economics MCQs – Page 263

Practise multiple-choice questions from economics for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

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
5241. A country that is a net international debtor initially experiences a (an) ?
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A. larger savings pool available to finance domestic spending

B. higher interest rate which leads to lower domestic investment

C. loss of funds to trading partners overseas

D. decrease in its services exports to other countries

5242. The balance of payments is divided into two major accounts the ?
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A. current account the trade account

B. trade account the capital account

C. current account the reserve account

D. current account the capital account
5243. Referring to the above table, the U.S balance of international indebtedness suggests that the U.S is a net ?
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A. creditor

B. debtor

C. exporter

D. spender

5244. The difference between a countrys balance of payments and its balance of international indebtedness?
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A. is equal to official reserve transactions

B. reflects statistical discrepancies

C. occurs because of foreign exchange fluctuations

D. reflects the difference between flow and stock concepts
5245. Which of the following statements is True ?
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A. A country runs a current account surplus if it sells more of its assets abroad than it buys abroad

B. A country runs a capital account deficit if it imports more than it exports

C. The overall sum of all the entries in the balance of payments must be positive

D. If the current account is in surplus the capital account must be in deficit
5246. The difference between the balance on current account and the balance on capital account is the ?
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A. balance of payments

B. balance of trade

C. statistical discrepancy

D. trade deficit

5247. The current account includes ?
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A. services

B. the value of trade in merchandise

C. unilateral transfers

D. All of the above
5248. Credit (-) items in the balance of payments correspond to anything that ?
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A. involves receipts from foreigners

B. increases the domestic money supply

C. involves payments to foreigners

D. decreases the demand for foreign exchange

5249. The differences between a countrys merchandise exports and its merchandise imports is the ?
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A. current account

B. balance of payments

C. capital account

D. balance of trade
5250. Debit entries on the balance of payments are the entries that would ?
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A. mean a loss of foreign exchange

B. exist at the bottom line after all accounts are totaled

C. indicate a surplus exist

D. bring foreign exchange into the country

5251. Current account deficit are offset by______________?
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A. merchandise trade surpluses

B. merchandise trade deficits

C. capital/financial account surpluses

D. capital/financial account deficits

5252. Historically countries at early stages of rapid economic development have tender to experience ?
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A. trade deficits and an excess of domestic savings over investment

B. trade surplus and an excess of investment over domestic saving

C. trade deficit and an excess of investment over domestic saving

D. trade surpluses and an excess of domestic saving over investment

5253. When all of the debit or credit items in the balance of payments are combined ?
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A. capital imports equal capital exports

B. merchandise imports equal merchandise exports

C. the total surplus or deficit equals zero

D. services exports equal services imports

5254. The record of a countrys transactions in goods, services and assets with the rest of the world is its ?
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A. current account

B. capital account

C. balance of payments

D. balance of trade

5255. The U.S balance of payments is constructed by ?
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A. the U.S Department of commerce

B. the U.S Department of labor

C. the U.S Department of Agriculture

D. the council of Economic Advisers to the President

5256. A nation wishing to reduce its current account deficit would be advised to ?
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A. reduce government taxes

B. engage in more government spending

C. decrease domestic consumption

D. increases private investment spending

5257. A countrys transactions with the rest of the world are recorded in the ?
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A. balance of international indebtedness

B. income statements

C. balance of payments

D. balance of financial transactions

5258. Credit (+) items in the balance of payments correspond to anything that ?
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A. decreases the demand for foreign exchange

B. involves payments to foreigners

C. increases the domestic money supply

D. involves receipts from foreigners
5259. Direct investment and security purchases are classified as ?
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A. merchandise trade transactions

B. current account transactions

C. capital account transactions

D. unilateral transfer transactions

5260. All of the following are credit items in the balance of payments except ?
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A. payments for American services to foreigners

B. investment inflows

C. merchandise exports

D. private gives to foreign residents