M C Q s D r i v e
03079682698
mcqsdrive@gmail.com
About
Contact

Contact Info

03079682698

mcqsdrive@gmail.com

Ad Banner

Economics Mcqs 4423 MCQs [All-Courses]

thumb


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 public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ?
A Saving is unchanged
B There is an increased in saving and the economy should grow more quickly
C There is a decrease in saving and the economy should grow more slowly
D There is not enough information to determine what will happen to saving
Correct Answer: Saving is unchanged
If government spending exceeds tax collections?
A there is a budget deficit
B None of these answers
C There is a budget surplus
D private saving is positive
Correct Answer: there is a budget deficit
National Saving (or just saving) is equal to ?
A none of these answers
B investment + consumption expenditures
C private saving + public saving
D GDP government purchases
Correct Answer: private saving + public saving
Credit risk refers to a bond’s ?
A Probability of default
B Price-earnings ratio
C dividend
D tax treatment
Correct Answer: Probability of default
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
03079682698
mcqsdrive@gmail.com

Copyright @ 2026 MCQsDrive . All Rights Reserved.