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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

Debit entries on the balance of payments are the entries that would ?
A mean a loss of foreign exchange
B bring foreign exchange into the country
C indicate a surplus exist
D exist at the bottom line after all accounts are totaled
Correct Answer: mean a loss of foreign exchange
The current account includes ?
A the value of trade in merchandise
B services
C unilateral transfers
D All of the above
Correct Answer: All of the above
A capital account surplus might be expected to cause a current account deficit because the associated ?
A capital outflow would cause the nation’s currency to depreciate contributing to a trade deficit
B capital inflow would cause the nation’s currency to depreciate contributing to a trade deficit
C capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
D capital outflow would cause the nation’s currency to appreciate contributing to a trade deficit
Correct Answer: capital inflow would cause the nation’s currency to appreciate contributing to a trade deficit
All of the following are credit items in the balance of payments except ?
A investment inflows
B merchandise exports
C payments for American services to foreigners
D private gives to foreign residents
Correct Answer: private gives to foreign residents
In the balance of payments the statistical discrepancy is used to ?
A insure that the sum of all debits matches the sum of all credits
B insure that trade imports equals the value of trade exports
C obtain an accurate account of a balance of payments deficit
D obtain an accurate account of a balance of payments surplus
Correct Answer: insure that the sum of all debits matches the sum of all credits
Credit (-) items in the balance of payments correspond to anything that ?
A involves receipts from foreigners
B involves payments to foreigners
C increases the domestic money supply
D decreases the demand for foreign exchange
Correct Answer: involves payments to foreigners
A country that is a net international debtor initially experiences a (an) ?
A larger savings pool available to finance domestic spending
B higher interest rate which leads to lower domestic investment
C loss of funds to trading partners overseas
D decrease in its services exports to other countries
Correct Answer: larger savings pool available to finance domestic spending
Referring to the above table, the U.S balance of international indebtedness suggests that the U.S is a net ?
A debtor
B creditor
C spender
D exporter
Correct Answer: creditor
Which of the following statements is correct ?
A If the current accounts is in surplus then the capital account must also be in surplus
B If the current account is in deficit then the capital account must also be in deficit
C The overall sum of all the entries in the balance of payments must be positive
D The overall sum of all entries in the balance of payments must be zero
Correct Answer: The overall sum of all entries in the balance of payments must be zero
The differences between a country’s merchandise exports and its merchandise imports is the ?
A balance of payments
B capital account
C current account
D balance of trade
Correct Answer: balance of trade
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