Economics Mcqs Set 1

ECONOMICS

1.  The Balance of payment is understood as:

(a)  The balance of amount after paying debt

(b)  The balance of income and expenditure in the annual budget

(c)  The balance between a nation's expenditure on imports and its receipts from exports.

(d)  None of the above

2.  Pinpoint the main objectives of World Trade Organization

(WTO):

(a)  Fix a quota for each member country trading in International Market

(b)  To eliminate quota system and promote free competition in trade.

(c)  To secure Third World markets for American and

European goods

(d)  To abolish completely custom duties on items of trade

within member countries

3.  The number of family welfare centres in Punjab are:

(a)  560  (b)  940

(c)  1230  (d)  1503

4.  Which of the following statement is not true?

(a)  The World Bank has to affiliates, the International

Development Association and the International Finance

Corporation.

(b)  The membership of the IMF is the principal condition

for membership of the World Bank.

(c)  The World Bank provides loans to such countries whose

balance of payments condition is not favourable

(d)  The World Bank finance all kinds of capital

infrastructure such as roads and railways,

telecommunications, seaports and power facilities in the

developing countries.

5.  Identify the main functions of IMF:

(a)  To provide loans to the members of UNO for

development of Industrial infra structure

(b)  To make foreign exchange resources available for those

countries that want to import essential items of food

(c)  To make foreign exchange resources available for those

countries facing balance of payments difficulties

(d)  None of the above

6.  The United Nations celebrated “International Year of

Shelter for the Homeless” in:

(a)  1985  (b)  1987

(c)  1990  (d)  1992

7.  The Islamic Development Bank  would provide half a billion

US dollars in Capital to create--(a)  Private Pan Islamic Bank

(b)  International Islamic Foundation for Science and

Technology

(c)  Refugees Rehabilitation Fund

(d)  None of the above

8.  The domestic production of crude oil in  the country is

approximately (per day)

(a)  44,300 Barrels  (b)  57,700 Barrels

(c)  65,200 Barrels  (d)  70,000 Barrels

9.  The regulations of World Trade Organization (WTO) shall be

enforced from:

(a)  1 January 2002  (b)  1 January 2003

(c)  1 July 2004  (d)  1 January 2005

10.  The biggest market of Pakistani exports is:

(a)  France  (b)  Saudi Arabia

(c)  U.S.A  (d)  U.K.

11.  The biggest market of Pakistani Imports is:

(a)  USA  (b)  U.K.

(c)  Russia  (d)  Japan

12.  The Government has reduced the rate of profit on National

Saving Schemes primarily for the reason of:

(a)  Enhancing the level of saving rate

Economics  3

(b)  Discouraging the blockage of money in such schemes

(c)  To encourage the investors to invest their capital in

active business ventures

(d)  To bridge the gap between their profit rate and Bank's

mark up rate on loans

13.  Pakistan’s domestic demand for petroleum products in

growing annually with the percentage of:

(a)  3 percent  (b)  5 percent

(c)  8 percent  (d)  15 percent

14.  The Women’s Division was created in the Federal

Government in January:

(a)  1974  (b)  1977

(c)  1979  (d)  1981

15.  The first “World Population Conference” under the United

Nations was held in 1975 at:

(a)  Kampala  (b)Bucharest

(c)  Nairobi  (d)Ankara

16.  Difference between a countrys exports and imports is:

(a)  Trade Balance  (b)  Trade Deficit

(c)  Trade Surplus  (d)  Volume of Trade

17.  Cash crop is the crop:

(a)  Which gives high profit to the farmers

(b)  Which is grown only for sale

(c)  Which is grown after taking Cash loan from Banks

(d)  None of the above one

18.  The  lowering of the value of a currency in the international

market or against specific other currencies, which makes

exports cheaper and imports expensive is called:

(a)  Devaluation  (b)  Revolution

(c)Inflation  (d)  Deflation

19.  The value of the output of all goods and services produced

within a nation's borders, normally given as a total for the

year. It thus includes the production of foreign owned firms

within the country, but excludes the income from

domestically owned firms located abroad, is called:

(a)  Gross National Product

4  General Knowledge – MCQs

(b)  Gross Home Products

(c)  Gross Domestic Product

(d)  General Domestic Production

20.  Dow Jones index' is the scale:

(a)  For measuring Industrial profit in a year

(b)  For measuring the average share price of leading

Japanese companies

(c)  For measuring the average share price of major US

industrial companies

(d)  None of the above Answers. 1 c 2 b 3 b 4 c 5 c 6 b 7 b 8 b 9 d  10c  11a  12d 13b  14a  15b  16a  17b  18a 19c  20c