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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

_______ is needed to balancell the balance of payments statements?
A credit transactions
B debit transactions
C unilateral transfers
D statistical discrepancy
Correct Answer: statistical discrepancy
The balance of trade is a record of ?
A exports and imports of financial assets
B the current account plus capital account
C the net export of goods and services
D the value of merchandise exports minus imports
Correct Answer: the value of merchandise exports minus imports
Historically countries at early stages of rapid economic development have tender to experience ?
A trade deficit and an excess of investment over domestic saving
B trade surplus and an excess of investment over domestic saving
C trade deficits and an excess of domestic savings over investment
D trade surpluses and an excess of domestic saving over investment
Correct Answer: trade deficit and an excess of investment over domestic saving
When a country has a trade deficit it ?
A purchases more stocks and bonds from the rest of the world than it sells
B purchases more goods from the rest of the world than it sells
C sells more goods to the rest of the world than it purchases
D sells more stocks and bonds to the rest of the world than it purchases
Correct Answer: purchases more goods from the rest of the world than it sells
A current account surplus implies that ?
A the country is a net lender to the rest of the world
B the country is running a net capital account surplus
C foreign investment in domestic securities is at very low levels
D All of the above
Correct Answer: the country is a net lender to the rest of the world
A nation will a current account deficit will be ?
A lending more money to other nations
B experiencing a surplus in exports of goods an services
C reducing its indebtedness to other nations
D going further into debt with other nations
Correct Answer: going further into debt with other nations
The difference between a country’s balance of payments and its balance of international indebtedness?
A is equal to official reserve transactions
B occurs because of foreign exchange fluctuations
C reflects statistical discrepancies
D reflects the difference between flow and stock concepts
Correct Answer: reflects the difference between flow and stock concepts
In the balance of payments travels and tourism are included in the category of ?
A unilateral transfers
B capital account
C merchandise account
D services account
Correct Answer: services account
The U.S balance of payments is constructed by ?
A the U.S Department of labor
B the U.S Department of Agriculture
C the U.S Department of commerce
D the council of Economic Advisers to the President
Correct Answer: the U.S Department of commerce
The role of _______ is to direct one nation’s savings into investments of another nation?
A merchandise trade flows
B services flows
C current account flows
D capital flows
Correct Answer: capital flows
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