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Updated Economics MCQs – Competitive Macroeconomic Issues and Analysis ( Economics ) MCQs

Updated Economics MCQs – Competitive Macroeconomic Issues and Analysis ( Economics ) MCQs

This post is comprising of latest ” ( Economics ) MCQs – Latest Competitive Medical MCQs “. Here you’ll get latest Economics mcqs for written test, interview with answers. If you want to improve your knowledge regarding Economics then read these mcqs of Design of Steel Structures.

Latest Economics MCQs

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Latest Macroeconomic Issues and Analysis ( Economics ) Mcqs

The most occurred mcqs of Macroeconomic Issues and Analysis ( Economics ) in past papers. Past papers of Macroeconomic Issues and Analysis ( Economics ) Mcqs. Past papers of Macroeconomic Issues and Analysis ( 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 Macroeconomic Issues and Analysis ( Economics ) Mcqs. The Important series of Macroeconomic Issues and Analysis ( Economics ) Mcqs are given below:

All of the following are benefits of the single market except ?

A. it allows countries to exploit their comparative advantage, more fully
B. economies of scal
C. firm could more readily exploit
D. it intensified competition
E. it is easier to book holidays in member countries

In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?

A. a nominal exchange rate, floated
B. a purchasing power parity, pegged
C. a real exchange rate, pegged
D. a real exchange rate, floated

If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?

A. revalue
B. depreciate
C. appreciate
D. be in short supply

Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

A. fall
B. appreciation
C. depreciation
D. devaluation

A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?

A. encourages
B. undermines
C. enhances
D. facilitates

With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?

A. unaffected
B. increased
C. reduced
D. None of these

perfect international capital mobility suggests that international funds will be responsive to ________ differentials?

A. tax
B. interest rate
C. current account
D. price

A rise in the real exchange rate will ________ the competitiveness of the domestic economy?

A. do nothing to
B. reduce
C. increase
D. None of the above

A current account deficit means that a country may ?

A. reduce its stock of foreign assets
B. increases its savings
C. increase its stock of foreign assets
D. increases its foreign currency reserves

If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

A. fluctuate
B. fall
C. not change
D. rise

If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?

A. is static; low; rises; deficit
B. falls; falls; falls; surplus
C. falls; rises; falls; surplus
D. rises; falls; rises; deficit

If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

A. falls; rise; falls; surplus
B. falls; falls; falls; surplus
C. is static; low; rise; deficit;
D. rise; falls; rises; deficit

If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?

A. not be affected
B. depreciate
C. fluctuate more than it would do therwise
D. appreciate

If currency dealers expect the value of the pound to fall, the exchange value will tend to ?

A. depreciate
B. appreciate
C. fluctuate more than it would do therwise
D. not be affected

If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to ?

A. depreciate
B. fluctuate more than if exports were lower
C. not be affected
D. appreciate

If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?

A. appreciate
B. not be affected
C. depreciate
D. fluctuate more than if interest rates were high

The price of one country’s currency in terms of another country’s currency is the ?

A. exchange rate
B. terms of trade
C. balance of trade
D. currency validation

The record of country’s transfers of land inter-government payments and money sent by migrants to and from abroad is called its ?

A. financial account of the balance of payments
B. capital account of the balance of payments
C. balance of payments
D. balance of payments on current account

The record of a country’s imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?

A. balance of payments on current account
B. balance of trade
C. visible trade balance
D. balance of payments

The record of country’s imports and exports of goods is called its ?

A. balance of payments
B. balance of trade
C. balance of payments on current account
D. visible trade balance

If VAT rates rise, then costs are likely to ___ and demand is likely to ____?

A. fall; fall
B. rise; fall
C. rise; rise
D. fall; rise

Government policies that focus on changing interest rates are called ?

A. supply-side policies
B. monetary policies
C. fiscal policies
D. incomes policies

Monopoly & Competition MCQs

Government policies that focus on increasing production rather than demand are called ?

A. monetary policies
B. fiscal policies
C. supply-side policies
incomes policies

As prices rise. People will want to keep more money as cash and in bank accounts This is called ?

A. real balance effect.
B. money illusion.
C. cash ratio.
D. menu costs of inflation.

The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called _______ unemployment?

A. structural
B. Regional
C. seasonal
D. demand-deficient

Unemployment resulting from imperfect information in the labour market is called ____ unemployment?

A. Frictional
B. real-wage
C. natural
D. disequilibrium

Aggregate supply is the total amount ?

A. produced by the government
B. of products produced by a given industry.
C. of labour supplied by all households
D. of goods and services produced in an economy.

Cyclical unemployment is the ?

A. Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.
B. Portion of unemployment that is due to the normal working of the labour market
C. Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.
D. Unemployment that occurs during recessions and depressions.

An individual who is not working and who has given up looking for work is classified as ?

A. a discouraged worker:
B. hard core unemployed.
C. unemployed.
D. unemployable

The labour force can be defined as ?

A. Those who could claim benefit if they were to become unemployed.
B. anyone who is working or actively seeking work
C. The population between school leaving age and retirement age.
D. Those of working age who are seeking work and are available to for work at current wage rates.

Reducing inflation is a more important objective than economic growth is an example of ?

A. Positive economics
B. Normative economics
C. Objective economics
D. Reality economics

Which of the following is a possible government objective as opposed to a policy ?

A. Lower interest rates
B. Lower government spending
C. Lower taxation rates
D. Lower inflation

Which of the following can the government not use directly to control the economy ?

A. Pay rates within the private sector
B. investment in education
C. pay rates in the public sector
D. Benefits available for the unemployed and sick

Which does the government not control directly ?0

A. Spending on defence
B. Spending on health
C. Firms investment decisions
D. Spending on education

What is meant by an objective ?

A. A way of reaching a target
B. A policy
C. A target
D. A strategy

In the EMU a country’s competitiveness can change because of ?

A. central bank intervention in the Forex
B. interest rate adjustment
C. domestic wage and price adjustment
D. devaluation

The Maastricht criteria for entry to the EMU are that applicants should have ?

A. low interest rates
B. low inflation
C. stable nominal exchange rates
D. budget deficits and government debt under control
E. all of the above

Industrial Development MCQs

A monetary union means ________, ________ and ________?

A. a common currency a single central bank, common monetary policy
B. permanently fixed exchange rates, free capital movements, a single interest rates
C. permanently fixed capital movements floating exchange rates a fixed structure of interest rates
D. a common currency floating exchange rates common monetary policy

The single European Act committed ________ governments to a ________ in 1992?

A. European union, single market
B. European Union, single currency area
C. Western European, single currency area
D. Western European, single market

The main features of the European Monetary system are ?

A. the exchange rate mechanism
B. currency swap agreement between member
C. The ECU
D. all of the above

Fiscal policy is weak under floating exchanges rates as fiscal expansion ?

A. crowds out public consumption
B. crowds out imports
C. crowds out exports
D. reduces the budget deficit

Floating exchange rates are ____ in the short run?

A. predictable
B. stable
C. volatile
D. depreciating

In the short run the level of floating exchange rates is determined mainly by ?

A. competitiveness
B. interest rates
C. trade
D. speculation

The competitive advantage from a devaluation is likely to be offset by _______ and ________?

A. higher import prices, higher wages increases
B. higher import prices, lower export prices
C. lower export prices, lower imports volumes
D. higher wage increases lower import volumes

In the absence of international capital controls, central banks set ________ to provide the correct incentive for speculators?

A. income policy
B. money supply targets
C. interest rates
D. inflation targets

Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?

A. buy foreign exchange buy domestic currency
B. sell foreign exchange buy domestic currency
C. buy foreign exchange, sell domestic currency
D. sell foreign exchange sell domestic currency

When capital mobility is perfect interest rate differentials will tend to be offset by ?

A. balance of payments difference
B. Price difference
C. current account differences
D. expected exchange rate changes

Within the circular flow of income, an increase in domestic income will tend to increase ?

A. inventories
B. taxes
C. exports
D. imports

Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?

A. revaluation
B. surplus
C. deficit
D. devaluation

In a fixed exchange rate regime, the central the exchange rate ?

A. buying reduce
B. selling, increase
C. selling, reduce
D. buying increase
E. A and B
F. C and D

When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?

A. revalues, devalues
B. depreciates, appreciates
C. appreciates, depreciates
D. becomes more expensive becomes cheaper

If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?

A. falls; falls; falls; surplus
B. is static; low; rises; deficit
C. falls; rises; falls; surplus
D. rises; falls; rises; deficit

If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?

A. falls; rises; falls; surplus
B. rise; falls; rise; deficit
C. falls; falls; falls; surplus
D. is static; low; rises; deficit

If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?

A. appreciate
B. fluctuate more than it would do otherwise
C. depreciate
D. not be affected

If Pakistan’s incomes rise faster than those in most other countries the the exchange value will tend to ?

A. appreciate
B. fluctuate more than it would do otherwise
C. depreciate
D. not be affected

If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?

A. depreciate
B. appreciate
C. fluctuate more than if it were at peace
D. not be affected

If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?

A. will decrease
B. will remain the same
C. will increase
D. could either increase of decrease

The situation when a country imports more than it exports is ?

A. a trade surplus
B. a recession
C. a trade deficit
D. an expansion.

The record of a county’s transfers of shareholding property and bank deposits to and from abroad is called its ?

A. financial account on the balance of payments.
B. balance of payments on current account
C. balance of payments
D. capital account of the balance of payments

Foundation Of Modern Trade Theory MCQs

The record of country’s imports and exports of goods and services is called its ?

A. balance of payments on current account
B. balance of trade
C. visible trade balance
D. balance of payments.

An economy that trades with and has financial dealing with other countries is called a/an ________ economy?

A. autarkic
B. free-trade
C. open
D. mixed

If interest rates rise then costs are likely to _______ and demand is likely to _________?

A. rise, fall
B. fall; fall
C. rise; rise
D. fall; rise

Government policies that focus on changing taxes and government spending are called ?

A. fiscal policies
B. supply-side policies
C. incomes policies
D. monetary policies

As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?

A. money illusion.
B. menu costs of inflation
C. real balance effect
D. cost-push inflation.

The natural rate of unemployment is generally thought of as the ?

A. Sum of structural unemployment and cyclical unemployment.
B. ratio of the frictional unemployment rate to the cyclical unemployment rate.
C. Sum of frictional unemployment and cyclical unemployment
D. sum of frictional unemployment and structural unemployment.

Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?

A. technological
B. regional
C. structural
D. demand-deficient

Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?

A. frictional
B. natural
C. disequilibrium
D. structural

Aggregate demand is the total demand for all goods and services in an economy from ?

A. the household sector.
B. the household and government sectors
C. all sectors of except the rest of the world
D. all sectors of the economy including the rest of the world.

Classifying discouraged workers as unemployed would ?

A. decrease the unemployment rate
B. not change the unemployment rate
C. increase the unemployment rate
D. have an indeterminate impact on the unemployment rate

Since 1998 many government have defined unemployment using ?

A. the number out of work and claiming benefit
B. a labour force survey.
C. the percentage of the labour force not in work
D. the ILO/OECD standardised unemployment measurement

The percentage of the labour force that is unemployed is the ?

A. employment rate
B. Unemployment rate
C. Unemployment population ratio.
D. Labour force rate.

Which of the following is not likely to be government objective ?

A. Increasing employment
B. Increasing government spending
C. Increasing economic growth
D. Increasing the level of exports

Which of the following is a policy instrument as opposed to a government objective ?

A. A better balance of trade position
B. lower interest rates
C. Faster economic growth
D. Lower unemployment

Which of the following is not a macroeconomic issue ?

A. Inflation
B. Unemployment
C. The wages paid to footballers
D. Economic growth

Which of the following is not involved with fiscal policy ?

A. Income tax
B. VAT
C. National insurance
D. Interest insurance

Which of the following is macroeconomic issue ?

A. The wage rate for plumbers in Islamabad
B. The price of houses in Karachi
C. Your decision to work or stay at home
D. The level of unemployment is pakistan

Updated Economics MCQs – Competitive Macroeconomic Issues and Analysis ( Economics ) MCQs