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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

An increase in the budget surplus ?
A Shifts the supply of loanable funds to the left and increase the real interest rate
B Shift the supply of loanable funds to the right and reduces the real interest rate.
C Shifts the demand for loanable funds to the right and increases the real interest rate.
D Shifts the demand for loanable funds to the left and reduces the real interest rate
Correct Answer: Shift the supply of loanable funds to the right and reduces the real interest rate.
If Pakistani citizens become less concerned with the future and save less at each real interest rate ?
A Real interest rates rise and investment falls
B Real interest rates rise and investment rises
C Real interest rates fall and investment rises
D Real interest rates fall and investment falls
Correct Answer: Real interest rates rise and investment falls
An increase in the budget deficit is ?
A an increase in public saving
B a decrease in private saving
C None of these answers
D a decrease in public savings
Correct Answer: a decrease in public savings
An increase in the budget deficit will ?
A raise the real interest rate and decrease the quantity of loanable funds demanded for investment
B lower the real interest rate and increase the quantity of loaable funds demanded for investment
C raise the real interest rate and increase the quantity of loandable funds demanded for investment
D lower the real interest rate and decrease the quantity of loanable funds demanded for investment
Correct Answer: raise the real interest rate and decrease the quantity of loanable funds demanded for investment
Which of the following sets of government policies is the most growth oriented ?
A Lower taxes on the returns to saving, provide investment tax credits and lower the deficit
B Increase tax on the returns to saving Provide investment tax credits and increase the deficit
C Increase tax on the returns to saving Provide investment tax credits and lower the deficit
D Lower taxes on the returns to saving Provide investment tax credits and increase the deficit
Correct Answer: Lower taxes on the returns to saving, provide investment tax credits and lower the deficit
Investment is ?
A The purchase of goods and services
B The purchase of capital equipment and structures
C When we place our saving in the bank
D The purchase of stocks and bonds
Correct Answer: The purchase of capital equipment and structures
If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ?
A Saving is unchanged
B There is an increased in saving and the economy should grow more quickly
C There is a decrease in saving and the economy should grow more slowly
D There is not enough information to determine what will happen to saving
Correct Answer: Saving is unchanged
If government spending exceeds tax collections?
A there is a budget deficit
B None of these answers
C There is a budget surplus
D private saving is positive
Correct Answer: there is a budget deficit
National Saving (or just saving) is equal to ?
A none of these answers
B investment + consumption expenditures
C private saving + public saving
D GDP government purchases
Correct Answer: private saving + public saving
Credit risk refers to a bond’s ?
A Probability of default
B Price-earnings ratio
C dividend
D tax treatment
Correct Answer: Probability of default
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