Economics Trivia MCQ: Exam! Quiz
-
GDP per capita is GDP divided by:
-
GNP
-
The size of the population
-
The size of the labor force
-
Twenty-five
-
Explore key economic concepts through the 'Economics Trivia MCQ: Exam! Quiz'. This quiz assesses understanding of GDP, fiscal policy, business cycles, and more, enhancing your grasp of economics in a practical context.
(200).jpg "Economics Trivia MCQ: Exam! Quiz - Quiz")
Quiz Preview
- 2.
"The total of all economic activity in a country" What is being defined?
-
GNP
-
GDP
-
Nominal GDP
-
Deflationary gap
Correct Answer
A. GDPExplanation
GDP, or Gross Domestic Product, is being defined as the total of all economic activity in a country. It measures the monetary value of all goods and services produced within a country's borders during a specific time period. It is used as an indicator of the overall health and size of an economy, and is often used to compare the economic performance of different countries. GNP, or Gross National Product, is similar to GDP but includes the income earned by a country's residents from overseas investments. Nominal GDP refers to GDP measured at current market prices, while the deflationary gap refers to a situation where aggregate demand is lower than aggregate supply, causing prices and output to fall.Rate this question:
-
- 3.
Fiscal policy is the set of a government's policies relating to its ...
-
Money supply
-
Money supply and control of interest rates
-
Control of interest rates and taxation rates
-
Spending and taxation rates
Correct Answer
A. Spending and taxation ratesExplanation
Fiscal policy refers to the government's decisions and actions regarding its spending and taxation rates. This includes determining how much money the government will spend on various sectors such as healthcare, education, and infrastructure, as well as deciding on the tax rates that individuals and businesses will be required to pay. By using fiscal policy, the government can influence the overall economy by either stimulating or slowing down economic growth through its spending and taxation decisions.Rate this question:
-
- 4.
"The periodic fluctuations in economic activity measured by changes in real GDP" What is being defined?
-
Depreciation
-
Multiplier effect
-
Business cycle
-
Accelerator theory
Correct Answer
A. Business cycleExplanation
The correct answer is business cycle. The question is asking for a definition of a term related to periodic fluctuations in economic activity measured by changes in real GDP. The term that best fits this description is the business cycle, which refers to the pattern of expansion and contraction in economic activity over time.Rate this question:
-
- 5.
Diffrence between Real and Nominal GDP is:
-
Measured by excluding some of the sectors
-
That real GDP is always smaller than Nominal GDP.
-
Change in price level from base year to current year.
-
None of the above.
Correct Answer
A. Change in price level from base year to current year.Explanation
The correct answer is "Change in price level from base year to current year." This is because the difference between real and nominal GDP is primarily attributed to changes in the price level over time. Real GDP is adjusted for inflation by using a base year as a reference point, while nominal GDP is not adjusted for changes in prices. Therefore, the difference between the two measures reflects the impact of price changes on the overall value of goods and services produced in an economy.Rate this question:
-
- 6.
The fiscal policy of 2077/78 of Nepal targets inflation at:
-
7%
-
5.5%
-
6.5%
-
6%
Correct Answer
A. 7%Explanation
The correct answer is 7% because the fiscal policy of Nepal for the year 2077/78 aims to control and stabilize inflation at this specific rate. This indicates that the government of Nepal is implementing measures and strategies to ensure that the overall increase in prices of goods and services remains at 7%, which is considered an acceptable level for economic stability and growth.Rate this question:
-
- 7.
Which is not the component of the current account under Balance of Payment?
-
Merchandise trade
-
Remittance
-
Interest repatriation
-
Greenfield investment
Correct Answer
A. Greenfield investmentExplanation
Greenfield investment is not the component of current account. It belongs to capital and financial account as it is long-term investment generally enters in an economy in the form of FDI.Rate this question:
-
- 8.
The CCD ratio for BFIs in Nepal stands at:
-
80 percent
-
75 percent
-
85 percent
-
90 percent
Correct Answer
A. 85 percentExplanation
The CCD ratio for BFIs in Nepal stands at 85 percent. This means that 85 percent of the total deposits received by the BFIs (Bank and Financial Institutions) in Nepal are required to be invested in productive sectors such as agriculture, industry, and services. This ratio is set by the central bank of Nepal to ensure that the BFIs contribute to the country's economic growth by channeling a significant portion of their deposits into productive activities.Rate this question:
-
- 9.
Which is the only European country to remain unaffected by the great depression of the 1930s?
-
Russia
-
Germany
-
France
-
Britain
Correct Answer
A. RussiaExplanation
During the 1930s, the great depression had a significant impact on the global economy, including many European countries. However, Russia, which was then known as the Soviet Union, remained relatively unaffected by the economic downturn. This can be attributed to the Soviet Union's economic system, which was based on central planning and state control. The government implemented policies that prioritized industrialization and self-sufficiency, which helped shield the country from the worst effects of the great depression. Additionally, the Soviet Union had limited economic ties with the rest of the world, which further insulated it from the crisis.Rate this question:
-
- 10.
Which of the following statement is not true?
-
The inside lag of fiscal policy is longer than that of monetary policy
-
The outside lag of fiscal policy is shorter than that of monetary policy
-
The monetary policy has significantly faster impact on economic variables
-
Fiscal policy takes longer time to formulate
Correct Answer
A. The monetary policy has significantly faster impact on economic variablesExplanation
Fiscal policy has a shorter outside lag, so economic variables react faster to fiscal policy. The monetary policy having a longer outside lag influences the economic variables slowly.Rate this question:
-
- 11.
The real sector of the Nepalese economy is divided into how many sectors?
-
10
-
15
-
20
-
12
Correct Answer
A. 15Explanation
The real sector of the Nepalese economy is divided into 15 sectors.Rate this question:
-
- 12.
World Bank has said that the environment for doing business in Nepal has improved. What is the ranking of Nepal?
-
94
-
105
-
90
-
106
Correct Answer
A. 94Explanation
The correct answer is 94. This means that Nepal is ranked 94th in terms of the environment for doing business. The World Bank has stated that there has been an improvement in the business environment in Nepal. This ranking suggests that Nepal has made progress in creating a more favorable environment for businesses to operate in, which can attract investments and promote economic growth.Rate this question:
-
- 13.
Which is not the instrument of monetary policy?
-
CCD ratio
-
Open Market Operation
-
Bank rate
-
SLR
Correct Answer
A. CCD ratioExplanation
The CCD ratio is not an instrument of monetary policy. Monetary policy refers to the actions taken by central banks to control the money supply and interest rates in order to stabilize the economy. The CCD ratio, on the other hand, is a measure of the proportion of a bank's net demand and time liabilities that it must maintain in the form of cash, gold, or approved securities. While it is an important regulatory requirement for banks, it is not directly used as a tool to influence monetary conditions in the economy.Rate this question:
-
- 14.
Which of the following increases the real GDP?
-
Increase in real interest rate
-
Increase in gross investment
-
Increase in final consumption
-
None of above
Correct Answer
A. Increase in real interest rateExplanation
Increase in real interest rate increases real GDP because increase in real interest rate is determined through the interaction of real saving and real investment. As real investment increases, real interest rate increases.Rate this question:
-
- 15.
A change in fiscal policy affects the balance of payment through:
-
Current account
-
Capital account
-
Current and capital account
-
None of above
Correct Answer
A. Current and capital accountExplanation
Let taxation, a fiscal instrument, increases, then domestic prices increases. If domestic prices increases, import increases, which changes the position of the current account. The increase in taxation discourages foreign investments, which affects the position of the capital account.Rate this question:
-
- 16.
What is the expected nominal GDP (Rs.) of Nepal for 2019/20 estimated by Central Bureau of Statistics?
-
37.67 billion
-
34.58 billion
-
36.78 billion
-
38.45 billion
Correct Answer
A. 37.67 billionExplanation
The expected nominal GDP of Nepal for 2019/20 estimated by the Central Bureau of Statistics is 37.67 billion rupees.Rate this question:
-
- 17.
The annual population growth rate of Nepal stands at:
-
1.35%
-
2%
-
2.15%
-
1.25%
Correct Answer
A. 1.35%Explanation
The correct answer is 1.35%. This means that the population of Nepal is increasing by 1.35% every year. This growth rate indicates that the population is growing at a steady pace.Rate this question:
-
- 18.
The average revenue of the firm is represented by:
-
Demand curve
-
Supply curve
-
Marginal revenue
-
None of above
Correct Answer
A. Demand curveExplanation
The average revenue of a firm is represented by the demand curve because it shows the quantity of goods or services that consumers are willing and able to purchase at different price levels. The demand curve illustrates the relationship between price and quantity demanded, and the average revenue is calculated by dividing total revenue by the quantity sold. Therefore, the demand curve provides valuable information about the average revenue generated by the firm at various price points.Rate this question:
-
- 19.
Imposing taxes to which of the following goods yield the highest revenue to government?
-
Alcoholic drinks
-
Vehicles
-
Consumables
-
All of above
Correct Answer
A. Alcoholic drinksExplanation
Imposing taxes on alcoholic drinks yields the highest revenue to the government because alcohol is a highly consumed and often heavily taxed product. It is a popular choice among consumers, making it a lucrative source of revenue for the government. Additionally, the government may impose higher taxes on alcoholic drinks due to their potential negative effects on public health and safety, further contributing to the higher revenue generated from this source.Rate this question:
-
- 20.
In which condition, Seller can shift entire burden of tax to buyer
-
If supply curve is perfectly elastic assuming demand constant
-
If demand curve is perfectly elastic assuming supply constant
-
If both demand and supply curve are relatively elastic
-
None of above
Correct Answer
A. If supply curve is perfectly elastic assuming demand constantExplanation
If the supply curve is perfectly elastic assuming demand constant, it means that the quantity supplied can be increased indefinitely without affecting the price. In this scenario, the seller can easily shift the entire burden of tax to the buyer because they can increase the price without reducing the quantity demanded. As a result, the buyer will bear the full burden of the tax in the form of a higher price.Rate this question:
-
- 21.
The tradition Philips curve states that unemployment and inflation move in
-
Opposite direction
-
Same direction
-
They are not related to each other
-
None of above
Correct Answer
A. Opposite directionExplanation
The Phillips curve is an economic concept that suggests a trade-off between inflation and unemployment. According to the traditional Phillips curve, there is an inverse relationship between unemployment and inflation, meaning that when unemployment is high, inflation tends to be low, and vice versa. This relationship is based on the idea that as the labor market tightens and unemployment decreases, workers have more bargaining power, leading to higher wages and increased demand, which can result in higher inflation. Conversely, when unemployment rises, there is less pressure on wages and demand, leading to lower inflation.Rate this question:
-
- 22.
Stagflation is best explained by which of the following statement?
-
Nepalese economy is facing price surge and a decrease in employment rate
-
Nepalese economy is struggling with deflationary pressures and a rapid rise in unemployment rate.
-
Nepalese economy is experiencing a huge fiscal deficit and deficit in balance of payment.
-
None of above
Correct Answer
A. Nepalese economy is facing price surge and a decrease in employment rateExplanation
Stagflation is the situation in which both inflation and unemployment rises simultaneously.Rate this question:
-
- 23.
The first five year plan of Nepal started in which of the following fiscal year (BS)?
-
1955/56
-
1956/57
-
1954/55
-
1959/60
Correct Answer
A. 1955/56Explanation
The first five-year plan of Nepal started in the fiscal year 1955/56.Rate this question:
-
- 24.
The poverty reduction strategy paper was introduced in which periodic plan?
-
5th
-
6th
-
7th
-
8th
Correct Answer
A. 8thExplanation
The poverty reduction strategy paper was introduced in the 8th periodic plan.Rate this question:
-
- 25.
How many National Pride Projects are currently recognized by 46th National Development Action Committee report?
-
22
-
21
-
23
-
24
Correct Answer
A. 22Explanation
According to the 46th National Development Action Committee report, there are currently 22 National Pride Projects that are recognized.Rate this question:
-
- 26.
In which year Nepalese currency was pegged to Indian currency at the rate of 1 IC = 1.6 NC ?
-
1993
-
1994
-
1990
-
1992
Correct Answer
A. 1993Explanation
In 1993, the Nepalese currency was pegged to the Indian currency at the rate of 1 IC = 1.6 NC. This means that one Indian currency was equal to 1.6 Nepalese currency. This pegging of the currencies helped in stabilizing the exchange rate between Nepal and India, making trade and transactions between the two countries more convenient and predictable.Rate this question:
-
- 27.
Why is Gross domestic income is equivalent to Gross domestic product?
-
Due to Net Indirect Tax
-
They are always equal
-
Due to subsidy
-
None of above
Correct Answer
A. Due to Net Indirect TaxExplanation
Gross domestic income is equivalent to gross domestic product due to net indirect tax. This means that the value of net indirect tax is included in both measures, resulting in their equality. Net indirect tax refers to the difference between indirect taxes collected by the government and subsidies provided. By accounting for this factor, both gross domestic income and gross domestic product accurately reflect the total economic output of a country.Rate this question:
-
- 28.
The nominal per capita GDP of Nepal is
-
$1085
-
$1075
-
$1095
-
$1065
Correct Answer
A. $1085Explanation
The correct answer is $1085. This means that the nominal per capita GDP of Nepal is $1085. Per capita GDP is a measure of the average economic output per person in a country. It is calculated by dividing the total GDP of a country by its population. In this case, the nominal per capita GDP of Nepal is $1085, indicating that on average, each person in Nepal contributes $1085 to the country's total economic output.Rate this question:
-
- 29.
The nominal per capita GNI of Nepal in 2019/20 is
-
$1097
-
$1047
-
$1085
-
$1095
Correct Answer
A. $1097Explanation
The correct answer is $1097. This means that the nominal per capita Gross National Income (GNI) of Nepal in 2019/20 is $1097. GNI represents the total income of a country's residents, including income from abroad. The per capita GNI is obtained by dividing the total GNI by the population of the country. Therefore, in Nepal, on average, each person had a GNI of $1097 in the specified time period.Rate this question:
-
(16).jpg "Diffrence between Real and Nominal GDP is:")
Quiz Review Timeline (Updated): Mar 19, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Mar 19, 2023Quiz Edited by
ProProfs Editorial Team -
Oct 28, 2019Quiz Created by
Rohan Byanjankar
Back to top