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.

If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?

A should increase the dollar value of exports

B should not have any effect on the dollar value of U.S imports

C must increase the balance of trade

D All of the above

Review Detailed Answer

Correct Answer: All of the above

Complete currency pass through arises when a 10 percent depreciation in the value of the dollar causes U.S?

A import prices to fall by 10 percent

B import prices to rise by 10 percent

C export prices to rise by 10 percent

D export prices to fall by 10 percent

Review Detailed Answer

Correct Answer: import prices to rise by 10 percent

Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)?

A appreciation in the value of both currencies

B depreciation in the value of both currencies

C appreciation in the value of the yen against the mark

D depreciation in the value of the yen against the mark

Review Detailed Answer

Correct Answer: depreciation in the value of the yen against the mark

If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?

A shorten the amount of time in which the depreciation leads to smaller trade deficit

B shorten the amount of time in which the depreciation leads to smaller trade surplus

C lengthen the amount of time in which the depreciation leads to smaller trade deficit

D lengthen the amount of time in which the depreciation leads to smaller trade surplus

Review Detailed Answer

Correct Answer: lengthen the amount of time in which the depreciation leads to smaller trade deficit

Because of the J curve effect and partial currency pass through, a depreciation of the domestic currency tends to increase the size of a ?

A trade surplus in the short run

B trade surplus in the long run

C trade deficit in the short run

D trade deficit in the long run

Review Detailed Answer

Correct Answer: trade deficit in the long run

According to the Marshall-Lerner condition if a country’s currency depreciates its trade balance will worsen if ?

A elasticity of demand for exports = 0.9; elasticity of demand for imports = 0.4

B elasticity of demand for exports = 0.7; elasticity of demand for imports = 0.3

C elasticity of demand for exports = 0.5; elasticity of demand for imports = 0.7

D elasticity of demand for exports = 0.3; elasticity of demand for imports = 0.6

Review Detailed Answer

Correct Answer: elasticity of demand for exports = 0.3; elasticity of demand for imports = 0.6

The balance of trade can only worsen if income ____ relative to absorption ?

A increases

B decreases

C does not change

D None of the above

Review Detailed Answer

Correct Answer: decreases

« Previous
Next »

Showing 11 to 17 of 17 results

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?

Complete currency pass through arises when a 10 percent depreciation in the value of the dollar causes U.S?

Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)?

If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?

Because of the J curve effect and partial currency pass through, a depreciation of the domestic currency tends to increase the size of a ?

According to the Marshall-Lerner condition if a country’s currency depreciates its trade balance will worsen if ?

The balance of trade can only worsen if income ____ relative to absorption ?