MCQs

Economics MCQs with Explanations

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701EconomicsMedium

An example of fiat money is?

APaper euros

BSilver coins

Ccigarettes

Dgold

Correct answer

A. Paper euros

Explanation

The correct answer is Paper euros.

702EconomicsMedium

Which of the following is FALSE? Scientific observation?

Ayields valid date with classification organization or recording

Bmust proceed systematically

Cmust occur under controlled conditions

Dis open to anyone who wants to pursue it

Correct answer

D. is open to anyone who wants to pursue it

Explanation

The correct answer is is open to anyone who wants to pursue it.

703EconomicsMedium

Name a gold, silver, or platinum coin than usually traded at slightly more than its current bullion value?

AGreen Leaf

BGold Leaf

CHard Leaf

DMaple Leaf

Correct answer

D. Maple Leaf

Explanation

The correct answer is Maple Leaf.

704EconomicsMedium

The Wah is famous for?

AMughal Garden

BNone of them

CBoth of them

DOrdnance factory

Correct answer

D. Ordnance factory

Explanation

The correct answer is Ordnance factory.

705EconomicsMedium

If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos?

AThe price of autos within the nation will rise by less than 10 percent

BThe price of autos will not rise because of internal competition

CThe price of autos within the nation will rise by more than 10 percent

DThe price of autos within the nation will rise by 10 percent

Correct answer

D. The price of autos within the nation will rise by 10 percent

Explanation

The correct answer is The price of autos within the nation will rise by 10 percent.

706EconomicsMedium

Which of the following is a normative statement in economics?

AThe Pakistan’s economy is growing fast relative to other SAARC members

BThe government should concentrate on reducing unemployment

CHigher taxes lead to less desire to work

DMore spending by the government reduces poverty

Correct answer

B. The government should concentrate on reducing unemployment

Explanation

The correct answer is The government should concentrate on reducing unemployment.

707EconomicsMedium

The Phillips curve is a graph showing the relationship between?

Athe level of aggregate output and the price level

Bthe inflation rate and the level of aggregate demand

Cthe price level and the unemployment rate

Dthe inflation rate and the unemployment rate

Correct answer

D. the inflation rate and the unemployment rate

Explanation

The correct answer is the inflation rate and the unemployment rate.

708EconomicsMedium

The fall in value of one currency relative to another is?

Aan appreciation of a currency

Ba depreciation of a currency

Ca floating of a currency

Da strengthening of a currency

Correct answer

B. a depreciation of a currency

Explanation

The correct answer is a depreciation of a currency.

709EconomicsMedium

If culture is comparable to a script for a play then________?

Asocial scientists may be compared to stage hands

Bindividuals may be compared to playwrights

Csociety may be compared to a troupe of actors

Dthe economy may be compared to the director

Correct answer

C. society may be compared to a troupe of actors

Explanation

The correct answer is society may be compared to a troupe of actors.

710EconomicsMedium

An example of a trade policy is?

Aan increase in the government budget deficit because it reduces a country’s net exports

BAll are examples of trade policy

Ccapital flight because it increases a country’s net exports

DA tariff on sugar

Correct answer

D. A tariff on sugar

Explanation

The correct answer is A tariff on sugar.

Which of the following is FALSE? Scientific observation?

Ayields valid date with classification organization or recording

Bmust proceed systematically

Cmust occur under controlled conditions

Dis open to anyone who wants to pursue it

Correct answer

D. is open to anyone who wants to pursue it

Explanation

The correct answer is is open to anyone who wants to pursue it.

If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos?

AThe price of autos within the nation will rise by less than 10 percent

BThe price of autos will not rise because of internal competition

CThe price of autos within the nation will rise by more than 10 percent

DThe price of autos within the nation will rise by 10 percent

Correct answer

D. The price of autos within the nation will rise by 10 percent

Explanation

The correct answer is The price of autos within the nation will rise by 10 percent.

Which of the following is a normative statement in economics?

AThe Pakistan’s economy is growing fast relative to other SAARC members

BThe government should concentrate on reducing unemployment

CHigher taxes lead to less desire to work

DMore spending by the government reduces poverty

Correct answer

B. The government should concentrate on reducing unemployment

Explanation

The correct answer is The government should concentrate on reducing unemployment.

The Phillips curve is a graph showing the relationship between?

Athe level of aggregate output and the price level

Bthe inflation rate and the level of aggregate demand

Cthe price level and the unemployment rate

Dthe inflation rate and the unemployment rate

Correct answer

D. the inflation rate and the unemployment rate

Explanation

The correct answer is the inflation rate and the unemployment rate.

If culture is comparable to a script for a play then________?

Asocial scientists may be compared to stage hands

Bindividuals may be compared to playwrights

Csociety may be compared to a troupe of actors

Dthe economy may be compared to the director

Correct answer

C. society may be compared to a troupe of actors

Explanation

The correct answer is society may be compared to a troupe of actors.