1.

The economy of Brazil is mostly dependent on

A. Tea B. Coffee

C. Tobacco D. Sugar

2. Where is the headquarters of the European Economic Community?

A. London B. Vatican City

C. Berlin D. Brussels

3. The first railway line in India was laid between:

A. Calcutta and Madras B. Bombay and Madras

C. Calcutta and Ranchi D. Bombay and Thane

4. The National Rural Employment Programme focuses particularly on:

A. Beautification of rural areas B. Creation of community assets

C. Famine relief D. Reduction of unemployment

5. Which of the following is the currency of Nepal?

A. France B. Peso

C. Sikka D. Taka

6. The law of demand states that other things being equal there is:

A. An inverse relationship between the quantity demanded and income of the consumer B.
A positive relationship between the quantity demanded and its price

C. An inverse relationship between the rate of change in the quantity demanded and the price of
the commodity D. An inverse relationshhip between the quantity demanded and its average cost of
production. (188)

7. Elasticity of Demand explains the relationship between

A. Price of substitutes arid quantity demanded B. Utility of the commodity and quantity
demanded

C. Income and quantity demanded D. Price of a commodity and quantity demanded.

8. Devaluation means
A. Change in the currency of a country B. Decrease in the value of gold

C. Decrease in the value of money in terms of foreign currency D. Decrease in the value of
money internally

9. What is the complete name of the World Bank?

A. International Finance Corporation B. International Bank for Reconstruction and

Development

C. International Monetary Fund D. International Development Authority

E. None of these

10. With which activity is the Wall street in New York, U.S.A. associated?

A. Banking and Finance B. Literary arts

C. Defence D. Films

11. Changes in the standard of living of the people in a country are indicated best by changes in the

A. Per capita income B. Wholesale price index

C. Cost of living index D. Index of industrial productivity

12. When prices are rising, one of the ways of bringing about reduction in prices would be to:

A. Increase the availability of goods B. Reduce the rate of personal income tax

C. Lower interest rate D. Increase government spending

13. The currency of Bangladesh is the

A. Rial B. Takka

C. Rupee D. Rupiah

14. The largest automobile manufacturing centre in the world is at:

A. Birmingham B. Detroit

C. Paris D. Tokyo

15. The theory of 'surplus value' is associated with

A. Communism B. Guild socialism

C. Socialism D. Fabian socialism

16. Which of the following world be a 'fixed cost' to a manufacturing firm?

A. Wages B. Raw material

C. Replacement of loan D. Machinery and plant

17. Which of the following is a non-economic activity?

A. Sweeper cleaning the streets B. Mother tending her sick child

C. Danseuse performing at a theatre D. Professor instructing his students

View Answer Workspace Report Discuss in Forum

18. The Law of Diminishing Returns applies to

A. Merchandising B. Production

C. Land D. Capital

E. Perishable goods

19. The cause of high inflation is

A. High prices B. Black-market

C. Shortage of goods D. Superior quality of goods

20. Banks charge higher rate of interest on the score of

A. Risk involved B. Purpose of loan

C. Nature of goodsD. Type of customer

21. Economics is

A. Creating maximum production B. Producing buying and selling for maximum profit

C. Producing good at minimum cost D. The science of planning and arranging the
production, distribution and consumption of goods and services for the material welfare of mankind

22. Supply usually lags behind in the case of

A. Personal service B. Entertainment

C. Luxuries D. Food
E. Necessities

23. The entrepreneur

A. Benefits at the expense of the other people B. Formulates the policy

C. Organizes and takes all responsibility for the business bearing the risks it entails D.
Provides the capital for the business

24. The worker's real wage depends on

A. His gross earnings B. His ability to increase production

C. His ability to save D. The purchasing power of his earnings

E. The net amount he gets after deductions

25. In Poland the demand of 'Solidrity' is for

A. Holding of price level for common people B. Right to make trade unions

C. Higher pays scales for labourers D. Religious freedom

E. None of these

26. Who among the following is a famous economist?

A. Henry Francis Carry B. Gunnar Myrdal

C. Max Muller D. Macaulay

27. What is the main function of money?

A. To buy eatables from the market B. To serve as a medium of exchange

C. To earn interest from a bank: D. To buy luxurious goods

28. The price of a commodity is fixed

A. By demand and supply of a commodity B. By the government

C. By supply of a commodity D. By demand of a commodity

29. The sum of money paid on shares to a shareholder by a public limited company out of its profits
is called

A. Annuity B. Bonus

C. Interest D. Dividend
30. What is the currency of Bangladesh?

A. Dinar B. Takka

C. Rial D. Rupee

31. What is the currency of Myanmar?

A. Pound B. Takka

C. Kyat D. Rupee