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Economic MCQ Questions with answers

Here Important Economic MCQ questions are added which are frequently asked in almost all the examinations. You can check the correct answer of any question on clicking the show answer button or on option itself. The Correct answer will be displayed below. You can share any question with your friends on whatsapp by tapping whatsapp button.

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Learn Economic MCQs [Page 4 of Department 2]

31) Rate of interest is determined by

(A) The rate of return on the capital invested
(B) Central Government
(C) Liquidity preference
(D) Commercial Banks
Correct Answer - Option (C)

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32) When there is affect on economic activity of an specific country due to import and export, then such economy are called

(A) Closed economy
(B) Open economy
(C) Agricultural economy
(D) Industrial economy
Correct Answer - Option (B)

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34) Which among the following is not the investment of goods & services?

(A) Cost of machinery
(B) Increase in cost of raw goods
(C) Increasing deparment of company
(D) Cost of buying house.
Correct Answer - Option (C)

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35) Preparing butter and ghee for household consumption of own family is a part of

(A) Household investment production
(B) Industrial production
(C) Consumption
(D) Own Account Production
Correct Answer - Option (D)

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36) Multinational firm is–

(A) A company started by foreign governments
(B) A single company established in different countries
(C) A company in India started by U.S. government
(D) A company started jointly by India and U.S.
Correct Answer - Option (B)

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37) Internal profit–

(A) Happens when internal trade expands
(B) Happens when business expands
(C) Happens in economy when they increase
(D) Happens in firms when they expand their product
Correct Answer - Option (D)

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38) The Removal of prohibitions and hindrance by government is called.

(A) Globalisation
(B) Privatisation
(C) Liberalisation
(D) Bilateral understanding
Correct Answer - Option (C)

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39) Which of the following is related to South-South debate?

(A) Cooperation between developing countries
(B) Defence Organisation
(C) Sitting between developed & developing countries
(D) All of the above
Correct Answer - Option (A)

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40) In a economy “Development Stage” means

(A) Starting of steadily increasing economy
(B) Bad economy
(C) Economy is on the verge of destroying
(D) All tariff to be removed.
Correct Answer - Option (A)

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