M C Q s D r i v e

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.

The policy that has been the most successful in increasing agricultural output in developing countries is ?
A mechanization
B land reform
C import substitution
D produce marketing boards
Correct Answer: land reform
One of the benefits of putting resources into agricultural projects is that ?
A Successful agricultural projects produce surplus food to support urban development
B agricultural investment will prevent the flight of capital abroad
C agricultural projects usually have low import requirements
D export prices for agricultural products are more stable than those for industrial products
Correct Answer: agricultural projects usually have low import requirements
Which of the following factors has been suggest as an explanation for the lack of economic growth in many poor nations ?
A The constraints imposed by dependency on the already-developed nations
B A steady rate of capital formation
C An adequate level of social overhead capital
D The supply of human resources is too high
Correct Answer: The constraints imposed by dependency on the already-developed nations
Many developing countries instituted import substitution policies because ?
A the prices of the goods they imported were falling
B the price of goods they exported were increasing
C their terms of trade were deteriorating
D their terms of trade were improving
Correct Answer: their terms of trade were deteriorating
The developed nations have only about 15% of the world’s population, but they are estimated to consume _______ of the world’s output ?
A 80%
B 65%
C 50%
D 25%
Correct Answer: 80%
Developing countries, if compared with other countries, have ?
A a lower rate of illiteracy
B a greater degree of equality in the income distribution
C a lower infant mortality rate
D a smaller percentage of the labor force in urban areas
Correct Answer: a smaller percentage of the labor force in urban areas
When economists talk about developing countries experiencing flight of capital they mean?
A money lent to the country being immediately invested abroad
B People investing their money in urban business rather than agriculture
C money moving around financial institutions rather than being invested in production
D people investing money abroad rather than in their own country
Correct Answer: people investing money abroad rather than in their own country
Debt-re-scheduling is ?
A an agreement with the World Bank to turn some of a debt into other forms
B a change in debt repayment due to inability to pay
C regular payments of interest and repayments of capital
D a program of austerity measures agreed with the IMF to make repayment possible
Correct Answer: a change in debt repayment due to inability to pay
Most of the Third World/Fourth World debt was incurred in ?
A The colonial period
B The early 1950s
C most debt was incurred during the oil shocks of the 1970s
D the early 1960s
Correct Answer: most debt was incurred during the oil shocks of the 1970s
When economists say that developing countries have a dualistic economy the 2 parts referred to are ?
A modern sector and traditional sector
B town and country
C men and women
D rich people and poor people
Correct Answer: modern sector and traditional sector