All Free Economics MCQs with Answers

• A. Public corporations
• B. Central and local government
• C. Nationalized Industries
• D. All of them

Explanation: The public sector includes government departments at central and local levels, public corporations, and nationalized industries.

• A. State's borrowing from its population
• B. State's borrowing from foreign government
• C. state's borrowing from international institution
• D. All of these

Explanation: Public or national debt consists of government borrowing from domestic lenders, foreign governments, and international institutions.

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

Explanation: A free port permits goods to enter and leave without the usual import or export customs duties.

• A. Fiscal period
• B. Calendar year
• C. Year unit
• D. Fiscal year (FY)

Explanation: A fiscal year is the 12-month accounting period used by a government to plan, collect revenue, and spend funds.

• A. Less Public spending than amount of revenue corporation
• B. Balance between public spending and amount of revenue
• C. More public spending than amount of revenue
• D. None of them

Explanation: A budget deficit occurs when the government’s public expenditure exceeds its revenue during a period.

• A. Drawback
• B. Duty
• C. Custom
• D. Excise

Explanation: A duty is a government charge on goods, especially when they are imported or exported; excise is usually imposed on specified goods…

• A. Bond
• B. Treasury bill
• C. Term bound
• D. Securities

Explanation: A treasury bill is a short-term government promissory instrument issued at or near a discount and redeemed at maturity.

• A. Custom
• B. Exercise Duty
• C. Tariff
• D. Freight

Explanation: A tariff is a tax imposed on goods crossing national borders, especially imports and sometimes exports.

• A. Financial assistance given by one person or government to another
• B. Financial assistance given to poor people
• C. Financial assistance given to aged people
• D. Financial assistance given to small companies

Explanation: A subsidy is financial assistance intended to support an activity or recipient, often to promote a public or economic objective.

• A. Economics assistance provided by social security
• B. Economic assistance to persons who faced unemployment, disability of agedness, financed by assessment of employers and employees
• C. Both a & b
• D. Nor a nor b

Explanation: Social security provides financial assistance for risks such as unemployment, disability and old age, commonly financed through…

• A. Public corporations
• B. Central and local government.
• C. Nationalized industries
• D. All of them

Explanation: The public sector includes government at central and local levels as well as public corporations and nationalized industries.

• A. To increase price artificially
• B. Maintenance of price through public subsidy or government intervention
• C. To enhance price
• D. To maintain price at specific level

Explanation: Price support is government action, often through subsidies or purchases, designed to keep a commodity’s price at or above a chosen level.

• A. Confiscation
• B. Bankruptcy
• C. Forfeiture
• D. Debenture

Explanation: Forfeiture is the legally enforced loss of ownership as a penalty for an unlawful act.

• A. Fiscal period
• B. Calendar year
• C. Year unit
• D. Fiscal year (FY)

Explanation: A fiscal year is any regular 12-month accounting period used by an organization or government for budgeting and reporting; it does not…

• A. A tax levied on certain articles produced and consumed in a country
• B. A licensing charge or a fee levied for certain privileges
• C. Both of these
• D. None of the above

Explanation: Excise traditionally means a tax on goods produced, sold, or consumed within a country, and the term can also cover charges connected with…

• A. Demurrage
• B. Penalty
• C. Charges
• D. Fine

Explanation: Demurrage is a charge imposed when imported or stored goods remain uncleared beyond the permitted period.

• A. Revenue deficit plus the net borrowings of the government
• B. Budgetary deficits plus the net borrowings of the government
• C. Capital deficit plus revenue deficit
• D. Primary deficit minus capital deficit

Explanation: Fiscal deficit is the budgetary deficit financed by government borrowing and other liabilities, so it is commonly expressed as budgetary…

• A. Drawback
• B. Duty
• C. Custom
• D. Excise

Explanation: A duty is a tax charged on goods crossing a border, especially imports and sometimes exports.

• A. To write off debt
• B. To reschedule debt
• C. To repay debt in easy installments
• D. The complete repayment of debt

Explanation: Debt retirement means extinguishing a debt by repaying the full outstanding amount.

• A. A tax levied on certain articles produced and consumed in a country
• B. A licensing charge or a fee levied for certain privileges
• C. Both of them
• D. None of them

Explanation: Excise traditionally means a tax on particular goods manufactured or consumed within a country, and the term can also cover a licence fee…