All Free Economics MCQs with Answers

• A. A currency substitutes
• B. Coins
• C. De-valued currency
• D. Silver

Explanation: Artificial currency refers to a currency substitute used in place of official money, such as tokens or other substitute instruments.

• A. Income from export
• B. Difference between imports and exports
• C. Income from imports
• D. All of them

Explanation: The trade balance measures the difference between the value of a country’s exports and imports, usually expressed as exports minus…

• A. Application of science to achieve a commercial or industrial objective
• B. Application of modern science in the country
• C. Science based know low
• D. All of thesePolitical Science Mcqs

Explanation: Technology is the practical application of scientific knowledge and know-how to achieve useful commercial or industrial results.

• A. Prudent development
• B. Sustainable development
• C. Managed economy
• D. None of these

Explanation: Sustainable development meets present needs while preserving resources and opportunities for future generations.

• A. Sending of money to someone at distance
• B. The sum of money sent
• C. Both of them
• D. None of them

Explanation: Remittance can mean both the act of sending money and the money sent, especially funds transferred by workers to people in another place…

• A. Price index
• B. Price indexing
• C. Price fixing
• D. Price choosing

Explanation: A price index compares the prices of a selected group of goods with their prices in a chosen base period, usually setting the base at 100.

• A. Market Economy
• B. Harvard Group
• C. Keynesian
• D. London Group

Explanation: Keynesian economics derives from the work of John Maynard Keynes and supports using fiscal and monetary policies to influence demand and…

• A. Gross Domestic Product (GOP)
• B. Gross National output (GNO)
• C. Gross National Product (GNP)
• D. Gross National output

Explanation: Gross National Product measures the value of final goods and services produced by a country's nationals during a period, including net…

• A. God standard system
• B. Gold based system
• C. Bullion standard system
• D. None of the above

Explanation: Under the gold standard, currency is convertible into a specified quantity of gold at a fixed rate on demand.

• A. Currency exchange
• B. Currency value
• C. Currency value
• D. Exchange rate

Explanation: An exchange rate expresses the value of one currency in terms of another currency, gold, or an international accounting unit such as the…

• A. Advance deduction of the interest in purchasing, selling or lending a commercial paper
• B. State (central) Bank's interest rate on loans to its member banks
• C. Both of them
• D. None of them

Explanation: The discount rate can refer to the rate applied when commercial paper is discounted and, in monetary policy, to the central bank's lending…

• A. Decreasing business activity
• B. Falling prices
• C. Unemployment
• D. All of these

Explanation: A depression is a severe and prolonged contraction in economic activity, typically involving falling prices, declining business activity…

• A. Economic Cycle
• B. Business Cycle
• C. Complete Cycle
• D. Cycle Business

Explanation: The business cycle is the recurring pattern of recession, recovery, expansion or growth, and decline in overall economic activity.

• A. Balance of payment
• B. Balance sheet
• C. Terms of trade
• D. Balance of trade

Explanation: The balance of trade is the difference between the value of a country’s exports and imports of goods over a specified period.

• A. Breton Wood method
• B. Free market exchange rate
• C. Atlas method of exchange rate
• D. Open market exchange rate

Explanation: The World Bank’s Atlas method converts national income into a common dollar measure by using an exchange-rate average adjusted for…

• A. adjusting for changes over time
• B. adjusting for data collection errors
• C. adjusting for population changes
• D. adjusting or changes in prices

Explanation: A nominal value is converted into a real value by removing the effect of price changes, usually through a price index.

• A. about the same point in time over different places
• B. about different points in time over the same variable
• C. about different variables over different places
• D. about different points in time over different places

Explanation: Time-series data track the same variable at different points in time, such as Pakistan’s inflation rate over several years.

• A. individual building blocks in the economy
• B. the relationship between different sectors on the economy
• C. household purchase decisions
• D. the economy as a whole

Explanation: Macroeconomics examines economy-wide outcomes such as national income, unemployment, inflation, and economic growth.

• A. there is excess demand in the labour market
• B. there are some people who will not work at the going wage rate.
• C. people are not willing to work at the going wage rate.
• D. at the going wage rate, there are people who want to work but cannot find work.

Explanation: Unemployment exists when people who are willing and able to work at the prevailing wage cannot find jobs.

• A. a decrease in the overall price level.
• B. an increase in the overall price level.
• C. an increase in the overall level of economic activity.
• D. a decrease in the overall level of economics activity

Explanation: Inflation is a sustained rise in the general or overall price level, which reduces the purchasing power of money.