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.

Which of the following is a possible government objective as opposed to a policy ?
A Lower interest rates
B Lower taxation rates
C Lower government spending
D Lower inflation
Correct Answer: Lower interest rates
Which of the following can the government not use directly to control the economy ?
A Pay rates within the private sector
B pay rates in the public sector
C investment in education
D Benefits available for the unemployed and sick
Correct Answer: Pay rates within the private sector
Which does the government not control directly ?
A Spending on health
B Spending on defence
C Firms investment decisions
D Spending on education
Correct Answer: Firms investment decisions
What is meant by an objective ?
A A policy
B A way of reaching a target
C A target
D A strategy
Correct Answer: A strategy
In the EMU a country’s competitiveness can change because of ?
A interest rate adjustment
B central bank intervention in the Forex
C domestic wage and price adjustment
D devaluation
Correct Answer: domestic wage and price adjustment
A monetary union means ________, ________ and ________?
A permanently fixed capital movements floating exchange rates a fixed structure of interest rates
B permanently fixed exchange rates, free capital movements, a single interest rates
C a common currency a single central bank, common monetary policy
D a common currency floating exchange rates common monetary policy
Correct Answer: permanently fixed exchange rates, free capital movements, a single interest rates
The single European Act committed ________ governments to a ________ in 1992?
A European union, single market
B Western European, single currency area
C European Union, single currency area
D Western European, single market
Correct Answer: European union, single market
The main features of the European Monetary system are ?
A The ECU
B currency swap agreement between member
C the exchange rate mechanism
D all of the above
Correct Answer: all of the above
Fiscal policy is weak under floating exchanges rates as fiscal expansion ?
A crowds out imports
B crowds out public consumption
C crowds out exports
D reduces the budget deficit
Correct Answer: crowds out exports
Floating exchange rates are ____ in the short run?
A stable
B predictable
C volatile
D depreciating
Correct Answer: volatile