1. The most important source of income of a government is: a) Taxes b) Foreign loans c) Printing of new money d) Sales of government property

2. In 32; Pakistan, taxes are leived by: a) Prime minister of Pakistan b) President of Pakistan c) National Assembly d) Federal cabinet of ministers

3. A tax on beauty soaps is a: a) Direct tax b) Indirect tax c) Proportional tax d) Net tax

4. In case of indirect tax, burden of tax is : a) Shifted b) Fixed c) Regulated d) Bearded

5. One of the following is not an advantage of international trade: a) Export of surplus production b) Import of defence material c) Dependence on foreign countries d) Availability of cheap raw material

6. Favorable balance of trade means: a) Imports < exports b) Imports = exports c) Imports + exports d) Imports > exports

7. True economic picture of country is shown by: a) Balance of trade b) Terms of trade c) Amount of import duties d) Balance of payments

8. One of the following is not included in the balance of payment: a) Expenditure of Embassies b) Expenditure on education in foreign countries c) Expenditure on 32; tourism d) Expenditures on gross domestic public investments

9. Gross domestic product comprises the monetary value of all final goods which are: a) Produced in the country only b) Produced outside the country only c) Produced both in the country and outside the country d) Exported to other countries

10. One of the following is not the method of measurement of national income: a) Product method b) Payment method c) Income method d) Expenditure method

11. Personal disposable income = personal income minus: a) Direct tax b) Indirect tax c) Excise duty d) Sales tax

12. In national income accounting, which of the following is treated as transfer 32; payment: a) Expenditures on the govt. embassies in the foreign countries b) Fee paid to independent research scientists by the government c) Pensions paid to the retired govt. servants d) Salaries of civil servants

13. Convertible money means: a) It can buy goods b) Govt. can give gold against it c) Illegal money d) Low value money

14. Value of money in Pakistan is determined by: a) State bank b) Govt. of Pakistan c) Value of ; dollar d) General price level

15. Inconvertible paper money is issued by: a) State bank of Pakistan b) Islamic banks of Pakistan c) Commercial banks d) Finance minister of Pakistan

16. Relation between the value of money and price of goods is: a) Direct b) Inverse c) Progressive d) Regressive

17. The basic and most important function of 32; commercial banks is to: a) Issue loans b) Receive deposits c) Discount bill of exchange d) Provide lockers

18. Banking system of any country is controlled by: a) State bank b) Central bank c) National bank d) Foreign

19. Interest free banking was introduced in Pakistan in the year of : a) 1981 b) 1977 c) 1991 d) 1987

20. Usher is levied on: a) Merchandise b) Manufactured goods c) Agricultural goods d) Imported goods

21. One of the following is not a beneficiary of zakat : a) Poor b) Debtor c) Creditor d) Traveler

22. Zakat is to be paid once in a: a) Year b) Month c) Week d) Day

23. Which of the following factors will limit the rate of development in developing countries? a) Balance of payments surpluses b) High savings rates c) Large inflow of foreign 32; investment d) Rapid population growth

24. Usher is ; levied on harvested crops it is also known as a) Direct tax b) Indirect tax c) Unit tax d) Progressive tax

25. Land reforms were introduced to increase a) Farmers problems b) Benefits of landlords c) Government revenue d) Agricultural products

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