economics Mcqs
1. the national economy2. profit maximizing under perfect competition and monopoly3. application of economics4. the aggregate demand aggregate supply model5. surplus6. money interest rates and output7. average and total cost8. stabilization adjustment reform and privatization9. risks and diversification efficient market hypothesis10. the phillips curve11. supply and demand12. capital formation investment choice information technology and technical progress13. aggregate supply unemployment and inflation14. elasticity15. comparative gdp16. roots of modern macroeconomics17. production factors18. poverty malnutrition and income inequality19. trade regulations and industrial policies20. monetary union21. exchange rate systems and currency crises22. economic development in historical perspective23. exchange rate determination24. monopoly competition25. the balance of payments26. inflation productivity27. macroeconomic issues and analysis28. employment migration and urbanization29. macroeconomic policy tools30. supply side policies31. exchange rate adjustments and the balance of32. miscellaneous33. taxation34. trade policies for the developing nations35. markets efficiency and the public interest36. the external debt and financial crises37. budget deficits and the trade balance38. alternative theories of the firm39. public goods40. the meaning and measurement of economic development41. characteristics and institutions of developing countries42. agriculture irrigation system of pakistan43. education health and human capital44. economic problems of developing countries45. theories of economic development46. basic of economics47. consumer theory vs real consumers48. applied microeconomics49. long term economic growth50. externality internality51. fiscal and monetary policy52. prices wages taxes53. balance of payments aid and foreign investment54. international factor movements and multinational corporations55. entrepreneurship organization and innovation56. the international economy and globalization57. population and development58. non tariff trade barriers59. foundations of modern trade theory60. global economic development61. market62. rural poverty and agricultural transformation63. regional trading arrangements64. foreign exchange65. introduction to economics66. world economy miscellaneous67. sources of comparative advantage68. natural resources and the environment toward sustainable development69. monopoly70. asymmetric information71. income inequality72. labour market73. tariffs74. development planning and policy making the state and the market75. oligopoly76. industrial development77. costs supply and perfect competition78. human capital79. monetary fiscal and incomes policy and inflation80. stocks
9101. An increase in the budget deficit is ?
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A. None of these answers

B. a decrease in public savings

C. a decrease in private saving

D. an increase in public saving

9102. Which of the following sets of government policies is the most growth oriented ?
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A. Increase tax on the returns to saving Provide investment tax credits and lower the deficit

B. Increase tax on the returns to saving Provide investment tax credits and increase the deficit

C. Lower taxes on the returns to saving Provide investment tax credits and increase the deficit

D. Lower taxes on the returns to saving, provide investment tax credits and lower the deficit
9103. If an increase in the budget deficit reduces national saving and investment we have witnessed a demonstration of ?
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A. the investment fund effect

B. equity finance

C. crowding out

D. intermediation

9104. If Pakistani citizens become more thrifty we would expect ?
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A. The supply of loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise

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 loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall.
9105. If government spending exceeds tax collections?
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A. private saving is positive

B. There is a budget surplus

C. None of these answers

D. there is a budget deficit
9106. A financial intermediary is a middleperson between ?
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A. husbands and wives.

B. labor unions and firms

C. borrowers and lenders.

D. buyers and sellers

9107. 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 ?
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A. There is not enough information to determine what will happen to saving

B. There is a decrease in saving and the economy should grow more slowly

C. Saving is unchanged

D. There is an increased in saving and the economy should grow more quickly

9108. Which of the following statements is true ?
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A. Long-term bonds tend to pay less interest than short-term bonds

B. A stock index is a directory used to locate information about selected stocks.

C. Investment funds are riskier than single stock purchases because the performances of so many different firms can affect the return of a mutual fund

D. Government bonds pay less interest than comparable corporate bounds
9109. National Saving (or just saving) is equal to ?
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A. GDP government purchases

B. private saving + public saving

C. none of these answers

D. investment + consumption expenditures

9110. If the Supply of loanable funds is very inelastic (steep) Which policy would likely increase saving and investment the most ?
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A. a reduction in the budget deficit

B. None of the above

C. an investment tax credit

D. an increase in the budget deficit

9111. Investment is ?
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A. When we place our saving in the bank

B. The purchase of capital equipment and structures

C. The purchase of goods and services

D. The purchase of stocks and bonds

9112. If Pakistani citizens become less concerned with the future and save less at each real interest rate ?
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A. Real interest rates fall and investment falls

B. Real interest rates rise and investment falls

C. Real interest rates rise and investment rises

D. Real interest rates fall and investment rises

9113. Credit risk refers to a bonds ?
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A. tax treatment

B. Probability of default

C. Price-earnings ratio

D. dividend

9114. Which of the following financial market securities would probably pay the highest interest rate ?
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A. A government bond issued by the government of France.

B. A bond issued by a startup company

C. An investment funds with portfolio of corporate bonds issued by blue chip companies

D. A bond issued by a blue-chip company

9115. Which of the following is an example of equity finance ?
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A. Company shares

B. All of these answers are equity finance

C. Government bonds

D. Corporate bonds

9116. If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?
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A. Saving = Rs 300 investment = Rs 300

B. Saving = Rs 100 investment = Rs 200

C. Saving = Rs 0 investment = Rs 0

D. Saving = Rs 200 investment = Rs 100

9117. An increase in the budget deficit that causes the government to increase its borrowing ?
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A. Shift the supply of loanable funds to the left

B. Shifts the supply of loanable funds to the right

C. Shift the demand for loanable funds to the right

D. Shift the demand for loandbale funds to the left

9118. If the government increases investment tax credits and reduces taxes on the return to saving at the same time ?
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A. the real interest rate should rise

B. the impact on the real interest rate is indeterminate

C. the real interest rate should not change

D. the real interest rate should fall