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Economics Mcqs 4423 MCQs [All-Courses]

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Economics MCQs cover fundamental concepts of microeconomics and macroeconomics, including demand and supply, inflation, national income, and economic policies.
This section is designed to strengthen analytical skills and conceptual understanding for competitive examinations.
Highly useful for PPSC, FPSC, NTS, OTS, KPPSC, and other testing services preparation.

All Topics  4423

An export subsidy should have the opposite effect of ?
A A government budget deficit
B Capital flight
C An increase in Private saving
D A tariff
Correct Answer: A tariff
Which of the following groups would not benefit from an EU imports quota on Japanese cars ?
A Eu consumers who buy electronics from Japan
B EU farmers who export grain
C employees of EU car manufacturers
D Shareholders of German carmaker BMW
Correct Answer: EU farmers who export grain
Which of the following statements about trade policy is true ?
A A country’s trade policy has no impact on the size of its trade balance
B None of these answers
C A restrictive import quota decreases a country’s net exports
D A restrictive imports quota increases a country’s net exports
Correct Answer: A country’s trade policy has no impact on the size of its trade balance
Suppose, due to political instability, Russians suddenly choose to invest in UK assets as opposed to Russian assets Which of the following statements is true regarding UK net foreign investment ?
A UK net foreign investment is unchanged because only UK residents can after UK net foreign investment
B UK net foreign investment rises
C UK net foreign investment falls
D None of the above
Correct Answer: UK net foreign investment falls
If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing Which of the following is true regarding the market for foreign currency exchange ?
A The demand for pounds decreases and the pound depreciates
B The Supply of pounds increases, and the pound depreciates
C The Supply of pounds decreases, and the pound appreciates
D The demand for Pounds increases and the pound appreciates
Correct Answer: The demand for Pounds increases and the pound appreciates
An increasing in Europe’s taste for UK produced Hondas would cause the pound to ?
A depreciate and would increase UK net exports
B appreciate and would increase UK net exports
C depreciate and would decrease UK net exports
D appreciate, but the total value of UK net export stays the same
Correct Answer: appreciate, but the total value of UK net export stays the same
An increase in the government budget deficit ?
A has no impact on the real interest rate and fails to crowed out investment
B decreases the real interest rate and crowds out investment
C None of these answers
D Increases the real interest rate and crowds out investment
Correct Answer: Increases the real interest rate and crowds out investment
Capital flight ?
A decreases a country’s net exports and increases its long-run growth path
B increases a country’s net exports and increases its long-run growth path
C increases a country’s net exports and decreases its long-run growth path
D decreases a country’s net exports and decreases its long-run growth path
Correct Answer: increases a country’s net exports and decreases its long-run growth path
Which of the following groups would be most harmed by a UK government budget deficit ?
A Foreigners who wish to buy assets in the UK
B BAe Systems wishing to sell aircraft to Saudi Arabia
C UK residents wishing to buy foreign Produced cars
D Lenders of loanable funds
Correct Answer: BAe Systems wishing to sell aircraft to Saudi Arabia
An example of a trade policy is ?
A A tariff on sugar
B All are examples of trade policy
C capital flight because it increases a country’s net exports
D an increase in the government budget deficit because it reduces a country’s net exports
Correct Answer: A tariff on sugar
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