M C Q s D r i v e

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.

If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?
A falls; rise; falls; surplus
B is static; low; rise; deficit;
C falls; falls; falls; surplus
D rise; falls; rises; deficit
Correct Answer: rise; falls; rises; deficit
If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?
A depreciate
B not be affected
C fluctuate more than it would do therwise
D appreciate
Correct Answer: appreciate
If currency dealers expect the value of the pound to fall, the exchange value will tend to ?
A depreciate
B not be affected
C fluctuate more than it would do therwise
D appreciate
Correct Answer: depreciate
If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to ?
A not be affected
B fluctuate more than if exports were lower
C depreciate
D appreciate
Correct Answer: appreciate
If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?
A not be affected
B appreciate
C depreciate
D fluctuate more than if interest rates were high
Correct Answer: depreciate
The price of one country’s currency in terms of another country’s currency is the ?
A exchange rate
B balance of trade
C terms of trade
D currency validation
Correct Answer: exchange rate
The record of country’s transfers of land inter-government payments and money sent by migrants to and from abroad is called its ?
A balance of payments
B capital account of the balance of payments
C financial account of the balance of payments
D balance of payments on current account
Correct Answer: balance of payments
The record of a country’s imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?
A balance of payments on current account
B visible trade balance
C balance of trade
D balance of payments
Correct Answer: balance of payments on current account
The record of country’s imports and exports of goods is called its ?
A balance of trade:
B balance of payments
C balance of payments on current account
D visible trade balance
Correct Answer: visible trade balance
If VAT rates rise, then costs are likely to ___ and demand is likely to ____?
A rise; rise
B rise; fall
C fall; fall
D fall; rise
Correct Answer: rise; fall