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 →
Value Added Tax (VAT) and Sales Tax are classified as:
ADirect Taxes
BIndirect Taxes
CProgressive Income Taxes
DCapital Gains Taxes
The proportion of total deposits that commercial banks are legally mandated to keep as cash reserves with the central bank is the:
AStatutory Liquidity Ratio (SLR)
BCash Reserve Ratio (CRR)
CRepo Rate
DDiscount Rate
The Lorenz Curve is a graphical representation used to measure:
AIncome inequality within a population
BPrice elasticity of demand
CThe trade-off between inflation and unemployment
DThe velocity of money circulation
The Gini Coefficient value ranges between:
A0 and 1
B0 and 100
C-1 and +1
D1 and 10
Which principle of taxation formulated by Adam Smith emphasizes that taxes should be clear, non-arbitrary, and predictable?
ACanon of Certainty
BCanon of Convenience
CCanon of Economy
DCanon of Equality
A government budget deficit occurs when:
AGovernment expenditure exceeds government revenues in a financial year
BExports exceed imports
CNational debt is fully paid off
DTax revenues exceed public spending
Primary deficit is calculated as:
ARevenue Deficit minus Capital Expenditure
BFiscal Deficit minus Interest Payments
CBudget Deficit plus Foreign Grants
DTotal Expenditure minus Total Revenue
The Theory of Absolute Advantage in international trade was formulated by:
AAdam Smith
BEli Heckscher
CDavid Ricardo
DBertil Ohlin
David Ricardo introduced which fundamental trade theory based on opportunity cost differences?
AHeckscher-Ohlin Model
BProduct Life Cycle Theory
CGravity Model of Trade
DTheory of Comparative Advantage
The Heckscher-Ohlin (H-O) model asserts that a nation will export goods that intensively use its:
AAbundant factors of production
BScarce factors of production
CImported raw materials only
DHigh-cost domestic technology