Basic Concepts of Economics MCQs

Who among the following is most benefited from inflation ?

A. Government pensioners
B. Creditors
C. Savings Bank Account holders
D. Debtors

Which economics term describes the takeover of one textile manufactures by another ?

A. Diversification
B. horizontal integration
C. monopoly
D. vertical integration

Which is the best measure of economic growth of a country ?

A. GNP
B. GDP
C. Net revenue
D. None of the above

Which of the following payment instruments introduced by the banks is known as plastic money ?

A. Bearer cheques
B. Credit Cards
C. Demand Drafts
D. Gift Cheques

Which of the following is not rated by credit rating agencies ?

A. Shares
B. Debentures and bonds
C. Commercial paper
D. Government securities

The smallest unit of ownership of a company is ________?

A. A share
B. A debenture
C. Invest
D. Capital

Debenture holders of a company are its ______?

A. Shareholders
B. Creditors
C. Debtors
D. Directors

Rate of growth of an economy is measured in terms of ____?

A. Per capita income
B. Industrial development
C. Number of people who have been lifted above the poverty line
D. National income

Which of the following is not required while computing Gross National Product (GNP) ?

A. Net foreign investment
B. Private investment
C. Per capita income of citizens
D. None of the above

Which situation will a country face, if the birth rate falls sharply, while the death rate remains unchanged ?

A. a fall in living standards
B. a more youthful population
C. an ageing population
D. an increase in population

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