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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

Columbia’s Jagdish Bhagwati criticizes United States administrations inability to distinguish between benefits of free trade ?
A and the dangers of free capital movements for LDCs with poorly developed financial institutions
B and the dangers of a trade deficit
C and the external openness of income growth among the poorest 40 percent of LDCs
D and MNC domination and its effects on income distribution
Correct Answer: and the dangers of free capital movements for LDCs with poorly developed financial institutions
In a portfolio investment ?
A investors are directly involved in managing the operations
B as in direct investment investors export goods and services abroad
C investors transfer the technology to local investors
D investors have no control over operations
Correct Answer: investors have no control over operations
The IMF is an agency charged with providing ?
A technical assistance to stock market and financial market problems
B loans for post-World War II reconstruction
C short-term credit for international balance of payments deficits
D bonds denominated in U.S dollars as a loan to LDCs
Correct Answer: short-term credit for international balance of payments deficits
Barro and Lee find that ceteris paribus, IMF lending has ?
A negative effect on economic growth during the simultaneous five-year period but has a significantly positive effect on growth in the subsequent five years
B no effect on economic growth during the simultaneous five-year period but has a significantly negative effect on growth in the subsequent five years
C a significantly positive effect on growth in the subsequent five years
D an exponentially negative effect on growth ten years
Correct Answer: no effect on economic growth during the simultaneous five-year period but has a significantly negative effect on growth in the subsequent five years
An annual summary of country’s international economic and financial transactions is ?
A the capital accounts
B the international balance of payments statements
C the long-term current account
D the trade accounts
Correct Answer: the international balance of payments statements
I = S + F The equation above states that a country can increase its new capital formation (or investment) through is ?
A own domestic savings and by inflows of capital from abroad
B stock market and fiscal policy
C savings from abroad and financial outflow
D savings and financial liberalization
Correct Answer: own domestic savings and by inflows of capital from abroad
Which of the following statement is NOT true about OECD aid ?
A During the 1980s OECD countries contributed four fifths of the world’s bilateral official development assistance to LDCs
B In the early 1990s the OECD contributed 98 percent of all aid
C The OECD aid increased from $6.9 billion in 1970 to $8.9 billion in 2001
D In 2001, only Denmark Norway, Sweden, the Netherlands, and Luxembourg exceeded the aid target for LDCs
Correct Answer: The OECD aid increased from $6.9 billion in 1970 to $8.9 billion in 2001
Dani Rodrik points out that ?
A an economy more open to foreign trade and investment faces a more inelastic demand for unskilled workers
B employers and consumers can more readily replace domestic workers with foreign workers by investing abroad or buying imports
C globalization increases job insecurity
D financial liberalization in LDCs leads to collapse of the economy
Correct Answer: globalization increases job insecurity
Real business cycle theories suggest that _____ to correct departures from the desired growth path?
A There is a role for fiscal policy
B There is a role for monetary policy
C There is a role for supply-side policy
D There is a role for stabilizing output ever the business cycle
Correct Answer: There is a role for stabilizing output ever the business cycle
The impossibility of negative gross investment provides a ______ to fluctuation in ______?
A ceiling, stock building
B ceiling, capital prices
C floor, output
D floor, the capital-output ratio
Correct Answer: floor, output
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