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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.

The argument that U.S current account deficits cause net job losses for Americans ?

A is true by definition in all possible circumstances

B is supported by recent U.S history

C focuses only on the overall economy and is thus always true

D fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending

Review Detailed Answer

Correct Answer: fails to recognize that a current account deficit is matched by an equal inflow of foreign funds which finances employment increasing investment spending

In balance of payments accounting tourism and travel are classified in the ?

A merchandise trade account

B services account

C unilateral transfers account

D capital account

Review Detailed Answer

Correct Answer: services account

Purchases of government securities in the United States by foreigners is ?

A a credit item in the current account

B a debit item in the capital account

C a credit item in the capital account

D a debit item in the current account

Review Detailed Answer

Correct Answer: a credit item in the capital account

In the calculation of gross domestic product net exports are ?

A the sum of merchandise trade and services

B the current account plus long-term capital

C the value of merchandise exports minus imports

D short-term capital plus the basic balance

Review Detailed Answer

Correct Answer: the sum of merchandise trade and services

A nation wishing to reduce its current account deficit would be advised to ?

A engage in more government spending

B reduce government taxes

C increases private investment spending

D decrease domestic consumption

Review Detailed Answer

Correct Answer: decrease domestic consumption

Current account deficit are offset by______________?

A merchandise trade deficits

B merchandise trade surpluses

C capital/financial account surpluses

D capital/financial account deficits

Review Detailed Answer

Correct Answer: capital/financial account surpluses

Which of the following help explain why firms pay bonuses to workers during particularly profitable years to prevent workers from becoming disgruntled ?

A people are rational maximizers

B People are reluctant to change their minds

C People are inconsistent over time

D People care about fairness

Review Detailed Answer

Correct Answer: People care about fairness

Which of the following is not true about how people make decisions ?

A people give too much weight to a small number of vivid observations

B People are sometimes too sure of their own abilities

C All of these answers are actually true statements about how people make decisions.

D People are always rational maximizers

Review Detailed Answer

Correct Answer: People are always rational maximizers

Suppose that 40 percent of the voting population wish to spent Rs1,000 for artwork in City Hall, 25 percent wish to spent Rs20,000 and 35 percent wish to spend Rs 22,000 What is the median preferred outcome, the average preferred outcome and the modal preferred outcome ?

A Rs20,000; Rs20,000; Rs22,000

B Rs1,000; Rs14,333; Rs1,000

C Rs20,000; Rs13,100; Rs1,000

D Rs1,000; Rs20,000; Rs22,000

Review Detailed Answer

Correct Answer: Rs20,000; Rs13,100; Rs1,000

Which of the following best demonstrates the problem of moral hazard ?

A Josephine doesn’t buy health insurance because it is too expensive, and she is healthy

B A life insurance company forces Enzo to have a medical examination prior to selling him insurance

C Enzo drives more recklessly after he buys car insurance

D Fatima chooses to attend a well-respected college

Review Detailed Answer

Correct Answer: Enzo drives more recklessly after he buys car insurance

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Economics Mcqs 4423 MCQs [All-Courses]

All Topics 4423

All Topics 4423

The argument that U.S current account deficits cause net job losses for Americans ?

In balance of payments accounting tourism and travel are classified in the ?

Purchases of government securities in the United States by foreigners is ?

In the calculation of gross domestic product net exports are ?

A nation wishing to reduce its current account deficit would be advised to ?

Current account deficit are offset by______________?

Which of the following help explain why firms pay bonuses to workers during particularly profitable years to prevent workers from becoming disgruntled ?

Which of the following is not true about how people make decisions ?

Suppose that 40 percent of the voting population wish to spent Rs1,000 for artwork in City Hall, 25 percent wish to spent Rs20,000 and 35 percent wish to spend Rs 22,000 What is the median preferred outcome, the average preferred outcome and the modal preferred outcome ?

Which of the following best demonstrates the problem of moral hazard ?