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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.

If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?
A fluctuate more than it would do otherwise
B appreciate
C depreciate
D not be affected
Correct Answer: depreciate
If Pakistan’s incomes rise faster than those in most other countries the the exchange value will tend to ?
A fluctuate more than it would do otherwise
B appreciate
C depreciate
D not be affected
Correct Answer: depreciate
If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
A depreciate
B not be affected
C fluctuate more than if it were at peace
D appreciate
Correct Answer: depreciate
If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?
A will remain the same
B will decrease
C will increase
D could either increase of decrease
Correct Answer: will increase
The situation when a country imports more than it exports is ?
A a recession
B a trade surplus
C a trade deficit
D an expansion.
Correct Answer: a trade deficit
The record of a county’s transfers of shareholding property and bank deposits to and from abroad is called its ?
A financial account on the balance of payments.
B balance of payments
C balance of payments on current account
D capital account of the balance of payments
Correct Answer: financial account on the balance of payments.
The record of country’s imports and exports of goods and services is called its ?
A visible trade balance
B balance of trade
C balance of payments on current account
D balance of payments.
Correct Answer: balance of trade
An economy that trades with and has financial dealing with other countries is called a/an ________ economy?
A free-trade
B autarkic
C open
D mixed
Correct Answer: open
If interest rates rise then costs are likely to _______ and demand is likely to _________?
A rise, fall
B rise; rise
C fall; fall
D fall; rise
Correct Answer: rise, fall
Government policies that focus on changing taxes and government spending are called ?
A fiscal policies
B incomes policies
C supply-side policies
D monetary policies
Correct Answer: fiscal policies