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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.

A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?

A supply side economists

B neo-Keynesian economists

C rational -expectations economists

D New classical economists

Review Detailed Answer

Correct Answer: supply side economists

The accelerator theory of investment says that induced investment is determined by ?

A the level of national income

B the level of aggregate demand

C the rate of change of national income

D expectations

Review Detailed Answer

Correct Answer: the rate of change of national income

According to the paradox of thrift increased efforts to save will cause ?

A an increase in income and an increase in overall saving

B a decrease in income and an overall decrease in saving

C a decrease in income but an increase in saving

D an increase in income but no overall change in saving

Review Detailed Answer

Correct Answer: a decrease in income and an overall decrease in saving

Assuming there is no government or foreign sector the formula for the multiplier is ?

A 1/MPS

B 1/(1+ MPC)

C 1 – MPC

D 1/MPC

Review Detailed Answer

Correct Answer: 1/MPS

Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is ?

A 5

B 8

C 2

D 1.25

Review Detailed Answer

Correct Answer: 5

In macroeconomics, equilibrium is defined as that point at which ?

A aggregate output equals consumption minus investment

B saving equals consumption

C Planned aggregate expenditure equals aggregate output

D planned aggregate expenditure equals consumption

Review Detailed Answer

Correct Answer: Planned aggregate expenditure equals aggregate output

The proportion of an increase in national income paid in tax is ?

A the fiscal stance

B the tax multiplier

C the marginal tax propensity

D the average tax propensity

Review Detailed Answer

Correct Answer: the marginal tax propensity

The marginal propensity to save (MPS) is ?

A the average amount of income that is saved

B the fraction of a change in income that is saved

C the ratio of saving to income

D the ratio of income to saving

Review Detailed Answer

Correct Answer: the fraction of a change in income that is saved

Disposable income is the part of households income left after the deduction of ?

A income tax and social security payments

B taxes and the addition of benefits

C income tax

D contractual payments such as pensions and mortgages

Review Detailed Answer

Correct Answer: taxes and the addition of benefits

In the equation C = a + bY, which describes the aggregate consumption function ‘b’ stands for ?

A The marginal propensity to consume.

B The amount of income when consumption is zero

C The average consumption level

D The amount of consumption when income is zero

Review Detailed Answer

Correct Answer: The marginal propensity to consume.

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Economics Mcqs 4423 MCQs [All-Courses]

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All Topics 4423

A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?

The accelerator theory of investment says that induced investment is determined by ?

According to the paradox of thrift increased efforts to save will cause ?

Assuming there is no government or foreign sector the formula for the multiplier is ?

Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is ?

In macroeconomics, equilibrium is defined as that point at which ?

The proportion of an increase in national income paid in tax is ?

The marginal propensity to save (MPS) is ?

Disposable income is the part of households income left after the deduction of ?

In the equation C = a + bY, which describes the aggregate consumption function ‘b’ stands for ?