MCQsDrive | MCQsDrive

Economics Mcqs 4423 MCQs [All-Courses]

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.

The notion that, following a currency depreciation the balance of trade falls for a while before increasing is called an effect ?

A relative price

B elasticity

C J Curve

D Pass through

Review Detailed Answer

Correct Answer: J Curve

Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

A the absorption approaches

B the Marshall Lerner approach

C the monetary approach

D the elasticities approach

Review Detailed Answer

Correct Answer: the absorption approaches

The extent to which a change in the exchange rate leads to changes in import and export prices is known as the ?

A J Curve effect

B Marshall Lerner effect

C absorption effect

D pass through effect

Review Detailed Answer

Correct Answer: pass through effect

The shift toward imperfectly competitive markets in domestic and international trade the concept of ?

A official exchange rates

B complete currency pass through

C exchange arbitrage

D trade adjustment assistance

Review Detailed Answer

Correct Answer: complete currency pass through

Economic theory predicts that a currency depreciation will least lead to an improvement in the home country’s trade balance when ?

A home demand for imports is inelastic and foreign export demand is inelastic

B home demand for imports is elastic and foreign export demand is inelastic

C home demand for imports is inelastic and foreign export demand is elastic

D home demand for imports is elastic and foreign export demand is elastic

Review Detailed Answer

Correct Answer: home demand for imports is inelastic and foreign export demand is inelastic

Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?

A partial currency pass through

B complete currency pass through

C partial J curve effect

D complete J curve effect

Review Detailed Answer

Correct Answer: partial currency pass through

Empirical evidence regarding in the effects of currency depreciation on the balance of trade indicates that?

A depreciation generally improves the trade balance

B depreciation generally hurts the trade balance

C no strong generalization is possible

D depreciation has no effect on the trade balance

Review Detailed Answer

Correct Answer: no strong generalization is possible

The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?

A pass through

B absorption

C adjustment mechanism

D currency contract period

Review Detailed Answer

Correct Answer: pass through

The shorter the pass through period the the desirable BOT effects of evaluation on quantities traded will appear ?

A sooner

B longer

C bigger

D smaller

Review Detailed Answer

Correct Answer: sooner

Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?

A improves

B worsens

C is unaffected

D falls for a while before increasing

Review Detailed Answer

Correct Answer: is unaffected

« Previous
Next »

Showing 1 to 10 of 17 results

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

The notion that, following a currency depreciation the balance of trade falls for a while before increasing is called an effect ?

Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

The extent to which a change in the exchange rate leads to changes in import and export prices is known as the ?

The shift toward imperfectly competitive markets in domestic and international trade the concept of ?

Economic theory predicts that a currency depreciation will least lead to an improvement in the home country’s trade balance when ?

Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?

Empirical evidence regarding in the effects of currency depreciation on the balance of trade indicates that?

The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?

The shorter the pass through period the the desirable BOT effects of evaluation on quantities traded will appear ?

Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

The notion that, following a currency depreciation the balance of trade falls for a while before increasing is called an effect ?

Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

The extent to which a change in the exchange rate leads to changes in import and export prices is known as the ?

The shift toward imperfectly competitive markets in domestic and international trade the concept of ?

Economic theory predicts that a currency depreciation will least lead to an improvement in the home country’s trade balance when ?

Suppose that U.S dollar depreciates 70 percent against the yen yet Japanese export prices to Americans did not decrease by the full extent of the dollar depreciation. This is best explained by ?

Empirical evidence regarding in the effects of currency depreciation on the balance of trade indicates that?

The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?

The shorter the ______ pass through period the ______ the desirable BOT effects of evaluation on quantities traded will appear ?

Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?

The shorter the pass through period the the desirable BOT effects of evaluation on quantities traded will appear ?