Economics
Economics MCQs with Answers and Explanations
Economics MCQs with answers and detailed explanations for CSS, PMS, lecturer and GAT tests. Micro, macro and Pakistan economy questions fully explained. Take a scored quiz instead →
The Human Development Index (HDI) developed by Mahbub ul Haq and Amartya Sen incorporates three dimensions: health, education, and:
AStandard of living (Gross National Income per capita)
BIndustrial output
CMilitary expenditure
DExport volume
The record of all economic and financial transactions between residents of a country and the rest of the world over a period is the:
ABalance of Payments (BOP)
BBalance of Trade
CCapital Account Surplus
DCurrent Account Reserve
Which financial institution was established in 1944 at the Bretton Woods Conference to promote global monetary stability?
AInternational Monetary Fund (IMF)
BAsian Development Bank (ADB)
CWorld Trade Organization (WTO)
DBank for International Settlements (BIS)
Devaluation of a currency makes a country’s exports:
AMore expensive for foreigners and imports cheaper
BUnchanged in global markets
CEqual to foreign tariff rates
DCheaper for foreigners and imports more expensive for domestic residents
W.W. Rostow proposed how many stages of economic growth in his growth model?
AThree
BFour
CFive
DSix
In the Harrod-Domar growth model, the rate of economic growth depends directly on:
APopulation growth rate
BSavings rate and inversely on capital-output ratio
CForeign trade balance
DGovernment tax rates
The Laffer Curve in public finance illustrates the relationship between:
ATax rates and total tax revenue collected by government
BIncome inequality and economic development
CInflation rates and tax revenues
DPublic debt and GDP growth
The central bank function that acts as a ultimate lender of safety funds to commercial banks facing liquidity stress is:
AFiscal Agent
BClearing House
CLender of Last Resort
DUnderwriter
A tax system where higher income earners pay a larger percentage of their income in tax is described as:
AProportional Tax
BProgressive Tax
CSpecific Tax
DRegressive Tax
Which monetary policy instrument involves the central bank buying and selling government securities in the open market?
ACash Reserve Ratio (CRR)
BOpen Market Operations (OMO)
CStatutory Liquidity Ratio (SLR)
DBank Rate