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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.

If the Pakistani government runs a budget surplus there is ?

A an excess of government receipts over government spending.

B an equality of government spending and receipts.

C a surplus of government workers.

D an excess of government spending over government receipts.

Review Detailed Answer

Correct Answer: an excess of government receipts over government spending.

The reduction of tax ?

A will have no impact on tax revenue.

B will always reduce tax revenue regardless of the prior size of the tax

C could increase tax revenue if the tax had been extremely high

D causes a market to become less efficient

Review Detailed Answer

Correct Answer: could increase tax revenue if the tax had been extremely high

The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a ?

A none of these answers

B Reagan curve

C Keynesian curve

D Laffer curve

Review Detailed Answer

Correct Answer: Laffer curve

Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?

A the unscrupulous to enter the underground economy

B the elderly to retire early.

C all the things described in these answers.

D second earners to stay home.

Review Detailed Answer

Correct Answer: all the things described in these answers.

Deadweight loss is greatest when ?

A supply is elastic, and demand is perfectly inelastic

B demand is elastic, and demand is perfectly inelastic

C both supply and demand are relatively inelastic

D both supply and demand are relatively elastic

Review Detailed Answer

Correct Answer: both supply and demand are relatively elastic

Which of the following would likely cause the greatest deadweight loss ?

A a tax on salt

B a tax on cigarettes

C a tax on petrol

D a tax on cruise line tickets

Review Detailed Answer

Correct Answer: a tax on cruise line tickets

Refer to Exhibit 4. If a tax is placed on the product in this market. deadweight loss is the area ?

A B + C + E + F

B E + F

C B + C

D A + B + C + D

Review Detailed Answer

Correct Answer: E + F

Refer to Exhibit 4. If there is no tax placed on the product in this market total surplus is the area ?

A B + C + E + F

B E + F

C A + B + C + D

D A + B + C + D + E + F

Review Detailed Answer

Correct Answer: E + F

Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?

A B + C + E + F

B B

C B + C

D A

Review Detailed Answer

Correct Answer: B

Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ?

A D

B A

C A + B + E

D A + B +C + D

Review Detailed Answer

Correct Answer: A

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

If the Pakistani government runs a budget surplus there is ?

The reduction of tax ?

The graph that shows the relationship between the size of a tax and the tax revenue collected by the government is known as a ?

Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?

Deadweight loss is greatest when ?

Which of the following would likely cause the greatest deadweight loss ?

Refer to Exhibit 4. If a tax is placed on the product in this market. deadweight loss is the area ?

Refer to Exhibit 4. If there is no tax placed on the product in this market total surplus is the area ?

Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?

Refer to Exhibit 4. If a tax is placed on the product in this market consumer surplus is the area ?