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Economics Mcqs 4423 MCQs [All-Courses]

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.

When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to ?

A adverse selection

B moral hazard

C social goods

D hyperinflation

Review Detailed Answer

Correct Answer: adverse selection

Which of the following is NOT true ?

A Taxes on international trade are the major source of tax revenue for low-income countries with poor administrative capacity

B import duties can restrict luxury goods consumption

C several LDCs have used value-added taxes to raise a substantial fraction of revenues

D Cascade tax a form of progressive tax, is dominant in DCs

Review Detailed Answer

Correct Answer: Cascade tax a form of progressive tax, is dominant in DCs

The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

A indirect taxes

B direct taxes

C inelastic

D value-added tax

Review Detailed Answer

Correct Answer: direct taxes

_______ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods?

A incomes policy

B Moral hazard

C Wagner’s law

D Fiscal policy

Review Detailed Answer

Correct Answer: Wagner’s law

By using fiscal policy, i (e) varying __ and/or _ governments achieve goals for output and employment growth as well as price stability?

A demand pull inflation tax elasticity

B interest rates, financial liberalization

C interest rates, tax rates

D tax rates, government spending

Review Detailed Answer

Correct Answer: tax rates, government spending

Demand pull inflation result from ?

A demand for government spending on public goods goes due to lack of financial backup through tax collection

B consumer business and government demand for goods and services in excess of an economy’s capacity to produce

C a shortage of demand for goods and services in excess of supply during depression

D demand for public goods is greater than demand for consumer goods

Review Detailed Answer

Correct Answer: consumer business and government demand for goods and services in excess of an economy’s capacity to produce

With _______ prices rise in the first sector, remain the same in the second and increase overall?

A ratchet inflation

B inflationary expectations

C import substitution

D demand pull inflation

Review Detailed Answer

Correct Answer: ratchet inflation

If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is ?

A progressive

B regressive

C value added taxes (VAT)

D excise taxes

Review Detailed Answer

Correct Answer: progressive

The Bank of England and the Federal Reserve ?

A are central banks

B are branches of commercial banks

C use fiscal policy to influence GDP

D loan money to most of LDC commercial banks

Review Detailed Answer

Correct Answer: are central banks

Monetary policy effects the _ and __?

A reserve, unemployment

B money supply, interest rate

C taxes, exchange rate

D stock price, minimum wage

Review Detailed Answer

Correct Answer: money supply, interest rate

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to ?

Which of the following is NOT true ?

The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

_______ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods?

By using fiscal policy, i (e) varying __ and/or _ governments achieve goals for output and employment growth as well as price stability?

Demand pull inflation result from ?

With _______ prices rise in the first sector, remain the same in the second and increase overall?

If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is ?

The Bank of England and the Federal Reserve ?

Monetary policy effects the _ and __?

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to ?

Which of the following is NOT true ?

The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

_______ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods?

By using fiscal policy, i (e) varying ______ and/or _____ governments achieve goals for output and employment growth as well as price stability?

Demand pull inflation result from ?

With _______ prices rise in the first sector, remain the same in the second and increase overall?

If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is ?

The Bank of England and the Federal Reserve ?

Monetary policy effects the _________ and __________?

By using fiscal policy, i (e) varying __ and/or _ governments achieve goals for output and employment growth as well as price stability?

Monetary policy effects the _ and __?