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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.

Which of the following would be considered a supply-side policy ?

A An increase in the minimum wage that would cause consumer spending to increase

B investment tax credits for businesses to encourage investment

C Restrictions placed on the amount that can be imported.

D An increase in government spending that would lead to increased aggregate demand

Review Detailed Answer

Correct Answer: investment tax credits for businesses to encourage investment

The success of regional and urban policies has been limited by ?

A bureaucracy

B bad luck

C poor communications

D the low level of government grants and by the fact that some projects would have gone ahead anyway

Review Detailed Answer

Correct Answer: the low level of government grants and by the fact that some projects would have gone ahead anyway

A way helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?

A New classical economists.

B Left wing theorists

C interventionist policies.

D monetarists.

Review Detailed Answer

Correct Answer: interventionist policies.

Which of the following statements supports deregulation of industries ?

A Technological change has made it possible for many industries to become more competitive

B Because few real natural monopolies exist, there is rarely a reason for government regulation.

C Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial

D All of the above

Review Detailed Answer

Correct Answer: All of the above

New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning used was that this would ?

A reduce poverty

B reduce unemployment

C weaken the power of trade unions

D help small businesses

Review Detailed Answer

Correct Answer: reduce unemployment

According to the Laffer curve, as tax rates increase tax revenue ?

A initially increase and then decrease

B decrease continuously.

C rise continuously

D initially decrease and then increase.

Review Detailed Answer

Correct Answer: initially increase and then decrease

According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

A aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease

B aggregate supply will increase will increase aggregate output will increase and the price level will decrease

C aggregate supply will increase will increase aggregate output will increase and the price level will increase

D both aggregate supply and demand will increase will increase and the price level will increase

Review Detailed Answer

Correct Answer: aggregate supply will increase will increase aggregate output will increase and the price level will decrease

A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?

A Supply-side economics

B neo-Keynesian economists

C rational-expectations economists.

D new classical economists.

Review Detailed Answer

Correct Answer: Supply-side economics

Interventionist policies to restore regional imbalance focus on ?

A subsidies to encourage firms that moves

B tax concessions for firms that move.

C improved infrastructure

D all of the above

Review Detailed Answer

Correct Answer: all of the above

A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?

A market-orientated economists

B left-wing theorists

C Keynesian.

D new-Keynesian

Review Detailed Answer

Correct Answer: market-orientated economists

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

Which of the following would be considered a supply-side policy ?

The success of regional and urban policies has been limited by ?

A way helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?

Which of the following statements supports deregulation of industries ?

New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning used was that this would ?

According to the Laffer curve, as tax rates increase tax revenue ?

According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?

A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?

Interventionist policies to restore regional imbalance focus on ?

A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?