Economics Page-2

11) What is the meaning of the term stagflation?
(A) Fall in prices due to less circulation of currency
(B) Fall in employment due to declining production
(C) High inflation rate combined with high unemployment and unchanged consumer demand
(D) None of these

12) The term "Dumping" means which of the following?
(A) The sale of the sub-standard commodity
(B) Sale in a foreign market of a commodity at a price below marginal cost
(C) Sale in a foreign market of a commodity just at marginal cost without too much of profit
(D) Smuggling of goods without paying any customs duty

13) Gross National Product is the sum total of:
(A) The money value of all goods produced
(B) The money value of all finished goods and services
(C) Payments to factors for the production of finished goods
(D) Market values of all goods minus the value of inventory

14) The Asian Development Bank (ADB) is located in:
(A) Kuala Lumpur
(B) Tokyo
(C) Bangkok
(D) Manila

15) Capital output ratio of a commodity measures:
(A) Its per unit cost of production
(B) The amount of capital invested per unit of output
(C) The ratio of capital depreciation to quantity of output
(D) The ratio of working capital employed to quantity of output

16) An economy is in equilibrium when:
(A) Planned consumption exceeds planned saving
(B) Planned consumption exceeds planned investment
(C) Intended investment equals intended saving
(D) Intended investment exceeds intended saving

17) The theory of purchasing power party holds that the exchange rate between two currencies tends to be in the ratio of their respective:
(A) Domestic purchasing
(B) National incomes
(C) Values of exports
(D) Values of imports

18) Contingent liability appears as a footnote in the Balance Sheet. This involves an accounting principle named as:
(A) Consistency
(B) Disclosure
(C) Conservatism
(D) Materiality

19) A Balance Sheet is usually prepared at the end of a:
(A) Month
(B) Year
(C) Period
(D) Half year

20) What is the new common currency of European Union?
(B) Pound Sterling
(C) Euro
(D) Swiss Franc

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