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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.

If the efficient markets hypothesis is true, then ?

A shares tend to be overvalued

B the stock market is informationally efficient so share prices should follow a random walk

C All of these answers

D fundamental analysis is a valuable tool for increasing one’s returns from investing in shares

Review Detailed Answer

Correct Answer: the stock market is informationally efficient so share prices should follow a random walk

Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?

A lower return and a lower level or risk

B lower return and a higher level of risk

C higher return and a lower level or risk

D higher return and a higher level of risk

Review Detailed Answer

Correct Answer: lower return and a lower level or risk

Idiosyncratic risk is the ?

A uncertainty associated with the entire economy

B uncertainty associated with specific companies

C risk associated with adverse selection

D risk associated with moral hazard

Review Detailed Answer

Correct Answer: uncertainty associated with specific companies

Which of the following does not help reduce the risk that people face ?

A increasing the rate of return within their portfolio

B diversifying their portfolio

C All of these answers help reduce risk

D buying insurance

Review Detailed Answer

Correct Answer: increasing the rate of return within their portfolio

If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?

A one country will always have 2 percent more real GDP/person than the other

B the standard of living in the country growing at 4 percent will start to accelerate away from the slower growing country due to compound growth

C the standard of living in the two countries will converge

D Next year the country growing at 4 percent will have twice the GDP/person as the country growing at 2 percent

Review Detailed Answer

Correct Answer: the standard of living in the country growing at 4 percent will start to accelerate away from the slower growing country due to compound growth

JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project ?

A Rs 43,456,838

B Rs 53,406,002

C Rs 34,538,902

D Rs 39,604,682

Review Detailed Answer

Correct Answer: Rs 39,604,682

The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?

A future value

B fair value

C present value

D compound value

Review Detailed Answer

Correct Answer: present value

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

If the efficient markets hypothesis is true, then ?

Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?

Idiosyncratic risk is the ?

Which of the following does not help reduce the risk that people face ?

If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?

The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?