Economics Mock Test

Who is known as the father of modern economics? ||| Adam Smith ||| Karl Marx ||| John Keynes ||| Milton Friedman ||| 1 What does GDP stand for? ||| Gross Domestic Production ||| Gross Development Product ||| Gross Domestic Product ||| General Domestic Product ||| 3 Inflation refers to ||| Rise in employment ||| Rise in general price level ||| Decrease in currency value ||| Decrease in GDP ||| 2 Which of the following is not a factor of production? ||| Land ||| Labor ||| Capital ||| Price ||| 4 Microeconomics focuses on ||| Entire economy ||| Individual consumers and firms ||| International trade ||| Government policies ||| 2 Which market structure has many sellers and identical products? ||| Monopoly ||| Oligopoly ||| Monopolistic Competition ||| Perfect Competition ||| 4 What is the primary objective of WTO? ||| Promote communism ||| Regulate oil prices ||| Facilitate free trade ||| Control interest rates ||| 3 Which of the following is an example of capital expenditure by the government? ||| Salaries to teachers ||| Subsidies ||| Interest payments ||| Construction of roads ||| 4 HDI stands for ||| Human Development Index ||| Human Demand Indicator ||| High Development Income ||| Human Distribution Index ||| 1 Which of the following sectors contributes the most to GDP in developed economies? ||| Primary ||| Secondary ||| Tertiary ||| Quaternary ||| 3 Which term describes the total value of goods produced by a country’s citizens, regardless of their location? ||| GDP ||| NNP ||| GNP ||| PCI ||| 3 Which type of unemployment is caused due to a mismatch of skills? ||| Frictional ||| Structural ||| Cyclical ||| Seasonal ||| 2 What is the full form of PPP in economics? ||| Power Purchasing Parity ||| Public Private Partnership ||| Purchasing Power Parity ||| Personal Property Price ||| 3 Which body is responsible for issuing currency notes in most countries? ||| Ministry of Finance ||| Nationalized Banks ||| Central Bank ||| Treasury Department ||| 3 Which of the following is not included in the Human Development Index (HDI)? ||| Life expectancy ||| Education ||| Income ||| National debt ||| 4 What is the main goal of monetary policy? ||| Increase unemployment ||| Control inflation ||| Reduce taxes ||| Boost exports ||| 2 The Lorenz Curve is used to measure ||| Inflation ||| Income inequality ||| Unemployment ||| GDP growth ||| 2 Which term refers to the total market value of all final goods and services produced within a country in a year? ||| GNP ||| NNP ||| GDP ||| CPI ||| 3 Which of these is a function of a commercial bank? ||| Printing currency ||| Controlling inflation ||| Accepting deposits ||| Setting tax rates ||| 3 Which organization ranks countries by GDP and poverty levels? ||| WHO ||| IMF ||| FAO ||| UNESCO ||| 2