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.

LDCs often have a comparative advantage in the production of ?

A primary products

B intermediate products

C manufactured products

D financial services

Review Detailed Answer

Correct Answer: primary products

Output fell sharply in the transition economies because ?

A banks were unable to function

B there was little corporate control

C vital infrastructure was missing

D All of the above

Review Detailed Answer

Correct Answer: All of the above

If goods are exported for less than society’s marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?

A an import subsidy

B a quota

C comparative advantage

D an export subsidy

Review Detailed Answer

Correct Answer: an export subsidy

A tariff causes domestic firms to ________ and consumers to?

A overproduce, under consume

B Overproduce, overconsume

C underproduce, under consume

D underproduce, overconsume

Review Detailed Answer

Correct Answer: overproduce, under consume

The level of the equilibrium exchange rate offsets international differences in ?

A comparative advantage

B absolute advantage

C opportunity cost

D relative costs

Review Detailed Answer

Correct Answer: absolute advantage

International difference is opportunity costs lead to countries acquiring ?

A Comparative advantage

B High exchange rates

C trade barriers

D trade quotas

Review Detailed Answer

Correct Answer: Comparative advantage

To prevent the external value of the currency from falling the government might ?

A Reduce interest rates

B Sell its own currency

C Buy its own currency with foreign reserves

D Increase its own spending

Review Detailed Answer

Correct Answer: Buy its own currency with foreign reserves

The marginal propensity of consume is equal to ?

A Total spending / total consumption

B Total consumption / total income

C Change in consumption / change in income

D Change in consumption / change in savings

Review Detailed Answer

Correct Answer: Change in consumption / change in income

The terms of trade measure ?

A The income of one country compared to another

B The GDP of one country compared to another

C The quantity of exports of one country compared to another

D Export prices compared to import prices

Review Detailed Answer

Correct Answer: Export prices compared to import prices

If a country can produce 10 of product A or 4 of product B the opportunity cost of 1B is ?

A 0.4A

B 2.5A

C 10A

D 1B

Review Detailed Answer

Correct Answer: 2.5A

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

LDCs often have a comparative advantage in the production of ?

Output fell sharply in the transition economies because ?

If goods are exported for less than society’s marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?

A tariff causes domestic firms to ________ and consumers to?

The level of the equilibrium exchange rate offsets international differences in ?

International difference is opportunity costs lead to countries acquiring ?

To prevent the external value of the currency from falling the government might ?

The marginal propensity of consume is equal to ?

The terms of trade measure ?

If a country can produce 10 of product A or 4 of product B the opportunity cost of 1B is ?