All Free Economics MCQs with Answers

• A. Idealism
• B. Blind game
• C. Speculation
• D. Risk covering

Explanation: Speculation means undertaking a risky business activity in expectation of earning a substantial profit from future price changes.

• A. combine fund
• B. Mutual fund
• C. Liquid fund
• D. Stock holding company

Explanation: A mutual fund pools investors’ money, issues or redeems units, and invests the capital in a diversified portfolio of securities.

• A. Farming practice of growing a single crop
• B. Homogeneous Nations
• C. Homogeneous market
• D. Homogeneous business

Explanation: Monoculture means cultivating one crop, usually over a large area or throughout a farming system.

• A. Market Economy
• B. Free Market
• C. Both of them
• D. None of them

Explanation: A free market is one in which prices and allocation are mainly determined by demand and supply rather than government controls.

• A. To convert assets into cash
• B. Abolish
• C. Both of them
• D. All of them

Explanation: To liquidate may mean converting assets into cash and using them to settle debts, and it can also mean abolishing or eliminating…

• A. Grey market
• B. White market
• C. Red market
• D. Open market

Explanation: A grey market involves goods traded through unofficial or unauthorized channels without necessarily being illegal.

• A. Generic
• B. Forged goods
• C. Contraband
• D. Clean goods

Explanation: Generic products are sold without a brand name or trademark and are usually identified by their standard product name.

• A. Open trade
• B. Free trade
• C. Open sky trade
• D. Easy trade

Explanation: Free trade is the exchange of goods and services across borders with minimal or no tariffs, quotas, or foreign-exchange restrictions.

• A. Where no export duties are levied
• B. Where no import duties are levied
• C. Where no expert or import duties are levied
• D. Where everything can be import or export

Explanation: A free port is an area where goods may be imported and exported without customs duties, subject to applicable regulations.

• A. The market value of securities less any debt incurred and common stock and preferred stock
• B. Funds provided to a business by the sale of stock
• C. Both of them
• D. None of them

Explanation: Equity represents the owners' residual interest after liabilities are deducted from asset value, and it can be raised through the sale of…

• A. Embargo
• B. Contraband
• C. Ban
• D. Restriction

Explanation: An embargo is an official government order restricting or completely stopping trade, shipping, or specified imports and exports with…

• A. Share
• B. Profit-share
• C. Dividend
• D. Margin

Explanation: A dividend is the portion of a company's distributable profit paid to its shareholders.

• A. Property right
• B. Sole right
• C. Copyright
• D. Right

Explanation: Copyright gives an author or assignee exclusive legal rights to publish, reproduce, or otherwise use an original work.

• A. Adam Smith
• B. David Ricardo
• C. David Smith
• D. Adam Ricardo

Explanation: David Ricardo proposed comparative advantage, showing that countries can gain from trade by specialising according to their relative…

• A. Pledge
• B. Assurance
• C. Collateral
• D. Guaranty

Explanation: Collateral is an asset or security pledged to a lender to guarantee repayment if the borrower defaults.

• A. Business Crop
• B. Cash crop
• C. Money Crop
• D. Earning Crop

Explanation: A cash crop is cultivated mainly for sale in the market rather than for consumption by the farmer's household.

• A. capital asset
• B. solid asset
• C. solid capital
• D. Future asset

Explanation: A capital asset is a long-term asset used in business, such as land, buildings or machinery, rather than an item held for immediate sale.

• A. Corporate Laws
• B. Secondary Laws
• C. By laws
• D. Internal Laws

Explanation: Bylaws are the internal rules governing the management and operation of an organization, such as procedures for meetings and…

• A. Dealer
• B. Broker
• C. Agent
• D. Commission agent

Explanation: A broker acts as an intermediary who brings buyers and sellers together, usually earning a commission without taking ownership of the…

• A. Open value
• B. Book value
• C. Real value
• D. Artificial value

Explanation: Book value is the amount at which an asset is recorded in a firm's accounting records, usually after depreciation.