Most Latest Economics MCQs – New Miscellaneous ( Economics ) MCQs
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Latest Economics MCQs
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Latest Miscellaneous ( Economics ) Mcqs
The most occurred mcqs of Miscellaneous ( Economics ) in past papers. Past papers of Miscellaneous ( Economics ) Mcqs. Past papers of Miscellaneous ( 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 Miscellaneous ( Economics ) Mcqs. The Important series of Miscellaneous ( Economics ) Mcqs are given below:
The law of diminishing returns assumes ?
A. There are no variable factors of production
B. There are no fixed factors of production
C. Utility is maximised when marginal product falls
D. Some factors of production are fixed
An outward shift of the production possibility frontier may be caused by ?
A. More government spending
B. An increase in demand
C. Better training of employees
D. Productive inefficiency
The resources in an economy are ?
A. Constantly decreasing
B. Fixed at any moment
C. Constantly increasing
D. Able to be transferred easily between industries
An economy may operate outside the production possibility Frontier if ?
A. It is being productively efficient
B. It is not utilizing its resources fully
C. It is a mixed economy
D. It is trading other economies
In a free market the combination of products produced will be determined by ?
A. Market forces of supply and demand
B. The law
C. The government
D. The public Sector
Economic growth can be shown by ?
A. A movement along the production possibility frontier
B. An inward shift of the production possibility frontier
C. An outward shift of the production possibility frontier
D. A decision by the government to produce inside the production possibility frontier
A way of helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?
A. left-wing theorists
B. New classical economists
C. interventionist policies
Which of the following statements supports deregulation of industries ?
A. Because few real natural monopolies exist there is rarely a reason for government regulation
B. Technological change has made it possible for many industries to become more competitive
C. Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial
D. All of the above
Privatisation is the transfer out ?
A. corporately owned businesses to individuals
B. Publicly held stock to private individuals
C. government businesses to the private sector
D. Privately owned business to the government sector
Reaganomics was a radical shift in Policy aimed at direct tackling ?
A. The demand side of the country
B. The charities economy
C. The underground economy
D. the supply side of the economy
According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?
A. The income effect of a wage change is greater than the substitution effect of a wage change.
B. There is no income effect when tax rates are changed
C. There is no substitution effect when tax rates are changed
D. The substitution effect of a wage change is greater than the income effect of a wage change
Which of the following would be considered a supply-side policy ?
A. An increased in government spending that would lead to increased aggregate demand
B. Investment tax credits for businesses to encourage investment
C. Restrictions placed on the amount that can be imported
D. An increase in the minimum wage that would cause consumer spending to increase
In Which of the business cycle do firms try to cut stocks in order to save costs ?
A. The peeking out
B. The upturn
C. The expansion
D. The recession
If injections are less than withdrawals at the full-employment level of national income, there is ?
B. an inflationary gap
C. A deflationary gap
Assume there is no government or foreign setor, If the MPC is 75 a Rs20 million decrease in planned investment will cause aggregate output to decrease by ?
A. Rs80 million
B. Rs 15 million
C. Rs20 million
D. Rs26.67 million
Assuming there is no government or foreign sector, if the multiplier is 2.5 the MPC is ?
The ratio of change in the equilibrium level of output to a change in some autonomous variable is the ?
A. elasticity coefficient
C. automatic stabiliser
D. marginal propensity of the autonomous variable
The marginal propensity to withdraw is ?
A. 1-(1/injections multiplier
B. 1/investment multiplier
C. MPS + MPT + MPM
D. the proportion of national income that is withdraw from the circular flow of income
As the MPS increases the multiplier will ?
C. remain constant
D. either increase or decrease depending on the size of the change in investment
Keynes suggested that decisions to consume and save were based on ?
A. relative income
B. absolute income
C. previous decisions
D. permanent income
The fraction of change in income that is consumed or spend is called ?
A. the marginal propensity to save
B. the marginal propensity of expenditure
C. the average propensity to consume
D. the marginal propensity to consume
A variable whose value is determined by the model of which it is a part is termed ?
Open Market Operations occur when the government ?
A. Buys and sells bonds and securities
B. Reduces the interest rate
C. Increases taxation
D. Increase the exchange rate
The speculative demand for money occurs when ?
A. Individuals hold money to shop
B. Individuals hold money to buy things
C. Individuals hold money rather than other assets because they are worried about the price of the other assets falling
D. Individuals hold money just in case an emergency happens
A reduction in the money supply is likely to ?
A. Increase inflation
B. Increase the interest rate
C. Reduce the interest rate
D. Decrease deflation
A fall in interest rates is likely to ?
A. Increase aggregate demand
B. Decrease consumption
C. Increase savings
D. Decrease exports
The precautionary demand for money is ?
A. An idle because
B. Directly related to interest rates
C. An active balance
D. Inversely related to income
If an increase in investment leads to a bigger increase in national income this called the ?
B. Aggregate demand
Investment is ?
A. A withdrawal that increase aggregate demand
B. An injection that increases aggregate demand
C. An injection that decreases aggregate demand
D. A withdrawal that decrease aggregate
Investment depends mainly on ?
A. Future expected profits
B. Past levels of income
C. Present national income levels
D. Historic data
An increase in interest rates ?
A. Is likely to reduce the external value of the currency
B. Is likely to reduce savings
C. Leads to a shift in the MEC schedule
D. Leads to a movement along the MEC schedule
An increase in investment is most likely to be caused by ?
A. Lower national income
B. Lower interest rates
C. A decrease in the marginal propensity to consume
D. An increase in withdrawals
Friedman’s theory of consumption focuses on ?
A. Current income
B. Past income
C. Disposable income
D. permanent income
An increase in consumption at any given level of income is likely to lead to ?
A. A fall in taxation revenue
B. An increase in exports
C. A fall is savings
D. A decrease in import spending
If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the average propensity to consume is what ?
If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?
If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is ?
To anticipate what the economy is going to do next the government will look at ?
A. Flashing indicator
B. Lagging indicators
C. Coincidental indicators
D. Leading indicators
The socially optimal rate of growth is ?
C. Where the marginal social benefit = the marginal social cost
D. Total social costs are minimized
Potential growth measures ?
A. the growth of the fastest economy in the world
B. The fastest growth an economy has ever achieved
C. The rate of growth that could be achieved if resources were fully employed
D. The present rate of growth of an economy