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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

The fraction of change in income that is consumed or spend is called ?
A the marginal propensity of expenditure
B the marginal propensity to save
C the average propensity to consume
D the marginal propensity to consume
Correct Answer: the average propensity to consume
A variable whose value is determined by the model of which it is a part is termed ?
A exogenous
B constant
C endogenous
D independent
Correct Answer: endogenous
Open Market Operations occur when the government ?
A Reduces the interest rate
B Buys and sells bonds and securities
C Increases taxation
D Increase the exchange rate
Correct Answer: Increases taxation
The speculative demand for money occurs when ?
A Individuals hold money just in case an emergency happens
B Individuals hold money to buy things
C Individuals hold money rather than other assets because they are worried about the price of the other assets falling
D Individuals hold money to shop
Correct Answer: Individuals hold money to buy things
A reduction in the money supply is likely to ?
A Reduce the interest rate
B Increase the interest rate
C Increase inflation
D Decrease deflation
Correct Answer: Increase the interest rate
A fall in interest rates is likely to ?
A Increase aggregate demand
B Increase savings
C Decrease consumption
D Decrease exports
Correct Answer: Increase aggregate demand
The precautionary demand for money is ?
A An idle because
B An active balance
C Directly related to interest rates
D Inversely related to income
Correct Answer: An idle because
If an increase in investment leads to a bigger increase in national income this called the ?
A Accelerator
B Aggregate demand
C Monetarism
D Multiplier
Correct Answer: Aggregate demand
Investment is ?
A An injection that increases aggregate demand
B A withdrawal that increase aggregate demand
C An injection that decreases aggregate demand
D A withdrawal that decrease aggregate
Correct Answer: A withdrawal that decrease aggregate
Investment depends mainly on ?
A Past levels of income
B Future expected profits
C Present national income levels
D Historic data
Correct Answer: Present national income levels
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