Economics MCQs For Lectureship CSS PMS And NTS Part III

1 What is depreciation?

Process of allocation of costs

2 What does conversion Cost means?

Cost of transforming direct materials into finished product

3 In an integrated costing system, from where most of the data relevant to cost accounting comes?

From financial accounting system

4 Sugar mills uses which method of costing?

Process costing

5 For what Premium on redemption of debentures is accounted?

Personal account

6 After debentures are redeemed, where the balance in the sinking fund account is transferred to?

General reserve

7 To the extent redemption of preference shares takes place out of profits, where an equal amount has to be transferred?

Capital redemption reserve

8 When shares are forfeited, what happens to the share capital account?

Debited by called-up account

9 Where the profit on re-issuing forfeited shares transferred to?

Capital reserve

10 What is the share application account?

Personal account

11 The excess of purchase price over net assets is considered as


12 What is a preliminary expense?

A fictitious asset

13 What divisible profits do not include?

Profits on revaluation of assets

14 When dividends are usually paid?

On the paid-up capital

15 The process when two or more companies dissolved and form a new company, it is called


16 When absorption take place?

Two or more companies dissolved to be taken over by an existing company

17 What type of relation exist between normal rate of return and P/E ratio?


18 What is the minimum percentage of the shareholding of government in a government company?


19 Demand for machinery is an

Economic flow

20 What is a closed economy?

One which does not trade with other countries

21 What does corporate enterprises refers to?

Business houses that are independent of their owners

22 What does Subsistence productions means?

Production for self-consumption only

23 What gross domestic fixed-capital formation does not include?

Net purchase of second hand machinery by private corporate sector from Government

24 By how much the value of output differs from the value added?

Intermediate consumption

25 What will be the value of net investment if consumption of capital is equal to gross fixed investment?

Net investment is zero

26 Net value added is equal to what?

Payments accruing to factors of production

27 What does operating surplus implies?

Net income from property and entrepreneurship

28 When operating surplus arises?

All producing enterprises in the corporate sector

29 By what amount operating surplus differs from net value added?

Compensation of employees

30 What are transfer payments?

Payments which are made without any exchange of goods and services

31 Personal disposable income is equal to what?

Personal income minus direct taxes paid by the household

32 In national income accounts, how direct personal taxes are recorded?

Receipts of the government sector and payments of the corporate sector

33 Does national income differs from the net national product at market prices?

It does not differ

34 If net factor income from abroad is zero then what will be the value of national product?

National product is constant

35 Which among the following has to be added to national income to get net national disposable income?

Loans from public

36 What is net national product at factor cost?

Equal to national income

37 The difference between net national product at market prices and net domestic product at market prices is equal to what?

Net factor income from abroad

38 Net borrowing from abroad are a part of what?

Gross investment

39 What does aggregate gross receipts means?

Turnover value of output

40 The term national income commonly refers to what?

NNP at factor cost

41 What does net retained earning from abroad means?

Net undistributed profits of resident and non-resident companies

42 Interest on public debt is a part of what?

Transfer payments by the government

43 Subsidy is not a government transfer payments to whom?


44 Income from property is a part of what?

Operating surplus

45 What unilateral payments are known as?

Transfer payments

46 What does domestic incomes refer to?

Incomes which are generated by all the producers within the geographical territory of the country

47 Gross Domestic Product differs from Net Domestic Product by what amount?

Consumption of fixed capital

48 The concept of economic growth is narrower from which other concept?

 Economic development

49 The division of labor according to Adam Smith is limited by what extent?

The quantity of capital available

50 Among the various determinants of the growth of national wealth Adam Smith accorded central place to what?

Division of labor


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51 The theory of social dualism was put forward by

H. Boeke

52 The phrase ‘demonstration effect’ was coined by

James Duessenberry

53 To achieve full economic growth, Malthus laid special emphasis on the proper combination of what?

Production and distribution

54  According to Malthus what puts a stop to the growth process?

Deficiency in effective demand

55  According to Malthus what makes an economy move downwards in the long run to the subsistence level

Population pressure

56  Ricardo in the context of economic growth emphasized which sector the most?


57 According to Ricardo scheme of things, savings are provided by whom?


58 In the Ricardian system, to whom a crucial role in the development process was assigned?


59 Unemployment created due to change in demand or technological conditions in an economy is known as

Structural unemployment

60 Rostow defined and analyzed how many stages of economic growth?

Five (5)

61 Which country was the first to move to the stage of high mas consumption?


62 Under the ‘Big Push’ strategy of development, where the large investments are to be directed?


63 The basic logic behind the ‘Big Push’ strategy of development is related to what?

External economies

64 ‘Big Push’ strategy was formulated in the context of

Eastern Europe

65 Who first of all advocated the ‘Big Push’ strategy?

Paul N-Rosenstein-Rodan

66 What is the status of capital-output ratio in developed countries?

Fairly stable

67 What does the Incremental Capital Output Ratio (ICOR) means?

Ratio of investment to change in output

68 The use of capital-output ratio for development planning was inspired by which growth model?

The Harrod-Domar model

69 What is the status of capital-output ratio in a country during its different phases of growth?

Changes within narrow limits

70 What does balanced growth implies?

Simultaneous development of a variety of activities, which support one another

71 Who originally formulated the hypothesis of development with unlimited supplies of labor?

A. Lewis

72 The labor force engagement in agriculture decreases with

Economic growth

73 Shadow prices are useful in which sphere?

Project evaluation and cost benefit analyses

74 According to the Schumpeter’s model, from where the innovating entrepreneurs gets the necessary finance?


75 H. Myint was particularly associated with which kind of dualism?

Financial dualism

76 What characterized the second stage of the theory of demographic transition?

High birth-rate and falling death-rate

77 What does perspective planning means?

Long term planning

78 What Marx attributed the capitalist crisis to?

Falling rate of profit

79 According to R. Nurkse investment in an underdeveloped economy is limited mainly by the

Size of the market

80 On what the economy of Brazil is mostly dependent?


81 What does devaluation of money means?

Decrease in the value of the money in terms of foreign currency

82 Wall Street in New York, USA is associated with which activity?

Banking and Finance

83 Change in the living standard of people in a country means positive change in

Per capita income

84 To counter rising prices, one of the best ways would be to

Increase the availability of goods

85 The Theory of Surplus Value is associated with what?

Guild Socialism

86 Where the Law of Diminishing Returns applies?


87 What is the cause of high inflation?

High prices

88 Banks charge higher rate of interest on what basis?

Risk involved

89 In which case Supply usually lags behind?


90 Entrepreneur organizes and takes all responsibility for the business bearing the risk that it


91 The real wage of a worker depends mainly on

The purchasing power of his earnings

92 In economics the main function of money is to

Serve as a medium of exchange

93 A Bonus is the sum of money paid on shares to a shareholder by a public limited company

Out of his profits

94 What is the currency of Bangladesh?


95 What is the currency of Myanmar?


96 Where is the largest automobile manufacturing center in the world?


97 The term national income is commonly applied to

NNP at factor cost

98 What does net retained earning abroad means?

Net undistributed profits of resident and non-resident companies

99 Interest on public debt is a part of what?

Transfer payments by the government

100 The Incremental Capital Output Ratio (ICOR) refers to what?

Ratio of investment to change in output



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