RSUT Economics 2010/2011 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 these

An economic problem arises when

A.manufactured goods
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 it
B.by maintaining reserves
C.by creating a 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 carried by doctors
B.rents paid to landlords
C.indirect taxes
D.undistributed company profits

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) demands schedule, the quantity demanded is

A.directly related to price
B.inversely related to price
C.independent of price
D.proportionally related to supply
E.solely dependent on haggling skill

Invisible trade refers to trade in

A.service
B.goods and services
C.triangle 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 houses
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.government budget surplus
D.decrease in foreign reserves
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 following

A.generation of revenue for government
B.protection of domestic industries
C.promotion of international trade
D.conservation of foreign exchange earings
E.control of consumption pattern

Disequilibrium in the balance of payment means

A.imports of the country exceeding its export
B.overall deficit or surplus in the current account and capital account of the balance of payment
C.capital flowing out of the country exceeds the capital flowing into the country
D.deficit in the trade balance
E.export earning exceed cost of imports.

Differentiated product is the characteristics 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.none of the above