UNIZIK Economics 2011/2012 Day 1 Past Questions

Practice each question, then open it to see the full details.

production in economics occurs when

A.A commodity or service is sold
B.utility is created or added
C.a commodity is manufactured
D.Raw materials are produced or extracted from mines
E.all of the above

An economic problem arises when

A.Manufactured goods are in short supply
B.money is in short supply
C.Buyers are many
D.Sellers are few
E.scarcity and choice are involved

A commercial bank is able to create money

A.by printing
B.by maintaining reserves
C.by creating demand deposit as it gives a new loan
D.by issuing cheques to depositors
E.by borrowing from the Central bank

Which of the following is not a component of National income at factor cost?

A.Wages earned by doctors
B.Rents paid to landlords
C.Indirect taxes
D.Undistributed company profits
E.Interest on loans

Which of the following is not an asset of a commercial bank?

A.Cash
B.Money at call
C.Treasury bill
D.Reserve funds
E.Loans and overdrafts

Which of the following is not usually the function of a wholesaler?

A.Transport
B.Storage
C.Advertising
D.After-sales service
E.Branding

In a normal (typical) demand schedule, the quantity demanded is

A.Directly related to price
B.Inversely related to price
C.Proportionally related to supply
D.Independent of price
E.Solely dependent on haggling skill

Invisible trade refers to trade in

A.service
B.Goods and services
C.Tangibe goods
D.Short term and long term capital
E.goods that cannot be seen

Inflation is likely to benefit

A.persons with bank savings
B.Persons employed in financial
C.Debtors
D.Persons who live on fixed pension funds
E.creditors

Surplus in balance of payments leads to

A.Inflation or increasing prices generally
B.Increase in foreign reserves
C.Decrease in foreign reserves
D.Government budget surplus
E.None of the above

Who controls a limited company?

A.The general manager
B.The managing director
C.The owner of 51% of the shares
D.The board of directors
E.The government

The purpose of import duties does NOT include the

A.Generation of revenue for government
B.protection of domestic industries
C.Promotion of international trade
D.Conservation of foreign
E.Control of consumption pattern

Disequilibrium in the balance of payment means

A.Imports of the Country excedding its export
B.Overall deficit of surplus in the current account and capital account of the balance payment
C.Capital flowing out of the Country exceeds the capital flowing into the Country
E.Exports earnings exceed cost of imports

Differential product is the characteristic feature of

A.Perfect competition
B.Pure competition
C.Monopolistic competition
D.Monopoly
E.Oligopoly

The most important attribute of money is

A.Homogeneity
B.Relative scarcity
C.Divisibility
D.General acceptability
E.None of the above