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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

If the government increases investment tax credits and reduces taxes on the return to saving at the same time ?
A the real interest rate should fall
B the real interest rate should rise
C the impact on the real interest rate is indeterminate
D the real interest rate should not change
Correct Answer: the impact on the real interest rate is indeterminate
If an increase in the budget deficit reduces national saving and investment we have witnessed a demonstration of ?
A intermediation
B equity finance
C crowding out
D the investment fund effect
Correct Answer: crowding out
If the Supply of loanable funds is very inelastic (steep) Which policy would likely increase saving and investment the most ?
A a reduction in the budget deficit
B an increase in the budget deficit
C an investment tax credit
D None of the above
Correct Answer: a reduction in the budget deficit
An increase in the budget deficit that causes the government to increase its borrowing ?
A Shifts the supply of loanable funds to the right
B Shift the demand for loandbale funds to the left
C Shift the demand for loanable funds to the right
D Shift the supply of loanable funds to the left
Correct Answer: Shift the supply of loanable funds to the left
If Pakistani citizens become more thrifty we would expect ?
A The supply of loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall.
B The demand for loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise
C The demand for loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall
D The supply of loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise
Correct Answer: The supply of loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall.
Which of the following financial market securities would probably pay the highest interest rate ?
A A bond issued by a startup company
B A government bond issued by the government of France.
C A bond issued by a blue-chip company
D An investment funds with portfolio of corporate bonds issued by blue chip companies
Correct Answer: A bond issued by a startup company
If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?
A Saving = Rs 300 investment = Rs 300
B Saving = Rs 200 investment = Rs 100
C Saving = Rs 100 investment = Rs 200
D Saving = Rs 0 investment = Rs 0
Correct Answer: Saving = Rs 0 investment = Rs 0
Which of the following statements is true ?
A Long-term bonds tend to pay less interest than short-term bonds
B Government bonds pay less interest than comparable corporate bounds
C Investment funds are riskier than single stock purchases because the performances of so many different firms can affect the return of a mutual fund
D A stock index is a directory used to locate information about selected stocks.
Correct Answer: Government bonds pay less interest than comparable corporate bounds
A financial intermediary is a middleperson between ?
A buyers and sellers
B husbands and wives.
C borrowers and lenders.
D labor unions and firms
Correct Answer: borrowers and lenders.
Which of the following is an example of equity finance ?
A Corporate bonds
B Company shares
C All of these answers are equity finance
D Government bonds
Correct Answer: Company shares
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