World Economy Test 02 Online Mcqs Preparation

1. The Law of Diminishing Returns applies to :

A. Production

B. Capital

C. Merchandising

D. Land

2. Which of the following is a non-economic activity ?

A. Sweeper cleaning the streets

B. Professor instructing his students

C. Danseuse performing at a theater

D. Mother tending her sick child

3. The largest automobile manufacturing center in the world is at:

A. Paris

B. Detroit

C. Birmingham

D. Tokyo

4. The cause of high inflation is :

A. Shortage of goods

B. Superior quality of goods

C. High prices

D. Black-market

5. Changes in the standard of living of the people in a country are indicated best by changes in the :

A. Index of industrial productivity

B. Per capita income

C. Cost of living index

D. Wholesale price index

6. When prices are rising, one of the ways of bringing about reduction in prices would be to:

A. Increase government spending

B. Reduce the rate of personal income tax

C. Lower interest rate

D. Increase the availability of goods

7. The theory of 'surplus value' is associated with ?

A. Socialism

B. Fabian socialism

C. Communism

D. Guild socialism

8. Banks charge higher rate of interest on the score of :

A. Type of customer

B. Risk involved

C. Nature of goods

D. Purpose of loan

9. The currency of Bangladesh is the :

A. Rupee

B. Rial

C. Rupiah

D. Takka

10. Which of the following world be a 'fixed cost' to a manufacturing firm ?

A. Wages

B. Raw material

C. Machinery and plant

D. Replacement of loan

World Economy Test 02 Online Mcqs Preparation

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