R4RIN – MCQs, Mock Tests | CSS[FPSC-U.S. Civil Service Commission]-USA [USA] CURRENT AFFAIRS MCQ COMMERECE

Which of the following is the safest investment?

1. Treasury bills
2. Government bond
3. Corporate bond
4. Stocks

✅ Correct Answer: 1

Net Present Value (NPV) is calculated as

1. cash inflow - cash outflow
2. cash outflow - cash inflow
3. PV of cash inflow - PV of cash outflow
4. PV of cash outflow - PV of cash inflow

✅ Correct Answer: 3

IMF provides assessments of latest public finance developments in its

1. Fiscal Monitor Reports
2. World Economic Outlook Reports
3. Global Financial Stability Reports
4. None of these

✅ Correct Answer: 1

The ratio between amount of profit and investment is known as

1. NPV
2. opportunity cost
3. risk premium
4. rate of return

✅ Correct Answer: 4

In Finance, risk is calculated by calculating the _____ of possible outcomes.

1. mean
2. standard deviation
3. variance
4. kurtosis

✅ Correct Answer: 2

The Internal Rate of Return (IRR) is the rate of discount that makes Net Present Value (NPV)

1. zero
2. one
3. positive
4. negative

✅ Correct Answer: 1

An investment should be accepted if its Net Present Value (NPV) is

1. 0
2. 1
3. positive
4. negative

✅ Correct Answer: 3

An investment should be accepted if

1. Rate of Return > Opportunity Cost
2. Rate of Return < Opportunity Cost
3. Rate of Return = Opportunity Cost
4. A, B and C are irrelevant

✅ Correct Answer: 1

World Trade Organization (WTO) was established on 1 January

1. 1993
2. 1995
3. 1997
4. 1999

✅ Correct Answer: 2

USMCA (United States-Mexico-Canada) free trade agreement has replaced

1. GATT
2. NAFTA
3. ECO
4. League of Nations

✅ Correct Answer: 2

A company sent a job offer letter to a candidate on 2 May 2020. The candidate received the letter on 4 May 2020. The communication of offer is completed on

1. 2 May 2020
2. 4 May 2020
3. 3 May 2020
4. 2 or 4 May 2020

✅ Correct Answer: 2

A company sent a job offer letter to a candidate. The candidate sent the acceptance letter on 2 May 2020 and the company received the letter on 4 May 2020. The communication of acceptance is completed on

1. 2 May 2020
2. 4 May 2020
3. 3 May 2020
4. 2 or 4 May 2020

✅ Correct Answer: 1

Which of the following product is likely to be produced using division of labour?

1. Mud sculpture
2. Oil painting
3. Ceiling fan
4. A cup of coffee

✅ Correct Answer: 3

Which source of financing is not available to a sole proprietor and a partnership?

1. bank loan
2. retained profit
3. trade credit
4. share issue

✅ Correct Answer: 4

Which of the following is an example of a credit sale?

1. buying furniture with a debit card
2. exchanging a mobile with a new one
3. leasing land for one year
4. buying a car with a deposit and installments

✅ Correct Answer: 4

Which of the following is not a function of a warehouse?

1. Facilitate the distribution
2. Stockpiling
3. Manufacture goods
4. Provide storage

✅ Correct Answer: 3

At which stage the production is completed?

1. when product is manufactured
2. when product is used by the consumer
3. when product reach the consumer
4. when product reach the retailer

✅ Correct Answer: 3

Which from the following risk is non-insurable?

1. faulty raw material
2. poor management
3. factory fire
4. vehicle accident

✅ Correct Answer: 2

Exports are ____ and imports are ____.

1. debits, credits
2. credits, debits
3. assets, liabilities
4. liabilities, assets

✅ Correct Answer: 2

What document will be sent to a buyer when the buyer returns some damaged goods?

1. order
2. receipt
3. quotation
4. credit note

✅ Correct Answer: 4

An asset that pays the regular interest payments and repay the original amount at the maturity is known as

1. stock
2. share
3. bond
4. mortgage

✅ Correct Answer: 3

An asset that pays a fixed amount of cash at regular intervals for a specified number of years is known as

1. annuity
2. perpetuity
3. simple interest
4. compound interest

✅ Correct Answer: 1

An increase in supply _____ the price and _____ the quantity demanded.

1. lowers, raises
2. raises, lowers
3. lowers, lowers
4. raises, raises

✅ Correct Answer: 1

A businessman opportunity should be accepted if it has _____ net present value.

1. zero
2. positive
3. negative
4. constant

✅ Correct Answer: 2

In a monopolistic competition, a business obtains its maximum-profit position where

1. MR > MC
2. MR < MC
3. MR = MC
4. MR + MC = 1

✅ Correct Answer: 3

The fundamental concept of Economics about resources is that the resources are

1. equally distributed
2. unequally distributed
3. scarce
4. unlimited

✅ Correct Answer: 3

Consider a world without scarcity of resources. Then what would be the consequences?

1. All prices would be zero
2. Markets would be unnecessary
3. Economics would no longer be a useful subject
4. All of the above

✅ Correct Answer: 4

Who is considered the founder of Microeconomics?

1. Adam Smith
2. John Keynes
3. Friedrich Hayek
4. Milton Friedman

✅ Correct Answer: 1

Who is considered the founder of modern Macroeconomics?

1. Adam Smith
2. John Keynes
3. Friedrich Hayek
4. Milton Friedman

✅ Correct Answer: 2

When analyzing the impact of a variable on the economic system, the other things

1. must be kept constant
2. must also be analyzed
3. must not be taken into consideration
4. none of these

✅ Correct Answer: 1

Inputs are combined with technology to produce outputs. The fundamental inputs (also called factors of production) are

1. land and capital
2. land and labor
3. land, labor, and capital
4. land, labor, capital, and investment

✅ Correct Answer: 3

Goods produced to produce yet other goods is called

1. final goods
2. capital
3. investment
4. resources

✅ Correct Answer: 2

Which economic term is used to represent inequality in income distribution?

1. GDP
2. GNP
3. Gini
4. HDI

✅ Correct Answer: 3

The value of the good or service forgone by choosing another investment is called

1. opportunity cost
2. purchasing power parity
3. disposable income
4. consumer price index

✅ Correct Answer: 1

The central role of markets is to determine the

1. quality of goods
2. quantity of goods
3. level of income
4. price of goods

✅ Correct Answer: 4

The branch of economics concerned with overall performance of the economy is known as

1. Microeconomics
2. Macroeconomics
3. Econometrics
4. Keynesian Economics

✅ Correct Answer: 2

The branch of economics concerned with the use of statistical methods to obtain empirical results for economic relations is known as

1. Microeconomics
2. Macroeconomics
3. Econometrics
4. Keynesian Economics

✅ Correct Answer: 3

The branch of economics concerned with the behavior of markets, firms, and households is known as

1. Microeconomics
2. Macroeconomics
3. Econometrics
4. Bayesian Economics

✅ Correct Answer: 1

An economy is producing efficiently when no individuals economic welfare can be improved unless

1. supply is increased
2. demand is increased
3. someone else is improved
4. someone else is made worse off

✅ Correct Answer: 4

Taxes are used to discourage __________ of a commodity.

1. consumption
2. production
3. saving
4. inflation

✅ Correct Answer: 1

Subsidies are used to encourage __________ of a commodity.

1. consumption
2. production
3. saving
4. inflation

✅ Correct Answer: 2

Which from the following economic resources cannot be converted into commodity?

1. Land
2. Labour
3. Capital
4. All of these can be converted into commodity

✅ Correct Answer: 2

Which from the following are features of a modern economy?

1. Specialization
2. Division of Labor
3. Financial Markets
4. All of the above

✅ Correct Answer: 4

When no firm or consumer is large enough to affect the market price, the market is assumed to have

1. perfect competition
2. Imperfect competition
3. no competition
4. none of these

✅ Correct Answer: 1

Which from the following are the results of imperfect competition in the markets?

1. Monopolies
2. Externalities
3. Public goods
4. All of the above

✅ Correct Answer: 4

When one event occurred before another event, the fallacy in economic reasoning that the first event caused the second event is called

1. the post hoc fallacy
2. failure to hold other things constant
3. the fallacy of composition
4. normative fallacy

✅ Correct Answer: 1

When we assume that what is true for the part is also true for the whole, we are committing

1. the post hoc fallacy
2. failure to hold other things constant
3. the fallacy of composition
4. normative fallacy

✅ Correct Answer: 3

The three fundamental economic problems every human society must confront and resolve are

1. what, how and when
2. what, where and when
3. what, how, and for whom
4. how, where, and for whom

✅ Correct Answer: 3

The three fundamental economic problems of what, how, and for whom are solved by

1. supply
2. demand
3. consumption
4. markets

✅ Correct Answer: 4

Fiscal policy consists of governments

1. revenue and taxation
2. taxation and credit control
3. expenditure and investment
4. expenditure and taxation

✅ Correct Answer: 4