D. agribusiness B. Land development banks
C. NABARD
58. The art and science of producing food from
the land and tending livestock to feed hu- D. Regional Rural banks
mans.
64. Which status has been accorded to the re-
A. Agribusiness tail chains and supermarkets for selling or-
B. Agriculture ganic food?
C. Biotechnology A. Eco Status
D. Agricultural revolution B. Sustainable Status
C. Nutritional Status
59. Which of the following was an environ-
mental factor that contributed to the agri- D. Green Status
cultural revolution? 65. What does FMCG stand for?
A. End of the last ice age A. First-marketed consumer goods.
B. Religious practices B. Fast-moving consumer goods.
C. Discovery of fire C. Fast-manufacturing consumption
D. Rivers guidelines.
60. Since when that rural development estab-
lished? 66. The informal sector loans incorporate
A. 1950’s A. State Bank of India
B. 1960’s B. Moneylenders
C. 1970’s C. NABARD
D. 1980’s D. Both (A) and (B)

67. Goods which respond to routine response 72. What type of agriculture uses the largest
buying situations are called: percentage of the World’s land area?
A. Fast-moving goods. A. dairying
B. Convenience goods. B. mediterranean
C. Service goods. C. plantation

D. shifting cultivation
73. The most significant factor as to why
NARAYAN CHANGDER
68. Which of the following options best exem- North China grows crops other than wet
plifies pastoralism? rice is
A. A small, organic farm grows corn, soy- A. Cultural tradition
beans and squash together in rows. B. Ethnic precedence
B. A large farm grows a couple of prof- C. climate
itable crops.
D. soil
C. A small farm raising pigs and cows.
74. The participation takes place through
D. A group of nomadic shepherds tends
A. Elections
flocks of goats and sheep in Eastern
Africa. B. Reporting
C. checking the govt.
69. Which of the following is not a benefit of
D. none of above
organic farming?
A. Cheaper Inputs 75. The total sum of products offered by an
organisation is called:
B. Attractive returns on Investment
A. The product line.
C. Greater Import Possibilities
B. The product mix.
D. Higher Nutritional Value C. The product item.
70. The adoption of agriculture by neolithic so- D. None of the above
cieties resulted in 76. Which of the following areas of the world
A. development of less-hierarchical soci- most likely leads the other areas listed be-
eties low in the production of wheat?
B. increased gender equality A. Central Brazil
C. cultures adopting a more settled B. Interior Australia
lifestyle C. Eastern Europe
D. an increase in nomadic hunting D. Central Africa
77. People in rural areas are more
71. Where did Agriculture originate?
A. Homogenous
A. Africa
B. Heterogenous
B. China
C. Bigenous
C. Multiple hearths
D. Discussing this is not politically cor-
D. Fertile Crescent rect.

78. You are directed to study the demographic, 83. Choose all correct answers for this defini-
economic, natural, technological, political, tion:Food produced by a family for its own
and cultural factors that are larger societal needs:

forces affecting your company. What are
A. Subsistence Farming
you studying?
A. the macroenvironment B. Commercial Agriculture
B. the marketing mix C. Africa, Asia, Central and South Amer-
C. the microenvironment ica
D. the global environment D. United States, Europe, Australia
79. Agriculture marketing does not comprise 84. The loss of farmland in rapidly growing ur-
of ban areas is caused by
A. Transportation of the produce to the
A. urban sprawl
market place for sale
B. grading of the produce according to B. soil erosion
the quality C. deforestation
C. Storage of the produce for sale in fu-
D. industrialization
ture
D. Credit taken to meet expenditure on 85. Raising and cultivating fish and shellfish in
agriculture controlled bodies of water is known as
80. The agricultural revolution provided soci- A. Fish Farms
eties with
B. Ocean Farms
A. Protection
C. Aquaculture
B. Food security
C. An economy D. Commercial Fisheries
D. A class system
86. Are there hunters and gatherers in the
81. Which Indian state has been held as a suc- world today?
cess story in the efficient implementation A. Sentinelese from the Andaman Islands
of milk cooperatives?
A. Punjab B. Tribal nomads from Papua New Guinea
B. Gujarat C. Aborigines from Central America

C. Uttar Pradesh D. Sudanese tribes in South Africa
D. West Bengal
87. All of the following are characteristics of
82. Products which require a considerable urban areas except
amount of search behaviour are called:
A. densely populated
A. Luxury goods.
B. cultural homogeny
B. Convenience goods.
C. Shopping goods. C. access to public transportation
D. None of the above D. manufacturing jobs

88. Who does the work of measuring land and 93. According to NEDA, how many percent of
keeping land record? the total population in the country belongs
A. Doctor to the poverty line?
B. Chemist A. 57%
C. Patwari B. 67%
D. All of the above C. 77%

D. 87%
NARAYAN CHANGDER
89. What event helped geographers and other
scientist determine when the first Agricul- 94. Which of the following is part of Socio-
tural Revolution occurred? Cultural Environment?
A. The population of the world began to A. Land Ownership
grow rapidly. B. Social Class
B. There are farming artifacts left behind C. Gender Ratio
in early agricultural settlements.
D. Change in Marketing Strategies
C. Written records.
95. relies heavily on chemical fertilizers
D. Cave paintings depict scenes of early
and toxic pesticides.
agriculture.
A. Organic farming
90. What is an example of a subsistence
B. Intensive subsistence farming
crop?
C. Conventional farming
A. Corn
D. Non of the above
B. Honey
C. Tobacco 96. which one of the following is not a non-
institutional source of credit?
D. Sugar
A. Money lenders
91. Cities are centers for
B. Co-operative Credit
A. culture
C. Traders and commission agents
B. trade
D. Land development bank
C. government
97. The set of economic and political relation-
D. ideas ships that organize food production for
92. When does the government subsidize commercial purposes.
prices or pay for farmers to have empty A. Agribusiness
fields? B. Commercial agriculture
A. want to donate the surplus to LDCs C. Eco-cultivation
B. they don’t do that because we are a D. Corporate geopolitical transactions
free market system
C. The government plays no role in agri- 98. Not including Corn, what is a major crop
cutlure grown in the US?
D. to compensate for overproduction to A. lamb and goats

prevent inflation B. wheat

C. fruit plantations C. availability of material input

D. rice D. cultural preferences

99. Land prepared for agriculture using the
104. The was a harbinger of major changes
slash and burn method
in the credit system.
A. fallow
A. White revolution
B. swidden
B. Bumper Stock
C. shifting agriculture
C. Public distribution
D. fertile
D. Green Revolution
100. He is the President of the World Bank
in 1997 wherein he aptly describes the 105. A small loan amount given to low-income
global picture in his foreword:“ Reduc- households or groups is known as
ing poverty and ending hunger requires
focused attention on the rural economy. A. Cash credit
Nearly three out of four of the world’s B. Micro Credit
poor and hungry live in rural areas”.
C. Rural credit
A. MacNamara
D. Simple credit
B. James Wolfenson
C. Renz Wolfenson 106. What does the word cultivate mean?
D. Gloria Arroyo A. To care for
101. This is the name for huge, urban areas B. To grow
that are influential in world politics and
C. Farming
economics
A. Economic Hub D. Agricuture
B. Epicenter 107. It means a major proportion of the in-

C. World City creasing labour force in the agricultural
D. City Center sector needs to find alternate employment
opportunities in other nonfarm sectors.
102. It is a process of marketing in which farm A. Product Development
produce are distributed through whole-
salers to ultimate consumers. B. Rural Development
A. Rural credit C. Agricultural Diversification
B. Agricultural marketing D. Agriculture POLICY
C. Product marketing
108. Panchayat president is also called
D. none of above
A. Panchs
103. According to von Thunen, the regional ge-
ography of agriculture is determined by B. Ward members
A. land area C. Sarpanch
B. rent D. Secretary

109. Disguised unemployment is a situation C. Peru

A. wherein the number of workers en- D. California
gaged in work is less than actually/ opti-
mally required 114. Which of the following terms is used
B. wherein the number of workers en- to describe the factors and forces out-
gaged in work is more than actually/ op- side marketing that affect marketing man-
timally required. agement’s ability to build and maintain
successful relationships with target cus-
NARAYAN CHANGDER
C. wherein the number of workers en- tomers?
gaged in work is equal than actually/ opti-
mally required A. the marketing environment
D. None of the above B. the cultural environment
C. strategic planning
110. During the colonial period, traveling west
became difficult because of the D. the marketing mix
A. Coastal Plain Region
115. Farmers in Asia primarily primarily prac-
B. Fall Line tice
C. Gas Prices A. pastoral nomadism
D. James River
B. intensive subsistence
111. Which of the following is not a challenge C. shifting cultivation
or problem of Indian Rural Markets
D. hunting and gathering
A. Many Languages and Diversity in cul-
ture 116. once said that the real progress of In-
B. Underdeveloped People and Underde- dia did not mean simply the growth and
veloped Markets expansion of industrial urban centers but
mainly the development of the villages.
C. Rural Sales Management
A. Mahatma Gandhi
D. Increasing sale of Branded Products
B. Jawarharlal Nehru
112. It is a system of a long period sustainable
process along with an eco-friendly environ- C. Narendra Modi
ment. D. Indira Gandhi
A. Rural Development
117. He was the president of the World Bank
B. Economy Development in 1973, wherein he defined rural devel-
C. Sustainable Development opment as a strategy designed to improve
D. Project Development the economic and social life of a specific
group.
113. Which of the following was NOT a loca- A. Mahatma Ghandi
tion of independent plant and animal do-
mestication? B. Michael Morris
A. Africa C. John Derek
B. China D. Robert McNamara

118. During which decade did the Green Rev- 123. What does urbanisation mean?
olution result in exponential increases in A. the movement of people from the coun-
food production (particularly that of cereal

tryside to towns and cities
grains) worldwide?
B. the movement of people out of cities to
A. 1930’s the countryside
B. 1960’s C. an increase in the percentage of peo-
C. 2010 ple living in towns and cities
D. 1890’s D. an increase in the percentage of peo-
ple moving to the countryside
119. Cattle and buffalo account for of In-
dia’s total livestock in 2007. 124. The largest effect of increased mechaniza-
tion in modern agriculture has been
A. 36 percent
A. reduced need for farm laborers
B. 26 percent
B. a diversification of agricultural crops
C. 28 percent
C. a lack of reliance on cash crops
D. 38 percent
D. a division of arable land among more
120. is an action plan for the economic and so- individual farmers
cial upliftment of rural areas.
125. One of the negative effects of GMO use
A. Product Development is
B. Rural Development A. increased exposure to pesticides.
C. Agriculture prodtuction B. an increase in crop production.
D. Poverty C. depletion of soil nutrients.
121. About what year did the first Agricultural D. increase risk of birth defects from
Revolution occur? GMOs.
A. 3000 BCE 126. which of the following is an institutional

source of rural credit?
B. 8000 BCE
A. Co-operative credit
C. 1000 CE
B. Land development banks
D. 20000 BCE
C. NABARD
122. The effects of biotechnology are D. All of the above
A. positive because it allows for much
greater agricultural yields. 127. What type of agriculture is practiced by
the largest percentage of the world’s peo-
B. limited because its expense prevents ple?
its accessibility to farmers in developing
countries. A. pastoral nomadism
C. are unknown because not enough re- B. hunting and gathering

search has been conducted on them. C. dairying
D. All of the above D. intensive subsistence

128. What is one conflict caused by local polit- C. competition

ical divisions?
D. unequal distribution
A. boundary disputes
B. trash collection 134. People in urban areas are
C. slower emergency services A. more homogenous

D. taxable income B. more heterogenous
129. What type of agriculture requires a lot of C. more bigenous
NARAYAN CHANGDER
labor and focuses on a small plot of land? D. I am not allowed to discuss these
A. Extensive agriculture things because of my religion.
B. Intensive subsistence agriculture 135. The formal sources of credit do not com-
C. Pastoralism prise of
D. Commercial agriculture A. Cooperatives
130. More than 10 percent of goods produced B. Employers
in farms are wasted due to lack of C. Banks
A. storage D. None of the above
B. transportation facilities
C. Marketing facilities 136. Climate for Plantation farming
D. Non of the above A. Arid/Semi-Arid

B. cold and rainy winters, dry hot sum-
131. Which of these terms best matches the
mers
following description:An agricultural pro-
cess that involves nomadic animal hus- C. tropical or sub-tropical
bandry? D. it varies and can happen in many cli-
A. Animal domestication mates
B. Pastoralism
137. Which of the following is NOT a type of
C. Ranching factor in a company’s macroenvironment?
D. Dairying A. demographic
132. What was the growth rate of agricultural B. economic
output during 2007-12?
C. technology
A. 32% per annum
D. competitor
B. 6% per annum
C. 1.5% per annum 138. Which microfinance institution is known
as the Universal Bank?
D. 5% per annum
A. Bandhan Financial Services Private Ltd
133. When political boundaries are drawn for
the benefit of a political party it is called B. Arohan Financial Services Private Ltd.
A. redistricting C. Disha Microfinance Private Ltd.
B. gerrymandering D. SKS Microfinance Private Ltd.

139. Select all of the following that are local 144. In cases involving land disputes one may
or regional political divisions approach the

A. election district A. Patwari
B. school district B. Tehsildar
C. regional transportation cooperation
C. Revenue Department
D. regional waste disposal cooperation
D. District Collector
140. When was the National Bank for Agricul-
tural and Rural Development set up? 145. What is the rank of FMCG sector in terms
of its contribution to the Indian economy
A. 1962
B. 1972 A. 4
C. 1982 B. 3
D. 1882 C. 2
141. It is a system whereby all the farmers D. 1

can pool their milk produce according to dif-
ferent grading (based on quality) and the 146. Urban populations are most likely to be
same is processed and marketed to urban employed in all of the following sectors ex-
centers through cooperatives. cept
A. Operation flood A. Banking and Fianance
B. Disguised unemployment B. Health Care
C. Grading C. Farming
D. none of above D. Retail and Service Jobs
142. How did humans obtain food before the
147. Government established the institutional
Agricultural Revolution?
sources of finance
A. Hunting animals and following migrat-
ing herds A. to provide adequate credit to farmers
at a cheaper interest rate
B. Hunting and Gathering
B. to assist small farmers in raising agri-
C. Subsistance harvesting of local plants
cultural productivity and maximising their
such as fruits and berries.
income
D. Humans wer opportunistic harvesters,
taking available vegetables and fruits as C. to earn profits
they found them. D. All of these
143. All of the following are rural characteris-
148. AEZ stand for
tics except
A. Agricultural Economic Zone
A. Cultural Homogeny
B. public transportation B. Average Economic Zone
C. sparsely populated C. Aeronautical Economic Zone
D. Politically Conservative D. None of the above

149. Organic Farming is beneficial because C. NABARD

A. It generates income through interna- D. Zamindars
tional exports
E. Traders
B. It makes use of chemical fertilizers
and pesticides
155. Which of the following was NOT a posi-
C. It is produced in an environmentally tive result of the Green Revolution?
sustainable way
NARAYAN CHANGDER
D. All of these A. Increased crop yields from industrial
fertilizers
150. The financial inclusion in a Rural House-
hold usually follows this preference order B. global expansion of organic and sus-
tainable agriculture
A. Savings Account
C. A global increase in food security due
B. Fixed Deposit
to reduced crop failure
C. Agriculture Credit
D. Increased crop yields from hybridized
D. All the above
seed varieties
151. Patwari is also known as
A. Lekhpal 156. Name of the record maintained by The
PATWARI
B. Karamchari
C. Village Officer A. Khasra Record
D. All of the above B. Land record
152. Which among the following is an initia- C. Tehsil record

tive taken for the development of rural In-
D. All of these
dia?
A. Human Capital Formation 157. In 1977 the license rule was imple-
B. Land Reforms mented
C. Poverty Alleviation A. 1:1
D. All of these
B. 1:2
153. What factor does not contribute to the
C. 1:3
variation in food consumption around the
world? D. 1:4
A. development level of a country
B. physical conditions such as climate 158. The Central Business District (CBD) is also
known as
C. cultural preferences
A. Downtown
D. absolute location
B. Suburb
154. Non Institutional Sources of Credit
A. Commercial Banks C. Uptown
B. Central Bank D. Rural Area

159. It was mentioned in the State of the 164. The Industrial Revolution transformed
Nation Address, the president outlined a Western agriculture
medium-term development plan anchored

A. through mechanization and the cre-
on the vision of “winning the war against ation of new markets.
poverty within the decade”. Who is this
president? B. with biotechnology.
A. Bongbong Marcos C. through plant hybridization and
biotechnology
B. Cory Aquino
D. by introducing slaves into the work-
C. Gloria Arroyo
force
D. Joseph Estrada
165. Which of the following is NOT true about
160. In India, which of the following organisa- Mediterranean agriculture
tion takes care of the agriculture and rural
development credit needs A. grow grapes to grow wine
A. IDBI B. grow olives for Olive Oil
B. NABARD C. include a wide variety of aquaculture
C. ICAR D. Are in places such as California,

Greece, and Italy
D. FCI
166. The Tuareg people of the Sahara and their
161. marketing activity intended to in-
animals seasonally migrate to the higher
crease demand for a product that appears
lands in the summer and the valleys in the
to meet an evident market need
winter. This is an example of:
A. Digital
A. pastoral nomadism
B. Social
B. livestock ranching
C. Developmental
C. manipulated migration
D. Non of the above
D. transhumance
162. In arid climates, like Southern California
and the Middle East, can cause the soil 167. Largest Indian commercial banks
to become salty and infertile. were nationalized in 1969
A. erosion A. 15
B. topsoil loss B. 14
C. salinization C. 13
D. droughts D. 12
163. Introduction of Economic Reforms in 168. What is the key economic activity in rural
China took place in the year areas?
A. 1979 A. business
B. 1978 B. banking
C. 1988 C. factories
D. 1987 D. agriculture

169. Which of the following is a force that 174. Farmers in MDCs grow crops and raise
does NOT affect the Microenvironment? animals to sell directly to
A. The company A. Consumers
B. The Suppliers and Intermediaries B. Markets
C. Customers C. Stores
D. The economic environment D. Food processing companies
NARAYAN CHANGDER
175. White Revolution is associated with
170. Why is minimum support price fixed by
the government? A. Horticulture
A. for government own benefit B. Fisheries
B. To safeguard the interest of farmers C. Dairying
C. to safeguard the interest of con- D. Animal Husbandry
sumers 176. What does rural-urban migration mean?
D. none of these A. movement from the countryside to
towns and cities
171. According to World Bank, the significant
majority of the rural poor depend on B. movement out of cities to the country-
for most of their meager livelihoods. side
A. Information Communication Technol- C. movement from one country to an-
ogy other
B. Health Services D. working in one place and living in an-

other
C. Agriculture
177. When was Antyodaya Anna Yojana imple-
D. Basketry
mented?
172. “Word of mouth “ is a powerful medium A. December 25
of promotion for B. December 5
A. Non Durable goods C. December 15
B. Durable goods D. December 20
C. FMCG
178. Name the state which is held as a suc-
D. All the above cess story in the efficient implementations
of milk cooperatives.
173. World Trade Organisation (WTO) was es-
tablished in 1995, as a successor organi- A. Maharashtra
sationto B. Jammu and Kashmir
A. United Nations Security Council C. Gujarat
B. World Health Organisation D. Andhra Pradesh
C. General Agreement on Trade and Tariff 179. In which part of the world were seed
(GATT) crops first domesticated?
D. Non of the above A. India

1.15 Co-operation 587
B. Southwest Asia B. Wheat

C. Northern Europe C. Corn

D. Southern Europe D. Sorghum
180. NABARD stand for 185. The functions of Patwari are:-(Choose

A. National Bank for Artisans and Rural one or more option)
Development A. Measure the land and collect revenue
B. National Bank for Agricultural and Re- B. Make sure that the records of the farm-
mote Area Development ers And students
C. National Bank for Agricultural and Ru- C. Maintains the record belonging to dif-
ral Development ferent villages
D. None of the above D. Checks regularly the computerized
records
181. Urban areas have problems with
A. transportation 186. “The copy of the land records are now
computerized . “ is this true
B. pollution
A. T
C. poverty
B. F
D. housing
C. Can’t be defined
182. People living in the area report any crime, D. None of these
theft, accident etc. in their?
A. Police Station 187. Which of the following is not a part of
Technological Environment?
B. Pharmacy
A. Government Legislations
C. Court
B. Improvement in Harvesting Tech-
D. Revenue department niques
183. People in Rural areas are most likely to C. Change in technology
be employed in all of the following eco- D. Change in Consumption Pattern
nomic activities except
A. Farming 188. Which among the following is a process
that involves the assembling, storage, pro-
B. Mining cessing, transportation, packaging, grad-
C. Banking ing, and distribution of different agricul-
D. Fishing tural commodities across the country?
A. Agricultural Management
184. What is the principal grain consumed in
developed countries in Europe and North B. Agricultural Banking
America? C. Agricultural Diversification
A. Rice D. Agricultural Marketing
1.15 Co-operation

1. How many member states does the IMF C. GATT

have? D. OEEC
A. 164
7. The council elections were boycotted in
B. 100
mostprovinces except Madras, where the
C. 190
D. 196 A. Justice Party
NARAYAN CHANGDER
2. There were around billion people in the B. Madras
1950s. C. non cooperation
A. 1.5 D. none of above
B. 2
8. The heads of Government of member
C. 2.5 states meet
D. 3
A. At least once a year
3. Residents of the Dacres Avenue commu- B. Every 5 years
nity have established a neighbourhood
C. Once a month
watch to try and reduce crime. Which best
describes their action? D. Once every 2 years
A. neighbourliness 9. How does a producer of goods benefit
B. friendliness from trade barriers being eliminated?
C. cooperation A. they will trade with only EU countries
D. integration B. they can trademark their goods so they
are not copied
4. Which countries formed the Benelux Union
in 1948? C. they could have many more customers
from foreign countries
A. Belgium
D. they don’t have to worry that their toys
B. The Netherlands
have lead paint on them
C. Luxembourg
10. In his famous book Hind Swaraj
D. US
A. Mahatma Gandhi
5. Which of the following is not required in
registering a cooperative? B. Shakut Ali
A. Economic Survey C. B.R Ambdekar’s
B. Articles of Cooperation and By-Laws D. none of above

C. Book Keeper’s Affidavit 11. “Population Explosion” happened in
D. Surety bond of accountable officers A. The first half of the 20th Century
6. WTO is originated from B. The second half of the 20th Century
A. GAG C. The first half of the 19th Century
B. GAT D. The second half of the 19th Century

12. Under the Marshall Plan, the industrial B. Free movement of goods
production in the recipient countries sur- C. Free trade
passed the pre-war level and increased by

% D. Travelling to the united states hassle
free
A. 20
B. 30 18. The European Union began with the devel-
opment of a
C. 40
A. plural society
D. 50
B. consumer class
13. In 1918, Mahatma Gandhi went to C. common market
A. Ahmedabad D. defense organization
B. Maharashtra
19. Who will hold SCO Summit 2023
C. south Africa
A. Pakistan
D. none of above
B. Tajikistan
14. “Brexit” was a vote for which country to C. India
leave the EU?
D. China
A. The United States
20. Who is the current Secretary General of
B. France
SCO?
C. United Kingdom
A. Muratbek Sansyzbayevich
D. England
B. Alekseyevich Konarovskiy
15. Members of Shanghai five consisted of C. Zhang Ming
Russia. China, Kazakhstan, Kyrgyzstan
D. Shavkat MirziyoyevMikhail
and ?
A. Iran 21. Who is the current presindent of the World
Bank?
B. Tajikistan
A. David Malpass
C. Uzbekistan
B. Jim Yong Kim
D. All of them
C. Kristalina Georgieva
16. CARICOM STANDS FOR D. Robert Zoellick
A. Caribbean common community
22. A company is in danger of closing because
B. Caribbean communication of low profits. Which is a form of cooper-
C. Caribbean community and common ation that can help to increase profits?
market A. employees working together to in-
D. Caribe community crease production
17. CARICOM nationals have the benefit of all B. poor management of company re-
of the following except sources
A. Traveling to any other member state to C. using more fossil fuels

live and work D. increasing the wages of employees

23. when was the Marshall Plan announced? 28. Cultural differences within a region
A. 1947 A. always create great divisions among
the people of a region.
B. 1948
B. may cause political, economic, or so-
C. 1949 cial divisions among the people of a re-
D. 1950 gion.
C. rarely have any effect on the interac-
24. SCO has its Secretariat (Headquarters) at tion of people within the region.
NARAYAN CHANGDER
?
D. usually cause people to unite together
A. Moscow, Russia behind a common cause.
B. Bishkek, Kyrgyzstan 29. What are the functions of the WTO?
C. Beijing, China (Choose all that apply)
D. Astana, Kazakhstan A. Administering WTO trade agreements

B. Handling trade disputes
25. what is Picket? C. Monitoring national trade policies
A. A form of demonstration or protestby D. Providing Technical assistance and
which people block the entrance to a shop, training for developing countries
factory or office
30. Where is the headquarters of the RATS
B. Foreign cloth was seen as thesymbol SCO located?
of Western economicand cultural domina-
tion. A. Republic of Kazakhstan, As-
tana.Republic of
C. The refusal to deal and associate with-
B. Uzbekistan, Tashkent.
people, or participate in activities, or buy
anduse things; usually a form of protest C. China, Shanghai
D. none of above D. Russian Federation Moscow
31. Finally, at the Congress session at
26. Mahatma Gandhi returned to India in
in December 1920, a compromise was
As you know, he had come from
worked out and the Non-Cooperation pro-
A. January 1915 gramme was adopted.
B. South Africa A. Madras
C. January 1917 B. Nagpur
C. calcutta
D. January 2051
D. none of above
27. The OECD recently turned years of in-
32. In 1992, all EC member states signed the
ternational economic cooperation
Treaty of to form the EU.
A. 55
A. Maastricht
B. 50 B. Rome
C. 60 C. Nagasaki
D. 65 D. Versailles

33. Which of the following is an organization B. Disagreements over economic policies

devoted to promoting peace through inter- C. Disagreements over new membership
national volunteers in education, health,

and other support services? D. Disagreements over political integra-
tion
A. Red Crescent
B. Peace Corps 39. The major objectives of SCO are ?
C. UN Peacekeepers A. Resolving border problems
D. Commonwealth of Nations B. Fostering economic ties
C. Promoting a multi-polar world
34. EEC was also known as
D. All of them
A. The Common Market
B. European Union 40. How many members does the WTO have?
C. European Community A. 164
D. The Market B. 192
C. 111
35. CARICOM was established to
A. Develop a common currency D. 156
B. Encourage closer relations to the 41. The first attempt at integration in the
united states caribbean was the?
C. Replace the federation A. CARIFTA
D. Promote regional integration B. ACS
36. ALL of the following countries are full C. CARICOM

members of CARICOM Except. D. WIF
A. Turks and caicos
42. Which of the following are examples of po-
B. Dominica litical divisions?
C. St Lucia A. Countries
D. Trinidad B. Cultures
37. How many members of the Shanghai Co- C. Deserts
operation Organization (SCO) are there at D. Forests
the moment?
43. The United Nation’s official motto is
A. 7
A. We shall overcome!
B. 8
B. We are best as One!
C. 9
C. United we Stand!
D. 10
D. United in Diversity!
38. What are the obstacles to Europe Integra-
tion? 44. HOW MANY COUNTRIES ARE SCO dia-
A. Refusal of certain countries to compro- logue partners?
mise A. 6

B. 5 C. display a high level of performance

C. 4 D. All of the above
D. 3
50. Britain refused to join the EEC, it formed
45. How many states are members of the the
World Bank? A. WWE
A. 190
B. EC
NARAYAN CHANGDER
B. 192
C. ECSC
C. 189
D. EFTA
D. 195
51. Sometimes countries give up some control
46. In which year did Pakistan become a full of their own affairs to work together on
member of the Shanghai Cooperation Or- goals they all share. This is a form of
ganization (SCO) at Its 15th Summit held
in Russia? A. spatial inequality
A. 2013 B. economic activity
B. 2009 C. sustainable development
C. 2015 D. supranational cooperation
D. 2017
52. Which is the most important factor in de-
47. What is a common market? termining how many members of the EU
parliament each country gets?
A. A group of countries that acts as a
single market, without trade barriers be- A. size
tween member countries
B. years as a member
B. a trade barrier like a tariff or quota lim-
C. population
itation
C. a supranational cooperation D. language
D. an agreement between countries to 53. When was the IMF established?

trade with one another
A. 1944
48. Which three international organizations B. 1962
had common member states?
C. 1994
A. ECSC
D. 2001
B. EEC
C. EC 54. West Indian federation was established in
D. EURATOM what year?
A. 1973
49. Why would a teacher put students to work
in a group? To B. 1995
A. improve communication skills C. 1968
B. work together to solve problems D. 1958

55. The highest decision-making body in the 60. Footballers around the world now kneel
SCO is down in the centre circle before matches
begin. Why is a source of cooperation?

A. Council of Heads of Government
They are
B. The Council of Heads of State
A. just getting ready for the game
C. SCO Secretary General B. uniting against racism
D. Council of Foreign Ministers C. talking to the referee
56. What was the function of ECSC? (More D. stretching their muscles
than 1 answer) 61. What are the official languages of SCO?
A. To resolve hostility between France A. Chinese, Russian
and Germany
B. English, Russian
B. To boost the production of coal and
C. English, Chinese
steel
D. None of those
C. To isolate Britain
D. To reduce internal tarrif on coal and 62. Functional cooperation involves coopera-
steel tion in
A. trade, taxation, migration
57. When was the SCO established? B. health, education, meteorology
A. June 15, 2005 C. politics, business, cooperatives
B. July 15, 2003 D. Agriculture, mining, tourism
C. June 15, 2002 63. Which is an example of regional coopera-
D. June 15, 2001 tion?
A. not importing certain regional goods
58. On June 2001 which Central Asian State
was invited to join the Shanghai Five and B. increase in taxes on imported goods
the group was officially named the Shang- C. assisting countries in times of disaster
hai Cooperation Organization (SCO)?
D. countries negotiating individually
A. Uzbekistan
64. SELECT The main objectives of CARICOM
B. Kazakhstan
A. Functional cooperation
C. Tajikistan
B. improve economic development
D. Azerbaijan C. To maximise the potential of the
caribbean sea by working with member
59. When and where was SCO Summit in
states
2022?
D. common policies in dealing with non
A. Bishkek Kyrgyzstan members and multinational coprations
B. Dushanbe Tajikistan
65. What is Forced recruitment
C. Samarkand, Uzbekistan
A. A process by which thecolonial state
D. Beijing, China forced people to join the army

B. General Dyer’s ‘crawling orders’ bein- 70. Which of the following is NOT a reason the
gadministered by British soldiers, Amrit- EU might feel centrifugal forces?
sar, Punjab, 1919
A. Wealthier counties may have to sup-
C. The refusal to deal and associate with- port weaker countries or countries who
people, or participate in activities, or buy have times of trouble
anduse things; usually a form of protest
B. Economic growth of individual coun-
D. none of above tries
NARAYAN CHANGDER
C. Cultural diversity may be muted
66. To improve the economic development of
member states the following was intro- D. Not all countries agree with the deci-
duced sions made by the EU
A. Free trade
71. are LEAST likely to generate coopera-
B. common policies when dealing with tion between political divisions.
non nationals
A. cultural and ethnic ties
C. Ways to resolve disputes
B. economic advantages
D. common policy on tourism
C. natural hazards
67. The adoption of a common currency in D. scarce resources
2002 also helped to unite the EU. The com-
mon currency is called the 72. What are the 3 main functions of the IMF?
A. EU A. surveillance, financial assistance and
technical assistance
B. dollar
B. surveillance, stability and technical as-
C. euro
sistance
D. bat
C. economic development, stability and
68. What was the function of EURATOM? technical assistance
A. To share the nuclear fruits to the mem- D. peace, stability and lending
ber states
73. ACS was established in the year?
B. To share the fruit of nuclear research
A. 1985
to the member states
B. 1975
C. To share the economy success to-
gether C. 1995
D. To foster economic cooperation D. 2005
69. Who is the current head of the IMF? 74. Which is NOT a benefit of cooperation?
A. Rodrigo de Rato A. higher levels of achievement
B. Dominique Strauss-Kahn B. improvement in communication
C. Christine Lagarde C. increase in self esteem
D. Kristalina Georgieva D. challenges in decision making

75. OECD’s headquarters are located in A. Croats

A. Geneva B. Kurds

B. Washington D.C. C. Soviets
C. Paris D. Hutus
D. London 81. China founded International Alliance.
“Shanghai Five” on ?
76. Through the summer of Mahatma
Gandhi and Shaukat Ali toured exten- A. April 1994
sively, mobilising popular support for the B. April 1995
movement. C. April 1996
A. 1920 D. April 1997
B. 1921 82. Which of the following is LEAST likely
C. 1918 to generate conflict between political divi-
D. 1915 sions?
A. Cultural differences
77. The Marshall Plan provided an approxi-
B. Ethnic similarities
mate of financial aid to Western Eu-
rope. C. Economic differences
A. US$ 10 million D. Boundary disputes
B. US$ 10 billion 83. Which of these is the BEST definition of
C. US$ 20 billion centripetal forces?
A. forces that pull people together
D. US$ 13 billion
B. forces that promote urbanization
78. June 1999 was designated as the
C. forces that reduce land use conflict
A. The Day of Six Billion D. forces that improve living standards
B. The Day of Seven Billion
C. The Day of Eight Billion two countries who have disputes over ter-
D. The Day of Nine Billion ritory/borders?
A. United States v. Mexico
79. The is an international organization
that cares for the wounded, sick, and B. China v. Taiwan
homeless in wartime and during natural C. Canada v. United Kingdom
disasters. D. Italy v. Yugoslavia
A. Francophone
85. The treaty that was signed to establish
B. North Atlantic Treaty Organization CARICOM the treaty of chaguaramas was
C. Peace Corps signed in what country?
D. Red Cross/Red Crescent A. Guyana
B. Chaguarama
80. Which people group in the Middle East
lacks an official homeland and has been at C. Trindad and Tobago
the center of many conflicts in the region? D. Jamaica

86. Iran, India and Pakistan gained observer C. Brussels

status in Shanghai Cooperation Organiza- D. Geneva
tion in ?
A. April 2005 92. What economic problems did Europe face
after WWII?
B. August 2005
A. Decline in productivity
C. July 2005
B. Resources shortage
D. April 2006
NARAYAN CHANGDER
C. Compensation and war debts
87. The Bretton Woods Conference fostered
the establishment of and D. Changes in international order
A. IMF 93. How does the West Indies Cricket Team re-
B. ERP flect cooperation?
C. World Bank A. players come from different nations
D. COMECON B. people in the Caribbean love playing
cricket
88. EEC was formed under the Treaty of in
C. cricket originated in England
1958.
D. they receive free flights
A. Kyoto
B. Beijing 94. This sign being in both English and French
C. Rome is an example of how language can a
region.
D. Versailles
A. Unite
89. USSR provided financial aid through B. Divide
A. The Marshall Plan
C. Encourage
B. The Molotov Plan
D. Cooperate
C. The USSR Plan
95. There are members of CARICOM and 5
D. The COMECON Plan
associate members of CARICOM
90. Through the summer of 1920 , A. 15
toured extensively, mobilising popular
support for the movement. B. 20
A. Mahatma Gandhi, Muhammad Ali C. 23
B. Mahatma Gandhi, Shaukat Ali D. 10

C. Muhammad Ali, Shaukat Ali 96. The following are the common bond of in-
D. none of above terest, except:
A. Residential
91. Where are the WTO’s headquarters lo-
cated? B. Occupational
A. New York C. Institutional
B. Washington D.C. D. International

97. What is the world’s largest supranational 102. How has the EU promoted economic coop-
organization? eration across Europe?

A. European Union A. It has reduced trade barriers.
B. United Nations B. It has banned foreign imports.
C. United States C. It has raised workers salaries.
D. NAFTA (North American Free Trade D. It has ended business competition.

Agreement) 103. where Nagpur is located
98. Rowlatt Act was passed A. Maharashtra
A. 1919 B. Chennai
B. 1920 C. madhya pradesh

D. Tamil Nadu
C. 191
D. 2005 104. What is another name for the SCO?
A. Shanghai Pact
99. What is the full name of UNRRA?
B. Tashkent Pact
A. United Nations Rehabilitation and Re-
C. Beijing Pact
lief Administration
D. Bishkek Pact
B. United Nations Relief and Rehabilita-
tion Administration 105. What are the significance of the Europe
C. United Nation Rehabilitation and Relief integration? (More than 1 answer)
Administration A. Achieving common propserity
D. United NationRelief and Rehabilitation B. Paving way for political integration
Administration C. Enhancing Europe’s international sta-
tus
100. Which among the following is a step in
organizing a cooperative? D. Helping maintain world peace
A. Reserve your proposed cooperative 106. What does cooperation mean?
name.
A. having the same historical experi-
B. Prepare a general statement called an ences
economic survey. B. sharing the same culture
C. Prepare the cooperative’s by-laws. C. speaking the same language
D. Prepare the articles of cooperation. D. working together to achieve goals
101. The agreement giving birth to CARICOM 107. What happens when a member country
was signed on this date does not agree with a decision made by
the EU government?
A. July 1973
A. The country may refuse to obey the de-
B. July 1983
cision
C. July 1883
B. The country must carry out the deci-
D. July 1873 sion anyway.

1.16 Development Planning 598
C. The decision does not go into effect B. Europe Day

anywhere in the EU. C. the EU pledge
D. The decision goes into effect only in D. European citizenship
countries that support it.
112. According to the census of , peo-
108. A group of countries came together to
ple perished as a result of famines and the
form trading links. This action is best de-
epidemic.
scribed as
A. 1921
NARAYAN CHANGDER
A. cooperation
B. 12 to 13 million
B. globalization
C. 1921, 12 to 15 million
C. integration
D. 1922, 12 to 12 million
D. migration
109. How would a common market benefit a 113. Western European countries are rich and
consumer? Two correct answers-get them eastern European countries are poor is
both! what force.
A. they won’t have to travel to buy foreign A. centripetal force

goods B. centrifugal force
B. They could have a larger variety of C. common market
goods to choose from D. supranational cooperation
C. they won’t have to exchange currency
to buy some foreign goods 114. RA 6938 is known as the
D. their country will make more money on A. Cooperation’s Code of the Philippines
taxes B. Cooperative Code of the Philippines
110. How many member states does the OECD C. Code of the Philippines Cooperatives
have? D. Code of the Philippines Cooperation’s
A. 38
115. Which country is not a dialogue partner
B. 45 of the SCO?
C. 20 A. Federal Democratic Republic of Nepal
D. 190 B. The Republic of Azerbaijan
111. Which of these was NOT created to pro- C. Democratic Socialist Republic of Sri
mote a European cultural identity? Lanka.
A. the EU flag D. Republic of Mongolia
1.16 Development Planning

1. Choose 2 Answer that describes the best B. segmental and it is undertaken for
about “FUNCTIONAL PLANNING” each major
C. Deciding on objective
A. functions of the organization like Pro-
duction, Marketing, and Human Resource D. manage the acquisition

2. As a result of the lesson planning process 7. Which of these is the BEST reason to have
an objective in a lesson plan?

A. clear teaching goals are established A. Objectives provide topic ideas
B. all curriculum elements are aligned B. Objectives help excite students
C. there is more accountability C. Objectives ensure that the lesson sat-
isfies overall course standards
D. all of the above
D. None of these apply
3. Which of the following represent events
of instruction that should be described in a 8. Which biome has open grasslands with
lesson plan? Check all that apply. very few trees?
A. Tundra
A. Gaining Attention
B. Prairie
B. Assessing the behavior
C. Steppes
C. planning
D. Desert
D. Providing feedback
9. HR demand of the organisation may occur
4. Focus Groups due to
A. Working model or a sample of a prod- A. Closure
uct
B. Proper training
B. Include a selected group of people
C. Fair salary
used to analyze and test the concept of a
given product D. Retirement
C. Do not include a tangible product; are 10. it refers to the legal restrictions at any
the primary “product” of a business structures to be built on an designated
D. Provides critical product information area.
A. Building Code
5. Expresses your interest in a specific job,
like a sales letter to get a job interview B. Vicinity Map
C. Zoning
A. Cover letter
D. Zoning Law
B. Resume
C. Application 11. Which of the following is not a component
of HRP
D. Job interview
A. Future HR demand
6. What is the meaning of RCSP? B. Current HR supply
A. Retooled Community Sectoral Pro- C. Understanding HRM
gram
D. Demand forecasting
B. Retooled Comprehensive Support Plan
12. In India, in the accommodation sector the
C. Retooled Community Support Program
federal government now allows foreign
D. Revitalized Community Support Pro- management and up to 51% foreign own-
gram ership of hotels. This example refers to

A. Tourism promotion 17. Question 56 of 100Question ID:613276

B. Stimulation According to the industry’s generally ac-
cepted best practices, the electrical work
C. Coordination on the appliances assembly line should
D. Planning be completed prior to installing the
doors.What does this sequence of activi-
13. Which one is not an outcome of Problem ties represent?
Tree Analysis
A. AActivity attributes
NARAYAN CHANGDER
A. Possible Solutions
B. BDiscretionary dependencies
B. Problem Question
C. CActivity list
C. Vision
D. DMandatory dependencies
D. Root Causes
18. What are the 3 Key Concepts in Action
14. Which ones are the key attributes in an ac- Planning
tion plan A. Brainstorming
A. Goal B. Evaluation
B. Objective C. Prioritisation
C. Strategy D. Identification
D. Activity E. Naming
E. Root Causes
19. Question 81 of 100Question ID:612026
15. Economic development of a region depends As part of project planning, a team mem-
upon its resource base, apart from it which ber is using the resource breakdown struc-
Which of the following factors is important ture and RACI chart.What process would
for the development? benefit the most from these techniques?
A. Hard working and skilled labour A. AControl Costs
B. Technology and investment B. BPlan Resource Management
C. Motivated citizens C. CIdentify Stakeholders
D. Will power of citizens D. DManage Project Knowledge
16. What is succession planning? 20. are the physical, or tangible, items avail-
able for customers to purchase
A. Developing process charts, training
materials, and detailed lists of goals and A. food
responsibilities B. goods
B. Planning for and executing smooth C. grocery
transition of leadership positions
D. none of above
C. Identify the organisation’s present to
future competency needs and assess em- 21. Requires DECISION MAKING that is,
ployee competencies choosing a course of action from among al-
D. Draft objectives for the employee de- ternatives.
velopment process A. Planning

B. Organizing 27. The primary responsibility for human re-

C. Leading source planning lies with

D. Controlling A. HR Manager
B. general manager
22. What is the best rationale for curriculum
development? C. trade union leader
A. The child, himself, is changing D. line manager
B. Philosophy of education is ever chang- 28. SIP is a medium of investment for small
ing investors who want to save regularly and
C. Leadership is constantly changing want to get benefits of share investments
without taking more risk.
D. The child is living in a fast changing
world A. False
23. Which of these factors is not included in B. True

environmental scanning? C. None of these
A. Political and legislative issues D. none of above
B. Economic factors
29. A lesson plan must be:
C. Technological changes
A. flexible, coherent, and student-
D. None of the above centered
24. NO.11 WHEN WAS PLANNING COMMIS- B. organized and flexible
SION ESTABLISHED C. standard testing focused and coherent
A. 25 MARCH 1951 D. flexible, standard testing focused and
B. 15 MARCH 1950 coherent
C. 5 MARCH 1951 30. In 1950, the government set up a Plan-
D. 20 MARCH 1950 ning Commission to help design and exe-
cute suitable policies for economic devel-
25. a model that emphasizes the interests of opment. What were focused upon in the
Visitors, Industry, Communities, and the second five year plan for economic devel-
Environment (VICE). opment and to create more jobs?
A. TRREC “VICE” Planning Model A. heavy industries
B. Rational Planning Model
B. agriculture
C. Situation analysis
C. service sector
D. none of above
D. none of above
26. One of the approaches to career manage-
ment 31. The is the work that must be per-
formed to deliver a product, service or re-
A. Protean careers sult with the required features and func-
B. Boundless carrers tions.
C. Structured approach A. Team Charter
D. Reality check B. Benchmark

C. Project Scope 37. Which of the following is not a removed or

D. Work Package deprecated feature in sharepoint 2016
A. Forefront Identity Manager
32. Comparatively, Mutual funds are riskier
than shares. B. Excel Services
A. True C. Stsadm Command-Line Tools
B. False D. Mobile View
C. None of these
NARAYAN CHANGDER
D. none of above The cost baseline for the project you are
leading has just been finalized and ap-
33. Which term do geographers use to classify
proved.Which of the following will require
an area with unifying physical characteris-
approval if it were to become a part of the
tics?
cost baseline?
A. Location
A. AContingency reserves
B. Orientation
B. BManagement reserves
C. Region
C. CIndividual activity costs
D. Perception
D. DResource costs
34. DepEd Professional Development Priori-
ties for Teachers and School Leaders for 39. Product-line Decisions
School Year 2020-2023 A. occur when there are additional prod-
A. DepEd Memo 50 s. 2020 uct divisions or product categories
B. DepEd Memo 05 s. 2020 B. group of related items or brands sold
C. DepEd Memo 050 s. 2021 by the same company
D. DepEd Memo 05 s. 2020 C. consist of offering the right combina-

tion of products within a given line
35. What level of geography for the follow- D. describes a specific brand or individual
ing? The governments of Western Europe product within a line
A. local
40. Financial Assets investment is more conve-
B. regional
nient than real asset investment.
C. global
A. True
D. none of above
B. False
36. Product Variations C. Both
A. Cannot be touched, tasted, seen or
D. None of these
felt; are performed as an “action”
B. Related to the parts, materials or con- 41. The plans that necessitate changes in the
struction elements of a product existing technology, the organizational
structure, and the employees’ authority
C. Consists of making slight variations or
and responsibility are called
changes to an original product
D. Occur when there are additional prod- A. short-term HR plan
uct divisions or product categories B. medium-term HR plan

C. long-term HR plan C. Career planning

D. none of the above D. Career Outlook

42. Choose 2 Answer that describes the best 47. Which of the following option is true?
about “OPERATIONAL PLANNING” A. Recruitment is a part of human re-
A. Deciding the most effective use of the source planning process
resources B. Technological changes are considered
B. Develop a control mechanism to as- during human resource planning
sure effective implementation C. HRP concentrates more in downsizing
C. Usually cover all the functional areas the employees of an organisation
of the business D. None of the above is true
D. long-term frameworks of economic,
48. Where in the lesson plan should this be?
social, and technological factors.
”Ask pairs to act out a role-play between
43. The focal point of planning decisions to for- a reporter and a film star”
mulate the design and details of the En- A. aims
hanced Basic Education Curriculum is the B. procedure
C. assumptions
A. Philippine Constitution
D. none of above
B. TESDA
C. DepEd 49. conducted by employees, equipment, audi-
tors and inspectors; should occur at each
D. CHED stage of the production process
44. This is an example of a “Financial Goal” A. product line
A. Graduating from college B. goods
B. Becoming a teacher C. formal inspections
C. Learning to play an instrument D. none of above
D. Purchasing a new home 50. Which is not the outcome goals of the K to
12 Basic Education program?
45. As per 4 quadrant model, is in most
disadvantageous position. A. Philippine education standards to be at
par with international standards
A. Investor
B. Conduct in-service training for teach-
B. Businessman ers relative to the implementation of the
C. Professional K to 12 curriculum
D. Employee C. Improved quality of teachers
D. Improved system of governance in the
46. A planned discussion with a worker who Department
is willing to answer questions and provide
insight about their career. 51. Nine-box talent grid is measured by
A. Informational interview A. Skill
B. Job shadow B. Ability

C. Potential C. The costs are currently under the esti-

D. Performance mates.
D. The earned value is greater than the
52. To encourage development of a national actual cost.
identity and promote a culture of national
pride through tourism. This statement re- 57. The timeline of Phase 2 of the RPMS Cycle
fer to A. January to March 2021
A. Regional Tourism policy B. March to June 2021
NARAYAN CHANGDER
B. National Tourism policy C. July 2021
C. International tourism policy D. none of above
D. tourism policy 58. Aims to promote safe, regular and econom-
ical air transport, faster air commerce and
53. Which of the following is not an example
study problems connected with the indus-
of sectoral planning?
try
A. a. Agriculture
A. IATA
B. b . Irrigation B. ICAO
C. c. Hill Area Development C. PTTA
D. d. Social infrastructure D. UNWTO
54. Which of the following factors state the 59. Who formulates five year plans in India?
importance of the Human Resource Plan-
A. R.B.I.
ning?
B. Planning Commission
A. Creating highly talented personnel
C. Parliament
B. International strategies
D. Supreme court
C. Resistance to change and move
60. Choose the MAIN AIM for:Learners do an
D. All of the above
activity which involves one learner mem-
55. it is the legal requirements intended to pro- orising parts of a text to dictate to their
tect safety and health of people. partner.
A. Zoning Law A. to clarify meaning
B. Building Code B. to develop gist listening skills
C. Zoning C. to focus on accuracy
D. Site Development Plan D. none of above

61. Process of gathering, analyzing and col-
56. A project has a CPI of 0.6. Which of the
lecting information about a particular tar-
following would BEST describe the cost-
get market, competitor or product
efficiency of the project?
A. Product Plan
A. The costs are currently over the esti-
mates. B. Product Mix
B. The costs and the estimates are about C. Marketing Research
the same. D. Idea Screening

62. name, term or symbol used to identify re- C. Economic feasibility

lated products D. Resource feasibility

A. quality
68. These are the lines that is working outside
B. color of the lot area.
C. brand name A. Lot
D. none of above B. Property lines
63. it is an area of land available for construc- C. Zone
tion which a building is constructed.
D. Setback
A. Lot
69. What is the major issue faced while doing
B. Site
personal planning?
C. Zoning
A. Type of information which should be
D. Subdivision used in making forecasts
64. What is the greatest source of expenditure B. Types of people to be hired
for the federal government? C. Multiple positions to be filled
A. Defence D. All of the above
B. Health
70. refers to the way a product works or
C. Education looks; can help to sell a product based on
D. Social welfare specific features
A. products
65. The process where project deliverables
and project work are subdivided into B. product plan
smaller and smaller pieces is called C. product design
A. Create WBS D. none of above
B. Collect requirements
71. Regional economics can encourage regional
C. Plan Scope Management growth through analysis of leading eco-
D. Define scope nomic sectors. The analysis techniques
commonly used are Location Quetion anal-
66. In which title and article of the Political ysis (LQ) and Shift Share (SS). Based on
Constitution of Colombia do you talk about this explanation, regional economics has
the components of the NDP? benefits
A. Title XI, Article 339 A. Micro
B. Title XI, Article 336 B. Macro
C. Title XII, Article 339 C. International
D. Title XII, Article 336 D. .Regional
67. The following is NOT an example of a type 72. What level of geography for the follow-
of feasibility study ing? Walmart is located in a high traffic
A. Operational feasibility area.
B. Technical feasibility A. local

B. regional 78. In which year was the Planning commis-

C. global sion set up in India?
73. this can be identified as a good or service B. 1948

A. pure services C. 1949
B. products D. 1950
NARAYAN CHANGDER
C. goods
79. The cost estimates are ballpark figures of
D. none of above
the amount of money that will be needed
74. The threat to wealth creation is to carry out the strategies
A. Compounding A. Cost estimates/Budget
B. Inflation B. Action plans/Timeline
C. Deflation C. Situation analysis
D. None of these
D. none of above
75. A basis for your employment goals and
possible career paths 80. it is a piece of of ground with specific size.
A. Interests A. Property Lines
B. Job interview B. Site
C. Career planning
C. Lot
D. SAT Scores
D. Subdivision
76. it can be said that this planning process
is actually a cycle.1. Decide to adopt 81. A list of people who can give a report
planning2. Set goals and Objectives3. about your character, education, and work
Study courses of action4. Evaluate courses habits.
of action (cost-benefit analysis)5. Select
course of action6. Monitor results A. References
A. Systematic Planning Process B. Cover letter

B. Rational Planning Model C. Sales reports
C. Basic Planning Model D. Resume
D. none of above
82. How do taxes affect your financial plans?
77. Manager can estimate their consider im-
pact of changes and then they can develop A. They create higher interest rates
a response to these changes. B. They affect how much money you actu-
A. Planning Reduce Uncertainty ally have to spend
B. Planning Provides Direction C. They make your saving account in-
C. Planning Minimize Redundancy crease
D. Planning Provides Ability in Controlling D. They affect the GDP

83. A two-way conversation in which the in- 88. Who gives the final approval to the five-
terviewer learns about you and you learn year plans of India?
about the job and the company.

A. National Development Council (NDC)
A. Application B. Ministry of Finance
B. Cover Letter C. Planning Commission (now NITI
C. Employment interview Aayog)
D. References D. President of India
89. Teachers are being involved in curriculum

84. A goal for work that is fulfilled through an
development in various ways, which is not
occupation or series of occupations
a teacher’s task?
A. Career A. Determining the general goals of edu-
B. Job cation
C. Management B. organizing instructional program
D. Human Resources C. writing and editing learning materials
D. experimenting and trying out teaching
85. Neither discourage nor encourage tourism strategies
and adopts measures for the general de-
velopment process such as on air traffic 90. which of following is a benefit of plan-
agreement and investment incentives. ning?
A. Active A. helps in avoiding confusion and misun-
derstanding
B. Intermediate
B. ensures clarity in thought and action
C. Passive
C. useless and redundant activities are
D. none of above minimised or eliminated
86. is the process of forecasting an organ- D. all of above

isations future demand for, and supply of, 91. In regional economic analysis, there are
the right type of people in the right num- four forms of area that are widely used.
ber. Below are some forms of regional eco-
A. Human Resource Planning nomic analysis that are macro in nature,
except
B. Recruitments
A. Homogeneous region
C. Human Resource Management
B. Planning region
D. Human Capital Management
C. Nodal Region
87. A minor can invest in stock market. D. Administrative region
A. True 92. When you undertake an information archi-
B. False tecture design project, which of the follow-
ing elements define the culture of the or-
C. None of these
ganization and how information flows be-
D. none of above tween contributors and consumers?

A. Context C. Project scope statement

B. Design D. Work breakdown structure (WBS)
C. Goals 97. What does a person’s will list?
D. People A. Financial goals
E. Technology B. Types of insurance they have
93. Question 1 of 100Question ID:612192 C. Retirement plans
While reviewing the quality management
NARAYAN CHANGDER
D. Financial plan upon death
plan, you notice that the cost of quality
specified in the plan includes a wrong com- 98. Which of the following is not a way of re-
ponent.Which component did you likely no- ceiving Business Requirements?
tice? A. Email
A. AChange costs B. Chat
B. BAppraisal costs C. Reports
C. CFailure costs D. Meeting Minutes
D. DPrevention costs 99. Process of creating new or improved prod-
94. Which is NOT a concern of curriculum de- ucts; involves brainstorming, designing,
velopment? building, testing and marketing products;
includes creating a physical model or sam-
A. In-service training of teachers ple of the product
B. Examination of objectives A. Prototype
C. Development of methods and materi- B. Product Development
als which are most likely to achieve the
objective C. Commercialization
D. Assessment of the extent to which the D. Test Markets

objective has been achieved 100. The goal usually related to
95. Which of the following commission is now A. desired position
responsible to formulate the plans on Cen- B. strength and weakness
tral, state and state level?
C. interest and values
A. Planning commission
D. KSAO
B. Niti Aayog
101. NO.16 HYVP REMAINED CONFINED TO
C. Election commission
WHICH FIVE CROPS..
D. Public service commission A. WHEAT, RICE, JOWAR, BAJRA AND
96. The project scope baseline consists of the PULSES
approved versions of three of the four doc- B. WHEAT, MILK, JOWAR, BAJRA AND
uments listed below. Which of these docu- MAIZE
ments is NOT included in the project scope C. WHEAT, RICE, JOWAR, BAJRA AND
baseline? MAIZE
A. Project Charter D. WHEAT, PULSES, JOWAR, BAJRA AND
B. WBS Dictionary MAIZE

102. A collection of places with similar fea- out the study, appointing a steering com-
tures is called a mittee, and organizing the study activi-
ties.

A. Place
B. Region A. Strategies
C. Location B. Study Preparation

D. Human Environment Interaction C. Objectives
D. none of above
103. According to the prescribed timetable for
the Budget Preparation, when should be 108. The 73rd and 74th amendment was
the submission of the Annual Budget to the passed in parliament in which led to
Sangguniang Barangay? the establishment of Panchayati Raj and
A. September 30 Nagarpalika institutions in India.
B. October 16 A. 1991
C. January 25 B. 1992
D. June 10 C. 1993
104. Which is the effective development sys- D. 1994
tem?
109. It is the major factor with which curricu-
A. Work setting lum development will be concerned.
B. Timetable to reach goal
A. Teacher
C. Ongoing evaluation
B. Students
D. Skill acquisition
C. Environment
105. Which one is not the examples of D. Learning Situation
Traditional Employment Development Ap-
proaches? 110. A Project Scope Statement can be used to
A. Wokshops
B. Competency-based assesment A. Detail project estimates
C. Individual coaching and mentoring B. Outline a schedule
D. Educational Programs C. Prepare the project for the analysis
phase
106. How often shall the Barangay Develop-
ment Council meet? D. Serve as a contract
A. Once every year 111. Which kind of data proves to be least use-
B. Once a month ful in curriculum development?
C. Every three (3) months A. data about students
D. Every six (6) months B. data about teachers
C. data about learning
107. This step involves formulating the project
TOR, selecting the technical team to carry D. data about social and cultural matters

112. In which year was india’s first five year 117. A tool that provides information about
Plan launched? you to a potential employer.
A. 1951 A. Resume
B. 1947 B. Application
C. 1949 C. References
D. 1955 D. Career
NARAYAN CHANGDER
113. Which is the best area of focus 118. Which feasibility is concerned with the
project attaining its desired objectives?
A. Linked to School Improvement Plan
A. Technical feasibility
B. Facilitates development of IL skills
B. Operational feasibility
C. Extra curricula Programme
C. Schedule feasibility
D. A special project for CC4
D. Legal feasibility
114. What does ECM stand for?
119. The method of cost-estimating whereby
A. Enterprise Content Management the costs of the individual work pack-
B. Enterprise Creation Management ages are aggregated to form the full cost-
estimate is called:
C. External Client Manager
A. parametric estimating
D. External Content Manager
B. bottom-up estimating
115. What’s the target language of this lesson C. expert judgment
aim? ”to help students understand and
D. analogous estimating
produce the spoken form of regular past
tenses” 120. A summary of your important job-related
A. weak forms in connected speech for information.
WOULD/HAVE/HAD A. Spreadsheet
B. verb endings /t/, /d/, /id/ B. Personal data sheet
C. joining phrases such as FIRST OF ALL, C. PowerPoint presentation
NEXT, and AT THE END D. Application
D. question tags
121. includes services which correspond to a
116. Choose 3 Answer that describes the best physical product
about “STRATEGIC PLANNING” A. product planning
A. manage the acquisition B. product-related services
B. use and disposition of the resources C. pure services
C. Deciding on objective D. none of above
D. Deciding the most effective use of the 122. Under which Five Years Plan, Bhar-
resources maur was designated as one of the five
E. develop a control mechanism to as- Integrated Tribal Development Projects
sure effective implementation (ITDP)?

A. a. seventh five Year Plan 127. Which type of feasibility deals with
project duration?
B. b. Fourth five Year Plan

C. c . Sixth five Year Plan A. Political feasibility
D. d. Fifth five Year Plan B. Contract feasibility

C. Time feasibility
123. The willingness and ability of a person to
move to where jobs are located. D. Schedule feasibility
A. Mobility 128. Asks for information related to employ-
B. Job Interview ment and standard information about each
job applicant.
C. Unemployment
A. Application form
D. Occupational outlook
B. Spreadsheet
”Students already know what a past par- C. Job shadow
ticiple is.” D. Recruiter
A. aims
129. Competencies which the ratee rarely
B. procedure demonstrates
C. assumptions A. Strengths
D. none of above B. Development Needs
125. In crafting the Barangay Vision, we C. Action Plan
should keep in mind the SMART elements.
D. none of above
SMART stands for
A. Selective, Measurable, Accurate, Rele- 130. Protean careers based on
vant, Timebound
A. movement across several employers
B. Specific, Measurable, Accurate, Rele- or event different occupations.
vant, Timebound
B. self-direction.
C. Specific, Measurable, Attainable, Rele-
vant, Timebound C. employees are unlikely to stay at one
company.
D. Specific, Measurable, Attainable, Real-
istic, Timebound D. sense that career plan influenced per-
sonal or family demand.
126. Which of the following regions would you
find in northeastern South America around 131. refers to the decisions and processes
Brazil? used to create a “product mix”
A. Rain Forest A. color

B. Sahara B. product planning
C. Taiga C. quality
D. Great Plains D. none of above

132. Test Markets C. Level of skill application

A. Refers to the way a product works or D. Work setting
looks; can help to sell a product based on
137. Which model of curriculum development
specific features
ties theory to practice?
B. Provides critical product information
A. Tyler’s Ends-Means Model
C. Includes introducing a product to the B. The Oliva Models
marketplace
C. Taba’s Inverted Model
NARAYAN CHANGDER
D. Include marketing or selling a product
in an exclusive area; are used to deter- D. Walker’s Naturalistic Model
mine potential demand for a product 138. It is a comprehensive multi-sectoral de-
velopment plan that is formulated through
133. The specification and sequencing of major
an inclusive and participatory approach led
decisions to be made in the future with re-
by the BDC and approved by the Sanggu-
gard to the curriculum is
niang Barangay
A. curriculum A. AIP
B. curriculum development B. BDRRMP
C. curriculum planning C. CDP
D. curriculum review D. BDP
134. Prototype 139. The basic purpose of human resource
A. Include a complete revision or new planning is to
model of an item A. identify the human resource require-
ments
B. Provides critical product information
B. identify the human resource availabil-
C. related to the parts, material or con-
ity
struction elements of a product
C. match the HR requirements with the
D. Working model or sample of a product
HR availability
135. Commercialization D. All of the above
A. Includes introducing a product to the 140. What is “devalorisation of capital”
marketplace
A. The process of getting investor
B. Working model or sample of a product
B. The process by which the state subsi-
C. Process of maintaining product stan- dies part of the cost of production
dards C. The process of getting profit and loss
D. Consists of brainstorming new product of the project
ideas D. none of above
136. What can be identified through Self as- 141. What is the meaning of ELCAC?
sessment in development planning sys-
A. Ending Local Communist Armed Con-
tem?
flict
A. Skill acquisition B. End of Local Community Armed Con-
B. Development needs flict

C. End of Local Community and Armed 146. process of maintaining product standards
Conflict A. quality circles

D. Ending of Local Continuity of Armed B. quality control
Conflict
C. product line
142. When you gather information you can D. none of above
gather it can be categorized in 1 of 2 types.
Which of the following are the 2 types? 147. Which of these is NOT a component of a
Project Scope Statement?
A. Qualitative
A. Summary Budget
B. Quoatational
B. Project Deliverables
C. Quantitative
C. Acceptance Criteria
D. Quorum
D. Project exclusion or boundaries
143. occur when there are additional product 148. Development refers to
divisions or product categories
A. learning experiences that help employ-
A. product divisions ees grow and prepare for future.
B. product-line decisions B. related to current job and typically re-
C. formal inspections quired.
C. sequence of positions held within an
D. none of above
occupation
144. Choose 3 Answer that describes the best D. characteristic of the employee one’s
about “CORPORATE PLANNING” career
A. denotes planning activities at the top 149. The first step in HRP is
level
A. Forecasting demand and supply
B. cover the entire organizational activi-
B. Estimating manpower gaps
ties
C. Analysing organization objectives
C. Generate plans to achieve the objec-
tive D. None of the above
D. segmental and it is undertaken for 150. What is labour turnover

each major A. Profit generated by labour of the or-
E. functions of the organization like Pro- ganisation in a particular period
duction B. Employees leaving the organisation in
a particular period
145. By planning a clear path comes in order
to reach and achieve the goal. C. Both A and B
A. Planning Provides Direction D. None of the above
B. Planning Reduce Uncertainty 151. An experienced employee who serves as

counselor to a person with less experience.
C. Planning Minimize Redundancy
They offer advice related to work assign-
D. Planning Provides Ability in Controlling ments and general career guidance.

A. Employment interview 157. The first international Earth Summit was

B. Mentor held in
C. Boss A. Geneva
D. Leader B. New York

C. Japan
152. Wisely Use of resources and saving them
for future generations is called D. Rio De Jenario
NARAYAN CHANGDER
A. Economic growth 158. It is an attached agency of DOT which
B. Saving resources is primarily responsible for implementing
an integrated domestic and international
C. Sustainable development promotions and marketing program for the
D. Wastage of resources Philippines as a tourism destination as
well as for tourism investments
153. What type of information is included on
a 1040 form? A. Tourism Promotions Board
A. Your financial projection B. Tourism and Travel
B. A list of all expenses C. Tourism Industry
C. Gross and net income from last year D. Tourism Policy
D. Your bank statement from last year 159. What is the first step in building a finan-
cial portfolio for yoourself
154. According to RA 10742, how much is the
statutory/mandatory/contractual obliga- A. Estimate your income and expenses
tion of the barangay? B. Determine your current financial situa-
A. 5% tion
B. 10% C. Decide what you want your job to be in

the future
C. 20%
D. create a financial excel sheet
D. 1%
160. What are the local laws that set stan-
155. Which element does not belong to the dard for structural design within the com-
Tyler’s Ends-Means model of curriculum? munity?
A. Learner A. National Building Code
B. Society B. Zoning
C. Teacher C. Republic Act
D. Philosophy D. Zoning Laws
156. The problem Solution Approach has
161. Ms. Akanksha believes that a new re-
quadrants
spect for the child is fundamental in cur-
A. 3 riculum. Thus, all activities in the class-
B. 4 room are geared towards the development
of the child-the center of the educative pro-
C. 5 cess. To which approach in curriculum does
D. 7 Teacher Dominguito adhere?

A. Learner-centered D. R.C.Desai
B. Subject-centered 166. Underdevelopment can best be described

C. Problem-centered as
D. Pragmatic A. Lacking development because of
colonisation
162. “Ask the class to sit in a circle on the floor
B. Being poor with widespread starvation
and brainstorm food vocabulary.” This ac-
tivity C. Being under resourced as a result of
poor economic factors
A. could be used before teaching new vo-
cabulary D. Not having enough money and technol-
ogy to use resources properly
B. helps find out what children already
know 167. When you are planning your information
C. makes use of children’s own knowl- architecture, what is the top level of your
edge of the topic hierachy?
D. is an example of a TPR activity A. Server Farm

B. Site Collection
163. Ms. Vaishnavi, a curriculum consul-
C. Lists and Libraries
tant on Economics insists that in select-
ing the curriculum content, it is better D. Content Database
that throughout the high school years, eco- 168. The Search feature in SharePoint 2016
nomic geography concepts be used to recur has the capability to index up to mil-
and be repeated with depth for effective lion content items stored in SharePoint.
learning. What criterion in content selec-
tion is shown here? A. 500
A. Realiability B. 100
C. 50
B. Validity
D. 5
C. Learnability
D. Accountability 169. Boundless careers involve
A. to achieve psychological success
164. it refers to the distance at how far a
building to be built within the property B. developing new skills rather than rely
lines. on static knowledge
A. Buildable Area C. based on self-direction
B. Property Lines D. movement across several employers

or event different occupations.
C. Setbacks
170. NO.18 GREEN REVOLUTION RESULTING
D. Site
FROM
165. Who is considered to be the architect of A. NONE
indian planning?
B. TRADITIONAL IRRIGATION FACILI-
A. William Digby TIES
B. P.C. Mahalanobis C. USE OF MANURES
C. Dada bhai Naroji D. HYV SEEDS

171. Which of the following is the BEST way C. Hill Area Development Programme
for an organization to obtain qualified ven- D. Marginal Farmers Development Pro-
dors? gramme
A. Use the largest vendors with access to
enhanced resources. 176. Includes evaluating design factors and in-
fluences
B. Use the vendors with the closest loca-
tion for easy access. A. Outsourcing
B. Labeling
NARAYAN CHANGDER
C. Use the established vendor approval
process. C. Concept Assessment
D. Use the lowest priced vendors. D. Color
172. Which of the following is not a new fea- 177. Which of the following is not a drought
ture of Sharepoint 2016? prone area?
A. New Architecture Features A. a. Western Madhya Pradesh
B. New Search Features B. b. Western Ghats
C. New Compliance Features C. c . Telangana Plateau
D. New Hybrid Features D. d. Gujarat
E. New Mobile Features 178. Question 59 of 100Question ID:612074
You are working with your project team to
173. Which is not a concern of curriculum de- identify and document the specific actions
velopment? to be performed to produce the project de-
A. In-service training of teachers liverables.Which of the following do you
B. Examination of objectives need before you can start this process?
C. Development of methods and materi- A. AScope baseline

als which are most likely to achieve the B. BIssue log
objective C. CRisk register
D. Assessment of the extent to which the D. DActivity list
objective has been achieved
179. When work activities are coordinated
174. All of the following are included in the around established plans repeating work
baseline project report except can be minimized.
A. Introduction A. Planning Minimize Redundancy
B. System description B. Planning Provides Ability in Controlling
C. Feasibility assessment C. Planning Provides Direction
D. Conclusion D. Planning Reduce Uncertainty
175. Which of the following programmes was 180. Where do you base your functional com-
initiated during the Fifth Five Year Plan? petencies in your personal development
A. Drought Prone Area Programme plan?
B. Infrastructural Development Pro- A. Part I of e-SAT

gramme in Tribal and Backward Region B. Part II of e-SAT

C. Part III of e-SAT 186. it is a large tract of land in the site that
D. Part IV of e-SAT is being developed.

A. Series of Lot
181. Investment in shares creat wealth in long
run. B. Subdivision
A. False C. Lot
B. True D. Single Lot
C. None of these
187. Analysis tool that can be used to see the
D. none of above magnitude of the attractiveness of a po-
tential that is at a location
182. Which of the following laid the founda-
tion of the implementation of the K to 12 A. Model Shift Share
program of the Philippines? B. Input Output Model
A. Philippine Constitution
C. LQ model
B. Republic Act 139
D. Gravity Model
C. Republic Act 74
D. Republic Act 10533 188. this does not include a tangible product;
are the primary “product” of a business
183. Personal Development Plan will be ac-
A. pure services
complished in
B. brand name
A. Phase 1 only
C. labeling
B. Phase 2 only
C. Phase 3 only D. goods
D. Phase 4 only 189. What is the company responsibility in ac-

E. All phases tion planning.
A. Identify steps and timetable to reach
goal.
”By the end of the lesson, students will be
able to form present perfect simple ques- B. Identify resources employee needs to
tions.” reach the goal.
A. aims C. Ensure that the goal is SMART, commit
B. procedure to help employee reach the goal.
C. assumptions D. Identify goals and method to deter-
mine goal progress.
D. none of above
185. The prepares and submits the Supple- 190. Diversification is the advantage of invest-
mental Budgets ment through
A. Barangay Treasurer A. Shares

B. Barangay Secretary B. Mutual funds
C. Barangay Kagawad C. Property
D. Punong Barangay D. None of these

191. What’s the target language of this lesson 196. NO.7 THE NEW AGRICULTURE STRATEGY
aim? ”to help students write a set of in- WAS ADOPTED IN INDIA DURING THE
structions for a process” A. 3 PLAN
A. joining phrases such as FIRST OF ALL, B. 4 PLAN
NEXT, and AT THE END
C. 2 PLAN
B. verb endings /t/, /d/, /id/
D. 5 PLAN
C. weak forms in connected speech for
NARAYAN CHANGDER
WOULD/HAVE/HAD 197. Which of the following best describes HR
D. question tags planning
A. Ensuring that employees are properly
192. A decision that is subject to change as trained
new information is received.
B. Assessing human resource require-
A. Tentative career decision ments of an organisation
B. Job C. Implementation of new benefit
C. Occupation schemes for employees
D. Career Planning D. none of above
193. When is the best time to introduce the 198. Idea Generation
Replicable Baskets? A. Allows companies to control prod-
A. Before Acton Planning uct quality and production; is conducted
B. Before IL within the actual company
C. After IL B. Consists of brainstorming new product

ideas
D. After Action Planning
C. Includes introducing a product to the
194. Study of the ways unique combina- marketplace
tions of environmental and human factors D. Working model or sample of a product
produce territories with distinctive land-
scapes and cultural attributes. 199. Who is the chairperson of the Planning
A. Regional Geography commission?
B. Zoography A. Prime Minister
C. Regional Geography B. President
D. Military Geography C. Chief Minister

D. Governor
”Improve use of functional language for 200. “Garibi Hatao” was a the main objective
taking about experiences” of which five year plans.
A. aims A. 3rd
B. procedure B. 2nd
C. assumptions C. 5th
D. none of above D. 8th

201. This refers to the distance at how far a 206. Which of the following is NOT a factor in
building can be built within the property determining schedule feasibility?
lines.

A. A 45-hour work week
A. Property lines
B. Government imposed deadline
B. Zoning
C. Business cycles
C. Setback
D. Vacation
D. Lot
207. In a highway project 5 miles (8 kilome-
ters) out of the total 15 miles (24 kilo-
Your team has finished identifying risks
meters) have been completed. The BAC is
for your project and is now analyzing the
$900, 000. Which of the following repre-
quality of risk data.What should be done
sents the ETC of this project?
next?
A. $150, 000
A. ACreating a fallback plan
B. $300, 000
B. BApplying a probability and impact ma-
trix C. $450, 000
C. CConducting a criticality analysis D. $600, 000
D. DRunning a Monte Carlo simulation
208. Which one is not the 5 steps in succession
203. According to Weber, the selection of in- planning process?
dustrial locations is based on the principle A. Follow workshops
..
B. Identify critical positions
A. Market mechanism
C. Assess key talent
B. Government interference
D. Monitor and evaluate
C. The country’s economic system
D. Minimization of costs 209. Which of the following is the greatest
source of revenue for the federal govern-
204. it establish the standards for construction ment?
in different sizes and uses.
A. Company tax
A. Zoning
B. Customs duty
B. Building Code
C. Income tax
C. Zoning Law
D. Goods and services tax
D. buildable Area
205. What was the period of the 12th five- 210. Sahara, Tropical Rainforest, Great Plains,
year plan of India? Low Countries
A. 2012 to 2017 A. Physical Regions

B. 2007 to 2012 B. Political Regions
C. 2017 to 2022 C. Cultural Regions
D. 2010 to 2015 D. Economic Regions

211. What is an area of land available for con- C. Career planning

struction or the lot on which a building is D. Job Shadowing
constructed?
A. Lot 216. Ms. Riya, a History teacher considers the
element of time in arranging content of her
B. Land lessons in World History. What way of es-
C. Site tablishing sequence is given emphasis by
Ms. Riya?
D. Ground
NARAYAN CHANGDER
A. Simple to Complex
212. A project sponsor has requested that
B. Concrete to abstract
weekly status updates are to be sent by
email, detailing the schedule performance C. Chronological
index (SPI) and schedule variance (SV) of D. Part to whole
the project. In which of the following doc-
uments should these requirements be in- 217. group of related items or brands sold by
cluded? the same company
A. Communications management plan A. product line
B. Cost management plan B. product business
C. Project charter C. product company
D. Contract management plan D. none of above
218. The work component at the lowest level

213. Aims to establish coordination of national
of the WBS for which cost and duration can
economies for the benefit of countries in
be estimated and managed is called the
the Asia-Pacific region
A. Activity
A. OPEC
B. Work element
B. APEC
C. Work Package
C. CPEC
D. Control Account
D. CTEC
219. How many steps are there in implement-
214. This type of development normally focus ing competency based employee develop-
on state or province, or perhaps an island ment?
group.
A. 10 steps
A. National planning
B. 11 steps
B. Regional planning
C. 12 steps
C. International planing
D. 13 steps
D. Facility site planning
220. Which of the following option is not the
215. The process of studying careers, assess- factor that hinders with the human re-
ing yourself in terms of careers, and mak- source planning process?
ing decisions about a future career A. Type and quality of forecasting infor-
A. Career mation
B. Job B. Time horizons

C. Environmental uncertainties B. Marketing incentives

D. Unite the perspectives of line and staff C. Financial incentives

managers D. none of above
221. Product Depth 226. Which of the following is NOT a common
A. refers to the number of different prod- method for organizing a WBS?
uct lines a business produces A. Web
B. refers to the decisions and processes B. Free Format
used to create a “product mix”
C. Hierarchichal
C. refers to the way a product works or
looks; can help to sell a product based on D. Indented Outline
specific features 227. Includes all the products a company
D. refers to the number of available items makes or sells
offered in each product line A. Product Width
222. What is study preparation in tourism B. Product Development
planning process? C. Product Mix
A. Decision by government to prepare D. Product Depth
tourism plan
228. Improved Products
B. Projection of employees
A. Include a selected group of people
C. Adoption of plan
used to analyze and test the concept of a
D. Determination of preliminary objec- given product
tives
B. Should appeal to the products’s target
223. Where in the lesson plan should this be? market, may change based on consumer
”Students listen to the recording to check preferences
their answers” C. Name, term or symbol used to identify
A. aims related products
B. procedure D. Include a complete revision or new
model of an item
C. assumptions
D. none of above 229. The quality of being able to perform a
mental or physical task
224. In which year, Bharmaur region was con-
A. Ability
sidered as notified tribal area?
B. Value
A. 1974
C. Ethics
B. 1975
D. Career
C. 1976
D. 1977 230. Cycle through which every product goes
through from launch to expiration; stages
225. The creation of incentives to encourage are 1. introduction 2. growth 3. maturity
foreign investment refer to 4. decline
A. sponsoring research A. Product-line Decisions

B. Product Life Cycle 236. Which is the correct sequence of develop-

C. Product Divisions ment planning system?
D. Product Item A. Self assessment, Reality check, Action

planning, Goal setting
231. cannot be touched, tasted, seen or felt; B. Self assessment, Reality check, Goal
are performed as an “action” setting, Action planning
A. goods C. Reality check, Self assessment, Goal
NARAYAN CHANGDER
B. bad behavior setting, Action planning
C. services D. Action planning, Goal setting, Self as-
D. none of above sessment, Reality check
232. Includes input, decisions and work from 237. Changing the project schedule to prevent
businesses and individuals outside of the a known risk is an example of which of the
actual company following risk responses?
A. Goods A. Mitigation
B. Focus Groups B. Avoidance
C. Outsourcing C. Acceptance
D. Labeling D. Transference
233. The process of breaking the WBS into 238. In India what type of economic system is
smaller and smaller deliverables is called: being followed?
A. Value engineering A. capitalism
B. Functional design B. socialism
C. Detailed specifications C. Mixed
D. Decomposition D. Monarchy
234. A natural, inborn aptitude to do a certain 239. In-house Development

thing. A. Allows companies to control prod-
A. Talent uct quality and production; is conducted
within the actual company
B. Value
C. Work-ethic B. Process of maintaining product stan-
dards
D. Occupation
C. Group of related items and brands sold
235. Which of the following is not a method of by the same company
information gathering? D. Can be identified as a good or service
A. Sponsors and Stakeholder Interviews
240. Which of the following is NOT a factor in
B. Focus Groups determining legal and contractual feasibil-
C. User Interviews ity?
D. User Questionnaires A. Labor laws
E. None of the Above B. Financial budgets

C. Copyright infringements 246. What level of geography for the follow-

D. Foreign trade regulations ing? The Rocky Mountains

A. local
241. This technique is an iterative process that
identifies and defines the work to be com- B. regional
pletely accomplished in the near term, and C. global
plans the future work at a higher level.
D. none of above
A. Decomposition
B. Rolling Wave Planning 247. Which of the following programme is
not associated with the development pro-
C. Traceability gramme of hilly regions?
D. Agile A. Afforestation and Pasture lands devel-
opment
242. What is a tax bracket?
B. Horticulture
A. The rate at which income is taxed
C. Plantation agriculture
B. The rate of sales tax in a state
C. The form used to file taxes D. Animal husbandry and poultry
D. The way taxes are calculated 248. When is the best time to introduce the
Problem Tree
243. Choose the “Unexpected Expense”
A. Before Action Planning
A. Groceries each week
B. Before IL
B. Storm damage repairs
C. After IL
C. School clothes
D. After Action Planning
D. Netflix subscription bill
249. The following is NOT a result of lesson
244. should appeal to the products target mar-
planning:
ket; may change based on consumer pref-
erences A. goals are clear to students and the in-
A. color structor
B. branding B. Instructors are more accountable for

students learning
C. product design
C. student’s behavior improves
D. none of above
D. set the appropriate route to quality
245. Which of the following could be ways of learning
assessing student behavior at the end of a
lesson or unit? Check all that apply. 250. A statement of need should
A. Tests and quizzes A. answer the what
B. In-class assignments B. answer the why
C. Portfolio submission C. answer the how
D. Lab assignment D. Show learning

251. Idea Screening 256. The three main elements of a lesson plan
are:
A. Includes evaluating design factors and
influences A. activities, statement of needs, and as-
sessment
B. Includes evaluating product ideas and
feasibility B. objectives, assessment, statement of
needs
C. Can be identified as a good or service
C. activities, materials, and assessment
D. Cannot be touched, tasted, seen or
NARAYAN CHANGDER
felt; are performed as an “action” D. objectives, activities, and assessment
257. which of the following is not matched cor-

252. What is one of the tool to help in succes-
rectly?
sion planning and development?
A. The Population Bomb-Ehrlich
A. Training
B. The Limit to Growth-Meadows
B. Nine-box talent grid
C. Growth and Equality-Mahatma Gandhi
C. Workshops
D. Our Common Future-Gro Herlam
D. Performance appraisal Brundtland
253. Fifth five Indian year plan 1974-79 was 258. For developing country especially, gov-
aimed for the ernment usually perform a very to get
A. Agricultural Production tourism started
B. Industrial Production A. Passive

B. Active
C. Self-reliance
C. Intermediate
D. Removal of poverty
D. none of above
254. consist of a small group of employees
who identify methods for product improve- 259. Which part of the baseline project report
ment in an informal and constructive man- contains an outline of the recommended
ner course of action?
A. services A. Introduction
B. Feasibility assessment
B. quality circles
C. Management issues
C. color
D. System description
D. none of above
260. Which one of the following term is used
255. Provides tangible evidence of your ability to identify the old and new alluvial respec-
and skills tively?
A. Career portfolio A. Khadas & Tarai
B. Application B. Tarai & Bangar
C. Resume C. Bangar & Khadar
D. References D. Tarai & Dvars

261. allows businesses to create new market- 266. The comprehensive study of human re-
ing opportunities; helps to evaluate the source of an organisation is termed as
success or failure of current products

A. Current HR supply
A. products B. Future HR demand
B. product plan C. Demand forecasting
C. product planning D. None of the above
D. none of above
267. which is NOT an example for Industrial
Building
262. How many SDG’s are set by the UN?
A. University
A. 14 SDG
B. Mall of Asia
B. 20 SDG
C. Nuclear Power Plant
C. 17 SDG
D. Fiesta Communities
D. 12 SDG
263. The most basic planning sequence was ”Students may have problems with au-
proposed by the British planning pioneer thentic listening.”
Patrick Geddes:survey-analyze-plan
A. aims
A. Basic Planning Model B. procedure
B. Systematic Planning Process C. assumptions
C. Rational Planning Model D. none of above
D. none of above
269. What period is the NDP Community
264. NAFTA, European Union, Wheat Belts State:development for all?
A. 2002-2006
A. Economic Region
B. 2002-2010
B. Cultural Region
C. 2010-2014
C. Political Region
D. 2006-2010
D. Physical Regions
270. Things that are important to you, like
265. Choose the MAIN AIM for:After a group prestige, money, power, achievement, se-
discussion activity, learners work with a curity, belonging, or serving others
partner from another group to share infor-
A. Values
mation.
B. Interests
A. to vary the interaction pattern
C. Habits
B. to give restricted practice of target lan-
guage D. Routines
C. to focus attention on learning strate- 271. Which of the following statements about
gies a work package is true?
D. none of above A. It is the lowest level of the WBS.

B. It is the responsibility of the project A. to focus on voiced and unvoiced

manager. sounds
C. It consists of a single activity. B. to provide a sense of achievement
D. It requires the work of the entire C. to improve discipline
project team. D. none of above
272. A meeting with your employer when you
277. creates a specific image for a product
are going to leave the company. You dis-
or company; helps to position a product
NARAYAN CHANGDER
cuss your employment and should be con-
within given market
structive and cooperative.
A. labeling
A. Application
B. brand name
B. Job interview
C. branding
C. Exit interview
D. none of above
D. References
278. In order to complete the pre-project
273. Also known as synoptic planning and com-
setup, which of the following is the MOST
prehensive planning, this approach was
important task of the project sponsor?
emulated from the urban planning tradi-
tion. A. Obtain funding for the project.
A. Rational Planning Model B. Provide quality review of the deliver-
ables.
B. Systematic Planning Process
C. Provide leadership to the project
C. TRREC “VICE” Planning Model
team.
D. none of above
D. Obtain resolution of the application de-
274. Choose the MAIN AIM for:A group of ac- velopment issues.
tors come to school to perform a short play
in English for the learners 279. Question 14 of 100Question ID:612450
You are a project manager leading your
A. to give learners exposure to language team to develop the stakeholder engage-
B. to increase learners’ participation ment plan for a software development
project.Which of the following enterprise
C. to develop learner autonomy
environmental factors might influence this
D. none of above process?
275. something that provides critical product A. ATemplates
information B. BLessons learned repository
A. product planning C. CTeam charter
B. product design D. DStakeholder risk appetites
C. labeling
280. What’s the target language of this lesson
D. none of above aim? ”to help students understand and
276. Choose the MAIN AIM for:Learners make use the third conditional”
a recording of a radio programme they A. joining phrases such as FIRST OF ALL,
have written. NEXT, and AT THE END

B. weak forms in connected speech for B. Problem

WOULD/HAVE/HAD C. Symptoms

C. verb endings /t/, /d/, /id/ D. Solutions
D. question tags
286. What level of geography for the follow-
281. Which of the following is NOT a considering? Japan exports cars to many countries
ation during the assessing technical feasi- A. local
bility stage?
B. regional
A. System size
C. global
B. System complexity
D. none of above
C. System target hardware
D. System cost 287. What are the three thematic areas of the
ACTION?
282. Describes a specific brand or individual A. Establishing Goals
product within a line
B. Promoting and participating in teacher
A. Product Item learning and development
B. Quality Control C. Planning coordinating and evaluating
C. Product Life Cycle teaching and curriculum
D. Product Width D. Improvement of teaching and learning
in Literacy
283. Which is a functional requirement of a log-
ical architecture? 288. Refers to the number of different product
A. Compliance with capacity standards lines a business produces
B. Adherence to performance goals A. Product Width
C. The integral ability to service business B. Product Item

continuity service level agreements C. Product Depth
D. Conformance with regulatory or statu- D. Product Line
tory audit rules
289. Planning helps in monitoring the work
E. The assurance of scalability against fu- that either this works is on the right path
ture growth or not.
284. Areas with unifying physical characteris- A. Planning Provides Direction
tics are known as B. Planning Reduce Uncertainty
A. Perception C. Planning Provides Ability in Controlling
B. Region D. Planning Minimize Redundancy
C. Location
290. The action plan should link instructional
D. Orientation leadership, core skills and foundational
285. Which one is not part of problem tree skills
analysis A. Yes
A. Root Causes B. No

C. Not sure 295. Which of the following strategies have

D. none of above been adopted to protect the drought prone
areas of Punjab, Haryana and Northern
291. A process that is used for identifying and Rajasthan?
developing internal people with the poten- A. Expansion of irrigation
tial to fill key business leadership posi-
B. Rain water harvesting technique
tions in the company is called
C. Water shed development program
A. Highly talented personnel creation
NARAYAN CHANGDER
D. Arrangement of water tankers on
B. Investing in human resources rental basis
C. Succession planning
296. In order to create wealth and to manage
D. None of the above inflation, one should
292. Question 32 of 100Question ID:610085 A. Save
During a presentation to your project spon- B. Invest
sor, you mention the code of accounts. She
C. Consume
is unfamiliar with the term and asks for
clarification.Which of the following would D. None of these
you use to explain the code of accounts?
297. A is a written request or formal pro-
A. ARisk breakdown structure posal to propose changes to any project
B. BProject budget planning component such as a document,
project deliverable, or baseline (scope,
C. CWork breakdown structure cost, and time).
D. DRisk register A. Scope statement
293. What is the General part of the NDP B. Request for proposal
about? C. Project charter
A. The long-term national objectives and D. Change request
purposes
298. What level of geography for the follow-
B. The goals and priorities of state action
ing? Certain events that happen in the U.S.
in the medium term.
affect other countries
C. All are correct A. local
D. The broad economic, social and en- B. regional
vironmental policy strategies and guide-
lines that will be adopted by the govern- C. global
ment D. none of above
294. What law established the Organic Law of 299. Choose the correct activity aim for the
the Development Plan? instruction:”Complete the gaps in the
newspaper article using the correct verb
A. Law 152 of 1994
forms.”
B. Law 388 of 1997
A. to practice in process writing
C. Law 152 of 1997 B. to provide practice in reading for gen-
D. none of above eral understanding

1.17 Development Studies 629
C. to provide controlled written grammar C. Provide assessment information to

practice of recently taught language identify strength, weakness, interest and
values.

D. to give students practice in oral flu-
ency D. Identify goals and method to deter-
mine goal progress.
300. Involves selecting MISSION and OBJEC-
TIVES as well as the ACTIONS to achieve 303. related to the parts, materials or con-
them. struction elements of a product
A. Planning A. services
B. Organizing B. quality
C. Leading C. quality control
D. Controlling D. none of above
301. A site development plan is drawn using a 304. Which of the options below means the or-
scale not smaller than meters. ganization has the ability to build the re-
quested system?
A. 1:500
A. Economic feasibility
B. 1:100
B. Return on Investment
C. 1:300
C. Technical Feasibility
D. 1:200
D. Break Even Point
302. What is the employee responsibility in 305. NO.9 IN WHICH YEAR INDIA ADOPTED
self assessment in development planning HYVP
system?
A. 1966
A. Identify opportunities and needs to im-
prove. B. 1963
B. Identify what needs are realistic to de- C. 1964

velop. D. 1965
1.17 Development Studies

1. In which currency, per capita income is cal- A. manmade features such as buildings.
culated and presented for each country of B. densely populated areas
the world?
C. lesser number of services and indus-
A. Euro trial areas.
B. Dollar D. beautiful landscapes and public
C. Pound places.
D. Currency of the country, for which per 3. “There is enough for everybody’s need but
capita income is calculated not for anybody’s greed”Who said this?
2. which is NOT a characteristic of an urban A. JL Nehru

area B. AB Vajpayee

C. MK Gandhi C. 7
D. SL Bahuguna D. 8
4. the development criteria include 10. Which of the following is a cause of envi-
A. freedom ronmental degradation?
B. equal treatment A. Population explosion
C. income B. Increasing urbanization
NARAYAN CHANGDER
D. all of above C. Rapid industrialization
5. Time period of Golden Revolution is D. ALL of these
A. 1993-2003 11. On the basis of origin, resources can be

B. 1991-2008 classified into
C. 1991-2012 A. renewable and non renewable

D. 1991-2003 B. biotic and abiotic
C. individual and community
6. How are jobs affected by urbanization
D. national and international
A. there are more jobs in urban areas.
B. there are more jobs in rural areas. 12. The state of Jharkhand, Madhyapradesh
C. there are the same number of jobs ev- and Chattishgarh are rich in the deposits
erywhere. of
D. there are more jobs in the suburbs. A. Manganese

B. Coal
7. Who was born in Basra, Iraq?
C. Bauxite
A. Ahmad ibn Majed
D. Iron Ore
B. Ahmad ibn Hanbal
C. Hasan ibn Al Haytham 13. Who is the Chairperson of the NITI Ayog?
D. Al khawarezmi A. Finance Minister
8. the child’s inability to see a situation from B. Prime Minister

another person’s point of view..is known C. President
as:
D. none of above
A. Super Ego
14. The barging of water stopped in 2011
B. Egocentrism
because the government built new water
C. Constancy plants to process saltwater in New Provi-
D. Animism dence. Who did they get a loan from?
A. The World Bank
9. How many annual plans did the planning
commission implement till date? B. Royal Bank of Canada
A. 5 C. Caribbean Development Bank
B. 6 D. none of above

15. Panchayat Raj came to existence in 20. Among the shortcuts for effective persua-
sion, this concept explains that when per-
A. 1993
suading others, we need to explain to our

B. 1996 stakeholder the benefits of our proposal,
what is unique about it, and what they
C. 1995
stand to lose if they fail to consider our
D. 1990 proposal.
A. Liking
16. Refers to an umbrella term for approaches
that directly involve local people in the de- B. Scarcity
sign and delivery of development initia- C. Consistency
tives, which could either be in the form of
projects, programs, and partnerships. D. Authority
E. Reciprocity
A. Community Development
B. Gender and Development 21. credit provisions are referred to as
micro-credit programmes.
C. Participatory Development
A. RRB
D. Development Partnerships
B. SHG
E. Grassroots Development C. Cooperatives
17. Last year, the UAE announced its Energy D. none of above
Strategy
22. Angola has a life expectancy age of 44, lit-
A. 2021 eracy (can read and write) is at 58% of
the population and an average income of
B. 2030
$4, 941 a year. What type of country is
C. 2050 Angola?
D. 2071 A. Developed Country (Most developed)
B. Developing Country (Middle)
18. The fact of belonging to a community be-
cause you live in it and the duties and re- C. Less Developed Country (Least devel-
sponsibilities that this brings is oped)
A. nationhood D. none of above
B. citizenship 23. Sensorimotor stage ranges from

C. nation A. Birth to age 2
D. citizen B. Birth to age 1

C. 2-7 years
19. Who is the only US President to resign?
D. 7-9 years
A. George Washington
24. Under which of the following type of re-
B. Richard Nixon source can tidal energy be put? (Textbook)
C. Andrew Jackson A. Replenishable
D. Kanya West B. Human-made

C. Abiotic 30. The main activities in secondary sector are

D. Non-renewable
A. Industry and education
25. Laterite soil is very useful for growing: B. Industry, handricrafts and construc-
A. Rice, wheat, and mustard tion
B. Tea, coffee, and cashew nut C. Construction and agriculture
C. Pulses, sugarcane, and resin D. Education and handicrafts
NARAYAN CHANGDER
D. None of the above 31. Between to many droughts oc-
curred which led to food shortage and
26. Is the economic development of a state in famine like conditions in many parts of the
terms of the external influences country.
A. Independence A. 1950 to 1953
B. dependency B. 1960 to 1962
C. Modernization C. 1967 to 1969
D. Development D. 1965 to 1967
32. What is Vision 2030 Jamaica?

27. Different persons could have different as
well as conflicting notions of a country’s A. National development plan over the
development. A fair and just path for all next 20 years.
should be achieved. Interpret the concept B. A guide to our country’s development
being discussed here.
C. A plan to develop Jamaica by the year
A. Cultural Development 2030
B. Social Development D. All of the above
C. National development 33. The granary was the store house for
D. Economic Development A. Meat
28. Who built the camera obscura? B. Straw

C. Cotton
A. Ahmad ibn Majid
D. Wheat
B. Ahmad ibn Hanbal
C. Hasan ibn Al Haytham 34. Fishing, Mining, Farming, and Forestry are
examples of what economic activity?
D. Al khawarezmi
A. Primary
29. A dark box with lens that can be used to B. Secondary
take photographs. C. Teritiary
A. camera obscura D. Quaternary
B. computer obscura
35. How many phases are there in a develop-
C. mobile obscura ment project?
D. Tv obscura A. 3

B. 4 41. Rio De Janeiro Earth Summit was held in

year
C. 6
A. 1998

D. 5
B. 1992
E. 2
C. 1991
36. Which of the following is not a basis of D. 1994
development of psychological thought. 42. The economic system which is supported
A. Free Will by modernization theory is
B. Determine A. Communism
B. Nepotism
C. Artificial Intelligence
C. Capitalism
D. Empiricism
D. Individualism
37. The was the central part of the city. 43. What is the recent stage of development
A. Castle that the UAE stands on?
A. Pearling Industry
B. Palace
B. Oil Industry
C. Citadel
C. Competitive Knowledge Economy
D. Cathedral
D. Centennial Project
38. Black soils are common in: 44. Which one is NOT a factor when determin-
ing the HDI of a country?
A. Deccan trap region
A. Education
B. Kashmir Valley
B. Health
C. Ganga Valley
C. Income
D. Northern Plains D. Miltary Size
39. How many members states are part of the 45. Which of the following is a necessary con-
UN? dition for sustainable development?
A. 193 A. Increase in the quality of life
B. Reduction in the level of pollution
B. 200
C. conservation of stock of natural capital
C. 185
D. All of these
D. 49
46. In this stage, the child is aware of wider
40. Development is q process of rules of society. At this point, a student is
good because of what society says.
A. Sad change
A. Preconventional/Premoral
B. Negative change B. Conventional
C. Positive change C. Post-Conventional

47. Which of the following is people’s goals in 53. What percentage of land in India consist of
addition to higher income? fertileplains?
A. Peace and Security A. 70%
B. Freedom B. 45%
C. Equal treatment
C. 49%
D. All of these
D. 43%
48. is a women-oriented community
NARAYAN CHANGDER
based poverty reduction programme imple- 54. Wome self help group Contribute to-
mented in Kerala. wards building a clean progressive society.
Which point support this
A. TANWA
B. Kudumbashree A. Eradicate corruption
C. RRB B. Role in get rid of social evils like dowry

and child marriage
D. none of above
C. Provide good education
49. Theory of Moral Development was pro-
posed by D. Eradicate poverty
A. Piaget 55. The running water cuts the clayey soils and
B. Goldberg makes deep channels which is called
C. Kohlberg A. Gullies
D. Kohler B. Bad land
50. Hassan Ibn Al-Haytham Was A C. Sheet Erosion
A. navigator D. None of these
B. teacher
56. Villagers of which state protested against
C. farmer
the POSCO plant?
D. scientist
A. Chattisgarh
51. In Maharashtra and Saurashtra what type
B. Orissa
of Soil is mostly found?
A. Arid Soil C. Meghalaya
B. Forest Soil D. Bihar

C. Red and Yellow Soil 57. The global ecological crises such as global
D. Black Soil warming, ozone layer depletion and envi-
ronmental pollution are the results of
52. Total income of the country divided by its
total population is known as:‘ A. Accumulation of resources in a few
hands
A. Capital Income
B. National Income B. Judicious use of resources
C. Per capita income C. Indiscriminate use of resources
D. GDP D. All of these

58. As per World Bank development of a coun- 64. “There is enough for everybody’s need
try can generally be determined by its: and for anybody’s greed”. said by

A. per capita income A. Mahatma Gandhi
B. average literacy level
B. Brundtland
C. health status of its people
C. Netaji
D. none of these
D. none of above
59. In which of the following States is black
soil found? 65. Pre-conventional motivations are domi-
A. Jammu & Kashmir nated by what?
B. Gujarat A. Avoiding punishments and getting re-
C. Rajasthan wards
D. Jharkhand B. Fairness for everyone
60. The soil commonly found in Duars, Chos C. Following the rules
and Terai is
D. Thinking of others
A. Laterite soil
B. Alluvial soil 66. Which one of the following method is most
appropriate to check soil erosion on steep
C. Black soil
slopes?
D. Arid Soil
A. Shelter belts
61. When was oil discovered in UAE?
B. Mulching
A. 1936
C. Terrace cultivation
B. 1943
C. 1958 D. none of above
D. 1971
67. .... are strong believers in determinism.
62. different cultural groups live together in A. Behaviorists
peace and harmony
A. economic development B. Sovorien
B. social development C. cottonist

C. cultural development D. Hularist
D. political development
68. Indian territorial water extends upto a dis-
63. Who was faxian? He visited India in tance of
which emperor’s reign?
A. 12 km
A. A Chinese pilgrim, Vikramaditya
B. 12 nautical miles
B. A Chinese pilgrim, Samudragupta
C. A Chinese pilgrim, Chandragupta2 C. 200 nautical miles
D. A Chinese pilgrim, Chandragupta1 D. 19.2 miles

69. How is the Gender Development Index cal- C. Cooperative

culated?
D. Swarajya
A. Life Expectancy & GNI
B. Standard of Living & Years of Educa- 75. In which one of the following states is ter-
tion race cultivation practised?
C. It equals the HDI of women in a coun- A. Punjab

try B. Plains of Uttar Pradesh
NARAYAN CHANGDER
D. HDI scores for males and females C. Uttarakhand
within a country are compared
D. Haryana
70. The full form of SDG is
76. The Indus valley had climate.
A. Sustainable Development Grids
A. Temperate
B. Sustainable Development Groups
B. Tropical
C. Sustainable Development Goals
D. none of above C. Dry
D. Moist
71. When was India’s New Economic Policy
launched? 77. according to forest policy, 1952 the coun-
A. 1991 try should have % of geographical
area under forest
B. 1992
A. 39
C. 1999
D. 1950 B. 33
C. 22
72. Which of the following soil is more com-
mon inPiedmont plains such as Duars, Chos D. 21
and Terai?
78. In this stage, individual judgment is based
A. Laterite soil on individual rights and justice for the
B. Black soil greater good.
C. Red soil A. Preconventional or premoral
D. Alluvial soil B. Conventional
73. Ahmed Ibn Majeed Was A C. Post-Conventional
A. navigator D. none of above
B. teacher
79. Who developed the theory of 8 stages of
C. farmer Psychosocial development?
D. scientist A. Lawrence Kohlberg
74. Identify the feature of Panchayat Raj B. Erik Erikson
A. Three tier system C. Jean Piaget
B. Qualification D. Harry Harlow

80. Preoperational Stage is from 85. Which landmark concern requires an as-
sessment of a project’s impact to the social
A. Birth to 2
and cultural lives of people?

B. 2-7 years
A. Social Dimensions
C. birth-1year B. Cultural Dimensions
D. 1-7 years C. Environment
81. The UAE chose red, green, white and black D. Indigenous Peoples
as colors for the national flag. What do 86. Development happens in context. To un-
they mainly represent? derstand we some countries are rich and
A. Arab unity and sentimental value poor we need to:
B. Independence and patriotism A. consider history
C. Growth of the country B. consider interactions with broader

world
D. Independence and unity
C. consider multiple scales
82. What are the 3 rivers responsible for for- D. all of these
mation of Alluvial Soil?
87. On the Basis of ownership resources can
A. the Indus, the Ganga and the Brahma- be classified into:-
putra
A. 2 Types
B. Indus, Ganga, Godavari
B. 3 Types
C. Brahmaputra, Nile, Godavari C. 4 Types
D. none of above D. 5 Types
83. Resources which will get exhausted after 88. Which of the following is a reason of noise
years of use are: pollution?
A. Renewable resources A. Domestic sewerage
B. Non-durable resources B. industrial waste
C. Non-renewable resources C. Industrial machines
D. Competing resources D. Emission of gases
89. How did famines became events of the

84. are the subset of the stock, which can past?
be put into use with the help of existing
technical ‘know-how’ but their use has not A. Improved literacy rate
been started. These can be used for meet- B. Increased Rainfall
ing future requirements.
C. Maintenance of Buffer stock
A. Resources D. none of above
B. Reserves
90. Accommodation:
C. Rivers
A. Changes in schemas to incorporate in-
D. Forests formation from experiences.

B. A concept or category about the world. 96. HDI stands for

C. The tendency to interpret new experi- A. Human development index
ences in terms of existing schemas.
B. Health development of India
D. none of above
C. Human development institute
91. What is the process by which some ani-
mals form immediate attachments during D. None
a critical period?
97. Resources should be conserved so that
NARAYAN CHANGDER
A. assimilation
people living today can meet their needs
B. contact comfort without limiting the ability of future gen-
C. imprinting eration
D. separation anxiety A. Globalization
92. Which economic activity would lawyers, B. Socialism
doctors, salespeople, and customer service C. Capitalism
representatives fall under?
D. Sustainable Development
A. Primary
B. Secondary 98. The Harappan Terracotta pottery was
C. Tertiary
A. Unpainted
D. Quaternary
B. Glazed
93. Cause of land degradation in Chattishgarh,
C. Red Brown
Odisha, Jhrakhand and Madhya Pradesh.
A. Agriculture D. Anvekar
B. Quarrying 99. A sociologist who studied impact of race
C. Mining on the society for the first time was
D. Soil Erosion A. Karl Marx
94. Who owned the majority of the nitrate B. Max Weber
mines?
C. Harrieete Martinue
A. The Chilean government
D. W.E.B. De Bois
B. Foreign investors (e.g. British, Ameri-
cans)
100. What are resources?
C. Pervian & Bolivian investors
A. anything in the environment
D. Chilean investors
B. anything in the environment useful to
95. Which bank gives a country up to 20 or human beings
30years to repay a loan?
C. anything in the environment that sat-
A. The Caribbean Development Bank
isfies our needs provided it is technologi-
B. The World Bank cally accessible, culturally acceptable and
C. The Bank of The Bahamas economically feasible.
D. none of above D. can be extracted anyway

101. Resources that we find in nature and are 106. .... (1969) states a child has an innate
used without much modification are called need to attach to one main attachmentfig-
ure.

A. Human Resource A. MINA
B. Natural Resource B. Bowlby
C. Renewable Resource C. Denver
D. Human Made Resource D. Weissman
102. In which year did Hazari committee sub- 107. Red soils are red in colour due to diffusion
mitted the report of
A. 1972 A. Magnesium
B. 1962 B. Calcium
C. 1968 C. Iron
D. 1957 D. Phosphorous
103. The following specific actions can be done
108. The UNESCO is an international organi-
by CDL in order maintain their sustainable
zation promoting which programs of the
practices to save the environment and be
UN?
Go Green company, except
A. competence, science, nature
A. Renewable the energy sources
B. education, science, culture
B. Disposing of toxic materials safely
C. nationality, unity, science
C. Burning fossils fuels and deforestation
D. unity, organization, education
D. Adopting a host of green corporate
policies 109. The Indus valley people used clothes
104. Which of the psychologist is responsible made of
to make psychology different from philos- A. Nylon
ophy?
B. Wool
A. Wundt
C. Cotton
B. Jacob
D. Jute
C. Jamia
D. Rogges 110. how does urbanization affect the environ-
ment
105. Which sector of the economy removes or A. Suburbs increase the amount of pollu-
harvests products directly from the earth tion.
in order to extract raw materials or food?
B. cities increase the amount of pollution.
A. Secondary
C. cities decrease the amount of pollu-
B. Primary tion.
C. Tertiary D. urbanization doesn‘t effect the envi-
D. Linear ronment

111. Which one of the following states of In- C. Jawaharlal Nehru

dia has a low literacy rate? D. none of above
A. Punjab
117. The scheme of “Micro Finance” is ex-
B. Bihar tended through:
C. Kerala A. Self Help Groups
D. Tamil Nadu
B. Land Development Banks
NARAYAN CHANGDER
112. Violation of human rights is a violation of C. NABARD
the of persons
D. Regional Rural Banks
A. Emotions
118. Materials in the environment which have
B. Freedom
the potential to satisfy human needs but
C. Intelligence human beings do not have appropriate
D. Dignity technology to access them are called:
A. (a) Potential resource
113. Which of the following is a source of non-
renewable energy? B. (b) Stock
A. Solar C. c) Developed resource
B. Methane D. (d) Reserves
C. Hydroelectric 119. It is compulsory to conduct gram sabha
D. Coal meeting at least once in
A. Every month
114. Which of the modern school of psychol-
ogy favor determinism? B. Two months
A. Fun loving C. Six months
B. Human D. Twelve months
C. Existence 120. Which of the following industries rose to
D. Behaviorism dominance as UAE developed?
A. Tourism and fishing
115. Which development decade saw a realign-
ment of priorities in international funding B. Trade and real estate
considering other landmark concerns for C. Resource management and technolog-
development? ical fields
A. First Development Decade D. All of the above
B. Second Development Decade
121. All societies naturally pass through the
C. Third Development Decade same stages of development
D. Fourth Development Decade A. Modernization theory,
116. NITI AYog was set up by: B. World system theory,
A. Narendra Modi C. Dependency theory,
B. Manmohan Singh D. Human development theory

122. As per Ministry of Agriculture, 2010- 128. Bo is 18 and is looking into career op-
2011 the culturable waste land is tions. He is currently deciding whether he
wants to become a gourmet chef or a race

A. 4%
car driver. Bo is at what stage of Erik Erik-
B. 4.17% son’s psychosocial development?
C. 6.23%
A. identity versus role confusion
D. none of above
B. generativity versus stagnation
123. Operation Flood launched on C. intimacy versus isolation
A. 1960
D. industry versus inferiority
B. 1970
C. 1980 129. What’s the highest score a country could
receive for its HDI?
D. 1990
A. 10
124. Which one of the following is not in
favour of the conservation of nature? B. 5
A. Switch off the bulb when not in use C. 1
B. Close the tap immediately after using D. 100
C. Dispose polybags after shopping
130. Black soil is typical to region spread
D. none of above over northwest Deccan plateau.
125. If the company only focus on prosper- A. Regur
ity/profit, they will ignore
B. Basalt
A. profit and planet
C. Lava
B. planet and people
C. economy and social D. none of above
D. ethics and responsibility 131. Laterite soils are mostly

126. A teacher belongs to A. neutral
A. Secondary sector B. acidic
B. Tertiary sector C. basic
C. Primary sector
D. none of above
D. none of above
132. I drive below the speed limit as it is
127. During which of Piaget’s stages do indi-
against the law to drive faster. What
viduals gain the potential for moral reason-
stage am I at?
ing?
A. Pre-conventional
A. Sensorimotor
B. Preoperational B. Conventional
C. Concrete Operationional C. Post-conventional
D. Formal Operational D. none of above

133. A developing country is characterized as C. The answer cannot be determined

a country which has
D. Cheap labor and raw materials go from
A. High income households and low pro- Core (MDC) to Periphery (LDC)
ductivity
B. Extensive physical capital develop- 138. Which theorist wrote that s ocial contact
ment and skilled labour is essential to intellectual development.
C. Unskilled labour, low productivity and A. Freud
NARAYAN CHANGDER
low living standards B. Piaget
D. Highly industrialized and high stan- C. Vygotsky
dard of living
D. Bandera
134. A committee of representatives in
the administration were referred to as the 139. old alluvial soil is called
panchas. A. bangar
A. Three
B. Khadar
B. Five
C. Kankar
C. Ten
D. none of above
D. Fifty
135. Provides cheap labors, raw materials and 140. In this stage, children are good so that
market of industrial goods: they can be seen as good to other people.
A. Core countries A. Preconventional/Premoral

B. Peripheries countries B. Conventional
C. Semi peripheries countries C. Post Conventional
D. Both peripheries and semi periph- D. none of above
eries.
141. What is Kohlberg’s theory?
136. ADNOC’s shares in oil increased %
year(s) A. people progress in their moral reason-
ing through stages
A. 20, 3
B. people have only one stage of moral
B. 60, 2
development
C. 35, 1
C. People choose their moral stage
D. 40, 1
D. none of above
137. According to the Core-Periphery Model,
what is the relationship between Periph- 142. The country’s first university, United
ery (LDC) countries and Core (MDC) coun- Arab Emirates University opened in?
tries? A. 1977
A. Cheap labor and raw materials go from
B. 1976
Periphery (LDC) to Core (MDC)
C. 1879
B. there is no relationship between the
two D. 1978

143. The developmental goal for a girl from a C. Self Evaluation:Green. My an-
rich family is swers:Red

A. to get more days of work D. Self Evaluation:Yellow. My an-
B. to get as much freedom as her brother swers:Blue
gets
149. In Eversole’s Levels of Participation, this
C. to get electricity
level describes that community members
D. to get better wages only serve the interest and agenda of oth-
ers or the development organization initi-
144. Which goal deals with affordable health-
ating a project:
care for children?
A. goal 1 no poverty A. Tokenism
B. Goal 6 no poverty B. Self-determination

C. Goal 17 partnership and goals C. Partnership
D. Goal 3 good heath and well being D. Manipulation
145. Who was popularly known as the father E. Consultation
of the white revolution known
150. . According to Piaget, the ability to under-
A. KT Shah
stand that simply changing the appearance
B. P.C Mahalanobis of an object does not change the object’s
C. Verghese kurien nature is known as
D. Gulzari Lal Nanda A. centration
146. Countries with higher income are B. assimilation
than others with less income. C. conservation
A. Less developed
D. object permanence
B. More developed
C. Less stronger 151. Which one of these characters is not
friends with Harry Potter?
D. More organized
A. Ron Weasley
147. What is the best indicator of “quality ed-
ucation” as invoked in the constitution? B. Neville Longbottom
Generation of reliable measurements C. Draco Malfoy
A. on cohort survival rate D. Hermione Granger
B. of educational outcomes
C. on drop-out rate 152. Which island did New Providence have to
get water from?
D. on participation rate
A. Abaco
148. What color do you put the your answers
and the self evaluation in? B. Acklins
A. Self Evaluation:Red. My answers:Blue C. Andros
B. Self Evaluation:Blue. My answers:Red D. none of above

153. Who studied Arabic poetry, history and B. Abiotic resources

literature? C. Renewable resources
A. Ahmad ibn Majed D. Non-Renewable resources
B. Ahmad ibn Hanbal
159. In the eyes of , society consists of con-
C. Hasan ibn Al Haytham nected parts working together as a whole.
D. Al khawarezmi A. Max Weber
NARAYAN CHANGDER
154. Economic development is comprised of B. Karl Marx
A. Poverty eradication, environmental C. Emile Durkheim
preservation, equity in educational and
D. George Herbert Mead
employment opportunities.
B. Increased economic output, profit 160. On the basis of exhaustibility resources
maximization, product variety are classified as:-
C. Guaranteed high paying jobs and low A. biotic and abiotic
income housing B. renewableand non-renewable
D. Excess leisure time and low stress oc- C. individual, community, national and in-
cupations ternational
155. Two pillars of human development are D. potential, developed stock and re-
serves.
A. Productivity and Equity
B. Longevity and Literacy 161. How many types of soils are there?
(number only)
C. Discipline and Tolerance
A. 6
D. Wealth and Prosperity
B. 3
156. The lower town was the the area.
C. 7
A. Countryside
D. 2
B. Outskirts
C. Suburban 162. Malaysia has a medium high HDI score.
Many foreign countries operate factories
D. Residential within Malaysia to take advantage of its
cheaper labor. What group does Malaysia
157. is an assurance to the farmers that a
belong to?
minimum price will be fixed by the govern-
ment to purchase farmers produce. A. Core
A. Maximum support price B. Periphery
B. Minimum support price C. Semiperiphery
C. Maximum retail price D. none of above
D. none of above 163. What is the Human Development Index?
158. Coal, iron ore, petroleum, diesel etc. are A. The health of an individual.
the examples of B. A set of statistics or numbers that rank
A. Biotic resources countries by their development.

C. The country a person lives in, C. Biotic

D. The number of preventable diseases in D. Non Renewable

a country.
169. Burning of which of the following fuels
164. of the people work in the primary sec- produces the least amount of carbon diox-
tor. ide per unit of energy?
A. 50 % A. Coal
B. 60 % B. Oil
C. 75 % C. Natural gas
D. 40 % D. All of these produce the same amount
165. Problem of land and soil degradation can of carbon dioxide
be managed through 170. Which theorist was famous for their
A. deforestation and mining work with moral development?
B. afforestation and terraced farming A. Jerry Garcia
C. terraced farming and quarrying B. Erik Erikson
D. mining and shelter belts C. Lawrence Kohlberg
166. Which one of the following industries is D. Steven Colbert
managed both by the government and pri-
vate companies? 171. Sociology is related to other sciences.
Check those that are related to sociology.
A. Public sector
A. Anthropology
B. Joint sector
B. Political Science
C. Cooperative sector
C. Psychology
D. Private sector
D. Economics
167. What CDL need to do to in order main-
tain their people/social by applying TBL 172. Give an example of someone who did not
theory? give up upon gaining knowledge and devel-
oping oneself
A. Apply reward system to the sharehold-
ers A. Sheikh Suleiman Al Rajhi
B. Apply a punishment system in the com- B. Al Izz bin Abdul Salam
pany C. Sheikh Zayed
C. Apply reward systems to the employ- D. Jamal Dualeh
ees and provide training to the stake-
holder 173. In which year was the Earth Summit
D. Conduct a meeting held?
A. 1990
168. Which One of the following type of re-
source is iron ore B. 1991
A. renewable C. 1992
B. flow D. 1993

174. What is the immediate issue have been 179. Which one of the following is the main
highlighted in this case? cause of land degradation in Punjab?
A. How CDL to reinforce their culture sus- A. Intensive cultivation
tainability and to increase the awareness B. Deforestation
among the stakeholder?
C. Over irrigation
B. How to make CDL as a go green com-
pany? D. Overgrazing
NARAYAN CHANGDER
C. Can CDL reduce the cost when apply 180. Human beings in a society dwell together
sustainable practices? with
D. none of above A. Violence and injustice
B. Mutual corporation and harmony
175. Who married Chandragupta?
C. Hate
A. Kumardevi
D. Combination
B. Prabhatidevi
C. Gautami 181. Assertion-suppose the literacy rate in a
state is 78% and the net attendance ratio
D. Kumardevi in the secondary stage is 47%.
176. Women got reservation in local body elec- A. both A and R are true and R is correct
tion explanation of A.
A. 50% B. both A and R are true and R is not the
B. 33%
C. A is true but R is false.
C. 30%
D. both A and R are false.
D. 10%
182. The Gender Development Index (GDI) is
177. what are the features of the resources? used to calculate
A. they have Limited stock A. gender equality within countries
B. they have alternate uses B. the development of a country
C. They satisfy human wants C. the standard of living in a country
D. all above D. the education levels in a country
178. Why different categories of persons do 183. when running water cuts through clayey
not have same notion of development? soil and forms deep channels, they lead to:
A. People seek different things that are A. gully erosion
most important for them.
B. sheet erosion
B. Every person do not have the clear C. deforestation
idea about the development.
D. none of above
C. People are not serious about the devel-
opment. 184. Deductive thinking and abstract ideas for-
D. It is quite natural that people have dif- mally develops in
ferent ideas on each issue. A. Concrete operational

B. Object permanence 190. Which bank assists with project develop-

C. Formal Operational ment?

D. Animism A. The Caribbean Development Bank
B. The World Bank
185. The concept refers that whereby people
do have a choice, but their behavior is al- C. The Bank of The Bahamas
ways subject to some form of biological or D. none of above
environmental pressure.
191. Whom did the oil and gas originally be-
A. Soft Determinism long to?
B. Hard Determinism A. Sheikh Zayed
C. Radical Determinism B. The government
D. Special Determinism C. ADNOC
186. the child blindly accepts rules and conven- D. Foreign oil companies
tion because of their importance in main-
taining a functioning society, this refers to: 192. The weight usually made of stone who
was known as
A. law and order orientation
A. Chert
B. good boy, good girl
B. Divert
C. obedience and punishment
C. Invert
D. instrumental orientation
D. Alert
187. what soil is best to grow cotton
193. The state where White Revolution took
A. alluvial soil place?
B. regur soil A. Delhi
C. white soil B. Gujrat
D. none of above C. Mumbai
188. Which human activities are largely re- D. Jammu n Kashmir
sponsible for the process of soil erosion?
194. Soil formed by intense leaching is:
A. deforestation and mining
A. alluvial soil
B. sheet erosion
B. red soil
C. gullies
C. laterite soil
D. afforestation
D. desert soil
189. By what year should these goals be
achieved? 195. Agricultural Development does not com-
prise of
A. 2025
A. transportation of the produce to the
B. 2030 market place for sale
C. 2020 B. grading of the produce according to
D. 2035 the quality

C. storage of the produce for sale in fu- 201. The Vershtain principle proposed by Max
ture Weber is about
D. credit taken to meet expenditure on A. Understanding society in general
agriculture B. Reveling underlying social causes
196. Which one of the following is not a land C. Understanding emotions and feelings
reform measure? of individuals in the society by applying
A. Consolidation of scattered landhold- empathy
NARAYAN CHANGDER
ings D. class struggle
B. Abolition of zamindari system 202. Who is known as Maharadhiraja “king of
C. Redistribution of land kings”.
D. Introduction of irrigation A. Chandragupta1
B. Chandragupta2
197. What is sociology?
C. Samudragupta
A. It studies humans and everything they
do D. Vikramaditya
B. It studies human society and human 203. Who is the main character in this case?
behavior
A. Christie Lee
C. It studies humans and animals and hu-
B. Allen Ang
man behavior
C. Esther An
D. It studies everything
D. Foo Chui Mui
198. Resources which are found in a region but
have not been utilised are called 204. What was the desired goal or end-state
of countries belonging to Asia, Africa, and
A. developed resources
Latin America?
B. stock
A. Change
C. international resources
B. Rehabilitation
D. potential resources
C. Development
199. Who launched the Centennial Project D. Increased aid
2071?
205. How many blue stripes are on the United
A. H.H Sheikh Mohammed bin Zayed
States Flag?
B. H.H Sheikh Mohammed bin Rashed
A. 13
C. H.H Sheikh Khalifa bin Zayed B. 50
D. H.H Sheikh Hamdan bin Mohammed C. 3
200. Who memorized the Holy Quran? D. 0
A. Ahmad ibn Majed 206. Alluvial soils contain adequate proportion
B. Ahmad ibn Hanbal of potash, and
C. Hasan ibn Al Haytham A. phosphoric acid
D. Al khawarezmi B. Calcium Carbonate

C. Magnesium 212. When was the first formal population

census conducted?
D. lime

A. 1986
207. The power of a country to control it’s B. 1964
own government
C. 1968
A. sovereignty
D. none of above
B. reputable
213. Kids in this stage realize their thoughts
C. monarchy are unique
D. republic A. Concrete Operational stage
208. Under which of the following type of re- B. Formal
source can tidal energy be put? C. Sensorimotor Stage
A. Replenishable D. Preoperational Stage
B. Human-made 214. resources that are found but not utilised
C. Abiotic are termed as resources.
D. Non-renewable A. potential
B. Developed
209. How much percentage of forest area in
C. Stock
the country according to the National For-
est Policy? D. Reserve
A. 33% 215. According to Forrest Gump, “life was like
B. 37% “
A. A bag of lemons.
C. 27%
B. A box of chocolates.
D. 21%
C. A Roller coaster.
210. The main cause of land degradation D. A ray of light.
in Punjab, Haryana and Western Uttar
Pradesh is: 216. Development of psychology is rooted
from:
A. Mining
A. Science
B. Over irrigation
B. Philosophy
C. Deforestation
C. Engineering
D. Over grazing
D. Physics
211. Soil also consist of and material 217. Development criteria include
A. Organic, Inorganic A. income
B. Potash, Phosphorous B. equal treatment
C. Khadar, Bangar C. freedom
D. none of above D. all of these

218. During which of Piaget’s stages do chil- C. cultural development

dren begin to think logically?
A. Sensorimotor
B. Preoperational 224. Which theorist b elieved that personal-
ity develops, through a series of stages.
C. Concrete Operationional Experiences in childhood profoundly affect
D. Formal Operational adult life.
A. Freud
NARAYAN CHANGDER
219. One of the following which does not
check land degradation- B. Piaget
A. control on overgrazing C. Vygotsky
B. creating shelter belts D. Bronfenbrenner
C. deforestation
D. afforestation 225. Resources which are found everywhere
are known as
220. From 1990s onwards, how is develop- A. Localised resources
ment measured?
B. actual resources
A. Through Gross National Product
C. Ubiquitous resources
B. Through the landmark concerns
C. Through Sustainable Development D. none of above
Goals
226. Which of the following is not important
D. Through poverty rate index for soil formation?
221. The mountain share in the total land area A. Relief
is:
B. Parent rock
A. 0.3
C. Climate
B. 0.27
D. Duration of day
C. 0.43
D. 0.4 227. ‘Gullies’ in Chambal basin are known as
222. Schema: A. Badland
A. A concept or category about the world. B. Alluvial soil

B. The tendency to interpret the new ex- C. Ravines
periences in terms of existing schemas. D. Regur soil
C. Changes in schemas to incorporate in-
formation from experiences. 228. Human society exist in
D. none of above A. Reciprocal relation
223. all government are cooperating B. Green world

A. economic development C. Society
B. social development D. Community

229. Which of the following would you expect 234. Who was PC Mahalanobis?
a child by the age of 2 to be able to do? A. P. C. Mahalanobis was the founder of

A. Beginning to put two words together Indian Statistical Institute (1931).
B. Holds a conversation jumping from B. He was chief architect of Second Five
topic to topic Year Plan.
C. Questions why things happen and C. He supported rapid industrialisation
gives an explanation and active role of the public sector.
D. Uses language to share feelings expe- D. All the above

riences and thoughts 235. Besides seeking income, other develop-
ment goals include
230. Men had learnt the art of extracting and
smelting in the later Neolithic period. A. security
A. Copper B. equal treatment
B. Gold C. freedom
C. Silver D. all of these
D. L e a d 236. According to Rostow’s Model, what

stage shows a shift towards manufactur-
231. .... is one of the main supporters of Em- ing of consumer goods and high-tech prod-
piricism. ucts?
A. John Locke A. Stage 1:traditional society
B. David Weschler B. Stage 2:preconditions for takeoff
C. John C. Stage 3:takeoff
D. Skinner D. Stage 4:drive to maturity

E. Stage 5:age of mass consumption
232. What was a “pulperia”?
237. “There is enough for everybody’s need
A. The region were nitrate was extrated and not for any body’s greed..” Who said
B. The name of a machine that helped ex- these lines..?
tract nitrate. A. Narendra Modi
C. The nickname for nitrate mines. B. Mahatma Gandhi
D. A shop and social centre that every ni- C. Jawaharlal Nehru
trate mine had.
D. Adolf Hitler
233. Which one of the following methods is 238. When did the government took planned
used to break up the force of the wind? Holiday?
A. Shelterbelt A. 1990-1992
B. Strip Cropping B. 1979-1980
C. Contour ploughing C. only 1
D. Terrace farming D. both 1 n 2

239. Standard of Living is measured by real C. Weather

per capita
D. Electricity
A. NI
B. NNP 245. Through this program, the Philippine gov-
ernment has institutionalized people’s par-
C. GDP ticipation in the budget process to gain a
D. None better understanding of their needs and re-
quirements, and ensure these are met.
NARAYAN CHANGDER
240. Ploughing along the contour lines to decel-
erate the flow of water down the slopes A. Participatory Planning and Budgeting
is called: B. Bottom-up Budgeting (BuB)
A. Strip cropping C. Local Bottom Budgeting
B. Sheet erosion
D. Budgeting from the Grassroots
C. Contour ploughing
E. Grassroots Budgeting
D. Terrace cultivation
246. The people of Indus valley civilisation
241. Economic development concerns on
played a game which was similar to
A. Infrastructure
A. Kabaddi
B. enlarging choices
B. Kho kho
C. Freedom
C. Chaupar
D. human rights
D. Chess
242. Among the objectives of modernization
theory include: 247. To achieve quality education, teachers
A. Stopping the influence of socialism should be accountable in
B. Stopping the influence of capitalism A. grading the performance of learners
C. Justifying colonialism B. reporting the performance of learners
D. Justifying fascism to parents
C. reporting the performance of learners
243. What term is used to describe a child’s
to the school head and stakeholders
inability to see the world through anyone
else’s eyes except his or her own? D. the effective attainment of specified
A. egocentrism learning objectives and outcomes
B. narcissism 248. Area sown more than once in an agricul-

C. disparity tural year plus net sown area is known
as:-
D. assimilation
A. Net sown area
244. Which of the following is not considered
as an element of environment? B. Forest cover
A. Air C. Waste land
B. Land D. Gross cropped area

249. Assertion-non-renewable resources are 254. businessmen are not greedy

abundant in nature. A. economic development

A. both A and R are true and R is the cor- B. social development
rect explanation of A
C. cultural development
B. both A and R are true but R is not the
correct explanation of A D. political development
C. A is true but R is false 255. Urbanisation is the movement of people
D. A and R both are false to what type of community
A. rural
250. mean efficient use of human and material
B. suburban
A. indicators
C. farms
B. development
D. cities
C. industrialization
D. none of above 256. For which of the following was Harry
Harlow known for?
251. Agriculture would be an example of
A. stranger anxiety
A. Secondary sector
B. imprinting
B. Tertiary sector
C. contact comfort
C. Primary sector
D. displacement
D. none of above
257. A is a deep narrow valley on the
252. Money cannot buy all the goods and ser- earths surface formed by running water
vices that we may need to have a good life.
A. U-shaped valley
A list of things required for a good life is
given below. Which among the following B. V-Shaped
are things money cannot buy? C. ravine
A. Full protection from infectious dis- D. none of above
eases
258. Per capita income of low-income coun-
B. A luxury home
tries is
C. A pollution-free atmosphere in every
A. US$ 955 or less
part of the country
D. a and c B. US$ 855 or less
E. a and b C. US$ 1055 or less

D. None of these
253. On the basis of ownership, plantations
can be better considered as which of the 259. In which of the following States mining
following types of resources? has caused severe land degradation?
A. Individual resource A. Gujarat
B. Community owned resource B. Jharkhand
C. National resource C. Kerala
D. International resource D. Uttaranchal

260. Gram Swaraj is the concept of 266. Which is a national goal of Vision 2030?
A. MK Gandhi A. Jamaica has transformational leader-
B. Jawaharlal Nehru ship
C. Subhash Chandra Bose B. Jamaica has sustainable urban and ru-
ral development
D. BR Ambedkar
C. Jamaica has a healthy natural environ-
261. means to heat and melt an ore to ob- ment
tain metal from it.
NARAYAN CHANGDER
D. Jamaica has transformational political
A. Melting leadership
B. Smelting 267. Land that is left uncultivated for more
C. Pelting than five agricultural years is called:
D. Welding A. Pasture land
262. A farmer belongs to B. Culturable waste land
A. Tertiary sector C. Barren land
B. Secondary sector D. Current fallow
C. Primary sector 268. Think about cause and effect . Then
D. none of above identify the cause in the statement be-
low.When The Bahamas became an inde-
263. Which of the following stages of psy- pendent nation in 1973, our government
chosocial development appears in adult- took on many new responsibilities.
hood rather than in childhood? A. When
A. identity vs. role confusion B. Our government took on many new re-
B. industry vs. inferiority sponsibilities.
C. integrity vs. despair C. The Bahamas became an independent
D. basic trust vs. mistrust nation in 1973.
D. none of above
264. A condition in which resources are not be-
ing used and people are poor. 269. How many indians live in poverty?
A. Undevelopment A. 74 million
B. Development B. 1.2 billion
C. Underdevelopment C. 88 million
D. Anti development D. 49 million
265. Theory says that rich countries block de- 270. Everything available in our environmen-
velopment of poor countries historically twhich can be termed as ‘Resource’ if:-
and today A. Used to satisfy our needs
A. Rostow’s Modernization Theory B. It is technologically accessible
B. Sustainable Development C. Economically feasible and culturally
C. Dependency Theory acceptable
D. none of above D. All of these

271. How do we determine if a country is less C. have unlimited supply

developed, developing or developed? D. none of these

A. Using the Human Development Index
277. Presently in India forests occupy per-
B. The size of the country’s Government
cent of the total area:
C. The amount of tourism the country has
A. 32
D. none of above
B. 22
272. Tick the resources classified on the basis
C. 25
of origin.
D. 30
A. Exhaustible and Non Exhaustible
B. Biotic and Abiotic 278. Who is Harisena? Who is Skandagupta?
C. Individual and Community A. Court poet of Samudragupta, succes-
D. Potential and Developed sor of kumaragupta
B. Court poet of Samudragupta, succes-
273. Arid soil range from to in colour
sor of kumaragupta
A. yellow, brown
C. Court poet of Chandragupta1, succes-
B. red, brown sor of kumaragupta
C. brown, black D. Court poet of Vikramaditya, successor
D. red, yellow of kumaragupta
274. Why were these goals created 279. When was the Planning Commission was
A. End poverty and fight equality constituted?
B. Help extinct animals A. 3 March 1947
C. Create communities with less dis- B. 15 March 1950
eases C. 10 March 1948
D. End poverty and save penguins
D. 15 March 1947
275. In India, horticultural farming has
280. One of concept of Gram Swaraj of Ma-
A. reduced economic vulnerability of the hatma Gandhiji was.
small & marginal farmers
A. Power share and participation
B. opened up new avenues of employ-
ment for the women folk in rural areas B. Cooperation
C. opened up new avenues of employ- C. Health facilities
ment both for men & women in rural ar- D. Education
eas
D. both (a) and (b) 281. What is the colour range of arid soils?
A. yellow to brown
276. Non-Renewable resources are those re-
sources which: B. red to yellow
A. are exausted after use C. red to brown
B. are not exausted after use D. grey to brown

282. Which among these are NOT measures C. scholarships

of development in from 1960s to the D. none of above
1980s?
288. What is the main reason of land degrada-
A. Social Dimensions
tion in states like Jharkhand, Chattisgarh
B. Man and Orrisa
C. Women in Development A. Over Irrigation
D. GDP B. Deforestation due to mining
NARAYAN CHANGDER
283. When was the concept of Sustainable C. Overgrazing
Development introduced by the World D. none of above
Commission on Environment and Develop-
289. Which of the following best describes a
ment?
critical period?
A. 1983
A. A moment in development where the
B. 1985 infant is ready to talk
C. 1989 B. Moments in time where individuals rec-
D. 1987 ognize the urge to urinate
C. Developmental periods where individ-
284. is an apex institution of rural credit uals recall past events
A. Cooperative society D. A time during development when the
B. NABARD individual is ready to move to the next ob-
C. RBI jective
D. ALL OF THESE 290. Rostow’s model, developed in the early

1960s, was based upon the experience of
285. White revolution is related with:
A. financial economists.
A. Cotton production
B. China.
B. Milk production C. Latin American countries.
C. Cauliflower production D. Western modernization.
D. Rice production
291. Which of the following problems is asso-
286. The ‘Golden Revolution’ was a period of ciated with the burning of coal?
very high productivity in: A. Acid rain
A. food grain production B. Carbon dioxide emissions
B. horticulture C. Ash with toxic metal impurities
C. fishing D. All of the above
D. agriculture 292. Learning through pretend play happens in
the
287. A Bahamian who wants to learn new
skills in another country maybe offered A. sensorimotor stage
special awards, or B. preoperational stage
A. grants C. concrete operational stage
B. loans D. formal operational stage

293. Laws can be broken if you think the law 299. Statement 1:Agriculture loan default
is unjust. What level are you at? rates have been chronically highStatement
2:The expansion and promotion of the ru-

A. Pre-conventional
ral banking sector has taken a backseat af-
B. Conventional ter reforms
C. Post-conventional A. Both Statement 1 & 2 are true
D. none of above B. Both Statement 1 & 2 are false
294. In Stage 4 why do you NOT steal? C. Statement 1 is true and Statement 2 is
A. I would feel like a bad person. false
B. It is against the law. D. Statement 1 is false and Statement 2
is true
C. I wouldn’t like it if someone stole from
me. 300. Assimilation:
D. I might get caught and get in trouble. A. A concept or category about the world.
295. access to adequate social service B. The tendency to interpret the new ex-
periences in terms of existing schemas.
A. economic development
C. Changes in schemas to incorporate in-
B. social development
formation from experiences.
D. none of above
301. Which of the perspective of knowledge
296. Which one of the following is a human supports Determinism?
made resources
A. Psychoanalysis
A. medicine to treat cancer
B. PingalwaeaPerspective
B. Spring water
C. Biological Perspective
C. Tropical forest
D. SoVERIEG Perspective
D. none of above
302. The concepts of stranger and separation
297. India has percentage of land as flat anxiety were pioneered by which of the
or plain surface following theorists?
A. 43% A. Jean Piaget
B. 27% B. Carol Gilligan
C. 30% C. Harry Harlow
D. 47% D. Mary Ainsworth
298. The state of is verywell endowed 303. In the Sensorimotor stage
with solar and wind energy butlacks in wa-
ter resources. A. infants and toddlers acquire knowl-
edge through sensory experiences
A. Madhya pradesh
B. infants and toddlers acquire knowl-
B. Punjab edge through toilet training
C. Karnataka C. infants and toddlers acquire knowl-
D. Rajasthan edge through perceptual experiences

D. infants and toddlers acquire knowl- 309. Which year was ADIA introduced?
edge through intellectual experiences A. 1960
304. Which of the following statement regard- B. 1993
ing Average Income is correct? C. 1948
A. Average income is a useful criterion to D. 1976
measure development
310. For how many months did Gupta empire
B. Average income hides disparities ruled?
NARAYAN CHANGDER
C. Average income is not used as a basis A. 2400
for the WDR
B. 200
D. Average income is not the same as per
C. 3000
capita income
D. 400
305. Resources that human beings don’t have
the appropriate technology to access 311. In states like , , Madhya Pradesh
and Odisha deforestation due to mining
A. Potential Resource have caused severe land degradation.
B. Developed Resource A. Jharkhand
C. Reserves B. Gujarat
D. Stock C. Chhattisgarh
306. Which of the following are not a gem in D. Rajasthan
Chandragupta’s 2 court 312. .... refers to the choices we make in
A. Kalidasa life, the paths we go down and theircon-
B. Vikramaditya sequences.
A. Personal agency
C. Skandagupta
B. Pitara
D. Sanku
C. Professional skills
E. Dhanvantram
D. Political
307. The word society in English is derived
from the latin word 313. When did the concept of human develop-
ment start?
A. Socious
A. Over 1000 years ago
B. Community
B. In the 20th century
C. Spirit
C. Over 10, 000 years ago
D. Latin D. In the 16th Century
308. Central government organisation, who 314. Which layer in the atmosphere presents
are involved in agricultural marketing passing of ultraviolet rays through it?
A. IARI A. Troposphere
B. NBPGR B. Stratosphere
C. FCI C. Ionosphere
D. IGBI D. Ozonosphere

315. Minerals and fossil fuel are the examples B. Conventional

of C. Post-conventional

A. Biotic resource
D. none of above
B. Individual resource
321. What was the first oil well called?
C. Potential resource
D. Non-Renewable resource A. Murban-3
B. Murban Bab
316. Which five-year planning was farmed
during 1997-2002? C. Ensco/Mourban
A. Eighth D. none of above
B. Ninth 322. A carpenter belongs to
C. Sixth A. Primary sector
D. Tenth B. Secondary sector
317. The family into which one is born is called C. Tertiary sector
the D. none of above
A. Nuclear Family
323. What year were the Sustainable Devel-
B. Blood Family
opment Goals created?
C. Extended Family
A. 2017
D. Family of Procreation
B. 1999
318. What are the primary goals of sustain- C. 2015
ability?
D. 1996
A. The end of poverty and hunger
B. Better standards of education and 324. The core countries extract resources from
healthcare-particularly as it pertains to the peripheries
water quality and better sanitation A. This leads to the development of the
C. Sustainable economic growth while peripheries
promoting jobs and stronger economies B. This leads to the undevelopment of the
D. All of the above peripheries
319. Which of the following is not a measure C. This leads to the underdevelopment of
for soil conservation? the peripheries
A. Strip cropping D. This leads to the development of the

semi peripheries
B. Terrace farming
C. Shelter belts 325. Education is measured in terms of
D. Overdrawing of ground water A. Life status
B. Health condition
320. I let my friend copy my homework as I
want her to like me. What level am I? C. Literacy attainment
A. Pre-conventional D. schooling days

326. Which of the following is the Ancient In- 332. Once a bank has lent money for a project,
dian it may send specialists to help supervise
A. source to know about consciousness. the project. Who are specialists?
B. Principle of Psychology Vedas A. people with special skills
C. Manovigyan B. people sent by a bank
D. None of these C. people who create special lists
D. none of above
327. credit taken for a period of 15 years is
NARAYAN CHANGDER
known as 333. What was the focus of development for
A. short term credit countries in Asia, Africa, and Latin Amer-
ica?
B. medium term credit
A. Infrastructure & industrialization
C. long term credit
B. Agricultural productivity & infrastruc-
D. all of these ture
328. Development of a country is generally de- C. Agricultural productivity & industrial-
termined by ization
A. its per-capita income D. All of the above
B. its average income 334. Which of the psychologist supports that
C. health status of its people human behaviour is results of choice of per-
D. all the above sonal agency?
A. Rogers
329. Why is the red soil is red in colour?
B. Rovings
A. It is rich in humus .
C. Robbins
B. It is rich in iron compounds .
D. Roamers
C. It is derived from volcanic region .
D. It is rich in potash . 335. is that stage in human development
when a lot of progress took place in the
330. Economic Development by maintaining field art, science, social, political and eco-
the natural resources for present and fu- nomic institutions.
ture use is known as A. Foundation
A. sustainable development B. Location
B. human development index C. Migration
C. planned development D. Civilisation
D. development
336. Who pointed out that Lawrence Kohlberg
331. The indicators used for calculating the Hu- experiment was bias towards white
man Development Index are upper-class males?
A. Gross National Income (GNI) A. Carol Gilligan
B. Life Expectancy B. Marie Curie
C. Mean Years of Schooling C. lady antebellum
D. All of the above D. Stefani Joanne Angelina Germanotta

337. Society is a network of 343. The period from 1967 onwards wit-
A. Social bonds nessed many new restictions on
A. Private industry

B. Love bonds
B. Public sector
C. Network bond
C. private sector
D. none of above
D. Govt. Industry
338. In the First five year plan was given pri-
344. Which of the following is not a public fa-
ority to
cility?
A. Industry A. Transport and electricity
B. Agriculture B. Private Schools
C. Poverty C. Roads and bridges
D. Foreign Policy D. Government hospitals
339. Why did UAE’s pearling industry de- 345. Which of the following describes the
cline? scale of the Rostow Model of Develop-
ment? *hint:it describes the development
A. Introduction of cultured pearls
within a country*
B. Pearling was banned by the govern-
A. National
ment
B. Local
C. Pearl diving was too risky
C. Global
D. Discovery of oil
D. Regional
340. what is land used for grazing and live- 346. of human society lead to foundation
stock known as: of Civilization.
A. forest A. Revolution
B. barren land B. Evolution
C. pasture land C. Resolution
D. none of above D. Absolution
341. Unscramble the followingipenzitisch 347. What percentage (%) of tax was levied
on profits from nitrate mines?
A. citizenship
A. 20%
B. citzenship
B. 50%
C. citisenship
C. 25%
D. penzcienship
D. 33%
342. Raw material is related to 348. fair legal and justice system
A. Secondary sector A. economic development
B. Primary sector B. social development
C. Tertiary sector C. cultural development
D. Services D. political development

349. Which of the following is NOT true about 354. their dignity in the household and society
the SDG increases
A. They were created in UN A. Family
B. There goal no.1 is well being and B. freedom
health care C. income
C. They have 17 goals D. security
D. There logo is colourful 355. Which level of reasoning no longer de-
NARAYAN CHANGDER
pends on consequences but on acceptance
350. How many goals are there in sustainable of society?
development goals? A. Pre-conventional
A. 32 B. Conventional
B. 60 C. Post-conventional
C. 19 D. none of above
D. 17 356. “Development of villages is the true de-
velopment of India” was said.
351. each Sustainable development goals has
A. Mahatma Gandhi
some targets how many targets are there
in total? B. Vinoba Bhave
A. 1169 C. Dadabhai Naoroji

D. Jawaharlal Nehru.
B. 169
357. Presents communist values as the solu-
C. 196
tion to poverty
D. 69 A. Marxist theory
352. People may have different development B. Dependency theory
goals, what is the development for one, C. Modernization theory
may even be for the other. D. Ethical theories
A. destructive
358. was the male God worshipped by the
B. constructive Indus people.
C. same A. Shiva
D. equal B. Brahma
C. Vishnu
353. These are founding fathers of Sociology,
D. Indira
except for:
A. Max Weber 359. If BMI is less than 18.5 then the person
would be considered:
B. Emile Durkheim
A. over weight
C. Auguste Comte B. long height
D. Blas Pascal C. under nourished
E. Karl Marx D. short height

360. The Eleventh Five-Year plan was from C. 1st January 2015
A. 2002-2007 D. none of above

B. 2008-2013
366. What has become essential for sustained
C. 2007-2012 quality of life and global peace?
D. 2003-2008
A. Equitable distribution of resources
361. If there are five persons in a family and B. Unequitable distribution of resources
their total income is Rs. 30000/-What
would be the average income of each per- C. Indiscriminate exploitation of re-
son? sources
A. 6000 D. All of these

B. 3000 367. is an alternative marketing channel
C. 8000 operated in Punjab
D. 10000 A. Hadaspar Mandi
362. .... is a branch of philosophy that deals B. Apni Mandi
with the theory of knowledge. C. Rythu Bazars
A. Directory D. none of above
B. Epistemology
C. Cognition 368. Who wrote a book about navigation?
D. Felicitation A. Ahmad ibn Majed

B. Ahmad ibn Hanbal
363. During which of Piaget’s stages would
the individual begin to look at the world C. Hasan ibn Al Haytham
through a view without egocentrism? D. Al khawarezmi
A. sensorimotor stage
B. preoperational stage 369. Careful use of resources so as to save for
the future generation is known as
C. concrete operational stage
A. conservation
D. formal operations stage
B. preservation
364. Piaget’s term for the knowledge that an
C. sustainability
object exists even when it is out of sight
is D. availability
A. accommodation
370. Sociology is science because of the follow-
B. object permanence ing reasons, except
C. centration A. Sociology adopts scientific method
D. conservation
B. Sociology makes accurate observation
365. NITI Ayog was set up in C. Sociology describes cause-effect rela-
A. 1st Jan 2016 tionship
B. 15th August 2015 D. Sociology has a lack of objectivity

371. Jo doesn’t want to skip school because 376. Agenda 21 is the declaration signed by
it’s against the rules. What’s the level of world leaders in 1992 at the United Na-
development? tions Conference on Environment and De-
A. Pre-conventional velopment (UNCED), which took place at
B. Conventional
A. India
C. Post-conventional
B. Maldives
D. none of above
NARAYAN CHANGDER
C. Rio de Janeiro
372. what is the plantation of rows of trees
around the large fields to check soil ero- D. California
sion called as?
377. A branch of philosophy working on the
A. defforestation idea that human behavior is determined by
B. shelter belts some antecedentevents.
C. contour ploughing A. Determinism
D. none of above B. Monopoly
373. People at this stage develop their own C. Individualistic Approach

set of moral guidelines that may or not fit D. Monarchy
into the law. Things like human rights, jus-
tice, and equality are most important even 378. What type of development do develop-
if they have to go against society and have mental psychologist study?
to face consequences. A. physical
A. PreConventional/Pre-moral B. social
B. Conventional
C. cognitive
C. Post-Conventional
D. all of the above
D. none of above
379. How many five year plans have been
374. If Alluvial soil:Himalayan rivers, then La- completed so far in India
terite soil:
A. 16
A. brick
B. 12
B. humus
C. 14
C. mountainous areas
D. 8
D. intense leaching
375. LDCs whose economies are transitioning 380. The oceanic resources beyond 200 nauti-
from primary sector jobs to secondary sec- cal miles of the are called international
tor jobs are called: resources
A. The periphery A. Exclusive Economic Zone
B. Newly Industrialized Countries (NICs) B. Export-processing Zone
C. Core countries C. Special Economic Zone
D. Third world countries D. None of these

381. Which of the following comes under 386. soil is formed by intense leaching .
“Land not available for cultivation” A. Black

A. Barren and waste land B. Red
B. Permanent pastures and grazing land C. laterite
C. Cultruable waste land (left unculti- D. Mountain
vated for more than 5 agricultural years).
387. Who developed the 4 stage theory of cog-
D. Land put to non-agricultural uses, e.g. nitive development?
buildings, roads, factories, etc
A. Lev Vygotsky
382. What was the estimated population of B. Arnold Palmer
UAE in the 20th century?
C. Erik Erikson
A. 76, 000
D. Jean Piaget
B. 83, 000
388. Which of the following is not a stage of
C. 80, 000 Erik Erikson’s Psychosocial Development?
D. none of above A. generativity vs. stagnation
383. Each development decade is composed of B. industry vs. despair
how many years? C. trust vs. mistrust
A. 9 D. initiative vs. guilt
B. 10 389. How do geographers measure levels of
C. 11 development?
D. 12 A. they study economic factors
B. they study demographic factors
384. What is common among the countries in
Asia, Africa, and Latin America? C. they study social factors
A. All have improving GNPs D. they study all of these factors
B. Countries have agriculture-based 390. What makes the social sciences a “sci-
economies ence”?
C. They are considered as colonizers dur- A. It is a systematic body of knowledge.
ing WWII B. It uses a lot of theories.
D. None of the above C. It explores the different aspects of the
human society.
385. If women are engaged in paid work,
what difference does it make? D. It uses empirical methods in research.
A. Their dignity in the household and so- 391. What was the main objective of the sec-
ciety decreases ond Five Year Plan?
B. No difference A. Rapid Industrialization
C. No dignity B. Rapid Agricultural development
D. their dignity in the household and soci- C. Rapid Defence Redevelopment
ety increases D. War on Pakistan

392. Which school of psychology support the C. neocolonialism.

viewpoint of Freewill? D. independence movement.
A. Bony tail
398. is the percentage of forest according
B. Humanistic
to Ministry Of Agriculture in year2014-15
C. Fiction
A. 33%
D. Artificial Intelligence
B. 20%
393. Which of the following is NOT used to cal-
NARAYAN CHANGDER
C. 23.3%
culate a country’s Human Development In-
dex (HDI)? D. 43.2%
A. Standard of Living 399. What does exploit mean?
B. Access to Education
A. to make full use of; to take advantage
C. Long and Healthy Life of
D. Gender Equality B. to treat fairly
394. To what gender of children did Kohlberg C. to develop economically
conduct his study to, causing gender-based D. to reduce resources
criticisms?
A. Boys 400. Arunachal Pradesh has abundance of
resources but lacks in
B. Girls
A. Minerals, water resources
C. Boys and Girls
D. none of above B. Infrastructure, Wind Energy
C. Water, Infrastructure
395. Which of the following is a development
goal for industries? D. Cultural Heritage, Minerals
A. to get more days of work 401. Mountains account for per cent of the
B. to get better wages total surface area of our country and en-
sure perennial flow of somerivers.
C. to get more electricity
D. all of the above A. 30
B. 20
396. What percentage of land in India consists
ofPlateaus C. 40
A. 27% D. 10
B. 35% 402. A branch of philosophy claims that hu-
C. 30% mans are free to choose their Nature of
D. 29% behaviour.
A. Autonomic Will
397. The continuation of economic dependence
even after political independence B. Free Will
A. precondition to take-off. C. Own Will
B. modernization model. D. Absolute Will

403. Indus valley civilization is also known as B. periphery country

culture.
C. semiperiphery country

A. Harappan
D. none of above
B. Kali bangan
C. Mohenjo Daro 409. Interpreting new experiences in terms of
existing schemas is called
D. Rupar
A. learning.
404. Average income is-
B. assimilation.
A. Per capita income / Total national in-
come C. accommodation.
B. Total national income/population of D. accepting.
the country
410. Something that is technologically accessi-
C. National wealth/ Total population
ble, economically feasible and culturally ac-
D. NNP/GDP ceptable is known as
405. Which is not one of the SDG goals? A. environment
A. Life below water B. adaptation
B. Reduced inequalities C. resources
C. Clean water and sanitation D. industries
D. Recycle innovations
411. Old alluvial are known as New allu-
406. Bill doesn’t skip school because he will vial soil are known as
be punished. What’s the level of develop-
ment? A. Bangar, Kankar
A. Pre-conventional B. Khadar, Bangar

B. Conventional C. Kankar, Bangar
C. Post-conventional D. Bangar, Khadar
D. none of above
412. How is poverty currently measured?
407. village population In India according to A. Earning $1.25 Per day
2011
B. Not knowing about our next meal
A. 80.00 %
C. Living in a homless shelter
B. 68.84 %
C. 87.00 % D. Earning less than $1.25 Each day
D. 70.00 % 413. Regur soil is the other name of

408. Sierra Leone has diamonds and other A. Black Soil
countries have tried to gain access to
B. Alluvial Soil
their natural resources. This makes Sierra
Leone a good example of a C. Laterite Soil
A. core country D. Arid Soil

414. Land that is left without cultivation for 419. Which organization assists The Bahamas
one or less than one year in the area of increased food supplies?
A. waste land A. United Nations (UN)
B. barren land B. Gladstone Road Agricultural Complex
C. uncultivated land
C. The Food and Agriculture Organization
D. fallow land (FAO)
415. Because the United States is a dominant D. none of above
NARAYAN CHANGDER
country in the world’s economy and uses
cheap labor and resources from other coun- 420. The study of sight and light
tries, the US would be classified into which
A. oblics
group?
A. Core B. optics
B. Periphery C. soplix
C. Semiperiphery D. sandics
D. none of above
421. What did the Chilean government do with
416. On the basis of status of development re- the money made from nitrate?
sources are classified as:-
A. Improved the education system
A. biotic and abiotic
B. Used it to finance the cost of the War
B. renewableand non-renewable
of the Pacific
C. individual, community, national and in-
ternational C. Improved the infrastructure of the
country
D. potential, developed stock and re-
serves. D. All of the above
417. One of your friends tells you to steal 422. ‘laterite’ comes from the greek word
some sweets. You are in Level 1, why do ‘later’ which means:
you NOT steal?
A. mountain
A. I wouldn’t like it if someone stole from
me. B. brick
B. It is against the law C. rock
C. If everyone did it, then the shop would D. none of above
have to close down.
D. I might get caught and get in trouble. 423. Countries that have both low levels of
HDI and also high younger-person depen-
418. Resources that take long geological time dency ratios?
for their formation are called:
A. core
A. Renewable resources
B. Reserve B. island of development
C. Community resources C. semi-periphery

D. Non-renewable resources D. periphery

424. Which of the following is an example of 429. Resources are everything available in our
fine motor development? environment which can be used to satisfy
our needs provided that they are techno-

A. control of the torso
logically
B. the development of leg muscles
A. Available
C. the movement of fingers
B. Affordable
D. the development of arm muscles C. Accessible
425. What is the relevant theory use in this D. Acceptable
case?
430. who manages the overseas production of
A. Agency Theory oil?
B. Marketing Strategy Theory A. Government
C. Development oh Business Theory B. Foreign oil companies
D. Triple Bottom Line (TBL) Theory C. oil field companies
D. ADNOC
426. What was ‘Bombay Plan’?
431. The ‘Basic Services to the Urban Poor’
A. They wanted the state to take ma-
aims at providing
jor initiatives in industrial and other eco-
nomic investments. A. housing
B. A section of the big industrialists got B. sanitation
together in 1944 and drafted a joint pro- C. education
posal for setting up a planned economy in
D. employment
the country.
C. Only 1st 432. Resources which are surveyed and their
quality and quantity have been determined
D. Both 1st n 2nd for utilisation are:-
427. What’s the resources which lead to devel- A. Potential resource
opment of uae? B. Individual resource
A. Oil C. Developed resource
B. Education D. Stock
C. Tourism 433. What is Nagaram
D. none of above A. an assembly of merchants
428. The second FYP was drafted by a team of B. an assembly of poor people
economists and planners under the leader- C. an assembly of brahmins
ship of D. an assembly of kings
A. J.C. Kumarappa
434. This is as foundation of three tier struc-
B. Verghese kurien ture of Panchayath Raj system.
C. P.C. Mahalanobis A. Gram Sabha
D. Indira Gandhi B. Zilla panchayat

C. Taluk panchayat 440. Development may be expressed as

D. Village panchayat A. Utilizing scarce resources to improve
the standard of living and quality of life of
435. The have been the main source of in- a country’s citizens
formation about the religious beliefs of the B. Constructing large buildings and struc-
people. tures in a country
A. Books C. Extracting valuable natural resources
to earn foreign currency
NARAYAN CHANGDER
B. Magazines
C. Seals D. Purchasing foreign goods and services
to give consumers product variety
D. internet
441. Dividing the total income of country with
436. Modernization theory came to argue its population, we get (A) Per-Capita In-
against the spread of: come (B) National Income (C) Average In-
come (D) Total Income
A. Stopping the influence of socialism
A. Only A
B. Stopping the influence of capitalism
B. A and C
C. Justifying colonialism
C. All of the Above
D. Justifying fascism D. None of these
437. Triple Bottom Line (TBL) expands busi- 442. At which stage in Piaget’s theory of cog-
ness success metrics to include contribu- nitive development do individuals during a
tions to the following except critical period become able to be use deduc-
A. Social Well-Being tive and hypothetical reasoning?
A. sensorimotor stage
B. Political Environment
B. preoperational stage
C. Environmental Health
C. concrete operational stage
D. Economy
D. formal operational stage
438. Resources planning is essential for 443. that all cultures of the country are ob-
A. exploitation served, kept and respected
B. environmental balance A. economic development
C. sustainable development B. social development

439. Body Mass Index is calculated by the for-
444. Today common woman got power. Be-
mula
cause of.
A. Height / Weight A. Globalization
B. Weight / Height B. Male dominated society
C. (Weight)2/Height C. Modernization
D. Weight / (Height)2 D. Reservation in Panchayath raj system

445. The first Indus Valley site discovered was B. We need to try to take care of the Earth
that God gave us and be sustainable

A. Harappa C. We need to try and build alot of houses
B. Mohenjo Daro with nice windows
C. Kali bangan D. We have to travel the world and enjoy

our life while it lasts.
D. Lothal
451. Biotic resources are
446. Per capita income hides
A. Derived from living things
A. average income
B. Made by human beings
B. total population
C. derived from nonliving things
C. disparities
D. none of above
D. none of above
452. Red soil is mostly found in:
447. Pick out the correct meaning listed below
A. Parts of Jammu & Kashmir
to define ‘average income’.
B. Upper Ganga Plains
A. Average income of the country means
the total income of the country. C. Eastern and Southern part of Deccan
Plateau
B. The average income in a country is the
income of only employed people. D. None of the above
C. The average income is the same as per 453. The proponent of Social Darwinism is
capita income.
A. Karl Marx
D. The average income includes the value
B. Herbert Spencer
of property held.
C. Harriet Martineau
448. Who was very interested in optics?
D. Emile Durkhaim
A. Ahmad ibn Majed
454. Which of the following refers to develop-
B. Ahmad ibn Hanbal
ment of a country?
C. Hasan ibn Al Haytham
A. The gradual growth of a thing.
D. Al khawarezmi
B. A sustained increase in the income of
449. The way a country manages its resources, the people of a country.
and how its people earn and spend money C. The gradual growth of a person.
is a country’s D. A sustained increase in the area of the
A. standard of living country.
B. services 455. If industrialists want more dams then
C. economy why do local people resist it?
D. none of above A. They will be displaced
450. Explain what is the Islamic concept of B. Their land will be submerged
“being the successor of God on earth” C. none of these
A. We have to live on the Earth. D. all of these

456. Which of the following methods of obser- A. Sociology must use various methods to
vation is most commonly used when look- know its study object.
ing at childhood development?
B. Sociology is well intentioned.
A. longitudinal method
C. Sociology must share methods and
B. case-study method truth values with the exact sciences.
C. laboratory method D. Sociological methods must be trans-
D. cross-sectional method parent in their applicability.
NARAYAN CHANGDER
457. The panchayat organizations are also 462. A country in the first stage of Rostow’s
known as model will have an jobs mostly in which
A. Local Government sector of the economy?
B. State Government A. Primary

C. Union Government B. Secondary
D. Top Governmnet C. Tertiary
458. How many national priorities are there in D. Quaternary

the UAE National Agenda?
463. Between and , the govt. of in-
A. 5 dia launched the new democratic initia-
B. 6 tive which involved campaigns for devel-
opment design to involve people directly in
C. 7
development activities through voluntary
D. 8 citizen’s organizations.
459. . Development of a country can generally A. 1981 and 1984
be determined by its per capita-income, B. 1967 and 1971
healthstatus of people and ?
C. 1987 and 1919
A. Average Literacy Level
D. 1987 and 1991
B. Census
C. Age Composition 464. Which is the most common soil of North-
ern India?
D. GDP
A. Black soil
460. who said this “there is enough for ev-
erybody’s need but not for everybody’s B. Laterite soil
greed” C. Alluvial soil
A. J.L. Nehru D. Red soil
B. S.C. Bose
465. democracy is practiced
C. M.K. Gandhi
A. economic development
D. none of above
B. social development
461. At its early origins, sociology was coined
as positive by Auguste Comte. This meant
that: D. political development

466. The oceanic resources beyond 200 km of 472. Cognitive Stages of Development was
the Exclusive Economic Zone can be termed proposed by
as which of the following types of re-

A. Jean Piaget
source?
B. John Piaget
A. Individual resources
B. Community owned resources C. Jason Piaget
C. National resources D. Juan Piaget

D. International resources 473. What are 3P’s categories mention in the
467. The alluvial soil consists of TBL?
A. sand A. People, Planet, Prosperity

B. silt B. Plant, Political, People
C. clay C. Planet, Plant, Pragmatic
D. all of the above D. Prosperity, Profit, Plant
468. Social development concerns on 474. B. F. Skinner’s method of controlling an-
A. social harmony and cohesion imal and human behavior and changing
B. industrialization it for the better through conditioning is
based on a beliefin
C. enterprises
A. Coercion
D. peace
B. Divine
469. The secondary sector consists of
C. Indeeed
A. processing, farming and manufactur-
ing D. Determinism
B. processing, mining and manufacturing 475. According to Gandhiji what was the root
C. processing, forestry and manufactur- cause of resource depletion at the global
ing level?
D. processing, construction and manufac- A. Mass production
turing
B. Greedy and selfish individuals
470. This is NOT part of the tertiary sector C. Exploitave nature of modern technol-
A. Transport ogy
B. Construction D. All of these
C. Trade
476. Red soil is reddish in colour due to:
D. Education
A. high clay content
471. The total degraded land in our country is:
B. presence of kankar nodules in the sub-
A. 133 million hectares soil
B. 130 million sq. km. C. diffusion of iron in igneous and meta-
C. 140 million hectares morphic rocks
D. 130 million hectares D. high moisture content

477. Identify the Housing facilities program 482. has better performance in terms of
HDI than India.
A. Ashraya Yojana
A. Bangladesh
B. PMGY
B. Sri Lanka
C. MGNREGA
C. Nepal
D. Jawahar rojgar yojna
D. Pakistan
478. Agricultural marketing is a process that 483. Which of the following isn’t an area of
NARAYAN CHANGDER
involves functions of learning or development
A. Storage A. Speech, communication & language
B. Distribution B. Understanding the World
C. Processing C. Science Development
D. All the above D. Literacy development
484. My son finishes his broccoli at dinner be-

479. Energy resources derived from natural or-
cause I promise he can have dessert after.
ganic materials are called:
A. Pre-conventional
A. Fossil fuels
B. Conventional
B. Biomass
C. Post-conventional
C. Geothermal energy
D. none of above
485. A uniform system of Panchayat Raj in-
480. Which of the following psychologist is stitutions throughout the country through
considered in the favor of determinism? this amendment.
A. Jamia A. 82
B. Skinner B. 78
C. 76
C. Pollack
D. 73
D. Milltaur
486. Countries with per capita income of US
481. Five guiding principles of Vision 2030 Ja- rich countries
maica are
A. US$ 12056 & above (as per 2017)
A. equity, partnership, transformational B. US$ 1045 (as per 2017)
leadership, transparency and accountabil-
ity, social cohesion C. US$ 59, 500 (as per 2017)
D. None of these.
B. nation, nationalism, sovereignty, de-
velopment, citizenship 487. The branch of agriculture which deals
C. anthem, pledge, motto, coat of arms, with raising of animals for meat, milk,
national symbol. eggs and fibre is called as
D. storytelling, religious practices, music, A. Animal husbandry

dance, drama. B. Livestock farming

C. Both of these C. Straight

D. None of these D. Reflex

488. The changes in how people perceive, 493. Which one of the following soil is the best
sense, organize, memorize, recall, reason, for cotton cultivation?
problem solve, and imagine that occur as A. Red soil
humans develop from birth to older adult-
hood. B. Black soil
A. human development C. Laterite soil
B. physical development D. Alluvial soil
C. cognitive development 494. What are the main functions of the NITI
D. socio-emotional development Ayog?
A. Develop federalism where national
489. Stage of cognitive development when
and state governments work with proper
children begin to show signs of adult think-
coordination and harmony.
ing
B. Implement schemes and initiatives for
A. Concrete operational stage
rural development.
B. Formal operational stage
C. Ensure that the economic strategy and
C. Preoperational stage policy work in the interest of national se-
D. Sensory-motor stage curity
D. All of the Abover
490. There is enough for everybody’s need
and not for any body’s greed, “ who 495. Which is the most famous work of Kali-
among the following has given the above dasa?
statement?
A. Abhijnanashakuntalam
A. Vinoba Bhave
B. Abhanashakuntalam
B. Mahatma Gandhi
C. Ramayan
C. Jawaharlal Nehru
D. Mahabharat
D. Atal Behari Vajpayee
496. When was the term “development” used
491. Which of th following is a developmental in the context of nations and societies?
goal common to all?
A. After WWII
A. Freedom
B. Pre-WWII
B. Regular work
C. During WWII
C. Security and respect
D. It has always been used in that context
D. High level of income and better quality
of life 497. Alluvial soil is rich in
492. All the streets of Indus Valley Civilization A. Potash

cut each other at angle. B. Phosphoric acid
A. Acute C. Lime
B. Right D. Magnesium

498. What was the main objective of Agenda C. Kaveri

21? D. Indus
A. Resource planning
504. When the surface soil is washed away
B. Global peace
through excessive rains and floods, it is
C. Sustainable development called:
D. Protect depletion of ozone layer A. Soil erosion
NARAYAN CHANGDER
499. In which city can you find the Liberty B. Land degradation
Bell? C. Biodiversity
A. Washington D.C. D. Deforestation
B. Boston
505. It shows progress, creates growth and
C. Philadelphia move forward
D. New York City
A. indicators
500. Who said these words:“Men are the ones B. development
who build factories”?
C. industrilization
A. H.H Sheikh Mohammed bin Rashid
D. none of above
B. H.H Sheikh Khalifa bin Zayed
C. H.H Sheikh Mohammed bin Zayed 506. Which of the following ideas did not form
part of the early phases of India’s develop-
D. H.H Sheikh Zayed bin Sultan ment policy’s.
501. The determinist approach proposes that A. Liberalization
all behavior is caused by B. Cooperative farming
A. Preceding Factors
C. planning
B. Reinbbon
D. Self sufficiency
C. Foody
507. This development decade has observed a
D. Monarchy
paradigm shift in perspective from “eco-
502. Providing administrative power and re- nomic” to “humanistic.”
sponsibility of developing village to people A. 1960s
is called
B. 1970s
A. Gram Swaraj
C. 1980s
B. Decentralisation
D. 1990s
C. Centralisation
D. Rural development 508. What is Miss Islam’s Full name?
A. Islam Rashad Abdul Karim
503. Indus Valley Civilization took its birth on
the bank of river B. Islam Abdul Karim Rashad
A. Ganga C. Rashad Islam Abdul Karim
B. Yamuna D. Rashad Abdul Karim Islam

1.18 Applied Economics 677
509. According to Vedanta, which of the fol- B. Expertise inship building

lowing is not the stage of consciousness. C. An organised Naval force

A. Live awastha
D. Flourishing trade within India
B. Jagna
C. awastha 511. What is the range of the Human Develop-
ment Index?
D. Murchit awastha
A. 0-1
510. The discovery of the remains of a dock-
B. 0-100
yard at Lothal prove that the people of In-
dus valley civilization had C. 50-99
A. International trade relations D. 99-100
1.18 Applied Economics

1. Are consuming units in an economy C. Microsoft
A. firm D. All of the Above
B. Land
5. Refers to the competitive environment in
C. Household which buyers and sellers operate.
D. Entrepeneur A. Market
2. What is the subject your taking up? B. Structure
A. Applied Economics C. Economy
B. Business Economics D. Market Structure
C. Accoutancy Economics
6. It is a free gift of nature.
D. Macro Economics
A. Land
3. The supplies at every occasion are exam- B. Labor
ple of
C. Capital
A. Elastic Supply
D. Entrepreneur
B. Unitary Elastic Supply
C. Inelastic Supply 7. These are inputs of production that are
subject to further processing and transfor-
D. Perfectly Inelastic Supply mation.
E. Perfectly Elastic Supply
A. Direct Labor
4. This social media is the new market in the B. Factory Overhead
current century while the users are offered
C. Raw Materials
free services, the Companies earn from the
advertising revenue. It is considered as D. None of the above
monopoly.
8. What business organization is character-
A. Google ized below? It is the simplest way to set
B. Facebook up a business. The ownerof the business

enjoys exclusive control and decision mak- 13. Many firms, freedom of entry, homoge-
ing as well as getsall the profits earned, neous products, normal profit.
but shoulders all losses. A. Perfect Competition
A. Sole Proprietorship
B. Monopoly
B. Corporation
C. Partnership
D. Oligopoly
D. Cooperative
NARAYAN CHANGDER
14. Political climate, economic shifts, laws and
9. It is the study of observing how theories
regulations, technology, industry trends,
work in practice.
and competition are all examples of:
A. applied economics
A. External forces
B. economic theories
B. Weaknesses
C. political science
C. Core competencies
D. social science
D. External reviews
10. Seller has a government patent, the right
to exclusively manufacture an invention 15. The basic economic condition that exists
for a specified number of years is called: when unlimited wants exceed limited pro-
ductive resources is called
A. Geographical monopoly
B. Government Monopoly A. Capital
C. Natural Monopoly B. Scarcity

D. Technological Monopoly C. Hyperinflation
D. none of above
11. In the circular flow model, the product mar-
ket describes 16. To make the best use of economic re-
A. stores that sell goods and services to sources, the following questions need to
households be answered:
B. households selling their labor to busi- A. a. What to produce? b. How to pro-
nesses duce? c. For whom to produce?
C. the government paying for public B. a. When to produce? b. where to pro-
goods duce? c. For whom to produce?
D. households receive income from busi- C. a. What to produce? b. How to pro-
nesses duce? c. Who will produce?
12. What are capital resources? D. None of the Above
A. People who make and sell your prod- 17. This covers the gathering, creation or in-
ucts. vention of resources.
B. Goods made and used to produce
A. Production
other goods and services.
B. Allocation
C. Things found in nature used to make a
product. C. Distribution
D. The United States of America. D. Consumption

18. Are goods that can be used in place of an- 23. Shortage could be solved by:
other. A. Increasing the price

A. Substitutes B. Decreasing the price
B. Suppliers C. By wearing pants
C. Competition D. None of the above
D. Customer 24. When prices go down, the amount that
people want to buy goes up.
19. If the price elasticity of supply of cup noo-
A. law of supply
dles is 0.60 and the price increase by3 per-
cent, then the quantity supplied for cup B. law of demand
noodles increases by how by? C. demand schedule
A. 0.60 percent. D. supply schedule
B. 0.20 percent 25. Economy where the good of the group is
C. 1.8 percent greater than individual desires
D. 18 percent A. mixed
B. market
20. It is an assessment of how easy it is for
C. command
the buyers to drive prices down.
D. traditional
A. Power of Wholesaler
26. To arrive at an economic decision, a
B. Power of Retailer
decision-making grid may be used to eval-
C. Power of Seller uate
D. Power of Consumer A. Productivity
B. Only durable goods
21. One of the implications of an expanded
population is the enlargement: C. Alternative choices of action
A. Of natural resources D. Only capital goods
B. Of the body 27. study of economics in relation to real

world situations
C. Of the houses
A. Microeconomics
D. Of the labor force
B. Macroeconomics
22. Price elasticity of demand is defined as the C. Econometrics
changes in quantity demanded divided D. Applied economics
by the change in price.
28. Refers to the average contribution per unit
A. total; percentage
of input and is equal to TP/i.
B. percentage; marginal A. Total Product (TP)
C. marginal ; percentage B. Marginal Product (MP)
D. percentage; percentage C. Average Product (AP)
E. total; total D. Production function

29. What is the price ceiling? C. Profitability

A. The minimum price allowed set by the D. Scalability
government
35. Total costs =
B. The maximum price allowed set by the
government A. fixed costs + marginal costs
C. The highest price on the market B. fixed costs + variable costs
D. An overhead interior surface C. marginal costs + variable costs
NARAYAN CHANGDER
D. fixed costs + variable costs +
30. is an organization that transforms re- marginal costs
sources into products
A. Household 36. They produce goods and services for the
households.
B. Firm
A. Firms
C. Entrepreneur
B. Households
D. Land
C. Business revenues
31. In this market structure, one competitor
D. Resources
doesn’t have an edge over the others since
all sellers are equal 37. Freedom of entry and exit, but firms have
A. Monopoly differentiated products. Likelihood of nor-
mal profits in the long term.
C. Oligopoly
B. Monopoly
D. Pure Competition
32. What is the financial gain made in transac-
D. Oligopoly
tions?
A. Profit 38. The income of Mr. Dela Cruz increased by
50%. His demand for grocery items in-
B. Resource
creased from 200 to 500. What is the
C. Scarcity type of good?
D. Wage A. normal, luxury
33. It is the combined production of several B. normal, necessity
units of a given set of inputs. C. inferior
A. Total Product (TP) D. -0.33
B. Marginal Product (MP)
39. Is an entity organized by the people sim-
C. Average Product (AP) ilar needs to provide themselves with
D. Production function goods or services.
34. A business that creates its own plan to ex- A. Sole Proprietorship
pand its economic growth. B. Partnership
A. Autonomy C. Cooperation
B. Big Idea D. Cooperative

40. This market structure has 3-4 firms who 45. In this economic system the government
dominate 70-80% of the industry. can interfere in the prices of the products
if needed.

A. Monopoly
A. Traditional
B. Command
C. Market
D. Oligopoly
D. Mixed
41. For which of the following type of busi-
ness, do you think a sole proprietorship 46. The following are great impact of a new
form of organisation would be more suit- business except;
able?
A. Employment opportunities to Filipinos.
A. Legal consultancy
B. Being employed will enable them to
B. Grocery store buy their basic needs And even some lux-
C. Internet cafe uries.
D. Craft centre C. Business owners can now exploit their

workers
42. What do Governments give to both busi- D. Because of their success they can ac-
nesses and households? quire wealth and buy Assets which are
A. Taxes fruits of their hard work.
B. A headache 47. What is a market structure in which many

C. Goods & Services companies sell products that are similar
but not identical?
D. Opportunity Costs
A. Monopoly
43. I am the organized action of making goods B. Perfect Competition
and services for sale
A. Government
D. Oligopoly
B. Culture
C. Economy 48. refers to the process of producing or cre-
ating goods needed by the households to
D. Industry satisfy their needs. The factors of produc-
tion are called inputs and the goods and
44. It is the activity of apportioning material
services that have been created are called
resources to consumers and assigning ser-
outputs of production.
vice providers according to their roles and
functions. A. production
A. Production B. distribution
B. Allocation C. exchange
C. Distribution D. consumption
D. Consumption E. public finance

49. Which of the following external factor that C. It’s a strength

includes local, nation and international fi- D. It’s a weakness
nancial trends development in the coun-
try’s stock market, reform in the bank- 54. This type of partnership is less risky be-
ing system growth of the Gross Domestic cause this partner is only responsible for
Product? the contribution he/she has made to the
partnership
A. Economics Trends
B. Market Trends
NARAYAN CHANGDER
B. General Partnership
C. Demographic Characteristics
C. Corporation
D. Competitive treats
D. Limited partnership
50. Buying one ice-cream instead of two at
55. Markets dominated by a few (more than
lunch describes what concept
two) large firms. Firms offered identical
A. marginal utility or differentiated products. There’s a mu-
B. diminishing marginal utility tual interdependence among sellers with
regards to price.
C. demand
A. Pure or Perfect Competition
D. consumerism
B. Monopolistic competition
51. It operates as a separate, legal body lead C. Pure Monopoly
by an elected board of directors, the board
is elected by shareholders, the owenera of D. Oligopoly
the 56. Which brand of drinks may be a very good
A. Sole Proprietorship substitute for Coca-Cola?
B. Partnership A. Mirinda
C. Corporation B. Pepsi
D. Cooperative C. RC
D. 7 Up
52. this is the most democratic forms of eco-
nomic system. Based on the workings of 57. If the price is increasing what is the effect
demand and supply, decisions are made on in quantity demanded
what goods and services to produce. A. Equal
A. traditional economy B. Increasing
B. market economy C. Decreasing
C. planned economy D. Blessing
D. none of above 58. Which cost includes the ordinary items that
an accountant would include as the firms
53. The company decides to open its market to
expenses?
foreign countries where there is a need for
your product. How does this information A. Opportunity costs
fit into the SWOT analysis? B. Explicit costs
A. It’s a threat C. Implicit Costs
B. It’s an opportunity D. Utility Costs

59. When economists say that resources are C. Stockholders

scarce, it means that they are what? D. Bondholders

A. Limited
65. Produces the intangibles supporting and
B. Overflowing complementing production into other sec-
C. Rare tors as well as among its own industries.
D. Lacking A. Agriculture, Fishery and Forestry
B. Industrial Sector
60. It is the graphical representation of thesup-
ply schedule. C. Service Sector
A. Supply D. Environmental Sector
B. Quantity Supplied 66. Indicate which economic resource does the
C. Supply Curve following term belongs to. PRODUCTION
EQUIPMENTS
D. Surplus
A. LAND
61. A business with the main purpose of gain- B. LABOR
ing profit is called
C. CAPITAL
A. Autonomy
D. ENTREPRENEURSHIP
B. Big Idea
C. Profitability 67. Most of the workers in a certain company
are not well trained. This is a
D. Scalability
A. Strength
62. Are those that cannot be readily changed B. Opportunity
during the time period under consideration
except a very great expense. C. Weakness
A. Input D. Threat
B. Output 68. It is the value of the other products that

the resources used in production could
C. Fixed Inputs
have produced at their next best alterna-
D. Variable Input tive?
63. It refers to the tension between our lim- A. Explicit costs
ited resources and our unlimited wants and B. Opportunity Costs
needs.
C. Implicit Costs
A. Scarcity
D. Utility Costs
B. Econometrics
69. A market structure were products are iden-
C. Inflation
tical to competitors products
D. Growth
A. Monopoly
64. Corporations are in business for what? B. Monopolistic Competition
A. Profit C. Oligopoly
B. Non-profit D. Pure Competition

70. This acts like a fire or a driving force that C. Law of Supply
make every business successful. D. Market equilibrium
A. principles
76. The difference between a good and a ser-
B. tools vice is that:
C. techniques A. Goods are available in unlimited quan-
D. strategies taties and services are not
B. Goods are tangible and services are
71. Economics is said to deal mostly with the
NARAYAN CHANGDER
not
of resources.
C. Services are available in unlimited
A. Deprivation
quantaties and goods are not
B. Allocation
D. goods help satisfy unlimited wants and
C. Usage services do not
D. Consumption
77. When a pharmaceutical company first mar-
72. In this economic system there is protection kets a vaccine of Anti-Covid19 viruses, it
for both sellers and consumers. is usually under a
A. Traditional A. Patent
B. Command B. Recognition
C. Market C. Certificate
D. Mixed D. Copyright
73. A persistent problem in the Philippines be- 78. Are those that can be changed easily and
cause of increase in population. on short notice.
A. unemployment A. Input
B. poverty B. Output
C. income inequality C. Fixed Inputs
D. quality of infrastructure D. Variable Input

79. It is the study of economics in relation to
74. .... refers to the type of government, the
real world situations
stability and strength of the government
and good leadership factors than can be an A. Microeconomics
advantage to a business. B. Macroeconomics
A. Political Factors C. Econometrics
B. General Partnership D. Applied economics
C. Porter’s five forces Analysis
80. Business composed of several companies
D. SWOT Analysis that are completely unrelated
75. The law that states the higher the price, A. sole proprietorship
the higher the quantity supplied. B. partnership
A. Equilibrium C. conglomerate
B. Law of Demand D. multinational

81. Categorize C. both consumer and capital goods

A. Strength D. economic goods

B. Weakness 87. Physical objects sold for profit.
C. Opportunity A. services
D. Threat B. money
82. the tension between the limited resources C. tradeoffs
and unlimited wants and needs. D. goods
88. The economic transformation of a country
B. scarcity could be linked on its:
C. opportunity cost A. Human Resources
D. poverty B. Natural Resources
83. The study of how people/societies deal C. Physical Resources

with scarcity.. D. Susana Resources
A. capital 89. Without this, the production process can-
B. command not exceed further
C. land A. Land
D. economics B. Labor
C. Capital
84. It is a human factor of any kind, manual
or mental, skilled or unskilled, scientific or D. Entrepreneur
artistic undertaken with a view of creating
90. It is the graphical representation ofthe de-
or adding utility.
mand schedule.
A. Land A. Demand
B. Labor B. Demand Schedule
C. Capital C. Demand Curve
D. Entrepreneur D. Quantity Demanded
85. He must be a man of action. 91. Having the ability or capacity to produce
A. Land more output compared to another entity.
B. Labor A. Absolute Advantage
C. Capital B. Comparative Advantage
D. Entrepreneur C. Opportunity Cost
D. trade-off
86. The computers of the production manager
in an office are what kind of goods or prod- 92. In the world of competition, each indi-
ucts? vidual seller would accept that price.
A. consumer goods A. Pure monopoly
B. capital goods B. Oligopoly

C. Monopolistic competition 98. .... It refers to goods that can be used in

D. Perfect competition place of another.
A. Customer
93. This economic system is not open to
changes. B. Substitute
A. Traditional C. Competition
B. Command D. Supplier
NARAYAN CHANGDER
C. Market
99. Independent/well-informed buyers and
D. Mixed
sellers
94. How is total revenue calculated? A. perfect competition
A. multiply price by demand
B. monopoly
B. multiply price by quantity sold
C. monopolistic competition
C. multiply change in price by change in
demand D. oligopoly
D. multiply change in price by quantity 100. television, internet and radio have an ef-
sold fect on supply and demand in that they
95. It is the international medium of currency make more people aware of the availabil-
used in engaging business with foreign ity of a product.
countries. A. Commercial Advertising
A. Yen B. Ecnomic Fluctuations
B. New Taiwan Dollar
C. Trends
C. Baht
D. Income and Credit
D. Dollar
101. Elements in the environment that could
96. Goods or services that are not necessary,
cause trouble for the business are
but that we desire or wish for. Exam-
ples:video games, toys A. Strenhts
A. Demand B. Weaknesses
B. Needs C. Opportunities
C. Wants
D. Threats
D. Presents
102. Economic system where there is resis-
97. Occurs when individual workers focus on
tance to the introduction of new farming
single tasks, enabling each worker to be-
methods
come more efficient and productive
A. mixed
B. Specialization B. traditional
C. Consumer Surplus C. command
D. Exchange D. market

103. Identify which resource is referred to by B. Genetics Industry

the following words. Teachers C. Analytical Industry

A. Land D. Synthetic Industry
B. Labor
109. an increase in the overall level of prices
C. Capital
in the economy
D. none of above
A. Inflation
104. This is where buyers and sellers meet to B. Deflation
exchange goods and services.
C. Price Stability
A. Demand
D. none of above
B. Supply
C. Market 110. Relative poverty is measured by:
D. Market Systems A. Lorenz Curve

B. The Gini Coefficient
105. The production of goods or services needs
effective methods and processes. C. Either A or B
A. What to produce? D. Both A and B
B. For whom to produce? 111. Which of the following are the porter
C. How to produce forces of competitive position analysis?
D. What provisions/laws to be made A. Supplier Power
B. Buyer Power
106. what is trade-off
A. an alternative that we sacrifice when C. Competitors Power
we make a decision. D. Possibility of Substitution
B. to trade E. Owners Power
C. opportunity cost
112. A business function completed by busi-
D. the more expensive alternative ness owners and other individuals to as-
sess the current business environment.
107. Involves a look at economic factors such
as income of the people, specifically the A. Industry Analysis
target market, economic conditions B. SWOT Analysis
A. Competition C. Environmental Analysis
B. Physical Environment D. Porter’s Five Forces
C. Political Forces
113. what best describes how to use the op-
D. Economic Forces portunities section of the SWOT?
108. It is related to the growth and develop- A. Pass this on to your manager to act
ment of flora and fauna by multiplying a upon?
certain species of plans and breeding of an- B. Use your strengths to help make them
imals. happen and use them to off set potential
A. Extractive Industry threats.

C. Ignore them as they will sort them- 119. Which of the following is an example of
selves out. external forces of a business?
D. recognise them but do nothing has you A. market trends
are not yet ready to act upon them. B. existing employees
114. Scarcity could be solved by: C. equipment
A. Changing the attitude of an individual D. company’s location
B. Expansion of limited resources 120. Which of the following improves quality
NARAYAN CHANGDER
C. Both A and B and productivity, decreases costs and price
and provides more jobs, return on invest-
D. None of the above ment?
115. States that as additional units of a good A. Production chain
are consumed, the additional utility de- B. TRAIN Law
rived from each additional unit tends to di-
minish. C. Deming Chain
A. Law of Diminishing Marginal Utility
B. Law of Demand 121. The following must be considered in ana-
lyzing the industry except:
C. Law of Supply
A. geographic area
D. Law of Diminishing Marginal Returns
B. description of the product
116. A company that operates in more than C. size and outlook of the industry
one country
D. relationship with supplier
A. sole proprietorship
B. partnership 122. Money taken by the government from
the amount individuals or businesses make
C. conglomerate at work. This can be defined as
D. multinational A. Interest Rate
117. Which describes a supply curve? B. Money
A. upward slope C. Currency
B. downward slope D. Income Tax
C. horizontal line 123. Public ownership/State ownership

D. vertical line A. Capitalism
B. Communism
118. The income of Mr. Dela Cruz increased
by 50%. His demand for grocery items C. both a & b
increased from 200 to 500. D. none of these
A. +3
124. The processing of raw materials into fin-
B. -3 ished products falls under the category of-
C. +0.33 A. Primary Industry
D. -0.33 B. Secondary Industry

C. Tertiary Industry 130. It recognizes the importance of comple-

mentary roles and empowerments of both
D. None of these
men and women in development.

125. If new competitors can enter your market A. Gender Sensitivity
easily because the are few barriers, your B. Participatory Democracy
is high.
C. Global Cooperation
A. supplier power
D. Sustainable Population
B. threat of substitution
131. SWOT analysis which stands for
C. margin
Strengths, Weaknesses, Opportunities,
D. threat of new entry and
A. Targets
126. Represents physical assets such as pro-
duction facilities. B. Template
A. capital C. Threats
B. entrepreneur D. Table
C. land 132. Is a framework used to evaluate a com-

pany’s competitive position and to develop
D. labor strategic planning
127. Shows the group of indifference curves A. SWOT analysis
under the microeconomic concept. B. Determinants
A. Indifference Map C. Proposal
B. Budget Line D. Survey
C. Indifference Curve 133. Check all the characteristics of a
D. none of above monopoly
A. they do not need to advertise their
128. Every business performs ALL of the fol- product
lowing activities EXCEPT
B. they try to avoid price competition due
A. maintaining records to fear of price wars
B. raising capital C. there must be no close substitutes for
C. manufacturing products their products
D. They are the price setters or makers
D. buying goods and services
not the price takers
129. To get the best from you SWOT analysis 134. Utilities such as gas, water, cable televi-
you must first identify what? sion
A. How much time you have. A. Perfect Competition
B. The aim. B. Monopoly
C. What your Job role is. C. Monopolistic Competition
D. How much money you have. D. Oligopoly

135. It can represent the monetary resources C. resources, income

companies use to purchase natural re- D. profit, individuals
sources, and other capital goods.
A. Labor 141. How will you classify the business if its
total assets are worth Php 60, 000, 001
B. Capital
andabove?
C. Entrepreneur
A. micro
D. Foreign Exchange
NARAYAN CHANGDER
B. small
136. The place where goods and services are C. medium
exchange.
D. large
A. Barter
B. Currency 142. Decisions are based on traditions and
practices upheld over the years and passed
C. Market on from generation to generation
D. Resource
137. Few sellers and many buyers B. Command Economy
A. perfect competition C. Market Economy
B. monopoly D. none of above
143. what is cost
D. oligopoly
A. law of increasing costs
138. It is concerned with the overall perfor- B. growth
mance of the economy.
C. to an economist the alternative that is
A. Macroeconomics
given up because of a decision.
B. Microeconomics
D. decay
C. Positive Economics
144. It is defined as limited nature of society’s
resources.
139. the means through with society deter- A. Scarcity
mines the answers to the basic economic
problems mentioned. B. Allocation
A. economic system C. Economics
B. traditional economy D. Microeconomics

C. market economy 145. The following are examples of customers’
D. planned economy basic needs.
A. Water and shelter
140. Individuals sell to businesses and in
return individuals earn an B. Iced Tea
A. profit, income C. Laptop and smart phones
B. resources, products D. Expensive bags

146. Surplus could be solved by: C. Swot Analysis

A. Increasing the price D. Incentives

B. Decreasing the price
152. An example of a natural resource is
C. By wearing pants
A. police officer
B. water
147. It is an equation showing the maximum C. fire truck
output of a commodity that a firm can pro-
duce per period of time with each set of D. pencil
inputs. 153. The most traded currency and sometimes
A. Production called Greenback.
B. The Law of Diminishing Marginal Re- A. US dollar
turns
B. Japanese yen
C. Production function
C. Euro
D. Hirschman Index (HHI)
D. none of above
148. Refers to the average contribution per
unit of input 154. Which of the following are examples of
human needs?
A. Output
A. Houses
B. Total Product
B. Rooms
C. Consumer
C. Milktea
D. Average Product
D. Laptops and computers
149. The following are weaknesses of a busi-
ness except; 155. A business is classified according to its
size based on the worth of the busines-
A. Unclear unique selling proposition
sassets. Which among the choices below
B. Limited resources if the business total assets are worth be-
C. Good Technologies lowPhp 1, 500, 001.
D. Things that competitors have A. micro
150. Buildings, machinery, equipment are ex- B. small

amples of what goods? C. medium
A. Economic goods D. large
B. Consumer goods
156. Indicate which economic resource does
C. Capital goods the following term belongs to. FOREST
D. Luxury goods AND MARINE RESOURCES
A. LAND
151. One that makes the person making the
choice as well off as possible. B. LABOR
A. Cost Analysis C. CAPITAL
B. Rational choice D. ENTREPRENEURSHIP

157. Producers are looking to A. import

A. buy goods B. export
B. earn a profit C. embargo
C. find incentives D. economy
D. find the latest fad
163. It refers to the rate of pay fixed either
158. It is used to determine the viability of an by a collective bargaining agreement or
NARAYAN CHANGDER
idea whether it is worth the investment or by governmental enactment as the low-
otherwise may not be doable. est wage payable to specified categories
A. Business Opportunity of employees
B. Feasibility Study A. Inflation
C. Opportunity Screening B. Price Freeze
D. Opportunity Seeking C. Minimum Wage
159. What business organization is organized D. Recession
by people with similar needs to provide
themselves with goods and services or to 164. Due to COVID19, developers see an op-
jointly use available resources to improve portunity with the rising need for apps
their income? that can cater to online learning. What
important environment force can be ob-
served?
B. Corporation
A. Ecological Force
C. Cooperative
B. Technological Advancement
D. Partnership
C. Technological Force
160. This occurs when quantity supplied is
greater than quantity demanded. D. Social Force
A. surplus 165. Which of the following is not the source

B. shortage of supply?
C. loss A. A. distributor
D. profit B. B. import
161. If no good substitutes for a good are C. C. customers
available, demand tends to be D. manufacturers
A. elastic
166. The price where quantity demanded is
B. inelastic
equal to quantity supplied is called
C. unitary
A. Floor Price
D. none of above
B. Price Ceiling
162. Defined as:the goods and services pro-
C. Equilibrium Price
duced in one country and purchased by res-
idents of another country D. Price Tag

167. Perfume, cakes, chocolates, expensive 173. The equipment of the coffee shop to pro-
cars are examples of what goods? duce cups of coffee, are what kind of
goods or products?

A. Economic goods
B. Consumer goods A. Consumer goods
C. Capital goods B. Either consumer goods or capital
goods
D. Luxury goods
C. Capital goods
168. Bridges are example of:
D. Economic goods
A. Natural Resources
B. Human Resources 174. Are the resources used in the production
C. Man-made resources of goods & services.
D. None of the above A. Input

B. Output
169. The structure in which there is separation
of ownership and management is called: C. Fixed Inputs
A. Sole proprietorship D. Variable Input
B. partnership
175. The process of extracting rocks from un-
C. company derground is known as
D. all of the three A. Manufacturing
170. What is it called when you have limited B. Mining
quantities of resources used to meet unlim-
ited wants? C. Quarrying
A. Profit D. none of above

B. Specialization 176. It focuses on the behavior of a country
C. Cartel and how its policies impact the economy
D. Scarcity as a whole.
A. Macroeconomics
171. A business owned by two or more people
B. Microeconomics
A. corporation
C. Consumption
B. partnership
C. sole proprietorship D. Distribution
D. bond 177. These are people who seek new business

opportunities and develop new ways of
172. It is the point where quantity demanded
doing things.
is equal to quantity supplied.
A. Market Balance A. Managers
B. Market Equilibrium B. Entrepreneurs

C. Demand equals Supply C. Bankers
D. Equilibrium Price D. Investors

178. The price elasticity of demand for a cer- C. Scarcity

tain good tends to be: D. Needs
A. smaller in the long run than in the short
run 183. Which of the following is the correct for-
mula for demand function?
B. smaller in the short run than in the long
run A. Qd = a+b(P)
C. larger in the short run than in the long B. Qd = a-b(P)
NARAYAN CHANGDER
run C. Qd = a/b(P)
D. unrelated to the length of time D. Qd = a(b)(P)
179. It is the set of all quantities supplied at
184. It illustrates how market forces deter-
different price levels at a given time pe-
mine the overall shape of the economy.
riod.
A. Porter’s 5 Forces
A. Supply
B. Circular Flow Model
B. Quantity Supplied
C. SWOT Analysis
C. Supply Schedule
D. Supply Curve D. Economic Analysis
180. Which of the following is the example of 185. The process by which one or two or more
a goods? persons engage in commercial activity for
profit.
A. a nurse
A. Business
B. shoes
B. Commerce
C. a teacher
C. Trade
D. a firefighter
D. Partnership
181. These are the unprocessed goods like
logs, wheat which are extracted from 186. An industry dominated by a few firms
sources and do not undergo process of pro- A. Perfect Competition
duction.
B. Monopoly
A. Raw materials
B. Final goods
D. Oligopoly
D. Second Hand goods 187. Bart has decided to buy some water bal-
loons rather than get an extra milk at
182. Is the study of economics in realation to lunch. Choosing among economic alterna-
real world situations. It is the application tives is referred to as
of economic principles and theories to real
A. Scarcity
life situations, and trying to predict what
the outcomes might be. B. Trade-Off
A. Applied Economics C. Interdependence
B. Economics D. none of above

188. An industry that is often a natural B. scarcity

monopoly.
C. economics

A. electricity
D. none of these
B. Grocery stores
C. steel 194. The two major questions answered by
wealth utilization are:
D. pure competition
A. Production and Wastage
189. The main driver is the number and capa-
bility of competitor in the market. B. Production and Reservation
A. Power of Supplier C. Production and Consumption

B. Power of Customer D. None of the above
C. Threats of Substitutes
195. In SWOT analysis, “Entry of competi-
D. Competition of New Entrants tors” is
190. A person who is free to open a grocery A. Strength
store is participating in a B. Opportunity
A. command economy
C. Weakness
B. centrally-planned economy
D. Threat
C. free enterprise economy
D. traditional economy 196. The analysis being used in making choices
is:
191. It refers to the value of the best-forgone
alternative. In addition, it is the value of A. Gini Coefficient
the next highest-valued alternative use of B. Cost-Benefit Analysis
resources.
C. Opportunity Cost Analysis
A. Scarcity
B. Relative Scarcity
C. Absolute Scarcity 197. Other term for Command Economy
D. Opportunity Costs A. Capitalism
192. The income elasticity of demand is de- B. Communism

fined as the percentage change in the C. both a & b
divided by the percentage change in
D. none of these
A. quantity demanded, income
B. income, demand 198. A system of exchange in which products
are traded directly for other products.
C. quantity supplied, quantity demanded
D. none of above A. Barter
B. selling
193. A situation where there are not enough
resources to satisfy our wants C. Price Ceiling
A. surplus D. Money

199. Which of the following does not belong C. Regulatory Environment

to the group? D. Buyers
A. Allocation
205. A business that aims to help people, not
B. Production make money
C. Distribution A. sole proprietorship
D. Land B. cooperative
C. nonprofit
NARAYAN CHANGDER
200. Once the goods are produced, how shall
they be distributed? D. none of these
A. What to produce? 206. The THREAT section is mainly areas that:
B. How to produce? A. Can be easily removed and turned in to
C. For whom to produce strengths
D. How much to produce? B. Cannot be removed or ignored and will
need planning to work with or around. Are
201. What determines the prices of goods and a potential risk to your development.
services? C. Nasty things that have been said to you
A. Supply D. Are areas that you threaten your
B. Demand safety
C. Supply and demand 207. It is a state of balance when demand is
D. Goods equal to supply.
A. Market
202. Your aim is to win their customers, con-
vince them to buy from you instead and B. Equilibrium
remain as loyal customer. C. Demand
A. Customer D. Supply
B. Competition 208. An investigation into the state of the mar-
C. Supplier ket for a particular product or service, in-
cluding an analysis of consumers’ needs
D. Substitute
and preferences.
203. Organization of workers that seek to im- A. Business plan
prove working conditions
B. Market survey
A. labor union C. Business proposal
B. closed union D. feasibility study
C. open union
209. The willingness of a consumer to buy a
D. skill union commodity at a given price is called
204. Describe the product as to physical at- A. Demand
tribute and characteristics and its uses. B. Supply
A. Industry C. Market
B. Product D. Equilibrium

210. What do we call the platform in which the 215. Mrs. Deeh Mangutang borrowed from an
agents/stakeholders interact? organization an amount that is twice of
her share. She is a member of a

A. Business
A. Corporation
B. Market
B. Partnership
C. Rocket
C. Cooperative
D. Basket
D. Sole proprietorship
211. is a microeconomic law that states,
216. they are classified as those who work for
all other factors being equal, as the price
private households, private establishment,
of a good or service increases, consumer
government or government owned or con-
demand for the good or service will de-
trolled corporations, and those who work
crease, and vice versa.
with pay in own family-operated farm or
A. Law of Supply and Demand business.
B. Law of Supply A. wage and salary
C. Law of Demand B. self-employed
D. none of above C. unpaid family workers
D. none of above
212. Internal things that may limit a com-
pany’s ability to achieve it’s goals would 217. Refers to the proper utilization of eco-
be known as a nomic goods.
A. strength A. production
B. weakness B. consumption
C. opportunity C. distribution
D. threat D. public finance

E. exchange
213. What do you call the unit of measurement
in utility? 218. government activities towards taxation,
borrowings and expenditures
A. Util
A. national budget
B. Satisfaction
B. money supply
C. HHI
C. foreign domestic investment
D. Utils
D. public finance
214. What exists when quantity supplied is 219. Printed and online promotion is needed in
greater than quantity demanded? starting your business.
A. Surplus A. advertisement
B. Shortage B. big ideas
C. Overflow C. sustainability
D. Mass outrage D. growth

220. It is the action plan of the United Na- 225. What field of Economics does study the
tions related to the sustainable develop- markets of goods and services?
ment and was an outcome of the UNCED A. Macroeconomics
held in Rio de Janeiro, Brazil in 1992.
B. Microeconomics
A. Philippine Agenda 21
C. Nanoeconomics
B. Long term development Plan
D. Gigaeconomics
C. Gender sensitivity
226. The study of how society manages its
NARAYAN CHANGDER
D. Agenda 21
scarce resources.
221. this book analyzed how markets orga- A. Economics
nized economic life and and produced rapid
economic growth B. Applied Economics
A. General Theory of Employment, Inter- C. Allocation

ests and Money D. Scarcity
B. Das Kapital 227. Describes how consumers make decisions
C. The Art of War on what to buy.
D. The Wealtn of Nations A. Consumer Theory
222. When there is not enough of a certain B. Production Theory
good this is known as? C. Consumption
A. economic D. Output
B. services 228. They say that economics is the science of
C. scarcity
D. goods A. Country Growth
223. Most other soft drinks are close competi- B. Money
tors of Coca-Cola, but Pepsi would beclas- C. Decision Making
sified as competitor. D. Opportunities
A. direct
229. Puts value and support to the participa-
B. indirect tion of all in the decision-making process.
C. substitute A. Participatory Democracy
D. alternative B. Sustainable Population
224. Sole proprietorship and partnership busi- C. National Sovereignty
ness in the Philippines must be owned by D. Global Cooperation
A. Foreigners and Filipinos 230. The additional output produced by an ad-

ditional unit of the input
B. 100% Filipinos
A. Marginal Product
C. Foreigners only because they are cap-
italist B. Total Product
D. Anybody, foreigners or not as long as C. Marginal Utility
they have the capital D. Average Product

231. Which type of market structures has B. Hospitals

many many producers(companies) that sell C. Plumbers
identical products and has no control over

price? D. Schools
A. perfect competition 237. This is the authoritative system wherein

decision-making is centralized in the gov-
B. monopolistic competition
ernment or a planning committee. This
C. oligopoly kind of economy holds true in dictatorial,
D. monopoly socialist, and communist nations
232. Working in a location outside the office
B. Command Economy
A. contract work
C. Market Economy
B. outsourcing
D. none of above
C. self-employment
238. Identify which resource is referred to by
D. telecommuting
the following words. Forests
233. the Greek translation of the word eco- A. Land
nomics
B. Labor
A. ekonomiya
C. Capital
B. oikonomia D. none of above
C. okonomea
239. It happens when a good is scarce com-
D. oikomia pared to its demand. It is
234. the author of the book “General Theory A. Scarcity
of Employment, Interests and Money” is B. Relative Scarcity
A. Joseph Schumpeter C. Absolute Scarcity
B. Donald Trump D. Opportunity Costs
C. Karl Marx
240. A market is said to be in equilibrium when
D. John Maynard Keynes A. when demand is higher than the supply
235. Julie buys used clothes at garage sales B. when demand is lower than the supply
and then auctions them off herself off the C. when the demand and supply quanti-
internet. Which type of business does she ties are equal
have?
D. when the supply is doubled the de-
A. partnership mand
B. proprietorship
241. The term used for satisfaction and not
C. corporation easy to measure.
D. conglomerate A. Utility
236. Which of the following is an example of B. Total Utility
a Labor Resource? C. Consumption
A. Call Centers D. Consumer theory

242. Individuals who come up with a new idea 247. Is owned by a single individual who is
for a good or service, then they make it a singly responsible for running the business
reality and is accountable for debts and obligation
A. resource related to business.
B. human resources A. Sole Proprietorship
C. consumer B. Partnership
D. entrepreneur C. Corporation
NARAYAN CHANGDER
243. San Miguel, Jollibee, Procter and Gamble D. Cooperative
are examples of what business organiza- 248. Identify which resource is referred to by
tion? the following words. Tracks
A. Land
B. Corporation
B. Labor
C. Partnership
C. Capital
D. Cooperative
D. none of above
244. You are conducting a SWOT analysis and
find out that a new competitor is opening 249. Which function refers to a table, graph,
within 5 miles of your store. This would or equation showing the maximum output
be considered a rate of the product that can be achieved
from any specified set of usage rates of
A. Strength
inputs?
B. weakness
A. Production function
C. opportunity
B. Economy
D. threat
C. Business
245. Economics is the study of how D. Utility Function
A. gov’t allocates scare resources to sat-
isfy people’s unlimited wants. 250. If Toyota firm is producing a car faster
than people want to buy, there is
B. gov’t supplies money to businesses to
produce goods & services. A. an excess supply of car and price can
be expected to decrease.
C. people use their scarce resources to
satisfy their unlimited wants. B. an excess supply of car and price can
D. businesses supply unlimited goods & be expected to increase.
services with limited resources. C. an excess demand of car and price can
be expected to decrease.
246. The elasticity of demand for tissues is
0.66. This means the demand for tissues D. an excess demand and price can be ex-
is pected to increase.
A. elastic 251. It studies the individual economic units
B. unit elastic rather than the whole economic system.
C. inelastic A. Macroeconomics
D. really expensive B. Microeconomics

C. Positive Economics D. All of the above.

257. The big problem that all economic sys-

252. Economy where the only goal is survival tems face is
A. mixed A. inflation
B. market B. too many resources
C. command C. scarcity
D. traditional
D. losing control
253. With the good business, there is also an
impact to the community except; 258. This statement is an example of what
kind of economics? ”Crypto is becoming
A. Some provides scholarship s to poor
widespread.”
but deserving students.
A. Macroeconomics
B. Activities like wellness program, liveli-
hood projects and even medical and den- B. Normative Economics
tal mission.
C. Positive Economics
C. Financial support to the less fortunate.
D. Microeconomics
D. Gambling and lottery in the community
will be allowed. 259. It is the utilization/usage of goods and
services by households.
254. The total amount of a good or service
that is available to buy is called A. Production
A. demand B. scarcity
B. profit C. consumption
C. supply D. all of the above
D. incentives
260. Organizes the production process so that
255. Which of the following is the most com- each worker specializes in a separate task.
mon form of business organization?
A. Productivity
A. corporation
B. sole proprietorship B. Law of Comparative Advantage
C. franchise C. Division of Labor

D. partnership D. Absolute Advantage
256. .... What will happen if a new business 261. Situations in which they have to choose
is booming? between two things that cannot be had at
A. More opportunities for suppliers and the same time.
investor. A. Economics
B. Demand for the goods suppliers by B. Trade-offs
suppliers will increase.
C. Scarcity
C. Investors get to earn returns on their
investments. D. Opportunity Cost

262. The most common type of market. B. Secondary Industry

A. Good market C. Tertiary Industry
B. Financial market D. None of these
C. Labor market 268. When a consumer is willing and able to
D. Market buy a good or service, he/she creates
which of the following?
263. Water is an example of:
A. consumption
NARAYAN CHANGDER
A. Natural Resources
B. supply
B. Human Resources
C. demand
C. Man-made Resources D. allocation
269. A business organization where two or
264. It is refers to the extraction or drawing more persons combine their resources in a
out goods from the natural resources like business with a view to making profit.
land, water air etc. and creation of utili- A. Sole Proprietorship
ties in them .
B. Corporation
A. Extractive Industry
C. Partnership
B. Genetics Industry
D. Cooperative
C. Manufacturing industry
270. Which of the following is NOT one of the
D. Analytical Industry
six basic activities that all businesses per-
265. Persons or company who supplies goods form?
and services. A. raising capital
A. Consumer B. buying goods and services
B. Creditors C. conserving resources
C. Government D. generating ideas
D. Suppliers 271. Refers to the quantity of goods that a
seller is willing to offer for sale.
266. products that have many alternatives or
substitutes are examples of A. APPLIED ECONOMICS
A. Elastic demand B. SUPPLY
B. Unitary Elastic demand C. CORPORATION
C. Inelastic demand D. none of above
D. Perfectly Inelastic demand 272. A legal entity that is separate from its
E. Perfectly Elastic demand owners, the shareholders.
A. APPLIED ECONOMICS
267. The processing of raw materials into
more valuable products falls under the cat- B. SUPPLY
egory of C. CORPORATION
A. Primary Industry D. none of above

273. The physical effort of the manpower to C. Gross Domestic Product

produce the basic needs of the consumers, D. Value Added Tax
describes which factor of production?

A. Land 279. A decrease in the price of a good will
cause the demand for the substitute good
B. Labor to
C. Capital A. increase
D. Entrepreneur B. decrease
274. The state of not being employed or no C. remain
work D. none of above
A. Underemployed
280. Which produces the final product the final
B. Employed product by using raw materials and semi
C. Unemployed raw materials through different of produc-
tion .
D. none of above
A. Genetics Industry
275. Also known as the labor force. B. Analytical Industry
A. Land supply C. Synthetic Industry
B. Goods D. Processing Industry
C. Services
281. Defined as:things that are made or
D. Labor Supply grown and then sold
276. What is the state in which market supply A. services
and demand balance each other, and as a B. exports
result prices become stable?
C. imports
A. Market Price
D. goods
B. Market Equilibrium
282. .... is the one who developed Porter’s
C. Market Disequilibrium
Five Forces Competitive Position Analysis.
D. none of above
A. Michael E. Porter
277. The proper use of resources is to: B. General Manager
A. Maximize the benefits C. Henry Sy
B. Hasten the production D. Lucio Tan
C. minimize the opportunity cost
283. This study stands back from individual
D. A. A and B parts of an economy andtakes an overall
view of the economy.
278. It is one of the most common indicators
used to track the health of a nation’s econ- A. Microeconomics
omy. B. Applied Economics
A. Manufacturing Value Added C. Macroeconomics
B. Gross National Product D. Sociology

284. What is another term for businesses ac- C. traditional

cording to the Circular Flow? D. none of these
A. Firms
290. States that additional output starts to di-
B. Organizations minish at a certain point as additional units
C. Companies of a variable input are combined with one
or more fixed inputs.
D. Corporations
A. Production
NARAYAN CHANGDER
285. Which of the following internal factor as B. The Law of Diminishing Marginal Re-
the company’s location, facilities, machin- turns
ery, and equipment?
A. Financial Resources D. Hirschman Index (HHI)
B. Personal Resources
291. It is the insufficiency of resources to meet
C. Human Resources the wants of consumers and insufficiency
D. Natural Resources of resources for production that hamper
enough production of goods and services.
286. A need is
A. Scarcity
A. Something we have to survive B. Social Science
B. Something we have to make our life C. Economy
better
D. Applied Science
C. None of the above
292. Money whose value is based on the type
D. none of above of material from which it is made
287. What happens every time we make a de- A. commodity money
cision? B. fiat money
A. We win! C. near money
B. We incur an opportunity cost D. representative money
C. We incur an opportunity loss 293. In this market structure, wherein only
D. We incur an opportunity cost of multi- few firms dominates the market and also
ple other options sells homogeneous products
A. Monopoly
288. Determinants of Household demand
A. Land Market
C. Oligopoly
B. Income
D. Pure Competition
C. Price of the product
294. Raw materials that comes from the
D. Taste and preferences ground
289. Economy where consumers spend their A. Labour
money how they wish B. Land
A. market C. Capital
B. command D. Entrepreneur

295. The Philippines has also established a na- 300. A situation in which two sides of the mar-
tional agenda that provides for the cre- ket balance each other.
ation of an enabling environment which

A. Market Equilibrium
would assist various stakeholders to in-
tegrate sustainable development in their B. Market Shortage
decision-making process C. Price Elasticity
A. Philippine Agenda 21 D. Market Surplus
B. Social Equity 301. It focuses on the studies of behavior of
C. Good Governance individuals and how they react to the dif-
ferent economic issues like the problem of
D. Philippine Council for Sustainable De- scarcity.
velopment
A. Economics as Social Science
296. SWOT stands for; B. Economics as Applied Science
A. Sweepstake, Win, Or Take C. Microeconomics
B. Strengths, Weakness, Opportunities, D. Macroeconomics
Threats
302. The original and primary factor of produc-
C. Strategy, Weakness, Outcome, Trust tion
D. System, Winnability, Outpost, Timing A. Land
297. McDonald’s, Burger King, and Pizza Hut B. Labor

are examples of C. Capital
A. partnerships D. Entrepreneur
B. sole proprietorship 303. There may be an acknowledge market
C. franchise leader which informally sets prices to
which other producers respond.
D. corporation
A. interdependence
298. It is the income derived from capital B. price lists
A. Rent C. price leadership
B. Dollar D. government taxes
C. Interest 304. Business owned by one person
D. Investment A. sole proprietorship
299. Kanye West’s new shoe the Yeezy Boost B. partnership

sold out in stores. This is an example of C. corporation
D. franchise
A. shortage
305. Which of the following are types of Man-
B. surplus ufacturing Industry?
C. equilibrium A. Analytical Industry
D. supply B. Extractive Industry

C. Processing Industry 311. Perfect competition is characterized by

D. Genetics Industry A. a large number of sellers and buyers.
E. Synthetic Industry B. diverse products.
306. Steel Beam Inc. is looking to purchase a C. sellers acting together to set prices.
new steel-processing machine and factory. D. uninformed buyers and sellers.
In the circular flow diagram, this transac-
tion will take place in the 312. means that a given percentage changes in
price leads to an equal percentage change
NARAYAN CHANGDER
A. Product market.
in quantity demanded or supplied.
B. Resource market
A. Demand Curve
C. Foreign Exchange market
B. The Law of Supply
D. Public market
C. Unitary Elasticity
307. A general increase in prices. D. Cross Price Elasticity of Demand
A. demand E. Inelastic Demand
B. inflation
313. Socioeconomic impact study requires in-
C. price formation related to
D. scarcity
A. before the business
308. It is the foregone benefit on making B. after the business
choices.
C. during the business
A. Sunk cost
B. Opportunity Cost
C. Incentive Cost 314. Strong factor affecting supply and de-
mand. When a product gets expensive
D. Coastal Road enough that the average consumer no
309. is the income left after all other nec- longer feels it is worth it to buy the prod-
essary (nontax) expenses have been de- uct, then the demand declines.
ducted. The amount that is either spent or A. Economic Fluctuations
saved corresponds. B. Demand
A. Disposable Income C. Supply
B. Interest
D. Trends
C. Profit
315. .... includes a look at the population
D. Discretionary Income
size, location of the business, land distri-
310. The study of the ways that individu- bution, climate and global warming situa-
als and societies allocate their limited re- tion, whether or not the area is prone to
sources to satisfy their unlimited wants. flood or earthquake.
A. economics A. Physical Environment
B. applied economics B. General Partnership
C. scarcity C. Porter’s five forces Analysis
D. applied science D. SWOT Analysis

316. Wealth is capital. 321. What is not part of perfect competition?

A. This statement is true. A. buyer/ seller are well informed

B. This statement is false. B. sellers cannot enter/ exit market eas-
C. This statement is a hypothesis. ily
D. This statement is a theory. C. low prices

D. few barriers of entry
317. Products commonly consumed such as rice
and paddy are examples of 322. The cost of doing a little bit more of some-
A. Elastic Supply thing.
B. Unitary Elastic Supply A. Marginal Utility
C. Inelastic Supply B. Mariginal Benefit
D. Perfectly Inelastic Supply C. Marginal Option
E. Perfectly Elastic Supply D. Marginal Cost
318. are the producing units in the econ- 323. The BEST explanation of why there will
omy. always be scarcity is because
A. Household A. People and their tools are inefficient
B. Producer B. Governments create scarcity to keep

people wanting more
C. Firm
C. While people’s’ wants are unlimited,
D. Consumer resources are limited
319. Which of the following statements about D. none of above
co-operative business organisations is
true? 324. It is part of the economic resources be-
cause we need foreign currency.
A. All co-operatives are only concerned
with retailing. A. Dollar
B. Profits are shared equally amongst B. Foreign Exchange
members. C. Entrpreneur
C. They are owned by shareholders. D. Labor
D. Workers have no say in decision-
making. 325. This implies the use of money in particu-
lar associating it to exchange, scarcity and
320. If the cross-price elasticity between soap choice.
bar and liquid soap commodities is 1.5, A. Economics
A. the two goods are luxury goods B. Economics as Applied Science
B. the two goods are complements
C. Economics as Social Science
C. the two goods are substitutes
D. Economic as a Study of Economic Activ-
D. the two goods are normal goods ities

326. Scarcity is the same as shortage. C. Traditional Economy

A. This statement is true D. Authoritative Economy
B. This statement is false 332. The process of attempting to predict the
C. Both A and B future condition of the economy using a
combination of widely followed indicators.
A. Forecasting
327. Which of these is not a decision which B. Determinants
is made to solve the basic economic prob-
NARAYAN CHANGDER
lem? C. Scanning
A. What to produce D. Survey
B. How to produce 333. the rivalry among various sellers in the

market. It exists in all types of markets,
C. Why to produce
in a competitive market producers reduce
D. For whom to produce their production costs to gain more prof-
its. Competition motivates producers to
328. The type of government, the stability and
improve the quality of goods and services
strength of the government, and the good
and selling it all the lowest possible prices
leadership are factors that can be an ad-
vantage to a business. A. Competition
A. Economic Forces B. Market
B. Political Forces C. Market Structure
C. Physical Environment D. Labor
D. Customers 334. It is the set of all quantities the buyeris

willing to purchase at different price levels
329. People who work to make goods or pro- at a given time period.
vide services.
A. Demand
A. Human resources
B. Supply
B. Capital resources C. Quantity Demanded
C. Natural resources D. Quantity Supplied
D. Entrepreneurs
335. is the income after taxes
330. Countries and states utilize this to solve A. Disposable Income
the problem of allocation.
B. Discretionary Income
A. Culture and Norms C. Gross Profit
B. Rules and Regulations D. Income
C. Economic Systems
336. It refers to the payment for the use of
D. Fiscal Policies land or buildings owned by other sector.
331. The most democratic form of economic A. savings
system. B. rent
A. Market Economy C. mortgage
B. Command Economy D. surplus

337. In Porter’s five forces model, the ‘threat 343. Which of the following is the mainobjec-
of new entrants’ relates to: tive of industries? .

A. barriers to entry A. To earn profit for the owners
B. substitutes B. To become popular in the business in-
C. switching cost dustry C. To be a part of
D. buyer power C. To be a part of modernization

D. To evaluate the best business
338. Which is an example of want?
A. clothing 344. Which of the below is not scarce re-
source?
B. iPad
A. Oil
C. shelter
D. water B. Sea water
C. Natural gas
339. Which of the following is total value of
everything produced in the country? D. Gold
A. GNP 345. In environmental analysis, what factor

B. GDP study about the income of the people, tar-
get market, inflation, recession, prosper-
C. GDP per Capita ity, demand and supply of the market.
D. GNP per capita
A. Economic Forces
340. Producing fewer goods and services than B. Political Factors
possible
C. Physical environment
A. efficiency
D. Culture and Lifestyle
B. utilization
C. underutilization 346. Input market include the following except
one.
D. non of these
A. Capital Market
341. It is a man-made resource of production B. Output Market
used to produce further wealth.
C. Land Market
A. Land
D. Labor Market
B. Labor
C. Capital 347. The following are guides to industry anal-
ysis. Which of the following identifies the
D. Entrepreneur
area whether local, regional nationwide or
342. This is the small portion of industry. international?
A. Medium Business A. Geographic area
B. Corporation B. Buyer
C. Cooperative C. Product
D. Business D. Size of the industry

348. What is a legal entity owned by individ- 354. The price of product A increased by
ual stockholders? 100%. The demand for product B went
A. Capital down by 200%. Compute for the cross-
price elasticity.
B. Free Enterprise
A. -0.5
C. Corporation
B. -2
D. Specialization
C. +0.5
349. It refers to the process of producing or
NARAYAN CHANGDER
D. +2
creating goods needed by the households
to satisfy their needs. 355. Business owned by stockholders
A. employment A. sole proprietorship
B. labor power B. partnership
C. production C. corporation
D. resources D. franchise
350. Table is an example of: 356. It is a condition when the supply of a
A. Natural Resources good, service, or resource is not enough
to meet the demand.
B. Human Resources
A. scarcity
C. Man-Made Resources
B. shortage
C. allocation
351. How does a small industry start? D. elasticity
A. People selling goods to one another
357. A type of stock without voting privileges
B. Farmers planting seeds
A. preferred
C. Lawyers drawing up contracts
B. common
D. none of above
C. uncommon
352. The air is free, but the air from an aircon D. dividend
is an?
A. Economic good 358. Businesses sell to individuals and in
return businesses earn a
B. Consumer good
A. products, profit
C. Capital good
B. businesses, individuals
D. Luxury good
C. resources, profit
353. If a 10% decrease in the price of a good D. income, profit
results in a 30% increase in the quantity
demanded, the degree of elasticity is 359. What is another term for Households?
A. elastic A. Factors
B. inelastic B. Apartments
C. unitary C. Consumers
D. none of above D. Private Entities

360. In a SWOT analysis, which two elements C. Mike V. Pangilinan

are part of the internal environment? D. Manuela V. Pangilinan

A. strengths and threats
366. what is opportunity cost
B. strength and opportunities
A. a trade off
C. weaknesses and strengths
B. the most desirable alternative give up
D. weaknesses and threats as the result of a decision.
361. those goods for which the demand rises C. society
as consumer income rises. D. the most desirable give up as a result
A. Demand Curve of force
B. The Law of Supply 367. It exists where there is only one firm in
C. Unitary Elasticity the market.
D. Cross Price Elasticity of Demand A. Pure monopoly
E. Inelastic Demand B. Oligopoly
362. The making, buying and selling of goods C. Monopolistic competition

and services D. Perfect competition
A. economics 368. Economic system where women tend
B. inflation crops and raise children while men hunt
C. market A. mixed
D. barter B. market
363. What is the desire to own something and C. traditional

the ability to pay for it called? D. command
A. Supply 369. Identify which resource is referred to by
B. Demand the following words. Lawyers
C. Allocation A. Land
D. Capital B. Labor
364. It is part of Science that studies the own- C. Capital

ership, use, and exchange of scarce re- D. none of above
sources of the people. What it is?
370. Which of the following will not tend to
A. Economics increase the elasticity of demand for a
B. Economics as Applied Science good?
C. Economics as Social Science A. an increase in the availability of close
D. Microeconomics substitutes
B. an increase in the amount of time peo-
365. The President and CEO of PLDT & Smart. ple have to adjust to a change in price
A. Manuel V. Pangilinan C. an increase in the proportion of in-
B. Michael V. Pangilinan come spent on the good.

D. all of the above 376. .... is the aggregation of the different

businesses engaged in the
E. none of the above
A. Industry
371. It is the income needed to purchase
B. Corporation
these minimum nutritional requirements
and other necessities for daily survival. C. Partnership
A. Poverty Challenge D. Cooperative
NARAYAN CHANGDER
B. Poverty Threshold 377. This occurs when quantity demanded is
C. Absolute Poverty greater than quantity supplied.
D. Relative Poverty A. shortage
B. loss
372. Which of the following resources can be
considered not scarce? C. profit
A. Time D. surplus
B. Money 378. This type of business organization makes

C. Capital it easier to secure financing because more
than one person may apply for credit.
D. Businesses
373. It is the transformation of inputs into out- B. Partnership
puts of goods & services.
C. Corporation
A. Production
D. Franchise
B. The Law of Diminishing Marginal Re-
turns 379. Industry that requires a lot of machines
and equipment to produce a product is
called what?
A. Manufacturing
374. It is a necessary precondition to empow- B. Heavy
erment
C. Service
A. Good Governance
D. Light
B. Empowerment
380. What best describes a Competitive Mar-
C. Efficiency
ket?
D. Equity A. Markets where no buyer or seller has
any influence over the price.
375. Payments received in return for work
B. Buyers are the main influences in the
A. demand
market.
B. minimum wage
C. Sellers are the main influences in the
C. wages market.
D. working conditions D. The governemnt controls the price.

381. Which of the following Socio-Economic D. Cross Price Elasticity of Demand

Impact of a Business that will also benefit E. Inelastic Demand
from the establishment of new businesses,

through revenues earned on fees collected 386. Who will benefit If the new business can
from them and on taxes imposed on the provide new goods and services, better
incomes of the business? quality and more options?
A. Impact on the Consumer A. Low income people.
B. Impact on Suppliers and Investors B. consumer
C. Impact on the Government C. producers
D. Impact of Household D. suppliers
382. Individuals who will buy the products and 387. Metropolitan Bank & Trust Company
services in the market. (Metrobank) and Nestle Philippines are ex-
A. consumers amples of
B. creditors A. partnerships
B. sole proprietorship
C. government
C. franchise
D. suppliers
D. corporation
383. If there is an inadequate land, insufficient
funds, unskilled workers and the like, then 388. It is the central concern of sustainable de-
there is what we call? velopment.
A. Scarcity of resources A. Social Equity
B. Limited edition of resources B. Poverty
C. Multiple Use of resources C. Peace and Solidarity
D. Partially sold resources D. Ecological Integrity
384. The physical effort of the manpower to 389. In Industry Analysis, what is meant by
produce the protective devices of the front- the term ‘substitute’?
liners describes which factor of produc- A. a substitute refers to an alternative
tion? manufacturing process
A. land B. a substitute is a rival firm offering the
B. capital same products
C. labor C. a substitute is something else con-
sumers would rather spend their money
D. entrepreneur on
385. the coefficient of the elasticity is less D. a substitute is an alternative product
than 1; when an increase in price causes or service that performs the same func-
a smaller % fall in demand tion forthe consumer
A. Demand Curve 390. Allocation and scarcity is a problem be-
B. The Law of Supply cause people have unlimited
C. Unitary Elasticity A. problems

B. wants and needs 396. It refers to utilization of human ser-

C. resources vices, physical assets, and other natural
resources in the environment
D. desires
A. Consumption
391. A traditional economic system means B. Allocation
A. less choices and low standard of living C. Distribution
B. Unlimited needs D. Production
NARAYAN CHANGDER
C. less wastage of resources
397. This the brain of the economy
D. everyone knows what role to play
A. capital
392. Refers to a specific amount that will be B. entrepreneur
demanded per unit of time at a specific C. land
place; it also refers to a point on the de-
mand curve D. labor
A. quantity demanded 398. is an estimate of total value of all the

B. quantity supplied final products and services turned out in a
given period by the means of production
C. demand function owned by a country’s residents
D. supply function A. GNP
393. Willingness and ability to buy a good or B. GDP
service C. GNP per capita
A. supply D. GDP per capita
B. demand
399. It is a tablethat summarizes the quantity
C. desire demanded for every price level.
D. affordability A. Demand Table
394. What happens to price when the market B. Demand Schedule

has a surplus C. Demand Curve
A. price drops D. Demand
B. price stays the same 400. What do people respond to in predictable
C. price increases ways?
D. price triples A. Problems
B. Incentives
395. This industry relates to the putting of var-
ious raw material together to make a final C. Solutions
product . D. Choices
A. Genetics Industry
401. states that, higher the price, the higher
B. Analytical Industry the quantity supplied.
C. Synthetic Industry A. Demand Curve
D. Processing Industry B. The Law of Supply

C. Unitary Elasticity 406. It may appear to be the study of com-

D. Cross Price Elasticity of Demand plicated tables and charts, statistics and
numbers, but, more especially, it is the

E. Inelastic Demand study of what constitutes rational human
behavior in the endeavor to fulfill needs
402. A command economic system means and wants.
A. The government owns monopoly busi- A. Microeconomics
nesses
B. Macroeconomics
B. the government create laws, regula-
tions and directives to enforce central C. Econometrics
plan D. Applied economics
C. the government allocate all resources
to its people 407. Example of demand deposits
D. life in this economy is generally stable, A. checking accounts

predictable and continuous B. savings accounts
403. I am a restourent owner and I like to keep C. CDs

my customers happy by providing them D. money market accounts
with excellent food and options? what in-
dustry am I? 408. Products use as replacements to other
products that gives the same purpose.
A. Wholesale
A. clone
B. Service
B. substitutes
C. Manufacturing
C. class a
D. Agriculture
D. overruns
404. asserts that an economy’s finite re-
sources are insufficient to satisfy all hu- 409. A characteristic of resources that de-
man wants and needs. scribes an insufficient resources to supply
all the desires and needs of individuals.
A. Economic Problem
A. Scarcity
B. Economic Issue
B. Limited edition
C. Problems in the Society
C. Multiple Use
D. Problem in the Economy
D. Partially sold
405. The jeans industry would fall into what
type of market structure? ( jeans are sim- 410. Demand is said to be when the quan-
ilar but there are some differences in the tity demanded is not very responsive to
product) changes in price.
A. monopoly A. elastic
B. oligopoly B. inelastic
C. perfect competition C. unitary
D. monopolistic competition D. none of above

411. check all measuring outputs used in GDP 416. Characterized by many firms selling simi-
lar but not identical products like clothing,
A. Expenditure approach
shoes, laundry, soap, books, among oth-
B. Income approach ers. Firms have limited control over prod-
C. Output approach uct prices. Firms give more emphasis on
advertising and sales promotion
D. Industrial Origin approach
A. Pure or Perfect Competition
412. If a 10% decrease in the price of a good B. Pure Monopoly
NARAYAN CHANGDER
results in a 30% increase in the quantity
C. Monopolistic competition
demanded, the price elasticity of the good
equals D. Oligopoly
A. + 3 417. It refers to the stock of capital assets
B. -3 such as factories, machines, tools & equip-
ment, raw material, transport vehicles, etc
C. +0.33
A. Land
D. -0.33
B. Labor
413. It is the study of how human could best C. Capital
allocate and utilize the scarce resources
of society to satisfy his or her unlimited D. Entrepreneur
wants. 418. This factor includes the stability and
A. Economics strength of the government and good lead-
ership.
B. Microeconomics
A. Economic Forces
C. Macroeconomics
B. Political Factors
D. Distribution
C. Physical environment
414. The initiative and creativity to produce D. Culture and Lifestyle
something new describes which factor of
production? 419. The market demand curve for apple
shows the
A. Land
A. effect on market supply of a change in
B. Labor
the demand for apple
C. Capital
B. quantity of an apple that consumers
D. Entrepreneur like to buy at different prices.
C. marginal cost of producing & selling
415. A market situation wherein the firms co-
different quantities of an apple.
operate with each other in determining
products, outputs or both D. effect of advertising expenditures on
the market price of an apple.
A. Collusive
B. Non-collusive 420. If a business conducts a SWOT analysis to
decide whether or not to expand, which of
C. All of the above
the following would be categorized as an
D. None of the above “O”?

A. money is available for the expansion C. near money

B. there is a potential for increased prof- D. representative money

its
C. new competition could enter the mar- 426. It can be an instrument for the allocation
ket of resources through a market system.
D. company expenses have increased A. price

B. income
421. This field of economics focuses on the be-
havior of individual economic units and the C. interest
functioning of markets. D. demand
A. Microeconomics
427. If the price on a product goes up the quan-
B. Macroeconomics
tity demanded will go down. This follows
C. Applied Economics the economic theory of:
D. Social Economics A. Law of Demand
422. Economic system where government offi- B. elasticity
cials decide the distribution of all resources
C. income effect
A. mixed
B. market
C. command 428. A minimum legal price below which a
product cannot sold.
D. traditional
A. Transaction Costs
423. In a SWOT analysis, which among of the
following is an internal factor? B. Price Cieling
A. customers C. Supply
B. competitors D. Price Floor
C. company culture 429. It is the gap between limited resources
D. suppliers and unlimited needs and wants.
424. A principle in which everything must A. Production

work together from employee to president B. Scarcity
or from equipment to resources.
C. Consumption
A. systems
D. all of the above
B. scalability
C. sustainability 430. An established minimum price that buy-
D. growth ers must pay for a good or service
A. price ceiling
425. Type of money issued by the U.S. govern-
ment B. price floor
A. commodity money C. minimum wage
B. fiat money D. none of these

431. What best describes a want? 436. Which is NOT a factor of production?
A. An unnecessary object A. land
B. A commodity that fulfills a desire B. labor
C. An expensive object C. entrepreneurship
D. A derived need D. skill
437. It deals with the economic behavior of in-

432. It is a state when the buyers and sellers
NARAYAN CHANGDER
dividual units such as consumer, firms and
transact on the purchase or sales of goods
the owners of the factors of production
or services.
A. macroenonomics
A. School
B. Microeconomics
B. Market
C. Econometrics
C. Community
D. Public Finance
D. House
438. is the additional utility or satisfaction
433. Goods and services to be produced are from the consumption of an additional unit
based on the needs of the consumers: of a good, keeping other things constant.
A. What to produce A. Total Utility
B. How to produce B. Marginal Utility
C. For whom to produce C. Utility
D. How much to produce D. none of above
434. At a given price, the amount by which 439. The following are internal factors of a
quantity demanded exceeds quantity sup- business except for:
plied; a shortage usually forces the price A. Financial resources
up B. Economic trends
A. shortage C. Human resources
B. supply D. Access to natural resources
C. Market
440. Which of the following Socio-Economic
D. demand Impact of a Business that new businesses
mean employment opportunities for the Fil-
435. When it hits the market, the competition ipinos?
between the existing product and the new
one can cause demand to drop for the ex- A. Impact on the Consumer
isting product. B. Impact on Suppliers and Investors
A. Competition C. Impact on the Government
B. Production Decrease D. Impact of Household
C. Availability of Alternatives or Competi- 441. Industry rivalry among companies of the
tion same or related industry is called
D. Production Increase A. Competition

B. Distribution C. Inferior goods

C. Alliance D. Market Demand

D. Threats
447. It is a table that summarizes the quanti-
442. Food is to the body nourishment process; tysupplied for every price level.
savings is to A. Supply Table
A. rent B. Supply Schedule
B. investment C. Supply
C. real estate D. Quantity Supplied
D. surplus
448. Total profit =
443. Which of the following key factor to be
A. total revenue-marginal cost
considered in analyzing your industry iden-
tified by the SBTDC that area-identity the B. total revenue + marginal cost
are whether local, regional, nationwide, or C. total revenue-total cost
international.
D. total revenue + total cost
A. Geographic Area
B. Industry 449. .... is a means to evaluate the possible
or probable effects of external forces and
C. Product
conditions on the survival and growth of
D. Buyers the business.
444. The type of business ownership in which A. Environmental Analysis
all business decisions are the sole respon- B. Partnership
sibility of the owner.
D. SWOT Analysis
B. Partnership
C. Corporation 450. A new business wants to identify its prof-
itability level in the market. What busi-
D. Franchise
ness tool should they use?
445. Determine on what goods and quantity of A. SWOT Analysis
goods to produce
B. PESTEL
A. What to produce?
C. Porter’s Five
B. For whom to produce?
D. none of above
C. How to produce?
D. What provision/laws to be made? 451. If the cross-price elasticity of demand be-
tween two goods is negative,
446. If an increase in the price of good X re-
A. they are substitutes
sults in a decrease in the demand for good
Y (and vice versa), the goods are B. they are complements
A. Substitute C. they are both inferior goods
B. Complements D. they are both normal goods

452. The market value of final products, both A. LAND

sold and unsold, produced by the resources B. LABOR
of the economy in a given period.
C. CAPITAL
A. APPLIED ECONOMICS
D. ENTREPRENEURSHIP
B. GDP
C. GNP 458. Those industries which do not produce
physical goods but create utility services
D. none of above and sell them for a price.
NARAYAN CHANGDER
453. this is responsible for the rapid technolog- A. Primary Industry
ical change and high living standards dur- B. Secondary Industry
ing the 1980’s.
C. Service Industry
A. entrepreneur
D. Manufacturing Industry
B. market
C. innovation 459. When quantity consumers are willing and
able to buy equals the quantity producers
D. government are willing and able to sell.
454. Which type of market structures has very A. Surplus
few producers(companies) that control the B. Market Equilibrium
majority of the market? Hint:think of the
soda market C. Invisible Hand
A. perfect competition D. Market exchange
B. monopolistic competition 460. Benefits from business-sponsored activi-
C. oligopoly ties that include sports fests and wellness
programs, livelihood projects, micro financ-
D. monopoly ing, and even medical & dental missions.
455. Other term for Market Economy A. Impact on Households
A. Capitalism B. Impact on the Government
B. Communism C. Impact on the Community
C. both a & b D. Impact on the consumer
D. none of these 461. this is marketing of goods and services to
456. Ford and Toyota sells the same products; different economic outlets for allocations
it evident that there is a to individual consumers.
A. competition A. production
B. distribution B. distribution
C. alliance C. exchange
D. threats D. consumption
457. Indicate which economic resource does 462. Economics can be divided into two major
the following term belongs to.BUSINESS branches which is
PROPRIETOR (MR. HENRY SY) A. Labor economics and macroeconomics

B. Microeconomics and macroeconomics 468. the three problems of economics is what

C. International and domestic economics to produce, how to produce and

D. International Economics and Macroe- A. when to produce
conomics
B. where to produce
463. the limited availability of a commodity,
C. which one to produce
which may be demand in the market or by
the commons. Also includes an individual’s D. for whom it will be produced
lack of resources to buy commodities.
A. scarcity 469. The great ideas, concepts and drive of
B. relative scarcity the production managers to produce some-
thing new describe which factor of produc-
C. absolute scarcity tion?
D. none of above
A. land
464. What does it mean? Ed = 0
B. capital
A. Perfectly inelastic demand
C. labor
B. Inelastic demand
C. Unitarily elastic demand D. entrepreneur
D. Elastic demand
470. This is needed in every business. Without
E. Perfectly elastic demand this, business operations will stagnate.
465. This means all other related variables, A. systems
except those that are being studied at the
moment, are held constant. B. scalability
A. Ceteris paribus C. sustainability
B. Law of Demand D. growth
C. Law of Supply
D. Market equilibrium 471. Industries can be classified on the basis
of
466. The Following are “Basic Economic prob-
lems” Which is not belong to the group? A. Raw materials
A. Scarcity B. Size
B. Poverty
C. Ownership
C. Inflation
D. All of the above
D. production
467. It plays an important role in facilitating 472. Much potential for conflict
exchange.
A. sole proprietorship
A. Money
B. partnership
B. Barter
C. selling C. corporation
D. Division of Labor D. franchise

473. It is the development that meets the 478. In this economic system the production of
needs of the present without compromis- goods is dependent on the producers.
ing the ability of future generations to
A. Traditional
meet their own needs.
B. Command
A. Agenda 21
B. Philippine Agenda C. Market
C. Sustainable Goals D. Mixed
NARAYAN CHANGDER
D. Sustainable Development 479. Workers with higher amounts of human
474. What does an economist use to solve dif- capital tend to
ferent economic problems in society? A. demand less benefits
A. Different Economic Theories B. earn higher wages
B. Different Economic Research C. have fewer job complaints
C. Different Economic Practices D. earn lower wages
D. Different Economic Masterpiece
480. Barriers to entry include
475. It is an economic activity which refers to
the delivery of goods and services to mar- A. switching cost
ket outlets or direct end users. B. network effects
A. Distribution C. capital requirements
B. Allocation D. all of the above
C. Production
481. Which best of the following best de-
D. Consumption
scribes economics as a social and an ap-
476. In this system, the government owns plied science?
most properties and resources, and eco- A. The study of products we need to sur-
nomic decisions are made through a central vive
economic plan.
B. The study of how customers make
A. Socialism
choices when there is unlimited supply of
B. Communism resources
C. Free Market Economy C. The study of human personalities
D. Command Economy D. The study of how buyers make choices
477. Not only an economic problem but also a when there is limited supply
social problem of a country. Increase in
482. A big sari-sari store having an asset of
population, increase in the cost of living,
one million five hundred thousand is an ex-
unemployment, inequality in the distribu-
ample of
tion of income
A. unemployment A. Large scale business
B. poverty B. Small business
C. income inequality C. Medium business
D. quality of infrastructure D. micro business

483. Some businessmen go to nearby coun- 488. Reap the fruits of natural resources like
tries to buy their goods or raw materials the soil, water, forests.
there.

A. Agriculture, Fishery and Forestry
A. Manufacturer B. Industrial Sector
B. Distributor C. Service Sector
C. Supplier D. Environmental Sector
D. Imports 489. Farm products such as wheat and corn
484. Which of the following show cases A. Perfect Competition
strength of a business? B. Monopoly
A. improved company reputation C. Monopolistic Competition
B. skilled and knowledgeable staff D. Oligopoly
C. entry of competitors 490. The absolute value of the coefficient of
D. Costly set-up elasticity is greater than 1.
A. Unitary
485. It states that as the price of goods in- B. Elastic
creases, quantity demandeddecreases.
C. Inelastic
A. Demand
D. Elasticity
B. Supply
491. It can affect supply and demand drasti-
C. Law of Demand cally. The supply and demand for toys
D. Law of Supply peaks around Christmas and turkeys sell
like crazy at Thanksgiving.
486. What is the revenues collected from
A. Season
taxes on income and profits, social secu-
rity contributions, taxes levied on goods B. Trends
and services, payroll taxes on the owner- C. Commercial Advertising
ship and transfer of property, and other D. Economic Fluctuations
taxes?
A. Government Fund 492. Retail specialty clothing stores
B. Income
B. Monopoly
C. Tax revenue
D. National Income
D. Oligopoly
487. Which of the following Internal Factor 493. Which of the following is an example of
that consisting of employees? cooperative?
A. Financial Resources A. Nova Deci
B. Personal Resources B. PLDT
C. Human Resources C. Bank of Philippine Island
D. Natural Resources D. Meralco

494. This pertains to the activities of the gov- 499. What is the study of economic behavior
ernment regarding taxation, borrowings, and decision making of small units, such
and expenditures. It deals with the effi- as individuals, families, and businesses
cient use and fair distribution of public re- called?
sources.
A. Macroeconomics
A. Public Finance
B. Microeconomics
B. Exhange
C. Economics
NARAYAN CHANGDER
C. Production
D. Economic statistics
D. Distribution
500. A guide to industry analysis that explains
495. Which is NOT one of the sectors of Indus- when and how a business is developed.
tries?
A. Geographic area
A. Primary sector
B. History of the industry
B. Processing sector
C. Business Description
C. Secondary sector
D. Size of the industry
D. Tertiary sector
E. None of the above 501. Refers to the combined utility derived
from consuming certain units of a good.
496. A group of buyer and sellers of a particu-
lar good or service A. Total Utility
A. Supply B. Marginal Utility
B. Demand C. Consumption
C. Agency D. Production
D. Market 502. A strategy that businesses often use mar-
keting and some ads are against the com-
497. The money left after costs are subtracted
petitors.
from revenue
A. advertising
A. free rider
B. profit B. cost leadership
C. subsidy C. alliance
D. scarcity D. defensive strategy
498. Refers to the product created as a result 503. hairdressers, freelance writers or artists,
of the combination of input in the produc- financial planners, small retail businesses,
tion process. handymen are examples of
A. Output A. partnerships
B. Input B. sole proprietorship
C. Consumer C. franchise
D. Average Product D. corporation

504. Should include government laws and reg- 509. Teachers produce:
ulations that apply to the business. A. Goods

A. Geographic Area B. Service
B. Industry C. Both A and B
C. Regulatory Environment D. None of the above
D. Product 510. What is an example of a good?
A. a haircut
505. It is a social science concerned with the
efficient allocation of scarce resources that B. lawn mowed
have alternative uses in order to achieve C. a toy
the maximum satisfaction of individuals D. law painted
unlimited needs and wants.
511. It is the term used for satisfaction de-
A. Macroeconomics
rived from consuming a good / service.
B. Economics A. Consumption
C. Microeconomics B. Consumer Theory
D. Normative Economics C. Utility
D. Utility function
506. It requires international solidarity of ev-
ery nation’s effort to build a better life and 512. Processes raw materials from agricul-
safer environment. ture, fishery and forestry into intermedi-
A. Ecological Soundness ate product that are further processed into
final product.
B. Institutional Viability
A. Agriculture, Fishery and Forestry
C. Global Cooperation
B. Industrial Sector
D. Gender Sensitivity C. Service Sector
507. Which of the following explains opportu- D. Environmental Sector
nity? 513. What is an industry?
A. Emerging competitors A. A place where people sell and buy food
B. Emerging needs for your products and B. Farming Lands
services C. Group of manufacturers producing
C. Negative media or press. goods or services
D. Things you company does well D. none of above
514. The money that has already been spent
508. This refers to the utilization of economic
on and cannot be recovered by current ac-
goods
tions.
A. Production A. Economic Profit
B. Distribution B. Loss
C. Exchange C. Sunk Cost
D. Consumption D. Historical Cost

515. The following are factors that affect la- C. Scientific method
bor supply, EXCEPT ONE:
D. Allocation process
A. the number of workers
520. He must be a good administrator.
B. qualifications
C. government policies A. Land
D. productivity B. Labor
C. Capital
NARAYAN CHANGDER
516. Types of Ownership
D. Entrepreneur
A. Private, Raw, Public
B. Landlord, Tenant 521. The ability to make something using
C. Private, Public, Joint, Co-operative fewer resources than other producers re-
quire.
D. none of above
517. What is the basic principle of the law of B. Law of Comparative Advantage
demand?
C. Specialization
A. The higher the price, the more people
will want the good. D. Productive Efficiency
B. Everyone has a limited income that 522. An interaction between buyers and sell-
they will spend. ers of trading or exchange.
C. The lower the price, the more people
A. Market
will want the good.
B. Economy
D. Everyone has an unlimited income that
they can spend. C. Business
518. A review of external sources to discover D. Supply

factors that impact a business. The main
523. Determined by the willingness and ability
goal is to identify and consult sources out-
of producers to sell a product (a good or a
side the business. Although these sources
service) at different prices.
are uncontrollable from the business’s per-
spective, it is important to consider them A. Demand
in decision-making processes.
B. Supply
A. Programming
C. Market Demand
B. Proposal
D. Law of supply
C. Scanning
D. Feasibility study 524. Any technology/machinery involved in
the production process:
519. Which of the following is not part of the
A. Investment Capital
three strands in the development of the
definition of Economics? B. Enterprise Capital
A. Wealth getting and wealth using C. Physical Capital
B. Decision making process D. Human Capital

525. Who buys goods or services? 531. A monetary remuneration computed on

A. Producers hourly, daily, weekly, or piece work ba-
sis paid by an employer to an employee in

B. Consumers exchange for work done
C. Leaders A. money
D. Followers B. wage
526. Margarine is a good substitute for C. benefits
A. butter D. labor
B. cheese 532. The owner of a new business can win the
C. cheddar consumers away from the existing seller
except;
D. bread
A. By offering something that will benefit
527. The study of society and how people be- the buyers.
have and influence the world around them B. Create several commercials/advertisement
A. Applied Economics for her products.
B. Social Studies C. Give the consumers more choices,
new goods, better quality.
C. Macroeconomics
D. Innovate the product with new fea-
D. none of above
tures that are not found in the existing
528. Who is your teacher/professor in the competing goods.
exam that your taking in?
533. Which of the following has NOT observed
A. Perlita Ariota in the community during the ECQ in the
B. Lovelyn Cabudbod same locality?
C. Kerima De Mesa A. Everyone enjoyed shopping in the mar-

ket
D. Mary Ann Doctor
B. Unemployment in the community was
529. The following are tools in evaluating a sharply experienced
business except for; C. Prices of commodities suddenly in-
A. Geographic area creased
B. Description of the product D. The people in Manila were reluctant of
the pandemic protocols.
C. Regulatory Environment
D. Imported products 534. There is only one firm that provides ser-
vices and dominates the market like water
530. The exchange of goods and services. and electricity.
A. A. consumer A. Pure or Perfect Competition
B. B. economics B. Monopolistic competition
C. C. market C. Pure Monopoly
D. Trade D. Oligopoly

535. High competitive rivalry is due to: the quantity of goldfish increase. This is
A. Slow industry growth most likely caused by:
A. An increase in the supply
B. high exit barriers
B. A decrease in the demand
C. highly committed business owners
C. An increase in the demand
D. all of the above
D. A decrease in both the demand & the
536. It is the creation of goods and ser- supply
NARAYAN CHANGDER
vices using the available resources by
541. A field that applies of economic theo-
firms/businesses.
ries and principles to real-world situations
A. Production with the desired aim of predicting poten-
B. Scarcity tial outcomes.
C. Consumption A. Economics
B. Applied Economics
D. all of the above
C. Economic Theory
537. Refers to the use of goods and services D. none of above
to satisfy human wants.
542. It is important that you identify what are
A. Consumption
the characteristics of your
B. Consumer Theory
A. Competitors
C. Utility B. Consumers
D. Utility function C. Customers
538. This refers to the largest sector in the D. Suppliers
Philippines. 543. The quantity supplied does not change
A. Agriculture even if there is a change in the price of
B. Industry the product.
A. Elastic Supply
C. Farming
B. Unitary Elastic Supply
D. Service
C. Inelastic Supply
539. This trade refers to the exchange of the D. Perfectly Inelastic Supply
goods and services between the countries
E. Perfectly Elastic Supply
which basically is the export and import
(as well as entreport) of goods and ser- 544. It is refers to international trade without
vices. tariff quota or restriction, while Protec-
A. Foreign Trade tionism refers to the practice of shielding a
country’s domestic industries from foreign
B. International Trade competition by taxing imports aka tariff.
C. Free Trade A. Free trade
D. Trade B. International trade
540. The market for goldfish is competitive. C. Entrepot trade
From year 1 to year 2, both the price and D. Import Trade

545. Aside from the actual monetary / re- 550. Identify which resource is referred to by
source cost, what other cost is incurred the following words. Technology
when decisions are made?

A. Land
A. Chance Expense
B. Labor
B. Trade off
C. Capital
C. Equivalent Exchange
D. none of above
D. Opportunity Cost
551. Define opportunity cost
546. In which market do households sell?
A. the value forgone from the all other al-
A. Product Market
ternatives
B. Factor Market
B. the value forgone from the next two
C. Market Economy best alternatives
D. Fresh Market C. the value forgone from the next best
alternative
547. The market supply curve for gasoline
shows the D. the value gained from choosing
A. effect on market demand of a change
552. Which among the following concepts is
in the supply of gasoline.
not a main concern of an entrepreneur?
B. quantity of gasoline that firms offer for
A. Interest rate
sale at different prices.
C. quantity of gasoline that consumers B. Poverty
are willing to buy at different prices. C. Wages
D. All of the above are correct. D. Taxes
548. Defined as:of, relating to or made in 553. Under the microeconomic concept, which
one’s own country. represents the income constraint of con-
A. embargo sumers.
B. service A. Indifference Map
C. domestic B. Indifference Curve
D. tariff C. Budget Line
549. Which of the following Socio-Economic D. none of above
Impact of a Business that is always trying
to respond to consumer influences and buy- 554. What is the point at which the quantity
ing patterns in an effort to increase sales demanded and the quantity supplied are
while building brand loyalty? equal called?
A. Impact on the Consumer A. Elasticity

B. Impact on Suppliers and Investors B. Efficiency
C. Impact on the Government C. Equilibrium price
D. Impact of Household D. Production possibilities

555. Which of the following is not a primary 560. Point out what force acts as a deterrent
sector of Industries? against new competitors. This force de-
A. Farming Industry cides how easy (or not) it is to enter an
industry.
B. Mining Industry
A. bargaining power of buyers
C. Iron & Steel Industry
B. barriers to entry
D. Fishing Industry
C. bargaining power of suppliers
556. Pertains to the activities of the govern-
NARAYAN CHANGDER
ment regarding taxation, borrowings, and D. industry rivalry
expenditures. It deals with the efficient
561. According to him, economics is the proper
use and fair distribution of public resources
allocation and efficient use of available re-
in order to achieve the maximum social
sources for the maximum satisfaction of
benefits.
human wants.
A. production
A. Roger Le Roy Miller
B. distribution
B. Nordhaus
C. exchanged
C. Fajardo
D. consumption
D. Samuelson
E. public finance
557. What do you think is the most favorable 562. In this economic system profit can be a
production in manufacturing? motive to sell products at a higher amount.
A. Producing low units at a lower cost A. Traditional
B. Producing high units at higher cost B. Command
C. Producing more units at a lower cost C. Market
D. Producing moderately at a reasonable D. Mixed
cost
563. Economy defined by self-interest
558. New businesses mean employment op-
A. mixed
portunities for the Filipinos.
A. Impact on Households B. market
B. Impact on the Government C. command

C. Impact on the Community D. traditional
D. Impact on the consumer 564. It is a means by which the exchange of
559. In economics willingness to buy goods goods and services takes place as a result
and services should be accompanied by the of buyers and sellers being in contact with
ability to buy (purchasing power) and is re- one another, either directly or through me-
ferred to as effective diating agents or institutions.
A. Demand A. Proposal
B. Supply B. Bargaining
C. Market C. Contract
D. Equilibrium D. Market

565. Defined as:the performance of a duty or B. To promote healthy competition

work for another person C. to increase taxes

A. good D. to provide additional public goods &
B. service services
C. export 571. Once the SWOT is completed what must
D. import you do to ensure you gain the benefit from
it?
566. If widespread media attention is given to A. Leave in a file.
the idea for the demand to rise?
B. Hand it to your manager
A. Trends
C. Review it on a regular basis
B. Season
D. Give it to you work colleague and get
C. Commercial Advertising them to follow it.
D. Economic Fluctuations
572. is where the workers offer services and
567. A maximum legal selling price above look for jobs, and where employers look
which a product cannot be sold. for workers to hire
A. Consumer Surplus A. Goods Market
B. Price Floor B. Labor Market
C. Absolut Advantage C. Financial Market
D. Price Ceiling D. none of above

573. In economics, resources are:
568. What is the study that studies the way a
society solves the fundamental problems A. Anything used to create something
of reconciling the unlimited desires of indi- else
viduals with scarce resources? B. The environment in general
A. Social Science C. Specifically lumber and water
B. Applied Science D. Capital only
C. Economics 574. shows the relationship between quantity
D. Macroeconomics demanded and price in a given
A. Demand Curve
569. An industry that builds small products
such as electronics and furniture is called B. The Law of Supply
what? C. Unitary Elasticity
A. Manufecturing D. Cross Price Elasticity of Demand
B. Light E. Inelastic Demand
C. Service 575. Refers to your target market.
D. Heavy A. Substitutes
570. The reason of Philippine government to B. Suppliers
enforce The Philippine Competition Act is: C. Competition
A. To limit competition D. Customer

576. It is a commonly accepted measure of choice, competition, and motive of self-

market concentration. interest.
A. Production A. Traditional Economic System
B. The Law of Diminishing Marginal Re- B. Command Economic System
turns C. Market Economic System
C. Production function D. Pure market Economic System
582. An opportunity cost is
NARAYAN CHANGDER
577. It is a human factor of production. A. Usually absent in a command economy
A. Land B. When goods are recycled into other
B. Labor goods
C. Capital C. The next-best alternative you give up
in order to do something else
D. Entrepreneur
D. only an issue when there is not a
578. In this market structure, where one sin- scarcity of goods and resources
gle firm dominates a market for a particu-
lar product 583. something required for a safe, stable and
healthy life.
A. Monopoly
A. Needs
B. Wants
C. Oligopoly
C. Scarcity
D. Pure Competition
D. Shortage
579. I am the science, art and business for cul-
tivting soil, producing crops and rising live- 584. In this economic system competition is
stock, farming. not present.
A. Traditional
A. Service
B. Command
B. Wholesaler
C. Market
C. Agriculture
D. Mixed
D. Retail
585. This is the other term for environmental
580. .... is a means of identifying the inter-
analysis.
nal and external forces that may affect the
business. A. SWOT analysis
A. SWOT Analysis B. PESTEL analysis
B. General Partnership C. Industry analysis
C. Porter’s five forces Analysis D. Business analysis
D. Business Analysis 586. Which is NOT a major economic prob-
lem?
581. The following are characteristics of what
economic system. private property, sys- A. How to produce?
tems of market and prices, freedom of B. What to produce?

C. When to produce? C. Because the circle represents comple-

D. For whom to produce? tion

D. Because circles are the easiest shape
587. Land, Labor, Capital, & Entrepreneurship to draw
592. A new business means new products or
A. factors of production
services available to the buyers, giving
B. labor them more choices.
C. entrepreneurship A. Impact on Households
D. opportunity cost B. Impact on the Government
588. refers to the marketing of goods and ser- C. Impact on the Community
vices to different economic outlets for al- D. Impact on the consumer
location to individual consumers. In mone-
tary terms, this is the allocation of income 593. The proponent of this kind of economic
among persons or household. system is John Maynard Keynes.
A. Capitalism
A. production
B. Communism
B. exchange
C. Mixed Economy
C. public finance
D. all of the above
D. distribution
E. consumption 594. According to the basic economic principles,
what creates wealth?
589. Co-founder of Paul Allen in Microsoft Cor- A. Voluntary Work
poration.
B. Voluntary Trade
A. Bill Gates
C. Business Transactions
B. Micheal Gates
D. Business Management
C. Bill Pangilinan
595. Perfect competition exists in a market
D. Bill Allen
containing a large number of firms and
590. Describes how consumers make decisions meets the conditions that define the
about what to buy given their income and market structure.
prices of goods and services. A. four
A. Consumption B. five
B. Consumer Theory C. six
C. Utility D. seven
D. Utility function 596. What is a factory building an example
of?
591. Why is the Circular Flow in the shape of
a circle? A. land
A. Because of the way it is B. capital
B. Because money flows from businesses C. labor
to households and back to businesses D. entrepreneurship

597. What is characterized by changes in con- 602. Which of the following is the correct for-
ditions where supply and demand are out mula for Supply Function?
of balance? A. Qs = a(b)(P)
A. Market Price B. Qs = a/b(P)
B. Market Disequilibrium C. Qs = a-b(P)
C. Market Equilibrium D. Qs = a+b(P)
D. none of above 603. One disadvantage of a corporation is
NARAYAN CHANGDER
598. According to him, economics is a science A. the corporation provides limited liabil-
of choice. ity for its owners.
A. Fajardo B. the corporation can sell stock to raise
revenue.
B. Nordhaus
C. the corporation is subject to many gov-
C. Hall and Loeberman ernment regulations.
D. Samuelson D. the corporation pays limited taxes
599. The capability of a system to expand its 604. An advantage that occurs when a busi-
total output under an increased volume of ness is able to offer the same quality prod-
work when resources are added. uct as its competitors, but at a lower price.
A. Autonomy A. differentiation
B. Big Idea B. cost leadership
C. Profitability C. alliance
D. Scalability D. defensive strategy
605. The supply of nickel, gold and other types

600. In a SWOT analysis, which among of the
of minerals that are usually difficult and
following is an external factor? a. finan-
the mining process is long belongs to
cial resources c. market shareb. politi-
cal and regulatory environment d. patents A. Elastic Supply
and trade secrets B. Unitary Elastic Supply
A. financial resources C. Inelastic Supply
B. political and regulatory environment D. Perfectly Inelastic Supply
C. market share E. Perfectly Elastic Supply
D. patents and trade secrets 606. This means an evaluation of the possible
or probable effects of external forces and
601. Steel, automobiles, airlines, aircraft man- conditions on the survival and growth of
ufacturers the business.
A. Perfect Competition A. Industry Analysis
B. Monopoly B. Environmental Analysis
C. Monopolistic Competition C. SWOT Analysis
D. Oligopoly D. Porter’s Five

607. combination of a free market economy 612. Which of the following would tend to
and a command economy. have the most elastic demand curve?

A. Market Economy A. automobiles
B. Command Economy B. luxury automobiles
C. Mixed Economy C. both automobiles and luxury automo-

biles
D. none of above
608. Which of the following does NOT belong 613. They are the wholesalers or brokers who
to the group? buy in big quantities from manufacturers.
A. price of inputs A. Manufacturer
B. tastes and preferences B. Imports
C. income C. Distributors
D. number of buyers D. SUppliers
614. In which market do businesses sell?

609. Shows the relationship between utility
and consumption. A. Product Market
A. Consumption B. Factor Market
B. Consumer Theory C. Market Economy

D. Fresh Market
C. Utility
D. Utility function 615. Defined as the market value of final prod-
ucts produced within the country
610. ABC, CBS, FOX and NBC are a great ex- A. Gross National Income
ample of this market structure
A. Perfect Competition C. Gross National Income
B. Imperfect Competition D. none of above
C. Oligopoly
616. . A business which has its own identity
D. Monopoly and is distinct from the owners is called
611. Which scenario is an example of a

A. Autonomy
monopoly?
B. Big Idea
A. A local water company is the sole
provider of water for a small town. C. Profitability
D. Scalability
B. A dry cleaner specializes in environ-
mentally friendly cleaning methods. 617. Refers to the use of economic resources
C. A farmer produces green beans for to create goods and services that will be
sale at a farmer’s market. used to satisfy human wants.
D. A small number of cereal companies A. Production

produce most of the cereal on the market. B. Consumption

C. Consumer 623. It is important that you know your com-

D. Average Product petitors and be ready for them.
A. Competition
618. This is a method used by a business to
find attributes that is important and to set B. Customers
them apart itself from its competitors. C. Suppliers
A. differentiation
D. Consumer
B. cost leadership
NARAYAN CHANGDER
C. alliance 624. Economics as a term has originated in the
9th century BC from Ancient Greek word
D. defensive strategy
619. The main difference between a credit A. oiko

union and a bank is that
B. nomia
A. banks can offer checking accounts
C. oikonomia
B. banks require minimum deposits for
savings D. okonomi
C. credit unions can offer car loans 625. Was created in the 1960’s by business
D. credit unions have membership re- gurus, Edmund P. Learned, C Roland Chris-
quirements tensen, Kenneth Adrews, and William D.
Book in their book, Business Policy, Text
620. What is course title and course code of and Cases (Irwin 1969).
our subject?
A. The SWOT Analysis
A. Economics, 123A
B. Porter Five forces of competitive posi-
B. BPPECON-Applied Economics
tion Analysis
C. BPPECON-Economics
C. Industry Analysis
D. none of above
D. Environmental Analysis
621. .... is a type of a partnership which all
general partners have unlimited liability 626. A business organized under one owner
and loan payments will extend to their per-
sonal property. A. cooperative
A. General Partnership
B. small business
C. partnership
D. SWOT Analysis
627. An example of a stored-value card
622. Current Economic Problem/issue
A. Coorona Virus A. credit card
B. Khorona Virus B. debit card

C. Coronona Virus C. gift card
D. Corona Virus D. insurance card

628. What is the field of economics that stud- C. Physical environment

ies Economics as a whole? D. Culture and Lifestyle

A. Macroeconomics
634. Which of the following Internal Factor as
B. Microeconomics money and sources of funds for invest-
C. Nanoeconomics ment?
D. Gigaeconomics A. Financial Resources
B. Personal Resources
629. The benefit you give up because you
choose to take one action in favor of an- C. Human Resources
other. D. Natural Resources
A. Comparative advantage
635. .... is a means to understand the busi-
B. Absolute advantage ness’ position relative to other partici-
C. Opportunity cost pants in the industry.
D. Trade-off A. Industry Analysis
B. Business Analysis
630. It is the expansion of human needs:
A. Human Resources
D. SWOT Analysis
B. Natural Resources
C. Allocation 636. This type of good has a positive elasticity
and is greater than one.
A. normal necessity
631. Describes very little a change in demand B. normal luxury
with a large change in price
C. inferior
A. elastic
D. none of above
B. inelastic
637. Private Ownership
C. demand curve
A. Capitalism
D. price
B. Communism
632. A situation where there is a general in-
C. both a & b
crease in prices and fall in the purchasing
value of money D. none of these
A. Scarcity 638. In a business competition, what is your
B. Inflation aim?
C. Supply A. To convince all their suppliers.
D. Disequilibrium B. Identify the weakness of your competi-
tor.
633. .... This factor includes, fiestas, celebra- C. To embarrass or humiliate other com-
tion of Christmas season, trends in Con- petitors
sumption.
D. Win the customers of your competitor
A. Economic Forces and convince them to buy from you instead
B. Political Factors and remain as loyal customer.

639. What does “There’s no such thing as a C. market structure

free lunch” mean? D. labor
A. Some things cost nothing.
644. If one monopolistic competitor raises the
B. Most things cost nothing. price too much, most customers will buy
C. Most things cost something. another brand, or substitute, of the same
D. Everything costs something. good, that’s why competitive is es-
pecially important in monopolistic compe-
640. Indicate which economic resource does tition.
NARAYAN CHANGDER
the following term belongs to. MINERALS A. reports
A. LAND B. advertising
B. LABOR C. quality product
C. CAPITAL D. quality service
D. ENTREPRENEURSHIP
645. The market structure that involves the
641. One firm dominates the market, barriers most competition.
to entry, possibly supernormal profit. A. Pure monopoly
A. Perfect Competition B. Oligopoly
B. Monopoly C. Monopolistic competition
C. Monopolistic Competition D. Perfect competition
D. Oligopoly 646. Which is not the basic element of strate-
642. An increase in the price of electricity bill gic management?
will force you to: A. Environmental scanning
A. increase your demand for kerosene B. Strategy Formulation
heaters and coal. C. Strategy implementation
B. increase your demand for light bulbs D. Management Control
and aircon.
647. What is the value of price if the demand
C. increase your demand for stereos and
function is Qd = 18-3P and the Qd is equal
videokes.
to 12.
D. increase your demand for TVs and use
A. 1
of gadgets.
B. 2
643. Refers to the competitive environment in
C. 3
which buyers and sellers operate. In the
Philippines and other related economic sys- D. 4
tems, buyers and sellers exchange goods
648. the price at which a good is bought and
and services in many competitive markets.
sold in a market equilibrium is called
Markets exist wherever buyers and sell-
ers come together to buy and sell their A. retail price
goods and services. B. equilibrium price
A. competition C. discount price
B. market D. base price

649. What do you call to the workers who 654. Economy where everyone has a set role
work 40 hours or more? defined by custom

A. Labor Supply A. mixed
B. Full-Time Workers B. market
C. Part-time Workers C. command

D. traditional
D. Population
655. Defined as:to bring in a product or service
650. The cost of time and information needed from another country.
to carry out market exchange.
A. imports
A. Shortage
B. goods
B. Transaction Costs
C. services
C. Role of Prices D. exports
D. Market Costs
656. This type of marketsystem adopts a
651. Which of the following cause/s the limi- laissez-faire approach or the idea that the
tation of the natural resources? government should notinterfere with in-
dustries or businesses.
A. Time
A. Command economy
B. Difficulty to produce
B. Communism
C. Both A and B C. Free market economy
D. None of the above D. Socialism
652. Equilibrium wage results from 657. Work stoppage used to convince an em-
A. an equal supply and demand of labor ployer to meet union demands
A. labor union
B. a fluctuating supply and demand of la-
bor B. strike
C. a shortage of labor C. laziness
D. a surplus of labor D. boycott
658. What is a Lorenz Curve?

653. The main objective of SWOT is to
A. It shows the share of various house-
A. It can identify business risks and re- hold groups on the total national income.
wards.
B. It is a measure of income inequality de-
B. It can also a way of identifying the in- rived from another Lorenz Curve.
ternal and external forces that may affect
C. The curve of the body of Lorenz
the business.
C. Analyze framework that can help a
company meet its challenges and identify 659. This will be the cheapest source since
new markets. there is no middle men involved.
D. All of the above. A. Imports

B. Distributor C. Financial Market

C. Manufacturers D. none of above
D. Customer 665. The following are the factors of produc-
tion except
660. These are an important legal barriers that
give rise to monopolies. A. Land
A. Patent, Copyright B. Capital
C. Labor
NARAYAN CHANGDER
B. Signature, Dry Seal
C. Money-laundering, Corruption D. Allocation
D. Taxes, Interests 666. A farmers market is an example of

A. Pure monopoly
661. Which would be most likely to be a “con-
sumer good? ” B. Oligopoly
A. Lumber C. Monopolistic competition
B. Iron Ore D. Perfect competition
C. Chainsaw 667. What do you call the cost that includes

opportunity costs of resources owned and
D. none of above
used by the firm’s owner?
662. The process of transferring goods and A. Opportunity costs
services to a person or persons in return B. Implicit Costs
for something. At present, the medium
of exchange used in the market is money. C. Utility costs
This means, we can exchange our money D. Explicit Costs
with goods and services.
668. Which is an example of service?
A. production
A. buying lunch
B. public finance
B. buying new shoes
C. consumption C. going to see a movie
D. exchange D. visiting the door
E. distribution
669. Defined as:an organized money system.
663. The following are examples of agribusi- A. service
ness except:
B. economy
A. Hog Raising C. trade
B. Furniture Making D. tariff
C. Cattle Farming
670. It has the largest number of firms trying
D. Poultry Raising to sell their products?
664. The most common type of market be- A. Perfect competition
cause it is where we buy consumers goods. B. Monopolistic competition
A. Goods Market C. Oligopoly
B. Labor Market D. Monopoly

671. this factor of production is paid in the B. Focuses on the financial status of a
form of rent or lease. country

A. land C. Distinguish as Applied and Social Sci-
B. labor ence
C. capital D. Classified as the way to know the be-

havior of consumers.
D. entrepreneur
677. The wage at which the number of work-
672. Father of modern economics
ers needed equals the number of workers
A. Alexander Hamilton available is called
B. Adam Smith A. balanced wage
C. Mr. Weissinger B. fair wage
D. none of these C. equilibrium wage
673. This field of economics looks at the econ- D. minimum wage
omy as a whole.
A. Microeconomics 678. I am a resturant owner and i need to
buy supplies for my business.which indus-
B. Macroeconomics try would i buy from?
C. Applied Economics A. wholesale
D. Social Economics B. agricultre
674. A very large number of firms. Identical C. manufacturing
products are offered for sale like rice, corn
D. service
vegetables, meat, among others. Buyers
and sellers are able to enter leave the mar- 679. Competitive advantages that can also be
ket. gained by business that seek cooperation
A. Pure or Perfect Competition within or related industries is termed as
B. Pure Monopoly
C. Monopolistic competition A. Alliance
D. Oligopoly B. Cost-leadership
C. Defensive strategy
675. Lower prices typically
D. Threats
A. discourage consumers from buying
B. discourage producers from leaving a 680. Refers to the production of goods and ser-
market vices by concerning the inputs into outputs
C. motivate consumers to buy and or creation of utilities to customers.
D. motivate producers to enter a market A. Industry

B. Primary Industry
676. What is Economics?
C. Secondary Industry
A. It talks about the needs and wants of
an individual D. Service Industry

681. Only one seller in a market 686. He was the 39th richest man in the Philip-
pines With a net worth of US$ 39 million.
A. Manuel L. Quezon
B. monopoly
B. Manuel V. Pacquiao
C. Manuel V. Pangilinan
D. oligopoly
D. Manuel C. Aquino
682. Your leading product has a 30% market 687. An example of a loan
NARAYAN CHANGDER
share which is 10% higher than your best
A. cash
competitor. Where would you analyze this
information in SWOT analysis? B. check
A. Weaknesses C. credit card

D. stored-value card
B. Strengths
C. Threats 688. Which describes a demand curve?
A. horizontal line
D. Opportunities
B. slopes downward
683. In this economic system the government C. slopes upward
is the one who is in control of the produc-
tion of goods. D. bow-shaped
A. Traditional 689. Relates to the analyzing and separating

different component from a single mate-
B. Command rial.
C. Market A. Extractive Industry
D. Mixed B. Genetics Industry
C. Analytical Industry
684. emphasizes the freedom of individuals as
consumers and suppliers of resources. D. Synthetic Industry
A. Market Economy 690. Deals with the economic behavior of the

whole economy or its aggregates such as
B. Command Economy
government, business and households.
C. Mixed Economy A. Microeconomics
D. none of above B. Mathematics
685. .... involves a look at income of the peo- C. Macroeconomics

ple, economic conditions such as inflation, D. Econometrics
recession, prosperity, demand, and supply
691. Factors of Demand
in the market.
A. Changes in income
A. Economic Forces
B. Prices or availability of substitutes
B. Social Forces
C. Prices or availability of complemen-
C. Porter’s five forces Analysis tary goods
D. Political Forces D. Changes in number of buyers

692. Includes the stock market securities of 697. Household supply their savings, for inter-
corporations are traded. est or for claim to future profits

A. Goods Market A. Capital market
B. Labor Market B. labor market
C. Financial Market C. Market market
D. none of above D. land market
693. Refers to the resources used to produce 698. How do governments get their money?
goods and services. A. Tax Businesses
A. Input B. Tax Households
B. Output C. Tax both Businesses and Households
C. Process D. They print their own money
D. Function 699. It is the study of the decisions made by
people and business regarding the alloca-
694. workers without any paid employee-an tion of resources, and prices at which they
individual who works for himself/herself trade goods and services.
instead of working for an employer.
A. Microeconomics
A. wage and salary
B. Macroeconomics
B. self-employed
C. Production
C. unpaid family workers
D. Allocation
D. none of above
700. When price is inelastic,
695. Which of the following is/are element/s
A. price elasticity of demand is less than
of strategic management is statement
1
of purpose (strategic intent) committing
the organization to ambitious overarching B. consumers are not very responsive to
(stretch) objectives? changes in price
A. Environmental scanning C. the percentage change in quantity de-
manded resulting from a price change is
B. Strategy Formulation less than the percentage change in price.
C. Strategy implementation D. all of the above are correct
D. All of the above E. none of the above is correct
696. The society would always consider the 701. The study of how individuals, institu-
immediate beneficiary of the goods. tions, and society make optimal choices un-
A. What to produce? der the conditions of scarcity is
B. For whom to produce? A. Allocation
C. How to produce? B. Deregulation
D. What provisions/laws should be C. Economics

made. D. none of above

702. Which is NOT a basic type of business B. Demand for new cars shifts to the left.
ownership?
C. Demand for new cars has no shift
A. proprietorship
D. Demand for new cars either has or no
B. partnership shift
C. corporation
708. In which market structure is there the
D. retail
LEAST competition?
NARAYAN CHANGDER
703. Something we use from nature. A. Monopoly
A. natural resource B. Oligopoly
B. human resource C. Monopolistic Competition
C. capital resource
D. entrepreneur
709. .... is a significant tool or a guide for
704. Is the work done by people with educa- assessing and evaluating the competitive
tion, skills and motivation and productiv- strength and position of a business organi-
ity zation.
A. capital
A. Porter’s five forces Analysis
B. entrepreneur
C. labor
C. PESTLE Analysis
D. land
D. SWOT Analysis
705. Loss of control is a disadvantage
A. sole proprietorship 710. The study of economics is important be-
cause it enables us to
B. partnership
A. Describe our standard of living
C. corporation
B. Increase our consumption of con-
D. franchise
sumer goods
706. It is a transactions made wherein goods C. Become better decision makers
& services go out of country made for dis-
tribution to other countries. D. none of above
A. Protectionism 711. The Dow Jones industrial average swept
B. Import past 12, 000 for the first time. Investors
are increasingly optimistic about corporate
C. Free Trade
earnings and the economy. This achieve-
D. Export ment MOST likely involved which type of
business organization?
707. Economies experience an increased in un-
employment and a reduced ofactivity dur- A. proprietorship
ing recession. How does recession affect
B. partnership
the market demand for new cars?
C. corporation
A. Demand for new cars shifts to the
right. D. conglomerate

1.19 Business Economics 745
712. Refers to the gap in income that exists 715. all the economic decisions are taken by
between the rich and the poor. the government-what, how and whom to
produce.

A. unemployment
B. poverty A. Market Economy
C. income inequality B. Command Economy
D. quality of infrastructure C. Mixed Economy

D. none of above
713. When the given resources insufficient to
meet the population’s needs and wants. 716. Mr. Martin’s business has an asset of
There is a Php15, 000, 000 to 60, 000, 000, what
A. Scarcity scale of business does he have?
B. Relative Scarcity A. Small business
C. Absolute Scarcity B. Large business
D. Opportunity Costs C. Medium business

D. Micro business
714. GoPro & Red Bull. Pottery Barn &
Sherwin-Williams. Casper & West Elm. 717. It is the natural resources that are found
are examples of in nature (not man-made).
A. partnerships A. Labor
B. sole proprietorship B. Land
C. franchise C. Capital
D. corporation D. Investment
1.19 Business Economics

1. Which business activity is comprised of D. reduce the wage rate but boost em-
day-to-day functions? ployment
A. Financial 3. A nation’s transportation, communication,
B. Investing and utility systems.
C. Operations A. infrastructure
D. none of above B. privatization

C. factors of production
2. The introduction of a minimum wage in a D. interstate commerce
labour market will:
A. raise employment and lower the wage 4. A major disadvantage of a is the dou-
rate ble taxation of profits.
A. Proprietorship
B. raise the wage rate and increase em-
ployment B. Partnership
C. raise the wage rate and decrease em- C. Corporation
ployment D. Franchise

5. Hammers, pencils, and computers are ex- 11. The quantity of a good or service that con-
amples of sumers are willing and able to buy.
A. Land A. Economic System
B. Labor B. Market Price
C. Capital C. Demand
D. Entrepreneurship D. Needs
NARAYAN CHANGDER
6. When the TU is maximum then MU is? 12. what is a subsistence economy?
A. Zero A. an economy directed to basic subsis-
B. Negative tence rather then to the market
C. Both B. type of economic system where invest-
D. None. ment, production and the allocation of cap-
ital goods take place
7. This is NOT part of the secondary sector C. an economic system in which pri-
A. Energy Industries vate individuals or businesses own capital
goods
B. Construction
D. none of above
C. Base industries
D. Transport 13. This type of business is owned by many
people called shareholders.
8. The World’s richest entrepreneur is:
A. Sole Trader
A. Bill Gates-Microsoft
B. Partnership
B. Gina Rhinehardt-Rio Tinto
C. Limited Company
C. Jeff Bezos-Amazon
D. Franchise
D. Queen Elizabeth II
14. What is the abbreviation for PPC?
9. Which of the following is a variable cost
for a business? A. Possibility Production Curve
A. manager salary B. Production Possibility Curve
B. wages C. Production Possible Choice
C. electric bill for security lights D. Possibility Production Frontier
D. payment for a license to operate
15. Which of the following would be an expan-
10. Who or what answer the basic economics sionary fiscal policy (increasing economic
questions in a mixed economy? growth)?
A. Individuals and Businesses A. lowering income tax
B. Custom B. raising the value of £
C. Government C. printing money
D. Individuals, Businesses and Govern- D. lowering government expenditure
ment (spending)

16. Which economic activity would i such as B. in the home

thinking, research and developing new C. steam engines and other cottage-
ideas fall under?

sized macines
A. Primary D. cheese and pastries
B. Secondary
22. “Teach a person to start a fish farm, and
C. Tertiary
he or she will be able to a village for
D. Quaternary a lifetime.”
17. Exploitation and inequality are minimal un- A. feed
der: B. help
A. Socialism C. support
B. Mixed economy D. teach
C. Capitalism
23. Advantages include limited liability for
D. All of the above owners, unlimited life, and ease of trans-
fer of ownership.
18. Agency that is responsible for protecting
consumers from unfair or deceptive busi- A. Sole Propriotorship
ness practices. B. Partnership
A. Federal Trade Commission C. Corporation
B. Better Business Bureau (BBB) D. Franchise
C. Consumer Product Safety Commission
24. Micro economics is a study of
D. none of above A. Whole economy
B. General price level
19. Which of the following is not the problem,
a country will have to face due to rapid C. National Output
inflation D. individual economic unit
A. Real income will fall
25. According to the circular flow model, which
B. Increase in prices of produced goods of the following is TRUE?
C. more jobs will be created A. Firms supply resources and house-
D. living standard will fall holds demand outputs
B. Households supply resources and
20. Who is the father of modern economics?
firms supply output
A. Adam Smith
C. Firms supply both the resources and
B. Thomas Malthus output used in production
C. Donald Trump D. Households demand both resources
D. none of above and outputs
21. The cottage industry system involved 26. Which form of business is the easiest for
manufacturing- beginners?
A. of hand made luxury goods A. Partnership

B. Corporation 32. The heart of economics is

C. Sole Proprietorship A. wants.
D. Merchandising B. resources.
C. trade-offs.
27. demand forecasting is related to the
business conditions prevailing in the econ- D. decision-making.
omy as a whole
33. is the name of a free-market economic
A. Macro level
NARAYAN CHANGDER
system in which most of the factors of pro-
B. Industry level duction and distribution-such as land, fac-
tories, railroads, and stores-are owned by
C. Firm level
individuals.
D. None of these
A. Socialism
28. When a person who is actively searching B. Capitalism
for employment is unable to find work,
C. Communism
this is
D. Marginalism
A. expansion
B. inflation 34. If businesses can decrease the amount of
labor needed to increase inventories, the
C. unemployment result will most likely be-
D. consumption A. increased taxes
29. Things available to be used to produce B. economic growth
goods and services. C. increased inflation
A. Capitalism D. decreased productivity
B. Economic Resources
35. Indifference curves between income and
C. Mixed Economy leisure for an individual are generally:
D. Demand A. Concave to the origin
30. Which government tax provides free B. Convex to the origin
healthcare to Australians? C. Negatively sloped straight lines
A. Health tax D. Positively sloped straight lines
B. Medibank
36. Which of the following is NOT a business
C. HBF organization?
D. Medicare A. Sole Proprietorship
31. a firm legally ceases to exist when an B. Corporation
owner dies, quits, or sells the business C. Perfect Competition
A. nonprofit organization D. Partnership
B. collective bargaining 37. McDonald’s and Subway are examples of
C. credit union a
D. limited life A. Joint-Venture

B. Franchise 43. What is a disadvantage of the economic

C. Non-Profit Corporation system in the previous question?

D. Cooperative corporation A. Strong social network
38. No paperwork (charter or agreement) is B. Lack of current technologies

required to start which type of business? C. Weak social network
A. Partnership D. Inequities in wealth
B. Franchise
C. Sole Proprietorship 44. Business Economics is
D. Corporation A. Abstract and applies the tools of Micro

economics
39. What does GST stand for?
B. Involves practical application of eco-
A. Gross Supply Trade nomic theory in budiness decision making
B. Goods and Services Trade
C. Incorporate tools from multiple disci-
C. Goods and Supply Tax plines
D. Goods and Services Tax D. (b) and (c) above.
40. Which of the following would be an expan-
sionary monetary policy (increase in eco- 45. What can a Government do to increase
nomic growth)? standards of living?
A. raising wages of prison staff A. Increase the cost of living

B. raising interest rates B. Reduce spending on services
C. lowering interest rates C. Nothing
D. lowering government spending D. Boost economic growth
41. “Economics is the Science which studies hu-
46. is the change in total revenue irrespec-
man behaviour as a relationship between
tive of changes in price or due to the effect
ends and scarce means which have alter-
of managerial decision on revenue
native uses”-These lines are attributed to
A. Samuelson A. Average revenue
B. Lionel Robbins B. Total revenue

C. Robertson C. Marginal revenue
D. Marshall D. Incremental revenue
42. What is the term that describes when the 47. What is economics?
amount of goods produced is about the
same as the number of consumers who are A. The study of unemployment
willing to buy the product? B. The study of the Australian economy
A. risk
C. The study of how limited resources are
B. supply used to meet the unlimited wants of peo-
C. demand ple in society
D. equilibrium point/market point D. The study of GDP

48. If a general partnership fails, who is re- C. Exterminates

sponsible for the debts? D. Externalities
A. anyone who works for the partnership
54. Consider the following and decide, which
B. all of the partners
economy (if any) is without scarcity
C. only the most senior general partner
A. American economy
D. no one
B. Chinese Economy
49. If my total costs are $50 and my total rev-
NARAYAN CHANGDER
C. Post independence Indian economy
enue is $80, what is my profit
A. $130
B. $80 55. This type of business is owned by two or
more people.
C. $30
D. $400 A. Sole Trader
B. Partnership
50. A science that examines how goods and
services are produced, sold, and used is C. Limited Company
called D. Franchise
A. Economics
56. Who is the person who is in charge of op-
B. Social Studies erating systems for gathering, organizing,
C. Biology and distributing information?
D. Chemistry A. information systems manager
51. A small business/enterprise would have B. operations manager

C. communications manager
A. 10-49 persons employed. D. research and development manager
B. 250 or more persons employed. E. production manager
C. 50-249 persons employed.
57. A business that is generally quite large
D. less than 10 persons employed. and has many investors/owners, know as
52. Which type of business has a greater sta- shareholders
bility and expertise to run the business? A. Cooperative
A. Sole Trader B. Corporation
B. Partnership C. Partnership
C. Both D. Sole Trader
D. Neither
58. Australia’s biggest trading partner is
53. What is the term for the restrictions that
A. USA
government places on harmful products
and/or services? B. Japan
A. Taxes C. Mongolia
B. Externations D. China

59. is the tendency in a free market for the C. A decrease in government regulations
price to change until market clears. D. An increase in the cost of raw materi-

A. 1.shortage als
B. 2.market mechanism 65. A major disadvantage of a is strict op-
C. 3.surplus erating standards.
D. 4.none of the above A. Proprietorship
B. Partnership
60. Mary Ann sells government produced cars.
At the end of the month Mary Ann must C. Corporation
give all of the money she made back to D. Franchise
the government.
66. The type of government where the govern-
A. Market System
ment or a central-planning committee reg-
B. Command System ulates the amount, distribution, and price
C. Traditional System of everything produced.
D. Mixed System A. command economy
B. mixed economy
61. Cardinal approach is related to:
C. market economy
A. Indifference curve
D. none of above
B. Equi-marginal utility
C. Law of diminishing returns 67. The point where supply and demand are
equal.
D. None of these
A. Market Price
62. Which type of business organization has B. Trade-off
the advantage of limited liability but the
disadvantage of less control over business C. Services
decisions? D. Scarcity
A. perfect competition 68. Market structure characterized by a single
B. partnership firm dominating the market.
C. sole proprietorship A. Oligopoly
D. corporation B. Purely Competitive
C. Monopoly
63. Why Study Economics?
D. Monopolistic competition
A. I have to do it
B. I want to learn about the stock market 69. Macroeconomics is also called eco-
nomics
C. To learn how to deal with scarcity
A. applied
D. none of above
B. aggregate
64. Which factor might cause an increase in the C. experimental
supply of a product?
D. none of the above Macroeconomics is
A. A decrease in productivity also called economics none of the
B. Fewer sellers in the marketplace above aggregate experimental applied

70. Labour intensive technique would get cho- C. Command Economy

sen in D. Demand
A. Capital surplus economy
76. is the practice of buying at a low price
B. Labour surplus economy in one location and selling at a higher price
C. Developed economy in Another
D. Developing economy A. 1. Barter System
B. 2. Arbitrage
NARAYAN CHANGDER
71. Which of the following is a natural re-
source used to produce a hamburger? C. 3. Free Trade
A. Cow D. 4. International Trade
B. Cheese 77. When supply goes up, what happens to
C. Dough for the Bun the price?
D. Ketchup A. price goes up
B. price goes down
72. Which of the following is not the feature
of capitalist economy: C. price remains the same
A. Right to private property. D. none of above
B. Freedom of economic choice. 78. Income tax is a
C. Collective ownership A. direct tax
D. Consumer Sovereignty B. voluntary tax
73. two goods for which the marginal rate of C. indirect tax
substituion of one of the other is constant D. sales tax
are called
79. is the term for all activities involved in
A. 1.perfect substitutes developing and exchanging products.
B. 2.perfect complements A. Business
C. 3.perfect elastic B. Entrepreneurship
D. 4.none of the above C. Economics
74. When people are employed on short term D. Corporation
contracts it is an example of:
80. What do you mean by a mixed economy?
A. Command Economy
A. Modern and traditional industries
B. Casualisation
B. Public and Private sectors
C. Outsourced Labour
C. Foreign and domestic investments
D. Full-time work
D. commercial and subsistence farming
75. The process of choosing which needs and 81. good whose demand curve slopes upwards
wants will be satisfied. because the income effect is larger than
A. Economic Decision Making the substituition effect is called
B. Goods A. 1.giffen good

B. 2.complementary goods 87. A is a check that transfers a portion of

C. 3.precious goods the corporate earnings to an individual.

D. 4.none of the above A. Stock
B. Dividend
82. What usually happens to inflation during a
C. Payment
recession?
D. Bonus
A. it stays the same
B. it decreases 88. is the list with specific quantities of
one or more goods
C. it increases
A. 1.consumer preferences
D. it is zero
B. 2.market baskets
83. Micro economics theory studies how a free
C. 3.consumer behavior
enterprise economy determines:
D. 4.none of the above
A. The price of goods
B. The price of services 89. All of the following are basic economic
questions except
C. The price of economy resources
A. What to produce?
D. All of the above
B. When to produce?
84. Producers and consumers determine how C. How to produce?
to use resources and make goods based on
supply and demand in the market, without D. For whom to produce it for?
government interference. 90. ind the price per unit P that produces
A. Command System the maximum profitC= 100+30 x Demand
B. Traditional System function P=90-x
C. Market System A. 60 $
D. Mixed System B. 60$

C. 80$
85. A consumer can be defined as
D. 90$
A. the final user of goods and services
91. shows various combinations of two
B. someone who loves to eat
products that give same amount of satis-
C. someone who makes goods and ser- faction:
vices
A. ISO cost curve
D. someone who consumes a lot
B. Indifference curve
86. When two goods are perfect complemen- C. Marginal utility curve
tary, the indifference curve is:
D. ISO quant
A. A straight line
92. What type of business is owned by small
B. U shaped group who have entered into an agree-
C. L-shaped ment?
D. Circular in shape. A. Corporation

B. Sole proprietorship C. Co-existence of urban and reral sec-

C. Partnership tors in an economy
D. Franchise D. Co-existence of Large and small indus-

tries in an economy
93. Which of the following is not a central eco-
nomic problem? 98. Which type of business organization
places all the liability on a single seller?
A. What to produce?
NARAYAN CHANGDER
B. When to produce?
C. How to produce? B. Partnership
D. For whom to produce? C. Corporation
D. none of above
94. What happens when supply is bigger than
demand? 99. A gap between unlimited wants and lim-
A. Surplus ited resources creates
B. Shortage A. scarcity.
C. Inflation B. economics.
D. Equlibrium C. wants.
95. Globalisation can be defined as D. resources.
A. Economic transactions that are made
100. A is business owned and run by a sin-
between countries
gle individual.
B. The exchange of goods and services
among individuals and businesses in mul- A. Sole Proprietorship
tiple countries B. Partnership
C. The process of interaction and integra- C. Corporation
tion among people, companies, and gov-
ernments worldwide D. Franchise
D. A change in global or regional climate 101. The term “Slam “ is associated with
patterns
A. Cricket
96. What is an entrepreneur? B. Tennis
A. A person who starts a new business. C. Boxing
B. A leader of a country.
D. Football
C. A worker in a factory.
D. A student in college. 102. A building is an example of which eco-
nomic resource?
97. The term mixed economy denotes A. Natural
A. Co-existence of consumer and pro-
B. Human
ducer’s goods industries in an economy
C. Capital
B. Co-existence of private and public sec-
tor in an economy D. I need more information.

103. Which of the following is not a positive A. net income

economic statement? B. inventory

A. Unemployment rate decreases with in- C. limited life
dustrialization
D. credit union
B. Economics is a social science that stud-
ies human behaviour. 108. Who is called the father of economics?
C. Looking at the current condition of A. Max Muller
farmers, the government is expected to B. Karl Marx
decrease the rate of interest on loan. C. Adam Smith
D. India spends a huge amount of money D. None of these
on national defense.
109. Disadvantages include double taxation
104. A strategic factor of the environment, is and more government regulation
an opportunity if you expect to have
A. Sole Propriotorship
A. A positive and relevant impact on your
B. Partnership
results.
C. Corporation
B. A positive impact on your results.
D. Franchise
C. A relevant impact on your results.
D. None of the answers are correct. 110. Resources such as buildings, equipment,
and factories.
105. Consider the following and decide which,
A. Human Resources
if any, economy is without scarcity:
B. Capital
A. The pre-independent Indian economy,
where most people were farmers. C. Entrepreneurship
B. A mythical economy where everybody D. Natural Resources
is a billionaire. 111. Monopolies are good because
C. Any economy where income is dis- A. prices are higher
tributed equally among its people.
B. options are reduced, making decisions
D. None of the above. easier
106. What is the Economic Problem? C. forces other firms to quit
A. There are unlimited resources to sat- D. they are regulated by the government
isfy our limited needs and wants
112. In every economic system, scarcity im-
B. It is very difficult to learn poses limitations on
C. There are too many producers and not A. households, business firms, govern-
enough consumers ments, and the nation as a whole
D. There are limited resources to satisfy B. households and business firms, but
our unlimited needs and wants not the governments
107. financial organization that accepts de- C. local and state governments, but not
posits from, and makes loans to, employ- the federal government
ees of a particular company or government D. households and governments, but not
agency business firms

113. What are Wants? 118. A form of business organization with one
owner who takes all the risks and all the
A. These are goods and services which
profit is called-
human beings cannot live without.
A. partnership
B. These are goods and services which
human beings desire but can live without. B. proprietorship
C. corporation
C. All the above.
D. governorship
D. none of above
NARAYAN CHANGDER
119. What kind of business specializes in per-
114. The quantity of a good or service that con- forming services for the consumers?
sumers are willing and able to buy at a par- A. Corporation
ticular price during a specific time period.
B. Service Business
A. Demand C. Hybrid Business
B. Supply D. Partnership
C. Price 120. What is NOT a source of income?
D. Production Cost A. Social welfare payments
B. Profit from capital
115. Basic economic problems exist because of
C. Wage from labour
A. needs.
D. Rent from land
B. capital resources.
121. A bank will NOT provide
C. scarcity.
A. Personal loans
D. economic resources.
B. Overdrafts
116. A budget constraints line is a result of: C. Packaged holidays
A. Market price of commodity X D. Savings accounts
B. Market price of commodity Y 122. Which of the following definitions of eco-

nomics includes the economic concept of ‘
C. Income of the consumer scale of preferences’?
D. All of these A. Wealth defintion
B. Welfare definition
117. Which of the following is the best exam-
ple of a business’s economic decision? C. Scarcity definition
A. hiring part-time employees to save on D. None of the above
costs 123. The main disadvantage of a is that
B. Endorsing an independent candidate in each person is fully responsible for the acts
state elections of all other persons.
C. updating directions to your office on A. Proprietorship

the company website B. Partnership
D. Following up with a customer after she C. Corporation
exchanged an item D. Franchise

124. Which type of market structure has many C. Purchasing

producers (companies) that sell very sim- D. Marketing
ilar products and have almost no control

over price? 130. Decreased government spending may re-
A. Competitive markets sult in taxes.
B. Oligopoly A. higher
C. Monopoly B. more
D. none of above C. lower
125. Things you can see or touch. D. none of above
A. Goods 131. What words describes too much of a

B. Opportunity Cost product in the market?
C. Producers A. Scarcity
D. Needs B. Surplus
C. Shortage
126. Which one of these is the impact of unem-
ployment? D. Supersized
A. Crime rate increase 132. This business takes raw materials and
B. All of the above mass produces goods. Usually it uses
C. Decrease in the country’s GDP robots, computers, assembly lines, and hu-
man labor to make goods.
D. Political disturbance
A. Proprietorship
127. In which of the following would one per- B. Partnership
son be responsible for all of the risks but
also receive all of the profits? C. Merchandising Business
A. Corporation D. Manufacturing Business
B. Propreitership 133. APC stands for:
C. Partnership A. Average Proportion to Consume
D. Dual owner business B. Average Propensity to Consume
128. The current economic system in the U.S. C. Alternate Propensity to Consumption
is D. Average Propensity of Consumers
A. Mixed (Market/Command)
134. What is the production possibilities
B. Mixed (Market/Traditional)
curve?
C. Command
A. a graph that shows how much an econ-
D. Traditional omy can produce between 2 goods
129. Where a business is able to buy new tech- B. how much money something is
nology and machinery due to it being large C. the opportunity one has to give up in
A. Technical order to gain something else
B. Managerial D. land, labor, capital, entrepreneurs

135. voluntary association that buys bulk A. the Internet

amounts of goods on behalf of its mem- B. groupware
bers
C. a data communication network
A. unlimited liability
D. electronic conferencing
B. depreciation
C. partnership 141. A person who buys and uses goods and
services.
D. consumer cooperative
NARAYAN CHANGDER
A. Wants
136. A market dominated by a few large firms B. Trade-off
is called:
C. Consumer
A. Oligopoly
D. Market Economy
B. Labour Market
142. Which one of the following is not part of
C. Monopoly
the business cycle?
D. Government intervention
A. Growth
137. Which is NOT a question all societies B. Slump
have to answer due to scarce resources? C. Recession
A. When will products be produced? D. Maturity
B. How will products be produced?
143. Which of these is an example of govern-
C. What products will be produced? ment expenditure?
D. Who will gets access to the resources A. Social Security and Benefits
and the products they produce?
B. Company tax
138. a check that transfers a portion of the cor- C. Sales tax (GST)
porate earnings to a stockholder
D. Fuel excise
A. dividend
144. What is the fundamental role of fiscal pol-
B. partnership
icy?
C. cash flow
A. controlling the budget deficit
D. net income
B. establishing automatic stabilisers
139. What is the main idea of the section C. reducing government regulations
“Money Matters”?
D. making revenue and expenditure deci-
A. Money is power. sions
B. Money is a luxury.
145. Interdependence refers to:
C. Everyone needs money. A. The cyclical relationship between the
D. Money has changed over time savings and investment sectors of the
economy
140. What is a computer-based system that
allows people to communicate simultane- B. The dependence of workers on wages
ously from different locations via tele- C. The reliance that exists between all
phone, e-mail, or video? participants in the economy on each other

D. Solving unlimited needs and wants 151. The value of one nation’s currency versus
with limited resources the currency of another nation is called

146. Price of a product falls by 10% and its A. growth
demand rises by 30%. The elasticity of B. recession
demand is:
A. 1. 1%
D. exchange rate
B. 2.5%
C. 3. 3 152. (A) There is similarity between Robbins’s
D. 4. 1 definition and Samuelson’s definition(B)
Samuelson’s definition is not only dynamic
147. what is a market? in content; it is also wider in scope.Of
A. where you can buy new dresses these
B. where you can text people back and A. A is true, but B is false
fourth B. A is false, but B is true
C. where you go to draw out money
C. Both A and B are true
D. where buyers and sellers exchange
D. Both A and B are false
any types of goods, services and informa-
tion
153. According to Robbins, Economics is a
148. Who appoints the Vice Chairman of Niti A. Normative science
Aayog?
B. Positive science
A. Prime Minister
B. President of India C. Natural science
C. Chief Justice of the supreme court D. Social science

154. Which is not a study under micro eco-
149. Who controls the cash rate (interest rate) nomics?
in Australia? A. Consumer
A. RBA B. producer
B. CBA
C. Firm
C. Australian Government
D. General Employment
D. Qld Government
155. What factor of production is an en-
150. Which of the following is not within the
trepreneur?
scope of Business Economics?
A. Capital Budgeting. A. Capital
B. Risk Analysis. B. Enterprise
C. Business Cycles. C. Labour

D. Accounting Standards D. Land

156. The cartel model of oligopoly leads to: 161. change in consumption of a good result-
A. All the firms in the industry acting as ing from increase in purchasing power with
one to set a monopoly price relative price held constant
B. Each producer acting independently of A. 1.substitution effect

others
B. 2.income effect
C. Firms following the low-price firm in
the industry C. 3.both 1 & 2
NARAYAN CHANGDER
D. Differences in cost of production dis- D. 4.none of the above
couraging individual firms from cheating
162. What you make when you give some-
157. The study of economic behavior of an indi- thing up to have something else.
vidual firm or industry in national economy
is called as A. Trade-off
A. Micro Economics B. Demand
B. Macro Economics C. Needs
C. Business Economics
D. Wants
D. Behavioral Economics
163. The increased movement between na-
158. Which TWO of the following are exam-
tions of trade, labour, investment, finance
ples of the role of entrepreneurship? Se-
and technology.
lect TWO answers.
A. Make a profit A. Globalisation
B. Organise resources B. Macroeconomics
C. Adapt existing products C. Microeconomics
D. Make business decisions
D. Economic Model
159. A Service refers to:
164. The quantity of a good or service that
A. Physical things you can see and touch
businesses are willing and able to provide.
B. An action or skill that someone does
for you A. Producers
C. A business B. Traditional Economy
D. Physical things that you can buy C. Supply
160. What freedom did Adam Smith believe D. Market Price
was essential for an economy?
A. The freedom to not wear a mask in a 165. what is a scam?
pandemic A. a criminal
B. The freedom to own land and property
B. fake scheme to steal money or goods
and keep profits
C. The freedom of speech C. making profit
D. The freedom to practice your religion D. legally allowed due to law

166. In Economics, we use the term scarcity to 171. A person who sets up a business or busi-
mean; nesses, taking on financial risks in the
hope of profit is called?

A. Absolute scarcity and lack of re-
sources in less developed countries. A. Entrepreneur
B. Relative scarcity i.e. scarcity in rela- B. Franchiser
tion to the wants of the society.
C. Director
C. Scarcity during times of business fail-
ure and natural calamities. D. Trader
D. Scarcity caused on account of exces-
sive consumption by the rich 172. This is an assumption of law of demand
167. Individuals and organizations that deter- A. 1.Price of the commodity should not
mine what products and services will be change
available for sale. B. 2.Quantity should not change
A. Consumer C. 3.Supply should not change
B. Economic Decision Making
D. 4.Income of consumer should not
C. Producers change
D. Wants
173. The wish to have something is
168. analyses cause and effect relation-
ship but does not pass any value judgment. A. Desire
A. Positive or pure science B. Want

B. Normative science C. Need
C. None of the above D. Demand
D. All of above
174. Administered prices refer to:
169. The main economic problem faced by all
society is A. Prices determined by forces of de-
mand and supply
A. unemployment
B. Prices determined by sellers in the
B. Inequality
market
C. Poverty
C. Prices determined by an external au-
D. Scarcity thority which is usually the government
170. One advantage of a is that the owner D. None of the above
can keep the profits of successful manage-
ment without having to share them with 175. ownership certificates in a firm
other owners
A. collective barganing
A. Proprietorship
B. Partnership B. charter
C. Corporation C. stock
D. Franchise D. dividend

176. Which one of the following is not an ad- C. industrialized country

vantage of being a sole trader? D. none of above
A. Easy to set up and run
182. What do consumers, producers, and the
B. All the profits go to the owner owners of resources do with money pay-
C. Cannot be continued when the owner ments to create a flow of resources, goods,
dies services, and money payments?
D. The owner has full control of the busi- A. Exchange
NARAYAN CHANGDER
ness B. Distribute
177. A business goal is to C. Produce
A. grow D. Consume
B. fail 183. Total utility maximum when:
C. make customers unhappy A. Marginal utility is maximum
D. sell bad products B. Marginal utility is Zero
178. What is the focus of Microeconomics? C. Average utility is maximum
A. How businesses make decisions D. Average utility is Zero
B. How government manages the econ- 184. Which of the following is an economic ac-
omy tivity?
C. How individual consumers and firms A. Friends playing Chess.
make economic decisions B. Boy drawing a picture.
D. none of above C. A man polishing shoes
179. Which of the following involves Business D. Mother scolding her children for not
decision making? doing study.
A. Continue or shut down decision 185. In economics, the value of the next best
B. Launching of new product alternative is called
C. Proper debt and equity mix A. Scarcity
D. All of the above B. Productivity
C. Opprotunity Cost
180. Scarcity means:
D. Supply and Demand
A. Too much of something you wanted
B. The exact amount of something you 186. Labour is
wanted A. the human process of manufacturing
C. Not enough of something you wanted goods and services
D. none of above B. the human skills and effort required in
the production process
181. Country with little economic wealth and C. the human skills required to acquire
an emphasis on agriculture or mining. raw materials
A. less-developed country D. the human skills and effort required to
B. developing country manufacture goods and services

187. The business sector can be described as A. availability and trade-offs.

B. demand and desires.

A. producers that provide goods and ser- C. productivity and opportunity costs.
vices to satisfy the needs and wants of
D. availability and demand.
households
B. consumers that are working in the 192. The limited resources available to satisfy
business sector to earn money the unlimited needs and wants of people.
C. consumers that purchase goods and A. economics
services for the business sector B. scarcity
D. producers that provide goods and ser- C. A problem
vices to consumers in order to make a D. inflation
profit
193. In which economic system is business al-
188. “Real” GDP more accurately measures lowed to fail and succeed based on their
changes in production than Nominal GDP own merrit?
because it accounts for A. Mixed
A. changes in price B. Command
B. phases of the business cycle C. Market
C. increases in unemployment D. Traditional
D. decreases in exports 194. What are Needs?
189. State which of the following statement is A. These are goods and services which
not true. human beings desire but can live without.
A. If the recourses were unlimited, peo- B. All the above.
ple would be able to satisfy their wants. C. These are goods and services which
B. If recourse has only single use, then human beings cannot live without.
also economic problem would not arise. D. none of above
C. All countries, without exception, face 195. What is the relationship between quan-
problem of scarcity. tity supplied and price?
D. Developed countries do not face Cen- A. a. They are not related.
tral Economic Problems
B. a. They are directly related.
190. The type of economic system a country C. They are inversely related
has is based on: D. They are related through demand.
A. wants and needs.
196. An Economy in which the resources are
B. the amount of government involve- owned and controlled by the people of the
ment in the marketplace. country.
C. the scarcity of resources. A. Producers
D. where resources are available. B. Mixed Economy
191. Two factors involved in determining the C. Market Economy
value of a resource, good, or service are D. Supply

197. What effect does rising interest rates 202. Who was the first economist who used
have on consumer spending? the term ECONOMIC in the place of politi-
A. Increases spending cal economy?
B. Decreases spending A. Alfred Marshall
C. Neither increases or decreases spend- B. Lionel Robbin
ing C. J.M. Keynes
D. Both increases and decreases spend- D. Paul. A. Samuelson
NARAYAN CHANGDER
ing
203. Rational decison making requires that:
198. The measure of the aggregate price level
of intermediate products and wholesale A. one’s choices be arrived at logically
goods and without error.
A. 1. Consumer Price Index B. one’s choices be consistent with one’s
goals.
B. 2. Product Price Index
C. 3. Producer Price Index C. one’s choices never vary.
D. 4. Market Price Index D. one make choices that do not involve

trade-offs.
199. Costs incurred by a business when man-
ufacturing a good or producing a service 204. maximum amount of money that a risk
(including raw material and labor) averse person will pay to avoid taking a
risk is called
A. Production Cost
B. Opportunity Cost A. 1.risk premium
C. Trade B. 2.risk neutral

D. Microeconomics C. 3. risk averse
D. 4.risk loving
200. Tools
A. Land 205. Of the four factors of production, which
B. Labor of these are not a factor of production?
C. Capital A. Land
D. Entrepreneurship B. Capital
C. Development
201. what is an economic system?
A. a type of system in economy D. Labour
B. a system in economics which is given 206. The Central Economic problem is that of-
out due to distribution of economy and so-
A. Allocating the scarce recourse in such
ciety
a manner that society’s unlimited wants
C. a system which is within a society or a are satisfied as far as possible
given geographic area
B. Giving jobs to poor and backward.
D. a system of production, resource allo-
cation and distribution of goods and ser- C. Guaranteeing that the production oc-
vices within a society or a given geo- curs in most efficient manner
graphic area D. All of above

207. A business owner who prefers to main- 212. Sole Proprietorship, also known as a Sole
tain complete control of all business activi- Trader
ties might consider structuring the venture

A. Small business owned by one person
as a(n)
A. sole proprietorship B. Business owned by 2 or 3 people
B. general partnership. C. Sole proprietor or partnership signs

agreement with corporation to use its
C. franchise
business plan and sell its merchandise in
D. corporation. a geographic area
208. Disadvantages include unlimited liability, D. Owned by shareholders
difficult to raise financial capital, difficulty
attracting qualified employees, limited life 213. A charter is a government document that
gives permission to create a
B. Bananas A. Proprietorship
C. Corporation B. Partnership
D. Franchise C. Corporation
209. The customer of a service business is of- D. Franchise

ten called a
214. Other things equal, if a good has more
A. Customer substitutes, its price elasticity of demand
B. Consumer is:
C. Client A. 1.larger
D. None of the above B. 2.smaller
210. what is a capitalist economy? C. 3.zero
A. an economic system in which pri- D. 4.unity
vate individuals or businesses own capital
goods 215. A major advantage of a is manage-
B. an economy directed to basic subsis- ment and training support.
tence rather then to the market A. Proprietorship
C. type of economic system where invest-
B. Partnership
ment, production and the allocation of cap-
ital goods take place C. Corporation
D. none of above D. Franchise
211. Business income is considered personal in-
216. Workers
come
A. Land
A. Partnership
B. Corporation B. Labor
C. Sole Proprietorship C. Capital
D. Partnership and Sole Proprietorship D. Entrepreneurship

217. “The worth of a thing is what it will C. Tertiary

bring”-What economic term is this quote D. Quaternary
related to in the article?
222. In a free market economy the allocation
A. currency
of resources is determined by
B. investment
A. voting done by consumers
C. merchandise
B. a central planning authority.
D. supply & demand
C. the level of profits of firms.
NARAYAN CHANGDER
218. How is a corporation different from a D. consumer preferences.
sole proprietorship or partnership?
223. How is a corporation different from a
A. A corporation has only one or two own- sole proprietorship?
ers.
A. Corporations are owned by only one
B. A corporation is usually owned by one person
person.
B. Corporations can sell stock to raise
C. A corporation requires a legal charter money for the business.
with the state.
C. Sole proprietorships have limited liabil-
D. The owners (stockholders) have lim- ity for the owners.
ited liability.
D. Sole proprietorships require a legal
219. Scarcity is defined as a limited supply of charter to start the business.
resources and
224. The word ‘Economics’ has the origin
A. limited wants for those resources
A. Roman
B. unlimited resources
B. French
C. limited resources C. Greek
D. unlimited wants for available re- D. European
sources
225. A curve that shows relation ship between
220. Which of the following statement is cor- quantity of goods that consumer are will-
rect about Niti Aayog? ing to buy and the price of the good.
A. Niti Aayog was formed 25th January A. 1.supply curve
2016
B. 2.demand curve
B. Niti Aayog comes under the ministry of
C. 3.elesticities of supply
commerce & industry.
D. 4. none of the above
C. The full form of Niti Aayog is National
Institute for transforming India. 226. what three questions must all economic
D. The Niti Aayog is a policy think tank of systems answer?
the Government of India. A. when will it happen? will it happen?
why will it happen?
221. Milling lumber into plywood is an exam-
ple of what economic activity? B. -what goods and services will be pro-
duced? -how will the goods and services
A. Primary be produced? -who will receive the goods
B. Secondary and services produced?

C. who will do it? how will it happen? C. physical; mental

does it actually happen? D. mental; natural

D. none of above
231. Advantages include full control, ease of
227. what is economy? start up, and no double taxation.
A. society A. Sole Propriotorship
B. the way a nation makes economic B. Partnership
choices about how the nation will use
C. Corporation
its resources to produce and distribute
goods and services D. Franchise
C. the way in which the government de-
232. Economic growth would most likely result
cides on how things will be run fairly in
from-
the nation
A. decreased trade
D. none of above
B. increased productivity
228. Economics has been called a ‘Science of
C. increased employment
Choice ‘ because
D. decreased sales of stock
A. The human wants are unlimited, so
choice making is essential 233. Which of the following is the cause of cen-
B. Economics is a Social science tral economic problem?
C. Economics is a Study of material wel- A. Scarcity of recourses
fare
B. Unlimited wants
D. Economics is a Study of man and
C. Alternative use
choice
D. All of the above
229. “the world is constantly changing” what
does this mean? 234. Which of these are examples of govern-
ment revenue
A. more and more jobs are being avail-
able or fulfilled or are becoming distant A. income tax
from society B. credit
B. there are no more jobs available and C. pensions
they are all taken and done
D. work for the dole
C. there are heaps of options in society
for everyone 235. For a company a strategic factor of the
D. everyone has to work as the same job environment is a threat if it expects to
all day everyday have
A. A negative impact on its results.
230. Water and air are examples of re-
sources, while people are considered to be B. A negative and relevant impact on its
resources. results.
A. capital; human C. A relevant impact on its results.
B. natural; human D. None of the answers are correct.

236. Customers who purchase goods and ser- 241. A nonprofit agency sponsored by local
vices for their own use are called businesses that helps to resolve disputes
Groups between consumers and sellers.
A. Individuals A. Federal Trade Commission (FTC)
B. Consumer B. Walmart
C. Better Business Bureau (BBB)
C. Purchasers
D. none of above
D. Groups
NARAYAN CHANGDER
242. Which of the following products will be
237. negotiation by a labor union with man- most likely affected by an increase in in-
agement over issues such as pay, working come tax?
hours, health care coverage, and vacation
A. Petrol
A. collective bargaining B. Salt
B. net income C. Jewellery
C. cash flow D. Bread
D. principal 243. Why are firms in markets that have per-
fect competition described as “price tak-
238. What does the Circular Flow show? ers”?
A. Consumers and Producers A. Due to competition you can’t charge
B. Business and Households whatever you want
B. Due to barriers to entry prices need to
C. Goods & services
be high
D. How consumers and producers are in- C. Due to lack of competition you can
terdependent charge whatever you want
239. These are companies that provide raw D. Due to few businesses providing a
materials and/or services to a given sec- product, prices change dramatically
tor.
244. Effective efforts put to acquire something
A. Freeriders will be
B. Entrepreneurs A. Want
C. Suppliers B. Desire
C. Need
D. Clusters
D. Demand
240. Since micro economics splits up the entire
245. utility is added when a business
economy into smaller parts for the purpose
changes the form of a good or service to
of intensive study, it is also known as
make it more useful.
A. Slicing method
A. Possession
B. Bulldozer method B. Time
C. Micro-macro method C. Form
D. Micro foundation of macro method D. Place

246. The slope of indifference curve is equal to 251. What are goods?
A. price ratio A. Actions, skills or knowledge provided
by someone

B. marginal opportunity cost
B. Tangible items used by consumers to
C. marginal rate of substitution
satisfy their needs and wants
D. all of these
C. Items we need in order to survive
247. Which one of the following is NOT a sup- D. Companies who create services
ply side policy?
252. The company’s environment is made up
A. the government increasing competi- of:
tion in all industries
A. Human resources
B. the government reducing import con-
B. The facilities
trols
C. All factors external to the company
C. the government investing in training
and education D. None of the answers are correct
D. the government privatising national in- 253. A contest among sellers to win cus-
dustries tomers.
A. Monopoly
248. An increase in the average prices of
goods and services in a country. B. Competition
A. deflation C. Bait and switch
B. inflation D. none of above
C. market price 254. In the circular flow, what do individuals
D. demand price get in return for their labour?
A. Wage
249. Economics is “On the one side, a study of
B. Salary
wealth; and on the other, and more impor-
tant side, part of a study of man”. This is C. Income
stated by D. Money
A. Adam Smith 255. Which of the following is NOT one of the
B. Alfred Marshall five types of businesses
C. Robbins A. Manufacturing
D. Samuelson B. Wholesaling
C. Service
250. The difference between the income
earned and the expenses incurred by a D. Selling
business during a specific period of time 256. Minority, women, and technology rates
is called in the workforce is
A. Sales A. increasing
B. Profit B. decreasing
C. Expenses C. staying the same
D. Costs D. Go patriots

257. Which is NOT an example of UNETHICAL 262. The financial sector can be described as
decision making by firms?
A. Volkswagen cheated fuel emission A. banks that use the deposits collected
tests, mislead consumers in order to help businesses grow
B. Qantas give passengers option to pay B. financial intermediaries that collect de-
for the CO2 emissions posits and invest in the growth of busi-
C. Business exploiting cheap labour in de- nesses
veloping countries
NARAYAN CHANGDER
C. financial intermediaries that allow con-
D. Firm exploiting poor environmental sumers to open savings accounts
laws in developing country D. banks that charge interest on loans
that are offered to consumers
258. Under capitalist economies, the answer
to the fundamental questions-what, how 263. Socialist economy is characterised by-
and for whom to produce are obtained by-
A. Secondary role of price mechanism
A. Government regulation
B. Relative equality of income
B. Cost benefit analysis
C. Selective production of goods
C. Market forces of demand and supply
D. All of the above
D. All of the above.
264. “Economics is the study of mankind in the
259. In this economic system individuals and ordinary business of life”. This definition
businesses own all of the resources, but was given by
government intervention attempts to pro-
tect both consumer and business interests. A. Adam Smith
A. Mixed B. Lionel Robbins
B. Strong Command C. Alfred Marshall

C. Moderate Command D. Samuelson
D. Traditional 265. How are sole proprietorships and part-
nerships alike?
260. assets that provide a flow of money or
service that is known with certainity are A. Contracts are needed to start the busi-
called nesses.
A. 1.riskless assets B. Owners have complete control of the
business.
B. 2.risky assets
C. Owners have limited legal liability.
C. 3.return assets
D. The businesses are owned by one per-
son.
261. An example of a local monopoly is
266. What is the main role of government in-
A. a big city restaurant. tervention in the economy?
B. a new dentist in a big city. A. To discourage enterprise and reduce
C. the only veterinarian in an isolated foreign investment
farm community. B. To protect the workforce and the envi-
D. none of above ronment and to promote competition

C. To ensure that business is conducted 272. Advantages of this type of business in-
in such a way that local businesses always clude:easy to start, and you can rely on a
win good company name and expertise.

D. To prevent consumers from accessing A. Sole Proprietorship
what the economy produces
B. Partnership
267. Which of the following groups of words
C. Corporation
best describes wants:
D. Franchise
A. Limited, changing, and compensating
B. Limited, unchanging, and competing 273. John only had $40 to spend and couldn’t
C. Unlimited, unchanging, and compen- decide whether to buy a new pair of jeans
sating or to go to an amusement park. He finally
decided to spend his money on the amuse-
D. Unlimited, changing, and competing
ment park. What was the opportunity cost
268. Central Problems arises in case of of his decision?
A. Capitalist Economy A. New pair of jeans
B. Socialist Economy B. $40
C. Mixed Economy C. No opportunity cost was involved.
D. All of the above
D. Trip to amusement park
269. In Mixed economy, private sector-
274. The core problem of economic study is?
A. Are absolutely free to make any type
of decisions A. Money
B. Works only for social objectives B. Scarcity
C. Are regulated directly and / or indi- C. Allocation
rectly by government
D. Production
D. Does not exists at all
270. An increase in the labor force would cause 275. The real or imagined differences between
the PPF to competing products in the same industry.
A. Shift inward A. Price competition

B. Shift outward B. Product differentiation
C. Do nothing C. Marketing differential
D. Turn into a straight line D. Oligopoly
271. What is the principle that producers are
276. In Business economics ‘Means’ refers to
entitled to make more money from a busi-
ness than they invest
A. Human wants
A. profit motive
B. free enterprise B. Resources
C. capital stock C. Both (1) and (2)
D. risk and reward D. Neither (1) nor (2)

277. Which of these is not a major macroeco- C. Market Economy

nomic objective of governments? D. Market Price
A. Low and stable inflation
283. A medium business/enterprise would
B. Increasing pofitability of companies have
C. Full employment A. 10-49 persons employed.
D. High and sustainable growth B. 250 or more persons employed.
278. Nominal GDP = Real GDP C. 50-249 persons employed.
NARAYAN CHANGDER
A. Inflation D. less than 10 persons employed.
B. Unemployment 284. If a town has 60 employed workers
C. Imports and 15 unemployed workers, what is the
town’s unemployment rate?
D. Exports
A. 15%
279. Who is the queen of the Social sciences
B. 25%
A. Adam Smith C. 20%
B. Alfred Marshall D. 33%
C. No of the above
285. Which of these is an example of a public
D. none of above good?
280. Which type of business allows the owner A. Roads
to keep all of the profit for him/herself? B. Clothing
A. Partnership C. McDonalds
B. Franchise D. Houses
C. Sole Trader
286. The amount by which the quantity de-
D. Limited Company manded changes in relation to a change in
price.
281. Which of the following people would tend
to favor a socialist economy? A. Price elasticity of income
A. John wants to live in a country with low B. Demand
marginal tax rates. C. Supply
B. Robin wants to live in a country that en- D. Price elasticity of demand
courages rapid economic growth
287. The condition of consumer equilibrium un-
C. Liz wants to live in a country with lim-
der cardinal approach in case of one com-
ited government regulation
modity is
D. Fred prefers to live in a country that A. price of commodity should be rising
promotes social equality
B. price of commodity should equal to be
282. An Economy in which resources are marginal utility
owned and controlled by the Government. C. price of commodity should be decreas-
A. Economic System ing
B. Command Economy D. none of these

288. Who is the current CEO of the Niti B. Producers, Consumers, Students, Gov-
Aayog? ernments

A. Rajeev Kumar C. Households, Firms, Governments, Em-
B. Arvind Subramanyam ployees
C. Amitabh Kant D. Consumers, Producers, Households,

Employees
D. Narendra Modi
293. What is a company called that sells stock
289. The term “economies of scale” refers to to raise money?
A. Partnership
A. the average costs of production de-
creasing as a firm expands B. Corporation
B. the average costs of production rising C. Sole Proprietorship
as a firm expands D. Limited Partnership
C. the average costs of production re-
maining the same as a firm expands 294. A is a form of business organization
recognized by law as a separate legal en-
D. the average costs of production at first tity with all the rights of an individual.
decreasing, then increasing, as a firm ex-
pands A. Proprietorship
B. Partnership
290. Why are resources considered limited?
C. Corporation
A. Everyone has them, and they change.
D. Franchise
B. Entrepreneurs do not invest enough of
them. 295. The economy is the total of all activities
C. There are so many that people must for the purpose of
decide which ones to choose at any one A. producing, marketing and selling
time. goods and services in a country
D. There are not enough available so that B. creating, designing and exploring
everyone can have as much of them as de- goods and services in a country
sired.
C. producing, distributing and consuming
291. Innovation in business involves: goods and services in a country
A. Creating Art D. producing, distributing and selling
foods and services in a country
B. Creating Music
C. Creative ways to solve problems in so- 296. What was the maximum strength of full
ciety time members in the planning commis-
sion?
D. Making a profit
A. 8
292. The four (4) participants in our economy
B. 6
are
A. Consumers, Producers, Employees, C. 11
Governments D. 10

297. If a local government sets an apartment 302. A merger of corporations involved in dif-
rent control price below the equilibrium, ferent steps of manufacturing or market-
what is the MOST LIKELY outcome? ing is known as a
A. The demand and supply will increase. A. multinational merger
B. The increased supply will create a sur- B. horizontal merger
plus. C. vertical merger
C. The increased demand will create a D. conglomerate
NARAYAN CHANGDER
shortage.
D. The demand will decrease and the sup- 303. Which statement about forming a corpo-
ply will increase. ration Is FALSE
A. Is a formal and legal arrangement
298. Who expressed the view that economics
is neutral between ends? B. Must file permission from the govern-
ment
A. Adam Smith
C. Write your corporate bylaws
B. Marshall
D. Have for obligation a partnership
C. Samuelson
D. Robbins 304. All of the following details describe the
laws of supply and demand EXCEPT:
299. “Economics is what economists do” was A. as demand goes down, prices go down
remarked by
B. as supply goes down, prices go up
A. Marshall
C. as supply goes up, prices go down
B. Jacob Viner
D. as demand goes up, prices go down
C. Keynes
D. Adam Smith 305. For consumption to occur, goods and ser-
vices must be
300. What is scarcity? A. specialized.
A. Giving something up to have some- B. improved.
thing else
C. exchanged.
B. Extra cost of production
D. produced.
C. The condition that results form having
unlimited wants with limited resources 306. A franchise is
D. Rise in general level of prices and A. where a business is owned by share-
workers need more money holders
301. The method a country uses to answer the B. where a business sells the rights to
three Economic questions. distribute its products under its name to
other individuals or businesses
A. Needs
C. where a business sells its products to
B. Goods other businesses
C. Supply D. where businesses merge to create one
D. Economic System big business

307. Which of these protects music, books, po- A. Less complex requirements
ems, architecture, films and artwork? B. Separate owners and managers

A. Copyright
C. Limited liability
B. Trademark
D. High Taxes
C. Utility Patent
313. Jared has two hours before having to go
D. Design patent
to his part-time job. He is deciding be-
308. Relationship between the amount of a re- tween studying for a math exam and tak-
source that is available and the price. ing a nap. If Jared chooses to take a nap,
the opportunity cost of his decision is
A. demand
A. the rest he is getting
B. supply
B. the score he will earn on the math
C. market
exam
D. inflation
C. the wages from his part-time job
309. The people who bring all the factors to- D. all of the above
gether to create something are practicing
A. Land 314. Marginal utility is a Concept.
B. Labor A. Cardinal
C. Capital B. Ordinal
D. Entrepreneurship C. Both
D. None
310. A cooperative is
A. a business that is owned and operated 315. Which one of the following is an advan-
by the group of people that it serves tage for an entrepreneur for starting a
B. a business with one operator business as a sole trader?
C. a business which sells shares on the A. Limited liability means that losses can
ASX be minimised
D. a business operated by the public B. Owner has control of decision making

C. It is easier to raise finance than other
311. What occurs when people rely on oth- types of business structure
ers to provide the goods and services re-
quired for supporting their lives or for con- D. Less risky than other types of business
venience? structure
A. Economic Interdependence 316. Which one of the following is correctly
B. Transnational Corporations (TNCs) matched?
C. Globalisation A. Wealth of Nations-Marshall
D. Corporate Social Responsibility B. Principles of Economics-Crowther
312. Which of the following is an advantage C. Ten Great Economists-J. A. Schum-

of the corporation as a form of business peter
ownership: D. An Outline of Money-J.M. Keynes

317. What is the role of the entrepreneur in B. The combination of goods that employ
the modern economy? resources fully
A. To preserve natural resources C. The combination of goods that do not
B. To create jobs employ resources fully
C. To generate wealth D. none of above
D. to take big risks
323. Advantages of this type of business in-
NARAYAN CHANGDER
318. Which business depends on just one per- clude:selling shares to raise money, lim-
son for the skills and talents to run the ited liability.
business?
A. Sole Trader
A. Sole Trader
B. Partnership B. Partnership
C. Limited Company C. Limited Company

D. Franchise D. Franchise
319. The phase of the business cycle where
324. Disadvantages include high fees, strict
real GDP grows for two or more consec-
operating standards, little freedom, intru-
utive quarters is termed
sive monitoring
A. growth
B. recession
C. balance of payments B. Partnership
D. gross domestic product C. Franchise
320. Micro economics is a equilibrium D. none of above

A. Partial
325. The expansion of micro economics into
B. General other social sciences has caused economics
C. Total to be called as the
D. Multi-Variable A. Imperialist social science
321. Advantages of this type of business in- B. Queen of social science

clude:easy to start, and you can rely on
C. Traditional social science
a good company name and expertise with
help to set up and run the business. D. Inter disciplinary social science
A. Sole Trader
326. Which of these is not a service provided
B. Partnership
by the government?
C. Limited Company
A. Australia Post
D. Franchise
B. ABC
322. What do points inside the PPF indicate?
C. Restaurants
A. The combination of goods that employ
goods efficiently D. Sewerage system

327. How is a limited company different from 332. Another term for the Economic Problem
a sole trader or partnership?
A. Finite

A. A limited company has only one or two
B. Scarcity
owners.
B. A limited company is usually owned by C. Economics
one person. D. Production
C. A limited company only operates on-
333. Which is NOT a classification of Wants
line.
D. The owners (share holders) have lim- A. Necessities
ited liability. B. Luxuries
328. stock of finished goods and parts in re- C. Comforts
serve D. Secondary
A. principal
334. On which approach, indifference curve
B. depreciation
analysis is based?
C. labor union
A. Cardinal approach.
D. inventory
B. Ordinal approach.
329. Characteristics include owned by two or C. Cardinal and ordinal both.
more people and may be general or limited
D. None of the above.
B. Partnership 335. Which is NOT a factor influencing decision
whether to spend or to save?
C. Corporation
D. Franchise A. Income
B. Weather forecast
330. What happens when demand is bigger
than supply? C. Personality
A. Deflation D. Age
B. Surplus
336. Micro economic approach is
C. Demand
A. Total
D. Shortage
B. Individualistic
331. Porter’s five forces model allows: C. Aggregative
A. Understand the functioning of the com-
pany in relation to its structure
B. Understand the causal relationships 337. What is unlimited liability?
where the company operates A. The debts fall on the business
C. Understanding the basic sector in rela-
B. The debts fall on the owners
tion to its structure
C. There are no debts
D. Understanding the industrial sector, in
relation to its structure D. Liability goes on forever

338. What is a corporate structure in the 343. An example of ‘positive’ economic analy-
United States whereby the owners are not sis would be
personally liable for the company’s debts A. an analysis of the relationship be-
or liabilities? tween the price of food and the quantity
A. Manufacturing business purchased
B. Corporation B. determining how much income each
person should be guaranteed
C. Limited Liability Company
C. determining the ‘fair’ price for food
NARAYAN CHANGDER
D. Hybrid Business
D. deciding how to distribute the output
339. A target market is a group of that of the economy
the has decided to aim its marketing
344. Into what two categories can wants be
efforts and ultimately its merchandise to-
divided?
wards.
A. Unlimited and noneconomic
A. Companies, Business
B. Economic and noneconomic
B. Companies, Research
C. Unlimited and limited
C. Customer, Business
D. Unlimited and economics Economic
D. Business, Customer and noneconomic
340. What is NOT a factor affecting consumer 345. What happens as a person’s or econ-
choice (of which g/s to buy)? omy’s income rises?
A. Their taste and preference A. They spend less
B. Their income B. They spend proportionately more
C. The price of substitutes or comple- C. They save proportionately more
ments D. They save proportionately less
D. All of the above
346. Of the following which is an ADVANTAGE
341. Disadvantages include limited life and the of increased competition?
potential for conflict between partners A. higher prices
A. Sole Propriotorship B. increased variety
B. Partnership C. declining customer service
C. Corporation D. lower quality
D. Franchise 347. what is scarcity?
342. Which of the following is not an advan- A. where you have everything in the
tage of a command economy? world
B. when there’s not enough-the differ-
A. Can ensure stability.
ence between wants and needs and avail-
B. Serves people collectively by focusing able resources
on equality.
C. when you can have however so much
C. Products produced fulfill needs. of wants you desire
D. Lack of incentive for innovation. D. when you cannot have anything

348. Products and services are bought and 353. Commercial enterprise that dedicates it-
sold at a/an self to buying already made products and
reselling them to make profit?

A. arena
A. Merchandising Business
B. black-market
B. Limited Liability Company
C. marketplace
C. Partnership
D. stalls
D. Service Business
349. Tony Galati, owner of the Spud Shed,
354. The value of the next-best alternative
showed initiative and innovation by
that you were not able to choose.
A. creating a business that sourced prod-
A. Capitalism
ucts straight from local farmers
B. Opportunity Cost
B. creating a business that stored prod-
ucts in warehouses C. Consumer
C. creating a business that made him a D. Supply

profit
355. Disadvantages of this type of business in-
D. creating a business that destroyed the clude:company is controlled by sharehold-
competitors ers rather than original owners, must pub-
lish accounts, and is difficult to start.
350. Tourism, hospitals and banking are all ex-
A. Sole Trader
amples of which industry?
B. Partnership
A. tertiary
C. Limited Company
B. primary
D. Franchise
C. secondary
356. This factor of production are the raw ma-
D. none of above
terials that come from the earth.
351. I sell 10 bowls of cereal at $5 each, my A. Human Resources
revenue is B. Natural Resources
A. $50 C. Capital
B. $5 D. Entrepreneurship
C. $10
357. Total utility starts decreasing when
D. $15
A. Marginal utility is positive
352. In which economic system is profit incen- B. Marginal utility becomes negative
tive to innovate? C. Marginal utility becomes zero
A. Mixed D. None of above.
B. Market
358. Micro economics deals primarily with
C. Command
A. Comparative statics, general equilib-
D. Traditional rium and positive economics

B. Comparative statics, partial equilib- B. partnership

rium and normative economics C. sole proprietorship
C. Dynamics, partial equilibrium and pos- D. none of above
itive economics
D. Comparative statics, partial equilib- 364. A disadvantage of a sole proprietorship
rium and positive economics is
A. Difficulty starting the business
359. What is not an advantage of a
NARAYAN CHANGDER
monopoly? B. unlimited liability
A. achieving economies of scale C. That the owner must share profits with
others
B. high level of research and develop-
ment D. double taxation of earnings
C. Producing a greater quantity at profit- 365. A micro business/enterprise would have

maximizing level of output
D. higher prices and lower output A. 10-49 persons employed.
360. Alfred Marshall ‘s Master piece “The B. 250 or more persons employed.
Principles of Economics” in C. 50-249 persons employed.
A. 1969 D. less than 10 persons employed.
B. 1776
366. A major benefit of socialism is the:
C. 1932
A. ability to stimulate rapid economic
D. 1890 growth
361. What are the basic Economic questions? B. ability to keep taxes low
A. How to produce it? C. emphasis on social equality
B. What to produce? D. emphasis on private enterprise in-

stead of public ownership
C. When to produce it?
D. For whom to produce it? 367. is the base of marketing planning
A. Demand Estimation
362. A fall in the value of a currency due to fac-
tors such as weaker economic fundamen- B. Demand analysis
tals is termed C. Demand function
A. exchange rate appreciation D. Demand forecasting
B. exchange rate depreciation 368. In the circular flow model, the real flow
C. exchange rate valuation (not money) from households to producers
D. exchange rate extrapolation is:
A. Wages and salaries
363. Sara’s Hair Palace is a small, locally
owned beauty salon in Sterling. This rep- B. Goods and services
resents what type of business? C. Factors of production
A. corporation D. Consumption expenditure

369. Gives the owner the legal right to make C. Okios + Nomso
or sell an invention? D. Kosio+ Nomes

A. Copyright
375. The term used for costs that change with
B. Trademark the number of output
C. Patent A. Fixed Cost
D. Design patent B. Average Cost
370. Seeing a movie at a theater would be con- C. Variable Cost
sidered a(n) want. D. Marginal Cost
A. unlimited 376. Agency that protects consumers from
B. limited dangerous products.
C. economic A. Environmental Protection Agency
D. noneconomic B. Federal Trade Commission
C. Consumer Product Safety Commission
371. The law of says that the price of a (CPSC)
product is determined by the relationship
of the supply of a product and the demand D. none of above
for the product. 377. No paperwork (memorandum or agree-
A. Supply and demand ment) is required to start which type of
business?
B. Physics
A. Partnership
C. Consumer behavior
B. Franchise
D. Business
C. Sole Trader
372. What of the following is a feature of a D. Limited Company
monopoly?
A. There is plenty of competition 378. Adam smith published his masterpiece
“An enquiry into the nature and causes of
B. Price is set freely by the consumers wealth of nation” in the year
C. The product sold is unique A. 1776
D. There are very few barriers to entry B. 1786
373. A business partnership has who C. 1756
share the risks and the profits. D. 1766
A. One owner 379. A manager is willing to accept the pro-
B. No more than three owners duction of fewer products as long as their
workers produce higher-quality products.
C. Two or more owners
The manager is making a(n)
D. Five or more owners
A. exchange.
374. What is Greek term name of economics B. trade-off.
A. Oikos + Nomos C. capital good.
B. Nomes + kosio D. distribution.

380. which is a disadvantage of corpora- B. 5

tions?
C. 4
A. difficulty of raising financial capital.
D. 2
B. the difficulty and expense of getting a
charter 386. diffence between expected payoff and ac-
C. lack of separate taxes in a partnership tual payoff is called
D. potential for conflict between partners A. 1.deviation
NARAYAN CHANGDER
381. What is a shareholder? B. 2.standard deviation
A. The owner of any business C. 3. variability

B. A group of companies D. 4.none of the above
C. A person who provides a service
387. What is a disadvantage of partnerships?
D. Individual or groups who own shares
in a company A. ease of formation
B. owners share responsibilities
382. Micro analysis deals with the
C. limited liability
A. Allocation of resources of the economy
as between production of different goods D. possibility of personality conflict
and services
388. Macro economics is derived from the
B. Determination of prices of goods and
Greek word
services
C. Behavior of individual decision makers A. Mikros
D. All of the above B. Micro

C. Makros
383. Which is NOT a type of specialisation?
A. Location of enterprise D. None of these
B. Large-scale production 389. organization that promotes the collective

C. Location of industry interests of its members rather than seek-
ing financial gain for its owners
D. Division of labour
A. limited life
384. What type of network links comput-
ers and workstations, usually within one B. nonprofit organization
building? C. proprietorship
A. personal digital D. partnership
B. wide area
390. Capitalism refers to
C. local area (LAN)
D. satellite communication A. The use of market
B. Government ownership of capital
385. How many types of economies are
there? C. Private ownership of capital goods
A. 3 D. Private ownership of homes and cars

391. A corporation is Smith 1. EconomicsB. Marshall 2. Wealth

A. a business owned by the government of nationsC. Robbins 3. Nature and Signif-
icance of Economic ScienceD. Samuelson 4.

B. a corporate business Principles of Economics
C. a business owned by shareholders
A. A-2, B-1, C-4, D-3
D. a business owned by corps
B. A-2, B-4, C-3, D-1
392. What is a car an example of? C. A-1, B-2, C-3, D-4
A. A Cost
D. A-4, B-3, C-2, D-1
B. A serviceA Service
C. A Product/Good 397. What is an example of a service?
D. none of above A. A bus journey
393. The word ‘Economics’ originates from the B. a bus A bus

word C. a bus stop A bus stop
A. Oikomnomikos D. none of above
B. Oikonomia
398. Who authored the book title, “ An inquiry
C. Eikonomikos
into the nature & causes of wealth of na-
D. Ekconomics ture.”
394. Which one of the following may NOT be A. Robbins
included in a partnership agreement?
B. Marshall
A. The contributions from different part-
C. Samuelson
ners
B. How major decisions are made D. Adam Smith
C. How workers are hired and trained 399. A buyer’s willingness and ability to pay
D. How the partnership may be ended a price for a specific quantity of a good or
service.
395. The economic problems of relative
scarcity refers to A. demand
A. consumers purchasing goods and ser- B. supply
vices from businesses C. market
B. consumers not being able to afford dif-
D. inflation
ferent goods and services
C. consumers making purchasing deci- 400. Globalisation results in
sions in relation to their needs and wants
A. lesser competition among producers
D. consumers making purchasing deci-
sions in relations to goods and services B. greater competition among producers
C. no change in competition among pro-
396. Match list I and list II and choose the
ducers
correct answer using the codes given be-
lowList I (Economist) List II (Book)A. Adam D. none of the above

401. GDP, or gross domestic product, mea- 406. Which describes an oligopoly?
sures A. A firm that is easy to start and has little
A. the value of all final goods and services control over prices
produced B. A firm that is impossible to start and
B. an increase in the general price level has total control over prices
C. the percentage of people looking for C. A firm that is difficult to start and has
work that can’t find it some competition
NARAYAN CHANGDER
D. the economic freedom an economy of- D. A firm that has lots of competition and
fers needs to compete outside of prices
407. Which of these is not an advantage of

402. The government plans how to use re-
Sole Proprietorship
sources to make goods and services.
A. If someone has the idea to make a
A. Mixed Economy
profit he or she will be able to
B. Command Economy
B. Complicated for beginners
C. Market Economy C. Do not require co-workers
D. Traditional Economy D. Do not have to pay separate business
income taxes.
403. Land, labour, capital, knowledge and en-
trepreneurship are collectively known as 408. Raw materials (i.e. cotton, oil etc.)
A. Goods and services A. Land
B. Business cycle B. Labor
C. Factors of production C. Capital
D. Output D. Entrepreneurship
404. What is any word, name, or symbol used 409. Which is NOT a feature of Utility
to identify a company? A. Subjective
A. Copyright B. Measurable
B. Trademark C. Relative
C. Utility Patent D. No moral or legal connotations
D. Design patent 410. A service is
405. What describes the next best alternative A. are the products offered by busi-
that must be given up in order to purchase nesses
a good or service B. are companies that offer business to
A. Opportunity Cost consumers
C. are physical, tangible items that can
B. Consumers
be seen and touched
C. Living Standards
D. the actions that are done by busi-
D. Production Cost nesses for consumers

411. If a customer shops at your store because C. 16th October 2010

it is on his way home from work, which D. 22nd July 2011
utility is involved

A. Place 417. A is a semi-independent business that
pays fees to a parent company.
B. Form
A. Proprietorship
C. Possession
B. Partnership
D. Time
C. Corporation
412. Which of the following are NOT capital D. Franchise
factors of production?
418. An economy where there is a blend be-
A. Loan from the bank
tween government involvement in busi-
B. Stock or produce ness and private ownership.
C. Factory building A. command economy
D. Factory workers B. market economy
413. Where a firm benefits from being able to C. mixed economy
hire highly skilled staff due to it being a D. none of above
large company.
419. A is a business that is jointly owned
A. Purchasing by two or more persons.
B. Managerial A. Proprietorship
C. Technical B. Partnership
D. Financial C. Corporation
414. Things require to survive are categorised D. Franchise
as
420. Which one of the following best defines
A. Demands the term stakeholder?
B. Wants A. An owner of a private limited company
C. Needs B. Someone with an interest in the suc-
D. Desires cess of a business
C. Any individual who takes decisions
415. In order to save cost, the “Food Industry”
within a business
should use more labor than machines.”
This statement refers to: D. An individual who is a part owner in a
business
A. What to produce
B. How to produce 421. Advantages of this type of business in-
clude:selling stock to raise money, limited
C. How many to produce
liability.
D. Who to produce for A. Sole Proprietorship
416. In which year demonetization happen? B. Partnership
A. 28th November 2015 C. Corporation
B. 8th November 2016 D. Franchise

422. A curve that shows relationship between C. Walker

quantity of good that producers are willing D. Joel Dean
to sell and the price of the good is called
A. 1.supply curve 428. Which of the following definitions best
describes an employee?
B. 2.demand curve
A. They provide financial capital to start
C. 3.elesticities of supply a company
D. 4.none of the above B. They earn profits in the form of divi-
NARAYAN CHANGDER
423. Goods and services are produced using dend payments from the firm’s profits
C. They have a specific job at the com-
A. Needs pany for which they are paid
B. Wants D. none of above
C. Economic Problem 429. What should the government do to the

D. Economic Resources value of £to increase exports and eco-
nomic growth?
424. A joint venture is: A. Increase the value of the pound (ap-
A. Two businesses working together for a preciation)
limited time B. Decrease the value of the pound (de-
B. Two businesses joining up forever preciation)
C. Two businesses who have split stock C. Revaluation of the pound
D. none of above D. None of the above
425. The term “derived demand” means 430. The third step in the decision making pro-
A. demand for secondary products only cess is
B. demand that is dependent on govern- A. define the problem

ment supplying the product B. evaluate the alternatives
C. demand that arises because the sup- C. identify the alternatives
ply of the good is reduced D. make a choice
D. demand that arises because there is
demand for another good. 431. amount borrowed when getting a loan or
issuing a bond
426. When was Niti Aayog established? A. inventory
A. 1 January 2015 B. depreciation
B. 25 January 2016 C. principal
C. 14 May 2014 D. unlimited liability
D. 1 July 2015
432. is the description of how consumers
427. Defined Business Economics in refer- allocate income among different goods and
ence with preparation of policies? services to maximise their well being.
A. J.B Say A. 1.theory of consumer behavior
B. Alfred Marshall B. 2.consumer preferences

C. 3.consumer choices 438. Mark, a sole trader, has been trading for
D. 4.none of the above five years. A sole trader has unlimited lia-
bility. It means that he

433. The four government objectives are low A. works on his own.
inflation, low unemployment, balance of
B. can only hire a limited number of em-
payments and
ployees.
A. Safe defence spending
C. is personally responsible for all busi-
B. Economic growth ness debts.
C. High interest rates D. cannot get a bank loan.
D. Low tax revenue
439. What does the word transaction mean?
434. The main advantage of a is the ease A. a dialogue
of raising financial capital. B. a conversation
A. Proprietorship C. the way spends something
B. Partnership D. a business deal
C. Corporation
440. Which economist said that money is the
D. Franchise measuring rod of utility?
435. Business owned and run by 1 person A. A.C Pigou
A. partnership B. Marshall
B. nonprofit organization C. Adam Smith
C. sole proprietorship D. Robbins
D. corporation 441. Find the number of units X that produce

maximum revenueR=800x-0.2x2
436. Which of the following is a characteristic
of a command economy? A. 2ooo unit
A. Consumers have few, if any, choices in B. 200 unit

the market place. C. 3000 unit
B. Little government intervention. D. 300 unit
C. Also, called “capitalist” economy 442. Susie is starting her own lemonade store.
D. Resources are owned by individuals. What economic term would best describe
Susie and what does that term mean?
437. Advantages of this business in-
A. Consumer-a person who uses or con-
clude:easier to get money from the bank
sumes goods
to start, share skills and share risks.
B. Partnership-partner in the lemonade
A. Sole Trader
stand
B. Partnership
C. Entrepreneur person who takes a
C. Limited Company risk to start a new company
D. Franchise D. none of above

443. Hard to raise funds to start and expand 448. Susie is having a hard time deciding
A. Sole Proprietorship and Corporation whether to purchase a new backpack for
school or a new purse that she can use
B. Sole Proprietorship daily. She finally decides to buy the purse.
C. Partnership and Corporation What is Susie’s opportunity cost?
D. Corporation A. the money spent on the purse
B. the backpack
444. Mario owns his own frozen yogurt shop
C. nothing, since she got her preferred
NARAYAN CHANGDER
but he is required by law to pay his work-
ers a minimum wage and he must provide choice
health insurance to his full-time employ- D. none of above
ees. What type of economic system does
449. Law of demand shows relation between:
Mario live in?
A. 1.Income and price of commodity
A. Market System
B. 2.Price and quantity of a commodity
B. Mixed System
C. 3.Income and quantity demand
C. Traditional System
D. 4.Quantity demanded and quantity sup-
D. Command System plied
445. Most governments operate under this 450. Markets like automobiles, cell phones,
type of economic system. film production studios, and internet
providers are examples of which market
A. Command System
structure?
B. Mixed System
A. Monopoly
C. Traditional System
B. Oligopoly
D. Market System C. Perfect competition
446. In a mixed economy D. Monopolistic competition
A. All economic decisions are taken by 451. The PESTEL analysis allows six types of
the central authority. factors to be differentiated:
B. All economic decisions are taken by A. political, economic, socio-cultural,
private entrepreneurs. technological, ecological and legal
C. Economic decisions are partly taken B. political, economic, cultural, techno-
by the state and partly by the private en- logical, ecological and legal
trepreneurs. C. political, economic, socio-cultural, IT,
D. None of the above. environmental and legal
D. political, economic, social, technologi-
447. Which one from the above is not the main cal, environmental and legal
cause of unemployment?
452. Which one of the following is not true?
A. decrease in Population
A. Micro economics is the study of the al-
B. Slow Economic Growth
location of scarce resources
C. Fall of Cottage and Small industries: B. Economists use models to make
D. slow Growth of Industrialisations testable predictions

C. Individuals, governments, and firms C. Public Limited Company

use micro economic models and predic- D. Franchise
tions in decision making

458. Economic stress has led to downsizing.
D. Micro economics is often called in-
This has led to:
come theory to emphasize the important
role that prices play A. Increased work hours
B. Less part time workers
453. What is an import quota?
C. Less contingent workers
A. The number of imports in Australia
D. none of above
B. the number of taxes placed on a prod-
uct 459. The circular flow model of a market econ-
omy shows
C. A restriction of the amount of imports
A. how many firms can support the needs
D. A restriction on the amount of exports
of how many households
454. An Economy in which goods and services B. the interactions between households
are produced. It is used in countries that and firms in the free market
are less developed and are not yet partici- C. what inputs are required for what out-
pating in the global Economy. puts
A. Scarcity D. how profits are made
B. Demand
460. refers to the process of selecting an
C. Traditional Economy appropriate alternative that will provide
D. Capitalism the most efficient means of attaining a de-
sired end, from two or more alternative
455. Marginal utility approach was given by: courses of action
A. J.R. Hicks A. problem solving
B. Alfred Marshall B. Problem analyzing
C. Robbins C. Managerial expertise
D. A.C. Pigou D. Decision making
461. MPC stand for
456. Select three characteristics below that de-
scribe successful entrepreneurs. A. Marginal Propensity to Consume
A. Risk-takers B. Magical Proportion of Consumption
B. Innovative C. Marginal Potential to Consume
C. Uncertain D. Marginal Propensity of Consumers
D. Decisive 462. The study of economics is primarily con-

cerned with:
457. Pets at Home PLC sells shares on the
A. demonstrating that capitalistic
Stock Exchange to members of the public.
economies are superior to socialistic
They are a type of ?
economies.
A. Sole Trader B. determining the most equitable distri-
B. Private Limited Company bution of society’s output.

C. keeping private businesses from los- 467. In most businesses, what is the most
ing money. costly factor of production?
D. choices/decisions that are made due A. Entrepreneurship
to lack of resources B. Land Capital
463. The study of how people choose to use C. Human Capital
limited resources to satisfy their unlimited D. Capital Stock
needs and wants.
468. A competitive market is characterized by
NARAYAN CHANGDER
A. history
A. a large number of sellers and buyers.
B. economics B. diverse products.
C. social studies C. sellers acting together to set prices.
D. psychology D. uninformed buyers and sellers.
464. How do supply and demand influence 469. A graph containing a set of indefference
market price? curves showing the market basket among
which a consumer is indefferent is called
A. Supply determines market price be-
cause the seller sets the price. A. 1.indeffrence map
B. The price is determined by the highest B. 2.indefference curve
price consumers are willing to pay. C. 3. both 1 & 2
C. The price is determined by the lowest D. 4.none of the above
price producers are willing to accept.
470. business that is jointly owned by two or
D. The market clearing price is where more persons
quantity demanded is equal to quantity A. stock
supplied.
B. partnership
465. How are the business types of a sole C. depreciation
trader and a partnership alike?
D. dividend
A. Contracts are needed to start the busi-
nesses. 471. What is one force that hinders, or stops,
economic growth in poorer countries?
B. Owners have complete control of the
A. Corruption
business.
B. The Force
C. Owners have limited legal liability.
C. Weather
D. The businesses are owned by one per-
son. D. Women
472. The best definition of economics
466. A large business/enterprise would have
A. Hows choices are made under condi-
tions of scarcity
A. 10-49 persons employed.
B. How money is used
B. 250 or more persons employed.
C. Hows goods are services are pro-
C. 50-249 persons employed. duced
D. less than 10 persons employed. D. How businesses maximize profits

473. “Economics is the oldest of the arts, D. Analyse the causes of failure of cotton
newest of the sciences, indeed the Queen industry in providing large scale employ-
WsociaJ sciences”. This is remarked by ment

A. Haberler
478. Which of the following does not improve
B. Hicks the quality / productivity of land?
C. Jacob Viner A. Migration
D. Samuelson B. Drainage
474. When comparing the four main types C. Genetically-modified crops
of business organisations, which protects
owners the MOST from personal financial D. Reclamation
liability?
479. Which economic system is based on cus-
A. Sole Trader toms and beliefs?
B. Partnership A. Traditional System
C. Franchise B. Market System
D. Limited Company
C. Mixed System
475. A study of how increase in the corporate D. Command System
income tax rate will affect the national un-
employment rate isan example of 480. An industry that is dominated by a few
A. Macro-Economics. large firms is
B. Descriptive Economics. A. A competitive market
C. Micro-economics. B. A monopoly
D. Normative economics. C. An oligopoly
476. What is the purpose of monetary policy? D. none of above
A. To change the interest rates depend- 481. Large business are usually able to nego-
ing on the circumstances in the economy tiate lower repayments on loans. What
B. To make people pay more money on economy of scale is this?
their home loans
A. Financial
C. To reduce the amount of debt the gov-
B. Marketing
ernment has
D. To increase or lower the taxes on im- C. Managerial
ported goods D. Purchasing
477. Which of the following is not a macro ap- 482. An entrepreneur can choose to have
proach for India? which type of business organization?
A. Determining the GNP of India. A. Sole Proprietorship
B. Finding the causes of failure of ABC
B. Partnership
Ltd.
C. Corporation
C. Identifying the causes of inflation in In-
dia. D. All of the above

483. Opportunity Cost is best defined as C. merger.

A. the value of the next best alternative D. trading bloc.
that is given up due to the choice you made
488. Which of the following is a good?
B. The price you pay to purchase some-
A. Hairdressing
thing
B. Computer repair
C. The benefit you gain by making a deci-
sion C. Car
NARAYAN CHANGDER
D. The amount of debt you take on by mak- D. Visiting a doctor
ing a decision 489. What do we do when we invest?
484. Disadvantage of a central planned econ- A. We save something.
omy? B. We borrow something.
A. Social justice C. We spend something.
B. Limited choice of product and services D. none of above
C. Public goods 490. Something we must have in order to sur-
D. Profit vive
A. Want
485. The GFC was caused by
B. Need
A. Consumer confidence was low due to
the war in Iraq C. Producer good
B. Banks and other lenders were will- D. Consumer
ing to make increasingly large volumes of
491. Which of the following is an advantage
risky loans
of general partnerships:
C. The American government was in debt A. Limited capital
to the IMF and interest rates were in-
creased significantly B. Unlimited liability
D. Baked beans C. Easy to end

D. Combined capabilities
486. is a condition in which the average
level of prices is actually falling. 492. GDP divided by = GDP per capita
A. Disinflation A. population
B. Deflation B. income
C. Stagflation C. wealth
D. Uniflation D. production
493. Which market structure did the DeBeers
487. Two local business owners want to re-
Diamond industry fall under?
duce competition, so they decide to form
one organization from the two companies. A. Monopoly
This is an example of a B. Oligopoly
A. monopoly. C. Perfect Competition
B. hostile takeover. D. Monopolistic Competition

494. What implication(s) does resource 499. . Science of Material Welfare is also
scarcity have for the satisfaction of known as
wants?

A. Classical Definition
A. Not all wants can be satisfied.
B. Neo-classical Definition
B. We will never be faced with the need
to make choices. C. None of the above
C. We must develop ways to decrease D. none of above
our individual wants.
D. The discovery of new natural re- 500. risk can be reduced by
sources is necessary to increase our abil-
A. 1.diversification
ity to satisfy wants.
B. 2.insurance
495. Which of the following does NOT illus-
trate opportunity cost? C. 3. additional information
A. I should buy a book rather than a food D. 4.all of the above
B. If I buy a computer, I must do without
a 35” television 501. Which of these is not a disadvantage of
Sole Proprietorship
C. If I spend a lot now means I will spend
more in the future A. Unlimited liability
D. If I study today, I must give up going B. Easy raising capital
to the football game
C. The small size of Sole Proprietorship
496. indefference curves are normally
D. Limited managerial experience
A. 1.downward sloping and can not inter-
sect 502. The ACCC stands for:
B. 2.upward sloping
A. Australian Competition & Consumer
C. 3.indeffrent Commission
B. Australian Consumer & Competition
497. two goods for which marginal rate of sub- Contracters
stitution is zero or infinite
C. Asia Competition & Consumer Commis-
A. 1.perfect substitutes sion
B. 2.perfect complements D. none of above
C. 3.perfect elastic
D. 4.none of the above 503. Michelle is trying to decide which goods
and services to purchase so that she can
498. Bulk buying for discount is which type of get maximum satisfaction. Michelle is
economy of scale?
A. creating scarcity.
A. Managerial
B. economizing.
B. Purchasing
C. Technical C. increasing distribution.
D. Financial D. a producer.

504. Anything that is bought or sold is called C. Entrepreneurship

a(n) D. Land, Labor, Capital and Entrepreneur-
A. Item ship
B. Service 510. In which economic system is trade and
C. Business barter most common?
D. Product A. Mixed
505. Asda would be classified as B. Command
NARAYAN CHANGDER
A. small C. Market
B. small/medium D. Traditional
C. large 511. Service (tertiary) producers
D. none of above A. Generally produce food-products that
are grown from the land or sourced from
506. This type of business is a contractual
nature
agreement with a parent company to sell
its products/services in an area. B. Manufacture goods in factories
A. Sole Proprietorship C. Provide skills, knowledge, effort and
other intangible benefits
B. Partnership
D. none of above
C. Corporation
D. Franchise 512. Macro Economics deals with
A. External value of money
507. Which of the following does not suggest
a macro approach for India? B. Employment and economic growth
A. Determining the GNP of India. C. General price level
B. Finding the causes of failure of ABC D. all of above
Ltd.
513. The main disadvantage of a is that
C. Identifying the causes of inflation in In- the owner of the business has unlimited
dia. liability.
D. Analyse the causes of failure of indus- A. Proprietorship
try in providing large scale employment.
B. Partnership
508. What does “N” stands for? C. Corporation
A. Nominal D. Franchise
B. National
514. In the Circular Flow Model, leakages are
C. Numbered
D. Numerical A. Investment, Government expenditure,
509. Resources (a.k.a. the factors of produc- Exports
tion are) B. Savings, Taxation, Imports
A. Land and Labor C. Investment, Exports, Imports
B. Land and Capital D. Savings, Taxation, Exports

515. Something we would like to have but can 520. In economics ‘Ends’ refers to
survive without
A. Human wants

A. Want
B. Scarcity
B. Need
C. Surplus
C. Producer good
D. Alternative uses
D. Public good
521. A supply chain is
516. What is the definition of the economic
term Opportunity Cost? A. The transport of goods by sea or some
other means
A. the value of the next best alternative
that is given up due to the choice you made B. The sequence of processes involved in
the production and distribution of a prod-
B. The price you pay to purchase some-
uct or service
thing
C. The benefit you gain by making a deci- C. The commercial activity of transport-
sion ing goods to customers
D. The amount of debt you take on by mak- D. The amount of a commodity, product,
ing a decision or service available and the desire of buy-
ers for it
517. What is Scarcity?
522. A Limited liability partnership:
A. Needs and Wants
A. Have silent partners who cannot lose
B. Unlimited Needs and Wants
more than they invested
C. When something is in short supply
B. Have a board of directors
D. When something is rare and expensive
C. Have just two owners
518. Which statement is NOT TRUE for con-
D. Have stock
sumer sovereignty?
A. Consumer has the power to decide 523. What does PPC show? Multiple answer.
what goods to be produced A. 2 products → we can ONLY produce
B. Consumers send signals to producers two product per period
through their demand
B. Efficiency → operate with full employ-
C. Business decides what they want to ment and full production capacity
produce
C. normative economics
D. Producers produce g/s they think has
D. various possible combinations of
highest demand
goods and services
519. If quantity demanded is completely unre-
sponsive to changes in price, demand is: 524. is used to show opportunity cost.
A. 1.Inelastic A. Production Possibility Front/Curve
B. 2.Unit elastic B. Production Possibility Cost
C. 3.Elastic C. Production Possibility Opportunity
D. 4.Perfectly inelastic D. Production Possibility Level

525. refers to a general rise in the price C. partnership

level of goods and services over time. D. net income
A. Acceleration
531. Kenneth needed a new shirt for the foot-
B. Recession ball game this Friday. He went to the mall
C. Inflation and purchased a shirt from H & M. Which
market does Kenneth receive his wages to
D. Escalation
purchase the shirt?
NARAYAN CHANGDER
526. Which of the following is an example of A. product market
a need? B. factor market
A. Entertainment C. firms
B. Somewhere to live D. household
C. Transport
532. is a branch of economics that deals
D. Packaged holiday with aggregate economic variables, such
as the level and growth rate of national
527. The best superhero
output, interest rates, unemployment and
A. is the Flash inflation
B. is the Flash A. 1. Microeconomics
C. is the Flash B. 2. Statistics
D. is the Flash C. 3. Macroeconomics
D. 4. Market Economies
528. This economy of scale is where advertis-
ing budgets can be spread across multiple 533. Indifference curves never intersect each
products for lower average costs. other due to:
A. Managerial A. Different levels of satisfaction
B. Marketing B. Same levels of satisfaction
C. Financial C. Convex to origin
D. Purchasing D. Concave to origin
529. A significant decline in general economic 534. Which of the following is a basic right un-
activity in a designated region is called der capitalism?
A. expansion A. freedom from taxation
B. economic growth B. Freedom of collusion
C. recession C. The right to vote
D. gross domestic product D. The right to compete

535. In economics, capital goods include
530. funds left over after all of the firm’s
expenses, including taxes, are subtracted A. buildings and equipment.
from its sales B. labor and management.
A. proprietorship C. mental and physical work.
B. cash flow D. trees and water.

536. An expansionary period in the business 541. change in consumption of a good associ-
cycle is distinguished by- ated with change in its price with level of
utility held constant is called

A. high inflation
A. 1.substitution effect
B. declining sales
B. 2.income effect
C. fewer excise taxes
C. 3.both 1 & 2
D. low unemployment
537. Which type of business allows people to
buy shares in it? 542. Which is not a likely disadvantage of a
small firm?
A. Cooperative
A. Higher costs
B. Sole Trader
B. Difficulty attracting quality staff
C. Partnership
C. Vulnerability to competition (especially
D. Corporation from larger companies)
D. Lower overall wage costs
538. What is Business Studies?
A. This is the study of how businesses are 543. Who was nominated to the full time mem-
formed, how they grow & how the oper- bership of Niti Aayog?
ate/managed. A. Varun Agrawal
B. This is the study of how human be- B. Ramesh Chand
ings behave as they satisfy their unlimited
C. Raghuram Rajan
wants and needs.
C. This is the value of the next best alter-
native forgone. 544. A economy is one in which economic
D. none of above decisions are based on a values, culture,
and customs.
539. Where do people buy most goods? A. Command
A. Farms B. Market
B. Stores C. Traditional
C. Trucks D. Mixed
D. Factories 545. The most prominent members of the Neo-
classical school of economics is
540. A Limited liability company
A. Adam Smith
A. combines the best features of a part-
nership and corporation B. Milton Friedman
B. is a business coming together for a lim- C. Lucas
ited time D. Alfred Marshall
C. is a company where owners have un-
546. requirement that an owner is personally
limited liability
and fully responsible for all losses and
D. none of above debts of the business

A. limited liability 551. Economies of scale are those that

B. unlimited liability A. Result from changes in production
C. principal techniques
B. Increase due to the growth of the in-
D. depreciation
dustry as a whole
547. What is resource development? C. Generate lower per unit production
A. A government agency. costs
NARAYAN CHANGDER
B. My least favorite subject. D. Reduce production costs in the short
run
C. The study of how to increase re-
sources. 552. The law of Scarcity-
D. none of above A. Does not apply to developed and rich
countries
548. A target market is
B. Applies only to less developed coun-
A. a market available at target tries
B. a group of people who all buy the exact C. Implies that the consumers’ want will
same goods and services be satisfied in a socialist economy
C. a group of producers who have similar D. Implies that consumers’ want will
interests and therefore join in a partner- never be completely satisfied.
ship business
D. a group of customers with similar char- 553. organization of workers formed to repre-
acteristics towards which a business has sent its members’ interests in various em-
decided to aim its marketing efforts and ployment matters
its products A. principal
549. Fiscal policy involves increases or de- B. labor union

creases in: C. multinational
A. the money supply D. corporation
B. interest rates 554. Economic theories are
C. government spending and taxes. A. Hypothetical
D. exports and imports B. Accurate
550. Exports are C. Both (1) and (2)
A. goods and services that are purchased D. Neither (1) Nor (2)
from overseas businesses
555. This type of business is owned by one
B. goods and services that are exported person.
to overseas governments
A. Partnership
C. goods and services that are sold do-
mestically to the household sector B. Sole Trader
D. goods and services sold by local busi- C. Limited Company

nesses to overseas consumers D. Franchise

556. Supply represents 561. Inflation measures

A. how much of a product or service the A. the value of all final goods and services

market has to offer produced
B. how much of a product that the cus- B. an increase in the general price level
tomer wants to buy
C. the percentage of people looking for
C. how many goods are available for pur-
work that can’t find it
chase
D. the economic freedom an economy of-
D. how much of a product or service that
fers
buyers want to sell
557. Which of the following is NOT an advan- 562. MPS is equal to
tage of starting a business as a partner- A. Consumption / Income
ship?
B. Saving / Income
A. More finance can be raised
B. Partners can specialise according to C. Change in Consumption / Change in In-
their experience come
C. The workload is reduced since it is D. Change in Saving / Change in Income

shared amongst partners
563. Deliberate deception, designed to secure
D. Partners may disagree and fall out unfair or unlawful gain.
with each other
A. Cease and desist order
558. Things required in-order to live.
B. Limited warranty
A. Market Price
C. Fraud
B. Producers
C. Needs D. none of above
D. Trade-off 564. What do we call a person who is willing

to take the risks of starting a business in
559. Unemployment measures
order to make a profit?
A. the value of all final goods and services
produced A. Proprieter
B. an increase in the general price level B. Partner
C. the percentage of people looking for C. Entrepreneur
work that can’t find it
D. Incorporater
D. the economic freedom an economy of-
fers 565. External economies of scale are cost sav-
ings available to the whole as a result
560. The most recognizable form of non-price
of its
competition is?
A. Industry, Location
A. More Locations
B. Better Customer Service B. Business, Location
C. Advertising C. Industry, Size
D. Low Price D. Business, Size

566. What does an entrepreneur do? C. Demand of industry

A. start and run a business D. Employment and economic growth
B. take over a company 572. Adam smith book “An Enquiry Into the
C. develop a course Nature and Causes of Wealth of Nations”
D. work at and manage a store was published in
A. 1576
567. Sara’s Hair Palace is a small, locally
B. 1874
owned beauty salon in Sterling. Sara does
NARAYAN CHANGDER
all the work. This represents what type of C. 1776
business? D. 1930
A. corporation
573. Which type of business organization is
B. partnership managed by a Board of Directors?
C. sole proprietorship A. Sole Proprietorship
D. none of above B. Partnership
568. sum of net income and non-cash charges, C. Government
such as depreciation D. Corporation
A. net income 574. Find the number of units X produces the
B. corporation minimum average cost per unitC= 1.25x2
C. cash flow +25x +8000
D. limited life A. 60
B. 70
569. Which statement is NOT true?
C. 80
A. Young people tend to dis-save
D. 90
B. Retired people tend to dis-save
575. An oligopoly is a market that is charac-
C. Middle-aged people tend to dis-save
terized by:
D. People tend to save proportionately
A. one firm that totally dominates the sup-
more during middle age
ply of the product.
570. The difference between what a consumer B. a large number of small firms all pro-
is ready to pay and what he actually pays ducing very similar products.
is:
C. a few large sellers who dominate the
A. Consumer Surplus market.
B. Consumer deficit D. several small firms that compete pri-
C. Both marily by differentiating their products.
D. None 576. Willingness to pay for the want is
571. We mainly study the following in Micro- A. Need
Economics: B. Desire
A. General price level C. Demand
B. National income and output D. Show off

577. The main objective of TRYSEM was D. none of above

A. To train rural youth for self- 582. If it costs me $10 to make the first 10

employment bowls of cereal and $12 to make the next
B. to train urban youth for self- 10 bowls of cereal, what is my marginal
employment (extra) cost?
C. Both of the above A. $120
D. None of these B. $10
C. $2
578. State the correct answer:The law of
scarcity: D. $100
A. does not apply to rich, developed coun- 583. In a market economy, who has the least
tries. influence over how economic resources are
B. applies only to the less developed allocated?
countries. A. The government
C. implies that consumers wants will be B. Consumers
satisfied in a socialistic system. C. Businesses/Producers
D. implies that consumers wants will D. None of the above
never be completely satisfied.
584. Which of the following is the best reason
579. Things that add comfort and pleasure to for studying economics:
your life.
A. To determine which occupations inter-
A. Services est you
B. Economic System B. To find the best use for resources and
C. Consumer supplies
D. Wants C. To prepare for effective decision-
making and responsible citizenship
580. A country with a strong business activ-
D. To learn how to invest money and ex-
ity that includes advanced technology and
press social responsibility
a highly educated population.
A. developing country 585. form of business organization recognized
by law as a separate legal entity having
B. less-developed country all the rights of an individual
C. industrialized country A. corporation
D. none of above B. multinational
581. The four influences on the way people C. interest
work are: D. sole proprietorship
A. Technology, communications, out-
586. Is time an investment?
sourced labour and casualisation
A. undecided
B. Automation, casualisation, scarcity
and outsourced labour B. yes
C. scarcity, demand, technology and re- C. no
dundancy D. none of above

587. A decrease in taxation is an example of 592. Opportunity Cost is when

a decision made by which sector: A. the total value of your options
A. Household B. the value of something gained when
B. Business you make a choice
C. Financial C. the value of something given up when
you make a choice of one thing over an-
D. Government
other
NARAYAN CHANGDER
E. Overseas D. the value of your hours at work
588. Which condition is a result of open com- 593. Economist Thomas Malthus believed that
petition in a free market system? would limit economic progress.
A. government regulation A. depletion of gold reserves
B. higher quality goods B. overpopulation
C. higher prices C. the tendency of governments to levy
D. poor customer service high tax rates
D. the inability of workers in developed
589. Think tank of government of India that nations to compete against cheap foreign
replaced the planning commission. labor
A. Niti dharma
594. The goal of a company in an oligopoly in-
B. Niti Shashan dustry is to
C. Niti Aayog A. Increase market share and profits.
D. None of the above B. Obtain the highest price possible.
C. Always follow rivals if they raise price.
590. Oil, water, and wood are examples of
resources. D. Be the market leader in innovation.
A. Land 595. Needs and wants are , while our re-
B. Labor sources are
C. Capital A. satisfied, unsatisfied
D. Entrepreneurship B. limited, unlimited

C. unlimited, limited
591. The general environment is influenced by
D. necessary, unnecessary
various factors:
A. Economic, socio-cultural, political- 596. What does the scarcity of resource im-
legal. plies
B. Economic, socio-cultural, political- A. We must develop way to decrease our
legal, environmental. individual wants
C. Economic, political-legal, technologi- B. Not all wants can be satisfied.
cal. C. Resources can not satisfy any want
D. Economic, sociocultural, political- D. Resources are very scarce and shall
legal, technological, environmental. not be used at all

597. Define productivity B. medical

A. Amount of g/s produced per unit of re- C. education

sources
D. construction
B. Cost of g/s produced
C. Total amount of g/s produced 603. Disadvantages for this type of business
D. Increase in quantity of g/s produced include:owner pays for everything, hard
to get money to start from the bank,
598. The model of the five competitive forces owner might lack skills & unlimited liabil-
of the: ity.
A. Peter A. Sole Trader
B. Paul
B. Partnership
C. Porter
C. Limited Company
D. Patrick
D. Franchise
599. Micro and macro are not two independent
approaches to economic analysis but they
604. The process of changing an industry from
are substitute to each other.
public to private ownership.
A. True
A. privatization
B. False
C. PARTLY TRUE B. public marketing
D. PARTLY FALSE C. socialization
600. Which type of business has to share prof- D. economic change

its, responsibility and liabilities?
605. An indifference curve is always:
A. Sole Trader
B. Partnership A. (a) Concave to the origin
C. Both B. (b) Convex to the origin
D. Neither C. (c) L-shaped
601. The quantity of a good or service that pro- D. (d) A vertical straight line
ducers are willing and able to offer for sale
at a particular price during a specific time 606. Dan has $5, 000. He wants to invest
period. his money in the type of business that will
A. Supply not take his personal assets if the business
fails. In which type of business should he
B. Demand
invest?
C. Price
A. corporation
D. Production Cost
B. partnership
602. A person in which of the following fields
would most likely use economics? C. proprietorship
A. business D. none of above

607. What business is a combination of the tra- C. consumers and resource owners.
ditional business firms and the internet? D. producers and economizers.
These businesses not only specialize in tra-
ditional methods of distribution, but also 613. A situation where people exchange goods
ways using different technology. and services is referred to as:
A. Hybrid Business A. A market
B. Merchandising Business B. The Producer Rights Law
NARAYAN CHANGDER
C. Limited Liability Company C. A Mixed Market Economy
D. Corporation D. Scarcity
608. is the price that equates quantity sup- 614. Which of the following business practice
plied to the quantity demanded REDUCES consumer sovereignty?
A. 1.equilibrium price
A. Marketing
B. 2.surplus
B. Misleading conduct
C. 3.shortage
C. Planned Obsolescence
D. 4. none of the above
D. All of the above
609. Advantages of this business type are that
the owner is their own boss and gets to 615. organization that pools funds of individ-
keep all the profits. ual investors to buy a large number of dif-
ferent stocks or other financial assets are
A. Partnership called
B. Sole Trader A. 1.mutul funds
C. Limited Company B. 2.stock market
D. Franchise
C. 3. insurance company
610. Capitalist economy is also known as- D. 4.none of the above
A. Controlled market economy
616. How do you satisfy your unlimited wants
B. Free market economy in a world of limited resources?
C. Both (1) and (2) A. by making more money
D. Neither (1) Nor (2) B. by making choices
611. Freedom if choice is advantage of- C. by stealing
A. Socialist economy. D. by setting a budget
B. Controlled economy
617. The Problem of ‘What to Produce’ covers
C. Capitalist economy the issue relating to-
D. None of the above A. What goods are to be produced?
612. Distribution examines how income is di- B. What quantities of goods are to be pro-
vided between duced?
A. producers and resource owners. C. Both (1) and (2)
B. consumers and producers. D. Neither (1) Nor (2)

618. Normally a demand curve will have the C. Science of Material welfare
shape: D. Science of Dynamic Growth and Devel-

A. 1.horizontal opment
B. 2.vertical
624. Disadvantages of this type of business
C. 3.downward sloping include:parent company is strict, you are
D. 4.upward sloping limited in what you sell, and you must op-
erate like every other franchise.
619. which of the following is not the subject
matter of Business economics? A. Sole Trader
A. Should our firm be in this business? B. Partnership

B. How much should be produced and at C. Corporation
price should be kept? D. Franchise
C. How will the product be placed in the
market? 625. A form of business organization with two
or more owners who share the risks and
D. How should we decrease unemploy- the profits-
ment in the economy?
A. proprietorship
620. This type of business is owned by many
B. corporation
people called stockholders.
C. wholesale
B. Partnership D. partnership
C. Corporation 626. Can exist indefinitely

D. Franchise A. Partnership
621. When demand is perfectly inelastic, an in- B. Sole Proprietorship
crease in price will result in: C. Corporation
A. 1.A decrease in total revenue
D. Partnership and Corporation
B. 2.An increase in total revenue
627. When marginal utility from the consump-
C. 3.No change in total revenue
tion of a commodity is zero, then the:
D. 4.A decrease in quantity demanded
A. Total utility is zero
622. Who was the first Chairman of planning B. Total utility is highest
commission?
C. Total utility is rising
A. Rajendra Prasad
D. Total utility is falling.
B. S. Radhakrishnan
C. J.Nehru 628. Whose ideas led to Socialism?
D. B.R. Ambedkar A. Adam Smith
623. Modern definition- B. Karl Marx
A. Science is Wealth C. Vladimir Putin
B. Science of scarcity D. none of above

629. One way to measure economic growth is 634. Which of the following is a possible cause
to of diseconomies of scale?
A. count the number of businesses in a A. similar businesses in the area
country B. easy access to suppliers
B. compare GDP C. greater distance between senior staff
C. measure the number of imported and shop floor workers
goods coming into a country D. abundance of skilled labour
NARAYAN CHANGDER
D. compare interest rates 635. Economists regard decision making as im-
portant because:
630. Marshall defines economics as
A. The resources required to satisfy our
A. The study of mankind in the ordinary
unlimited wants and needs are finite, or
business of life
scarce.
B. The study of human behaviour as a re-
B. It is critical to understand how we can
lationship between ends and scarce re-
best allocate our scarce resources to sat-
sources
isfy society’s unlimited wants and needs
C. An Enquiry into the Nature and Causes C. Resources have alternative uses
of wealth of Nations
D. All of the above
D. None of these
636. In which category would I find the high-
631. curve represents all combinations est prices?
of market baskets that provide consumer
A. sole proprietor
with the same level of satisfaction.
B. oligopoly
A. 1.demand curve
C. perfect competition
B. 2.indefference curve
D. monopoly
C. 3.supply curve
637. Which of these is the best definition of
the ‘economic problem’?
632. Easiest type of business to start A. People do not have enough money.
A. Corporation B. There are not enough resources to sat-
isfy people’s wants.
B. Sole Proprietorship
C. There are too many factors of produc-
C. Partnership
tion.
D. Corporation and Partnership
D. The amount of something produced by
633. Because of the problem of scarcity, each a person, machine or industry.
economic system must make which of the 638. What is a disadvantage of a mixed econ-
following choices? omy?
A. How to produce? A. Private ownership of resources
B. What to produce? B. Government regulations
C. For whom to produce? C. Inequities in the distribution of wealth
D. All of these. D. Strong social networks

639. Death of owner ends the business 644. The economists who presented the
A. Partnership growth oriented definition of economics

B. Sole Proprietorship A. Adam Smith
C. Corporation B. Samuelson
D. Sole Proprietorship and Partnership C. Marshall
D. Karl Marx
640. What is the purpose of government
taxes? 645. The point at which supply and demand
A. Fund the income of politicians cross.
B. Provide money for public goods and A. inflation point
services
B. supply point
C. Provide money for public perfor-
C. market price
mances
D. crosspoint
D. Supplement big businesses
641. Economy that is based on supply and de- 646. A partnership agreement is a contract
mand where individual companies and con- that defines the terms of a partnership,
sumers make the decisions about what, such as:(Select the FOUR that are correct)
how and for whom items will be produced. A. The contributions from different part-
A. command economy ners
B. market economy B. How major decisions are made
C. mixed economy C. How profit or loss is shared
D. none of above D. How the partnership may be ended
642. What is Adam Smith’s “invisible hand? ” E. Details of the business office decora-
tions
A. God
B. The process that turns self-directed 647. According to Robbins “means” are
gain into social and economic benefits. A. Scarce
C. The controlling fist of the government B. Unlimited
D. His wife who always supported him in C. Undefined
his work
D. All of these
643. How do governments, businesses and in-
dividuals deal with having unlimited needs 648. Businesses that produce (not just sell) in
and wants with scarce resources? more than one country; large businesses
with a home base in one country but oper-
A. By making trade-offs.
ate partially or wholly in other countries.
B. By figuring out how to satisfy every
A. Multinational Corporations
want and need.
B. Globalisation
C. By focusing on wants first and then
needs. C. Macroeconomics
D. There is literally no answer. D. Microeconomics

649. The following are causes of shift in de- B. Government

mand EXCEPT the one: C. Customs
A. 1.change in income D. Individuals, Businesses and Govern-
B. 2.change in price ment
C. 3.change in fashion 655. In what way does specialization increase
D. 4. change in prices of substitutes productivity?
A. Specialization reduces scarcity
NARAYAN CHANGDER
650. Who among the following would be con-
sidered as unemployed? B. a. Specialization reduces the cost of
A. A graduating student of legal age to production.
work C. a. Specialization increases the de-
mand for a product.
B. An entrepreneur in the process of
starting a new business D. a. Specialized workers are generally
more highly educated.
C. A secretary who has resigned from
work & looking at job ads 656. Which business is not a franchise?
D. A housewife running 2 internet shops A. McDonalds
at the same time
B. Hungry Jacks
651. Which is NOT a feature of Wants C. Nike
A. Recur D. Boost
B. Competitive
657. At equilibrium, the slope of the indiffer-
C. Complementary ence curve is:
D. Limited A. (a) Equal to the slope of budget line
652. The most attractive alternative given up B. (b) Greater than the slope of budget
when a choice is made, is the line
A. scarcity choice C. (c) Smaller than the slope of budget
line
B. favorite choice
D. (d) None
C. economics cost
D. opportunity cost 658. Oprah Winfrey, Guy Fieri, and Steve Jobs
are examples of resources.
653. Teachers, construction workers, and me- A. Land
chanics are examples of
B. Labor
A. Land
C. Capital
B. Labor
D. Entrepreneurship
C. Capital
D. Entrepreneurship 659. What kind of business is BEST described
by these statements? I am the only owner
654. Who or what answers the basic economic of my business. I take all the risks of do-
questions in a market economy? ing business. I keep all the profits.
A. Individuals and Businesses A. proprietorship

B. corporation 665. Which of the following is an advantage

C. partnership of sole proprietorships:

A. Limited liability
D. cooperative
B. Unlimited financial power
660. APC is equal to
C. Dual taxation
A. 1-APS
D. Quick decision making
B. 1 / APS
666. Who took over as the new Vice Chairman
C. 1-MPS of Niti Aayog in September 2017?
D. Consumption / Income A. Arvind Panangriya
661. Complex and expensive to set up B. Raghuram Rajan
A. Partnership C. Rajeev Kumar
B. Corporation D. Rajiv Singh
C. Sole Proprietorship 667. Which following businesses would you
D. Corporation and Partnership classify as being in the secondary sector
of industry?
662. What is “spam”? A. An oil exploration company
A. a form of hacking B. A family run farm business
B. a form of firewall C. A taxi operating business
C. intellectual property D. A shoe manufacturer
D. junk e-mail
668. A study of how increases in the corporate
663. If OPEC decided to cut oil production for income tax rate will affect the national un-
the coming year, what would be the MOST employment rate is an example of
LIKELY effect? A. Macro-Economics.
A. prices would not change B. Descriptive Economics
B. oil prices would probably rise C. Micro-economics
C. oil prices would probably decline D. Normative economics
D. the price for substitute products would 669. The private ownership of economic re-
decline sources by individuals rather than by the
Government.
664. When comparing the four main types
of business organizations, which protects A. Consumer
owners the MOST from personal financial B. Capitalism
liability due to being sued by a customer?
C. Demand
D. Economic System
B. Partnership
670. Goods and services that are produced in
C. Franchise our country and sold to buyers in another
D. Corporation country are called

A. exports 675. A level of material comfort measured by

the goods, services, and luxuries available
B. imports
A. Standard of expense
C. external purchases
B. Standard of cost
D. external sales
C. Standard of living
671. The economic problem is that D. none of above
A. resources are limited and wants are
NARAYAN CHANGDER
676. What type of policy is the use of interest
limited. rates to control the economy?
B. resources are unlimited and wants are A. demand side policy
limited.
B. fiscal policy
C. resources are limited and wants are C. insurance policy
unlimited.
D. monetary policy
D. resources are unlimited and wants are
unlimited. 677. Australia’s biggest export in 2017 was
672. The ultimate goal of all economic activity A. Iron ore

is
B. Wheat
A. consumption.
C. Natural gas
B. production. D. Coal
C. exchange.
678. Which of the following is NOT one of the
D. distribution. 6 basic business activities
A. Generate Ideas
673. Discounts, price cutting, Advertisements,
etc in capitalist economy are- B. Buy Goods and Services
A. Types of government regulation C. Maintain Records
B. Effects of consumer sovereignty. D. Compete with other businesses
C. Method of handling competition. 679. Of the three types of businesses, which

one provides the most jobs? (Hint:Which
D. None of the above. one is the most common? )
674. Goods are A. Corporation
A. goods are sold at supermarkets for B. Partnership

consumption C. Sole proprietorship
B. goods are intangible items that cannot D. None of these are correct
be seen or touched
680. Disadvantages of this type of business
C. goods are actions done by businesses include:company is taxed on profits, reg-
for consumers ulated by the government, and hard to
D. goods are physical, tangible products start.
that can be seen and touched A. Sole Proprietorship

B. Partnership 686. Which of the following is NOT one of the

C. Corporation five roles of business
A. Providing employment

D. Franchise
B. Stimulating economy
681. Which one of the following is the correct
C. paying taxes to government
definition of Economics?
D. competing with other businesses
A. How the limited resources are allo-
cated to satisfy human wants 687. Which of the following may be an exam-
B. How individuals, consumers and firms ple of a need?
make economic decisions A. A Ferrari
C. How a government manages its do- B. Medication
mestic economy, and how the global econ- C. Netflix
omy operates
D. An iPhone
D. How a business is organised and run
to achieve its corporate goals 688. Normally a supply curve will have the
shape:
682. business owned and run by one person A. 1.horizontal
A. consumer cooperative B. 2.vertical
B. partnership C. 3.downward sloping
C. sole proprietorship D. 4.upward sloping
D. corporation
689. Businesses conspiring among themselves
683. In Business economics ‘ends’ refers to- to set the prices of competing products at
a higher level
A. Human wants
A. Price fixing
B. Resources
B. Trust
C. Both (1) and (2)
C. Market sharing
D. Neither (1) nor (2)
D. Oligopoly
684. Robbins in his definition
690. If elasticity of demand is very low it
A. talks of scarcity of resources shows that the commodity is:
B. Preaches moral values A. 1.necessity
C. Advises neutrality in economics B. 2.luxuary
D. None of the above C. 3.Has little importance in total budget
685. According to the article, what will you D. 4.none of the above
have to do when setting up a business BE- 691. What is the desired rate of growth for
FORE your very first transaction? GDP?
A. get money A. 3-4%
B. sell goods B. 2-3%
C. spend money C. 1-3%
D. count your money D. 4-5%

692. corporation that has manufacturing or B. A-2, B-3, C-1, D-4

service operations in a number of countries
C. A-1, B-2, C-3, D-4
A. consumer cooperative
D. A-4, B-3, C-2, D-1
B. interest
C. sole proprietorship 697. Which type of economy has the govern-
ment making all decisions?
D. multinational
A. Market
NARAYAN CHANGDER
693. Which of the following is best described
as what you are willing to give up to have B. Mixed
your first choice? C. Traditional
A. Trade-off
D. Command
B. Scarcity
C. Economic Decision-Making 698. Which is NOT a benefit of technological
change?
D. Opportunity Cost
A. Production method becomes more effi-
694. Sole proprietorship can best be defined as cient, increases profit
B. Allow consumers to search and com-
A. a business owned and run by a single pare prices
individual
C. Machinery replace labour, causing un-
B. Business organization recognized by
employment
law as separate legal entity with all the
rights of an individual D. New technologies create new job op-
C. two individuals owning stock portunities
D. stockholders joined under contract 699. Pigou was an ardent supporter of

695. Which of the following is not the function A. Wealth definition
of the Niti Aayog?
B. Welfare definition
A. To evolve a shared vision national de-
velopment priorities sectors & strategies. C. Scarcity definition
B. To foster cooperative federalism D. Growth definition

C. To give final approval to the Five year
700. What are the three main forms of busi-
plans of India
ness in today’s economic
D. To create a knowledge, innovation &
A. Sole proprietorship, the partnership,
entrepreneurial support system.
Market economy
696. Match List I and II and choose the correct B. Partnership, Sole Proprietorship, Cor-
answer using the codes given below List poration Economy
I (Economist) List II (Definition) A. Adam
Smith 1. Welfare B. Marshall 2. Wealth C. Merchandising Business, Sole propri-
C. Robbins 3. Growth D. Samuelson 4. etorship, Partnership
Scarcity D. The sole proprietorship, the partner-
A. A-2, B-1, C-4, D-3 ship, and the corporation

701. A command economic system is character- 706. Of the following which is NOT a “fixed”
ized by: cost for a business?

A. reliance on the forces of supply and de- A. packaging
mand to determine what is produced. B. security cameras
B. reliance on the government to deter- C. rent
mine what is produced and who gets the
D. insurance payments
output.
C. an extremely rapid rate of economic 707. The distinction between variable cost and
growth. fixed cost is relevant only in
D. freedom of choice and freedom of com- A. long period
petition. B. short period
702. Disadvantages of this business type in- C. medium term
clude:needs a partnership agreement, part- D. mixed period
ners might not get along, owners share
profits, unlimited liability. 708. Ownership and management are sepa-
rate
A. Sole Trader
B. Partnership
B. Partnership
C. Limited Company
C. Partnership and Corporation
D. Franchise
D. Corporation
703. McDonald’s and Burger King are exam-
709. Veterinary Practices are often owned by
ples of
two or more Vets. This is known as a
A. Sole Trader
A. Sole Trader
B. Partnerships
B. Partnership
C. Limited Company C. Limited Company
D. Franchises D. Franchise
704. A is anywhere buyers and sellers 710. Till 19th century Economics was known
meet to buy and sell goods and services. as
A. Store A. Political Economy
B. Workplace B. Social Economy
C. Restaurant C. Both (1) and (2)
D. Market D. Neither (1) Nor (2)
705. Friendship would be considered a(n) 711. Which of the following is an example of
want. a want?
A. economic A. Medicine
B. limited B. Food
C. noneconomic C. Clothing
D. unlimited D. Entertainment

712. Which factor does not affect the demand D. A Sainsbury’s 4 miles away from a
for labour? Tesco’s
A. Demand for a product
718. Which of the following is considered as a
B. Productivity of labour disadvantage of allocating resources using
C. Migration the market system?
D. Availability of substitutes A. Income will tend to be unevenly dis-
tributed.
NARAYAN CHANGDER
713. Law firms and doctor’s offices are exam-
B. People do not get goods of their
ples of
choice.
A. Sole Proprietorships
C. Men of Initiative and enterprise are
B. Partnerships not rewarded.
C. Corporations D. Profits will tend to be low.
D. Franchises
719. Which of these is a service?
714. The target rate for inflation is? A. School fees
A. 1-2% B. Toothbrush
B. 2-3% C. Clothes
C. 3-4% D. Chocolate
D. 4-5%
720. exists when the entire supply of a
715. Nike, Google and Apple are examples of good is controlled by a single seller.
A. Sole Proprietorships
B. oligopoly
B. Partnerships
C. pure capitalism
C. Corporations
D. a monopoly
D. Franchises
721. The constant rise in the general level of
716. Identify the need in this list prices over a period of time is termed
A. Pure Oxygen A. expansion
B. Water B. inflation
C. Carbonated Water C. unemployment
D. Day Spas
D. consumption
717. Which of the following is most likely an
722. The difference between a country’s ex-
example of a monopoly?
ports and imports.
A. A Starbucks across from Dunkin
A. balance of trade
Donuts
B. foreign debt
B. A gas station in a town by itself
C. 3 fast food restaurants all on the same C. opportunity cost
street D. comparative advantage

723. Activities provided for the satisfaction of 728. Consumers are typically most willing to
others that are consumed the time they are pay more for goods and services that bring
produced. them greater

A. Services A. opportunity costs.
B. Mixed Economy B. satisfaction.
C. Wants C. popularity.
D. trade-offs.
D. Trade-off
729. Capital is
724. A subsidiary is
A. the money or cash on hand that a busi-
A. A company that is mostly owned by an- ness has at their disposal
other company
B. all the equipment used by human
B. A company that is at least half-owned labour in the process of production
by a bigger company
C. all the equipment used when to create
C. A company that is combined with an- goods and services for the consumers
other company to make a conglomerate D. the resources required to produce
D. A company of which less than 25% is goods and services for consumers
owned by another company
730. The concept of marginal utility decreasing
725. price paid for the use of another’s money with the increase in amount consumed of a
commodity is called
A. interest
A. Diminishing marginal returns
B. sole proprietorship
B. Diminishing marginal utility
C. labor union C. Diminishing total utility
D. inventory D. Diminishing total returns
726. At equilibrium under ordinal approach the 731. Which of the following is the disadvan-
MRS should be equal to tage for a market economy?
A. MRTS A. Some individuals needs may not be
meet.
B. Price Ratio
B. Little government intervention.
C. Price
C. Great variety of goods or services.
D. Income
D. Price are determined by market forces
727. In which economic system does the gov- (supply and demand).
ernment have the most control over eco-
732. An Economy that combines elements of
nomic resources?
the command and market economies.
A. Mixed A. Command Economy
B. Command B. Opportunity Cost
C. Market C. Mixed Economy
D. Traditional D. Capitalism

733. The principle that consumers tend to buy A. corporation

less of a good or service when its price in- B. proprietorship
creases, all else held equal, is called
C. partnership
A. the law of supply
D. distributor
B. the law of demand
C. the law of increasing cost 737. Which type of economy lets the govern-
ment & private businesses work together
D. the law of maximum satisfaction in order to make decisions?
NARAYAN CHANGDER
734. what is a planned economy? A. Market
A. an economy directed to basic subsis- B. Mixed
tence rather then to the market C. Command
B. an economic system in which pri- D. Traditional
vate individuals or businesses own capital
goods 738. Not having enough resources to satisfy
C. type of economic system where invest- every need.
ment, production and the allocation of cap- A. Trade-off
ital goods take place B. Goods
D. none of above C. Scarcity
735. are essential, while just add to D. Services
the quality of life.
739. Initiative and Innovation help businesses
A. Goods, services gain the competitive advantage by
B. Needs, wants A. finding a market where you can sell
C. Products, services things
D. Wants, needs B. finding a niche
736. A form of business organization that is C. finding a niche in the market and gain-
authorized to act as a legal entity regarding more consumer support
less of the number of owners. D. finding more consumers

Ntanet Economics

Uploaded by

Copyright:

Available Formats

Ntanet Economics

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ntanet Economics

Uploaded by

Copyright:

Available Formats

MOST POPULAR AROUND THE WORLD

PRACTICE BOOK» NOT FOR SALE

DESIGNED FOR SURE SUCCESS

JAI SHREE RAM

PRACTICE BOOK» NOT FOR SALE

It is my deepest gratitude and warmest

To my mother JOYTSNA CHANGDER

who has been a constant source of Knowledge and in-

The aim of this publication is to sup-

PRACTICE BOOK» NOT FOR SALE

D. Macroeconomics A. Cost-willingness to pay

A. The supply curve will shift to the left. D. Willingness to pay-price

D. The demand curve shifts to the left. A. Income

PRACTICE BOOK» NOT FOR SALE

A. prices of gold A. Diversification

A. the upward sloping supply curve B. compete

21. D 22. B 23. B 24. C 25. B 26. C 27. A 28. C 29. B

29. Giving a haircut C. decrease; complements

PRACTICE BOOK» NOT FOR SALE

C. only demand changes 45. Consumer surplus is equal to:

B. demand left A. Production Possibility Boundary

C. supply right B. Transformation Curve

D. supply left C. Production Possibility Frontier

PRACTICE BOOK» NOT FOR SALE

53. Alternative name of Microeconomics is D. All of the options

B. Command C. Rotates around X-axis

63. C 64. B 65. B 66. B 67. A 68. D 69. A 70. A

71. Macroeconomics focuses on all of the fol- B. National economy

PRACTICE BOOK» NOT FOR SALE

C. the availability of resources and de- B. Law of Demand

PRACTICE BOOK» NOT FOR SALE

A. Command Economy D. all of the above

B. Free Market Economy 98. If the economics is used to describe what

95. The tendency of suppliers to offer more of B. Corporation

B. scarcity D. Technical monopoly

C. economic interdependence 108. If the quantity supplied is equal to the

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

PRACTICE BOOK» NOT FOR SALE

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

A. land A. law of demand

B. labor B. demand curve

C. capital C. demand schedule

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

C. neither party gains as specialization C. Constant Returns to Scale

PRACTICE BOOK» NOT FOR SALE

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

C. Producer surplus D. Wealth

B. Demand D. none of above

C. Market 150. The degree to which tax falls on a partic-

146. Opportunity cost is the: D. Demand

A. Number of units sacrificed 152. Of the three major economic questions,

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

B. Should higher-income or lower-income 157. This determinant of supply includes both

PRACTICE BOOK» NOT FOR SALE

D. Should migrant workers or domestic A. Government Tools

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

D. MC 171. A deadweight loss declines in size when

C. consumers will purchase less of a food C. Unlimited wants vs Limited resources

CHECK GOOGLE PLAY BOOKS FOR ANSWERS KEYS

PRACTICE BOOK» NOT FOR SALE