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 →
Unemployment caused by a mismatch between worker skills and available job requirements is termed:
AFrictional Unemployment
BCyclical Unemployment
CStructural Unemployment
DSeasonal Unemployment
Which equation represents Irving Fisher’s Quantity Theory of Money?
AY = C + I + G
BS = I
CMV = PT
DMD = L(Y, i)
Milton Friedman and the Monetarist school argue that inflation is primarily caused by:
AExcessive growth in money supply relative to economic output
BHigh trade deficits
CRising wage demands from labor unions
DExcessive government budget deficits
The crowding-out effect refers to a scenario where increased government spending leads to:
AHigher private investment due to economic growth
BHigher interest rates that reduce private investment expenditure
CLower tax revenues for the central treasury
DImmediate currency appreciation
The net market value of all final goods and services produced by nationals of a country, regardless of location, is:
AGross National Product (GNP)
BGross Domestic Product (GDP)
CNet Domestic Product (NDP)
DPersonal Income
Gross Domestic Product (GDP) measured at current market prices without adjusting for inflation is known as:
ANominal GDP
BPotential GDP
CNet Domestic Product
DReal GDP
The GDP Deflator is calculated as:
A(Nominal GDP / Real GDP) × 100
B(Real GDP / Nominal GDP) × 100
C(CPI / Nominal GDP) × 100
D(GDP growth rate / Inflation) × 100
Stagflation is an economic condition characterized by:
AHigh inflation, high unemployment, and stagnant economic growth
BHigh growth and high inflation
CLow inflation and low unemployment
DRapid deflation and high economic output
According to John Maynard Keynes, the primary determinant of aggregate demand and consumption expenditure is:
ACurrent disposable income
BMoney supply growth
CRate of interest
DExchange rate stability
The Phillips Curve illustrates the short-run inverse relationship between:
AInflation and unemployment
BEconomic growth and tax rates
CMoney supply and velocity
DInflation and interest rates