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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

The implementation lag for monetary policy is generally ?
A the same as it is for fiscal policy
B much shorter than it is for fiscal policy
C mush longer than it is for fiscal policy
D unrelated to central bank action
Correct Answer: much shorter than it is for fiscal policy
The budget deficit tends to decrease then ?
A GDP decrease rapidly
B GDP remains unchanged
C GDP decrease slightly
D GDP increase
Correct Answer: GDP increase
Automatic stabilizers act to ______ government expenditures and _______ government revenue during an expansionary period?
A increase; increase
B decrease; increase
C increase; decrease
D decrease; decrease
Correct Answer: decrease; increase
Net taxes are ?
A taxes paid by firms and households to the government minus the cost of collecting the taxes
B Taxes paid firms and households to the government minus the transfer payments made to firms and household
C Taxes paid by firms and households to the government plus transfer payments made to firm and households
D government expenditures minus government revenues
Correct Answer: Taxes paid firms and households to the government minus the transfer payments made to firms and household
As an economy grows ?
A The government’s budget position should automatically improve
B The government’s budget position should automatically worsen
C This will have no effect on the government’s budget position
D This will reduce the government’s tax revenue
Correct Answer: The government’s budget position should automatically worsen
The public Sector Net Cash Requirement (PSNCR) is ?
A A measure of the country’s trade position
B A measure of the country’s budget position
C A measure of the country’s total debt
D A measure of the government’s monetary stance
Correct Answer: A measure of the country’s budget position
The marginal rate of tax paid is ?
A The total tax paid / total income
B Total income / total tax paid
C Change in the tax paid / change in income
D Change in income / change in tax paid
Correct Answer: Change in the tax paid / change in income
Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?
A Rs 50000
B 20%
C 25%
D Rs 10000
Correct Answer: 20%
Fiscal drag occurs when ?
A Tax bands do not increase with inflation
B Tax rates move inversely with inflation
C Government spending falls to reduce aggregate demand
D Tax banks increase with inflation
Correct Answer: Tax bands do not increase with inflation
By controlling the monetary base economists mean ?
A making banks keep a certain % of their assets as M0
B controlling the money multiplier
C restricting the amount of cash in circulation
D not allowing commercial banks to issue notes and coins
Correct Answer: making banks keep a certain % of their assets as M0
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