All Free Economics MCQs with Answers
Every Economics question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
4,037 questions · page 24 of 202
- A. State Bank
- B. National Bank
- C. Both of them
- D. None of them
Explanation: The State Bank of Pakistan is the country's central bank, responsible for monetary policy, currency issuance and banking regulation.
Correct answer: State Bank- A. State Bank
- B. National Bank
- C. Both of them
- D. None of them
Explanation: The State Bank of Pakistan is the country's central bank, responsible for monetary policy, currency issuance and regulation of the banking…
Correct answer: State Bank- A. Business Crop
- B. Cash crop
- C. Money Crop
- D. Earning Crop
Explanation: A cash crop is grown mainly for sale and commercial income rather than for the farmer's own consumption.
Correct answer: Cash crop- A. Hinterland
- B. Country land
- C. Dependent land
- D. Parasite land
Explanation: A hinterland is the inland area economically linked to a town, city, or port and served by it.
Correct answer: Hinterland- A. Total dept
- B. Debt burden
- C. National liabilities
- D. External debt
Explanation: External debt is the total amount a country owes to foreign governments, institutions, and other creditors outside its borders.
Correct answer: External debt- A. economics problems are solved by the government and market
- B. economic decisions are made by the private sector and free market
- C. economic allocation is achieved by the invisible hand
- D. economics s is solved by government departments
Explanation: A mixed economy combines market mechanisms with government intervention in production, distribution, and resource allocation.
Correct answer: economics problems are solved by the government and market- A. Economic growth rate
- B. Labour force participation rate
- C. Unemployment rate
- D. Gross National Income per capita
Explanation: The World Bank groups economies by income using gross national income per capita, which reflects the average income available to…
Correct answer: Gross National Income per capita- A. Monetary
- B. Trade
- C. Fiscal
- D. Investment
Explanation: Automatic stabilizers, such as progressive taxes and unemployment benefits, change government revenue or spending automatically over the…
Correct answer: Fiscal- A. Economic growth of the country
- B. Rate of unemployment
- C. Labour force participation rate
- D. Rate of inflation
Explanation: An increase in the money supply can raise aggregate demand and, when the economy is near capacity, put upward pressure on the general…
Correct answer: Rate of inflation- A. Okun's law
- B. Phillips curve
- C. Say's law
- D. U-shape curve
Explanation: The Phillips curve shows the short-run inverse relationship between inflation and unemployment: stronger demand may reduce unemployment…
Correct answer: Phillips curve- A. Consumption by households
- B. Investment by firms
- C. Public Spendings
- D. Rate of unemployment
Explanation: GDP is measured through spending on consumption, investment, government spending and net exports.
Correct answer: Rate of unemployment- A. Supply side economics
- B. Demand side economics
- C. Both (A) & (B)
- D. None of these
Explanation: Classical economics emphasizes flexible prices, market clearing and the productive capacity of the economy, making it associated with…
Correct answer: Supply side economics473. LM curve represents:
- A. Equilibrium in goods market
- B. Budget balance
- C. Equilibrium in financial market
- D. None of these
Explanation: The LM curve shows combinations of income and interest rates at which the money or financial market is in equilibrium.
Correct answer: Equilibrium in financial market- A. 0 to 1
- B. 1 to 100
- C. -1 to +1
- D. None of these
Explanation: The HDI is a composite index of health, education and living standards, normalized on a scale from 0 to 1.
Correct answer: 0 to 1- A. Negative
- B. Positive
- C. Direct
- D. None of theseTake Economics Courses
Explanation: In Keynesian liquidity-preference theory, a larger money supply lowers the interest rate when other factors remain constant.
Correct answer: Negative- A. Have a large GDP than GNP
- B. Grow slower economically than the other country
- C. Grow faster economically than the other country
- D. Have smaller GDP than GNP
Explanation: Net income payments to foreign investors are factor-income outflows, so domestic production measured by GDP exceeds the income accruing to…
Correct answer: Have a large GDP than GNP- A. The same as personal income
- B. Income that is used only for consumption
- C. Personal income remaining after income taxes
- D. Exclusive of social security payments or welfareDownload Interactive Maps
Explanation: Disposable income is the amount households can spend or save after personal income taxes are deducted from personal income.
Correct answer: Personal income remaining after income taxes- A. Seasonal
- B. Frictional
- C. Cyclical
- D. Structural
Explanation: Cyclical unemployment rises during economic downturns and falls during recoveries because it follows fluctuations in aggregate business…
Correct answer: Cyclical- A. Maddison
- B. Kindleberger
- C. Todaro
- D. Friedman
Explanation: Kindleberger distinguished growth from development by describing growth as an increase in output, while development also involves…
Correct answer: Kindleberger- A. Standard of Living
- B. Life Expectancy
- C. Education
- D. All
Explanation: The HDI combines three dimensions: a long and healthy life measured by life expectancy, knowledge measured through education, and a decent…
Correct answer: All