CSS Economics Solved Mcqs - Set 30

1)   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
Answer  Explanation 

ANSWER: Machinery and plant

Explanation:
No explanation is available for this question!


2)   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
Answer  Explanation 

ANSWER: Mother tending her sick child

Explanation:
No explanation is available for this question!


3)   The Law of Diminishing Returns applies to

a. Merchandising
b. Production
c. Land
d. Capital
e. Perishable goods
Answer  Explanation 

ANSWER: Production

Explanation:
No explanation is available for this question!


4)   The cause of high inflation is

a. High prices
b. Black-market
c. Shortage of goods
d. Superior quality of goods
Answer  Explanation 

ANSWER: High prices

Explanation:
No explanation is available for this question!


5)   Banks charge higher rate of interest on the score of

a. Risk involved
b. Purpose of loan
c. Nature of goods
d. Type of customer
Answer  Explanation 

ANSWER: Risk involved

Explanation:
No explanation is available for this question!


6)   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
Answer  Explanation 

ANSWER: The science of planning and arranging the production, distribution and consumption of goods and services for the material welfare of mankind

Explanation:
No explanation is available for this question!


7)   Supply usually lags behind in the case of

a. Personal service
b. Entertainment
c. Luxuries
d. Food
e. Necessities
Answer  Explanation 

ANSWER: Necessities

Explanation:
No explanation is available for this question!


8)   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
Answer  Explanation 

ANSWER: Organizes and takes all responsibility for the business bearing the risks it entails

Explanation:
No explanation is available for this question!


9)   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
Answer  Explanation 

ANSWER: The purchasing power of his earnings

Explanation:
No explanation is available for this question!


10)   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
Answer  Explanation 

ANSWER: Holding of price level for common people

Explanation:
No explanation is available for this question!


11)   Who among the following is a famous economist?

a. Henry Francis Carry
b. Gunnar Myrdal
c. Max Muller
d. Macaulay
Answer  Explanation 

ANSWER: Gunnar Myrdal

Explanation:
No explanation is available for this question!


12)   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
Answer  Explanation 

ANSWER: To serve as a medium of exchange

Explanation:
No explanation is available for this question!


13)   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
Answer  Explanation 

ANSWER: By demand and supply of a commodity

Explanation:
No explanation is available for this question!


14)   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
Answer  Explanation 

ANSWER: Bonus

Explanation:
No explanation is available for this question!


15)   What is the currency of Bangladesh?

a. Dinar
b. Takka
c. Rial
d. Rupee
Answer  Explanation 

ANSWER: Takka

Explanation:
No explanation is available for this question!


16)   What is the currency of Myanmar?

a. Pound
b. Takka
c. Kyat
d. Rupee
Answer  Explanation 

ANSWER: Kyat

Explanation:
No explanation is available for this question!