All Free Economics MCQs with Answers
Every Economics question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
4,037 questions · page 90 of 202
1781. How is termed a written promise to pay back a specified sum of money at a stated time or on demand ?
- A. Promissory Note (PN)
- B. Note of hand
- C. Both of them
- D. None of them
Explanation: A promissory note is a written, unconditional promise to pay a specified amount at a stated time or on demand; a note of hand is a…
Correct answer: Both of them- A. In which economists control production
- B. In which production and distribution of wealth is under government's control
- C. In which technocrats control production
- D. In which government controls distribution
Explanation: In a planned economy, the government centrally directs major decisions about production and the distribution of goods and income.
Correct answer: In which production and distribution of wealth is under government's control- A. Open door market
- B. Open door country
- C. Open sky market
- D. Free economy
Explanation: An open-door market or policy gives traders from different countries equal access without granting exclusive monopolies or preferences.
Correct answer: Open door market- A. National income
- B. Public income
- C. Local income
- D. Gross income
Explanation: National income broadly measures the net value of goods and services produced by a country during a given period.
Correct answer: National income- A. Multinational corporation
- B. Multinational company
- C. Both of them
- D. None of them
Explanation: A business operating through subsidiaries, investments, or operations in several countries is a multinational enterprise.
Correct answer: Both of them- A. Macroeconomics
- B. Gross economics
- C. Mega economics
- D. Micro economics
Explanation: Macroeconomics studies the economy as a whole, including national income, employment, inflation, growth, and overall output.
Correct answer: Macroeconomics- A. letter of Credit
- B. Letter of expression
- C. Demand draft
- D. Letter of intent
Explanation: A letter of credit, including a traveller’s letter of credit, authorizes its holder to obtain payment through an overseas branch or…
Correct answer: letter of Credit- A. Labor force
- B. Labor potential
- C. Work force
- D. All of them
Explanation: The labor force includes all adults who are employed or actively seeking employment, whether or not they currently have a job.
Correct answer: Labor force- A. Hyperinflation
- B. Ultra-inflation
- C. A cute inflation
- D. Super inflation
Explanation: Hyperinflation is an extremely rapid and uncontrolled rise in prices that sharply destroys the value of money.
Correct answer: Hyperinflation- A. Any currency backed by gold or silver bullion rather than credit
- B. Stable currency value of which does not fluctuate greatly
- C. Both of them
- D. None of them
Explanation: Hard currency generally refers to a stable, widely accepted currency whose value does not fluctuate greatly and which is readily…
Correct answer: Both of them- A. Transaction of International monetary business
- B. Negotiable bills drawn in one country to be paid in another country
- C. Both of them
- D. None of them
Explanation: Foreign exchange covers international monetary transactions and the instruments used to settle them, including bills drawn in one country…
Correct answer: Both of them- A. Military system
- B. Land based system
- C. Feudal system
- D. Rural system
Explanation: Feudalism was a medieval system in which nobles granted land to vassals or servants in return for loyalty and services, commonly military…
Correct answer: Feudal system- A. Nikki Index
- B. NASDAQ
- C. Dow Jones Index
- D. Major Index
Explanation: The Dow Jones Industrial Average tracks the share-price performance of 30 prominent US companies, historically focused on industrial…
Correct answer: Dow Jones Index- A. Devolution
- B. Devaluation
- C. Price cap
- D. Cut-rate
Explanation: Devaluation is an official reduction in a currency’s value under a fixed or managed exchange-rate system.
Correct answer: Devaluation- A. Demand push
- B. Demand pulls
- C. Cost pull
- D. Demand supply
Explanation: Demand-pull inflation occurs when aggregate demand rises faster than the available supply of goods and services, pushing prices upward.
Correct answer: Demand pulls- A. Debt Payment
- B. Service Charges
- C. Debt Charges
- D. Debt service
Explanation: Debt service includes both the interest due and the repayment of principal on a country’s debt.
Correct answer: Debt service- A. Decreased production costs drive prices up
- B. Decreased production costs drive prices down
- C. increased production costs drive prices down
- D. increased production costs drive prices up
Explanation: Cost-push inflation begins when wages, raw materials, energy, or other production costs increase, causing firms to raise prices.
Correct answer: increased production costs drive prices up- A. Free adjustment
- B. Cost effective adjustment
- C. Comparative adjustment
- D. Cost of living adjustment
Explanation: A cost-of-living adjustment, or COLA, raises wages or benefits to reflect changes in the prices of necessities.
Correct answer: Cost of living adjustment- A. Cost of living
- B. Basic requirement
- C. Cost of life
- D. None of the above
Explanation: Cost of living is the amount of money required to obtain the goods and services needed for a particular standard of living.
Correct answer: Cost of living- A. Capitalism
- B. Socialism
- C. Free market economy
- D. Liberalism
Explanation: Capitalism is based on private ownership of production, profit-driven investment and market exchange.
Correct answer: Capitalism