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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.

In the short run the level of floating exchange rates is determined mainly by ?

A interest rates

B competitiveness

C trade

D speculation

Review Detailed Answer

Correct Answer: speculation

The competitive advantage from a devaluation is likely to be offset by _ and __?

A higher import prices, higher wages increases

B lower export prices, lower imports volumes

C higher import prices, lower export prices

D higher wage increases lower import volumes

Review Detailed Answer

Correct Answer: higher import prices, higher wages increases

In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?

A money supply targets

B income policy

C interest rates

D inflation targets

Review Detailed Answer

Correct Answer: interest rates

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _ and __ ?

A buy foreign exchange, sell domestic currency

B sell foreign exchange buy domestic currency

C buy foreign exchange buy domestic currency

D sell foreign exchange sell domestic currency

Review Detailed Answer

Correct Answer: sell foreign exchange buy domestic currency

When capital mobility is perfect interest rate differentials will tend to be offset by ?

A Price difference

B balance of payments difference

C current account differences

D expected exchange rate changes

Review Detailed Answer

Correct Answer: expected exchange rate changes

Within the circular flow of income, an increase in domestic income will tend to increase ?

A exports

B taxes

C inventories

D imports

Review Detailed Answer

Correct Answer: taxes

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?

A deficit

B surplus

C revaluation

D devaluation

Review Detailed Answer

Correct Answer: surplus

When the $/£ exchange rate rises the pound _ and when the $/£ rates falls the pound ____?

A depreciates, appreciates

B revalues, devalues

C appreciates, depreciates

D becomes more expensive becomes cheaper

Review Detailed Answer

Correct Answer: appreciates, depreciates

If the economy is in the though phase of the business cycle, aggregate demand unemployment inflation and the current account of the balance of payments is likely to move towards ____?

A falls; falls; falls; surplus

B falls; rises; falls; surplus

C is static; low; rises; deficit

D rises; falls; rises; deficit

Review Detailed Answer

Correct Answer: falls; falls; falls; surplus

If the economy is at the peak of the business cycle, aggregate demand unemployment _ inflation _ and the current account of the balance of payments is likely to move towards ___?

A rise; falls; rise; deficit

B falls; rises; falls; surplus

C falls; falls; falls; surplus

D is static; low; rises; deficit

Review Detailed Answer

Correct Answer: is static; low; rises; deficit

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

In the short run the level of floating exchange rates is determined mainly by ?

The competitive advantage from a devaluation is likely to be offset by _ and __?

In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _ and __ ?

When capital mobility is perfect interest rate differentials will tend to be offset by ?

Within the circular flow of income, an increase in domestic income will tend to increase ?

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?

When the $/£ exchange rate rises the pound _ and when the $/£ rates falls the pound ____?

If the economy is in the though phase of the business cycle, aggregate demand unemployment inflation and the current account of the balance of payments is likely to move towards ____?

If the economy is at the peak of the business cycle, aggregate demand unemployment _ inflation _ and the current account of the balance of payments is likely to move towards ___?

Contact Info

Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

In the short run the level of floating exchange rates is determined mainly by ?

The competitive advantage from a devaluation is likely to be offset by _______ and ________?

In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?

When capital mobility is perfect interest rate differentials will tend to be offset by ?

Within the circular flow of income, an increase in domestic income will tend to increase ?

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?

When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?

If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?

If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?

The competitive advantage from a devaluation is likely to be offset by _ and __?

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _ and __ ?

When the $/£ exchange rate rises the pound _ and when the $/£ rates falls the pound ____?

If the economy is in the though phase of the business cycle, aggregate demand unemployment inflation and the current account of the balance of payments is likely to move towards ____?

If the economy is at the peak of the business cycle, aggregate demand unemployment _ inflation _ and the current account of the balance of payments is likely to move towards ___?