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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 Benazir Benefit income Scheme is a good example of ?
A a benefit in kind.
B a means tested cash benefit
C a universal (social insurance based) benefit
D none of the above
Correct Answer: a benefit in kind.
VAT is a good example of which kind of tax ?
A specific
B Direct
C Ad valorem
D Excise duty
Correct Answer: Ad valorem
Where a tax can be shifted the incidence depends on ?
A whether there is perfect or imperfect information
B who is legally obliged to pay the tax
C elasticities of demand and supply
D how many producers there are:
Correct Answer: elasticities of demand and supply
Tax incidence is the ?
A structure of the tax.
B ultimate distribution of a tax’s burden
C behaviour of shifting the tax to another party
D measure of the impact the tax has on employment and output
Correct Answer: ultimate distribution of a tax’s burden
A progressive income tax means that those with a higher income pay ?
A a higher percentage of their income in taxes then low income people
B a lower percentage of their income in taxes than low income people
C the same percentage of their income in taxes as low income people all the taxes in the economy.
D all the taxes in the economy
Correct Answer: a higher percentage of their income in taxes then low income people
The marginal tax rate is ?
A the tax rate you pay on any additional income that you earn.
B the total amount of tax you pay divided by your total income
C the additional tax you pay divided by your total income
D your total income divided by the total amount of tax you pay.
Correct Answer: the tax rate you pay on any additional income that you earn.
Vertical equity holds that ?
A those will equal ability to pay should bear equal tax burdens.
B those who benefit the most from government service should bear the higher tax burden
C those with equal ability to pay should bear unequal burdens
D those with greater ability to pay should pay more
Correct Answer: those with greater ability to pay should pay more
A Gini coefficient of zero means that the ?
A the income is split equally between the top 20% and the rest of the distribution
B one person has all the income and every one else has nothing
C all the income is received by the top 20% of the income distribution
D income is equally distributed
Correct Answer: all the income is received by the top 20% of the income distribution
Supply of land in a given use ?
A will be perfectly inelastic in the long run. but upward sloping in the short run
B is perfectly inelastic since there is a fixed amount of land
C is perfectly elastic since there is fixed amount of land
D will be upward sloping because as land becomes more valuable in once use, the amount of land made available for that use will increase
Correct Answer: will be upward sloping because as land becomes more valuable in once use, the amount of land made available for that use will increase
The stock of knowledge, skills and talents that people possess is called ?
A training investment
B skill capital
C skill-building investment
D human capital
Correct Answer: human capital
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