Latest Economics MCQs – New Budget Deficits And The Trade Balance ( Economics ) MCQs
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Latest Economics MCQs
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Latest Budget Deficits And The Trade Balance ( Economics ) Mcqs
The most occurred mcqs of Budget Deficits And The Trade Balance ( Economics ) in past papers. Past papers of Budget Deficits And The Trade Balance ( Economics ) Mcqs. Past papers of Budget Deficits And The Trade Balance ( Economics ) Mcqs . Mcqs are the necessary part of any competitive / job related exams. The Mcqs having specific numbers in any written test. It is therefore everyone have to learn / remember the related Budget Deficits And The Trade Balance ( Economics ) Mcqs. The Important series of Budget Deficits And The Trade Balance ( Economics ) Mcqs are given below:
An export subsidy should have the opposite effect of ?
A. Capital flight
B. A government budget deficit
C. An increase in Private saving
D. A tariff
Which of the following groups would not benefit from an EU imports quota on Japanese cars ?
A. employees of EU car manufacturers
B. EU farmers who export grain
C. Eu consumers who buy electronics from Japan
D. Shareholders of German carmaker BMW
Which of the following statements about trade policy is true ?
A. A country’s trade policy has no impact on the size of its trade balance
B. A restrictive imports quota increases a country’s net exports
C. A restrictive import quota decreases a country’s net exports
D. None of these answers
Suppose, due to political instability, Russians suddenly choose to invest in UK assets as opposed to Russian assets Which of the following statements is true regarding UK net foreign investment ?
A. UK net foreign investment rises
B. UK net foreign investment is unchanged because only UK residents can after UK net foreign investment
C. UK net foreign investment falls
D. None of the above
If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing Which of the following is true regarding the market for foreign currency exchange ?
A. The Supply of pounds increases, and the pound depreciates
B. The demand for pounds decreases and the pound depreciates
C. The Supply of pounds decreases, and the pound appreciates
D. The demand for Pounds increases and the pound appreciates
An increasing in Europe’s taste for UK produced Hondas would cause the pound to ?
A. appreciate and would increase UK net exports
B. depreciate and would increase UK net exports
C. depreciate and would decrease UK net exports
D. appreciate, but the total value of UK net export stays the same
An increase in the government budget deficit ?
A. decreases the real interest rate and crowds out investment
B. has no impact on the real interest rate and fails to crowed out investment
C. None of these answers
D. Increases the real interest rate and crowds out investment
Capital flight ?
A. increases a country’s net exports and increases its long-run growth path
B. decreases a country’s net exports and increases its long-run growth path
C. increases a country’s net exports and decreases its long-run growth path
D. decreases a country’s net exports and decreases its long-run growth path
Which of the following groups would be most harmed by a UK government budget deficit ?
A. Lenders of loanable funds
B. BAe Systems wishing to sell aircraft to Saudi Arabia
C. UK residents wishing to buy foreign Produced cars
D. Foreigners who wish to buy assets in the UK
An example of a trade policy is ?
A. A tariff on sugar
B. an increase in the government budget deficit because it reduces a country’s net exports
C. capital flight because it increases a country’s net exports
D. All are examples of trade policy
An increase in Pakistan’s private saving ?
A. increase Pakistan’s net exports and Pakistan’s net capital outflow the same amount
B. decreases Pakistan’s net exports and Pakistan’s net capital outflow the same amount
C. Increase Pakistan’s net exports and decrease Pakistan’s net capital outflow
D. decrease Pakistan’s net exports and increase Pakistan’s net capital outflow
Consumer Theory Vs Real Consumer MCQs
Suppose, due to political instability, Russians suddenly choose to purchase UK assets as opposed to Russian assets Which of the following statements is true regarding the value of the pound and UK net exports ?
A. The pound depreciates, and UK net exports rise
B. The pound appreciates, and UK net exports fall
C. The pound appreciates, and UK net exports rise
D. The pound depreciates, and UK net exports fall
If the EU imposes a quota on the importing of clothing produced in China, so reducing UK imports of clothing, which of the following is true regarding UK net exports ?
A. Net exports will rise
B. Net exports will fall
C. None of these answers
D. Net exports will remain unchanged
Which of the following statements regarding the market for foreign currency exchange is true ?
A. An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees depreciate
B. An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees depreciate
C. An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees appreciate
D. An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees appreciate
Which of the following statements regarding the market for foreign currency exchange is true ?
A. An increase in Pakistan’s net exports increases the Supply of rupees and the rupees depreciates
B. An increase in Pakistan’s net exports increase the demand for rupees and the rupees appreciates
C. An increase in Pakistan’s net exports decreases the supply of rupees and the rupees depreciates
D. An increase in Pakistan’s net exports decrease the demand for rupees and the rupees appreciates
The Phrase “twin deficits” refers to ?
A. A country’s trade deficit and its government budget deficit
B. the equality of a country’s saving deficit and its investment deficit
C. The fact that if a country has a trade deficit, its trading partners must also have trade deficits
D. a country’s trade deficit and its net capital outflow deficit
An increase in the Pakistan’s government budget deficit ?
A. Increase Pakistan’s net exports and Pakistan’s net capital outflow the same amount
B. decreases Pakistan’s net exports and Pakistan’s net Capital outflow the Pakistan’s same amount
C. Increase Pakistan’s net exports and decrease Pakistan’s net capital outflow
D. decreases Pakistan’s net exports and increase Pakistan’s net capital outflow
Which of the following statement regarding the loanable funds market is true ?
A. An increase in the government budget deficit shifts the supply of loanable funds to the right
B. A decrease in the government budget deficit increase the real interest rate
C. An increase in private saving shifts the supply of loanable funds to the left
D. An increase in the government budget deficit shifts the supply of loanable funds to the left
Which of the following statements regarding the loanable funds market is not true ?
A. An increase in domestic investment shifts the demand for loanable funds to the right
B. A decrease in a country’s net capital outflow shifts the demand for loanable funds to the left
C. An increase in a country’s net capital outflow shifts the supply of loanable funds to the left
D. An increase in a country’s net capital outflow raises its real interest rate