M C Q s D r i v e
03079682698
mcqsdrive@gmail.com
About
Contact

Contact Info

03079682698

mcqsdrive@gmail.com

Ad Banner

Economics Mcqs 4423 MCQs [All-Courses]

thumb


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

A government might use tax to ?
A Discourage consumption of positive externalities
B Discourage consumption of public goods
C Discourage consumption of merit goods
D Discourage consumption of negative externalities
Correct Answer: Discourage consumption of merit goods
In a regressive tax system ?
A The amount of tax paid increase with income
B The marginal rate of tax decrease with more income
C The average rate of tax falls as income increase
D The average rate of tax is constant as income increases
Correct Answer: The average rate of tax falls as income increase
If the economy grows the government’s budget position will automatically ?
A worsen
B Improve
C Stay the same
D Increase with inflation
Correct Answer: worsen
If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?
A The amount of tax paid will increase by Rs4,800
B The amount of tax paid will increase by Rs4,000
C The amount of tax paid will increase by Rs 800
D The total tax paid will be Rs4,800
Correct Answer: The total tax paid will be Rs4,800
A reflationary (expansionist) fiscal policy could include ?
A Lower interest rates
B Increased lending by the banks
C An increase in corporation tax
D An increase in discretionary government spending
Correct Answer: Increased lending by the banks
Over-funding is when the State Bank of Pakistan ?
A sells less government bonds than are required to finance the PSBR
B sells more government bonds than are required to finance the PSBR
C sells government securities on the open market
D buys government securities on the open market
Correct Answer: sells more government bonds than are required to finance the PSBR
If the State Bank of Pakistan wished to pursue a tight monetary policy it would ?
A reduce the minimum reserve asset ratio.
B buy government securities on the open market
C lower interest rates
D sell government securities on the open market
Correct Answer: buy government securities on the open market
Goodhart’s Law suggests that ?
A bad money drives out good
B monetary policy can only be effective if it is a long-term policy
C controlling one part of the money supply will merely result in that item becoming less important
D the money supply must only expand at the rate of growth of real national income
Correct Answer: controlling one part of the money supply will merely result in that item becoming less important
As the required reserve ratio is decreased the money multiplier ?
A could either increase or decrease
B decrease
C increase
D remain the same, as long as bank hold no excess reserves
Correct Answer: increase
The parable of Riding a Switchback suggest that stabilizing policy ?
A is not sufficiently stimulating or contracting the economy at any time
B is effective
C is stimulating or contracting the economy at the wrong times
D is desirable
Correct Answer: is stimulating or contracting the economy at the wrong times
03079682698
mcqsdrive@gmail.com

Copyright @ 2026 MCQsDrive . All Rights Reserved.