Economics Mcqs For Lecturer & Subject Specialist PSC Exams1. To determine the correct level of GNP, it is necessary to.a. to add up the values of goods and services during one year.b. add up all savingsc. to count all importsd. to add up the value of semi finished goodsAnswer is = A

2. GNP is alwaysa. less then NNPb. Grater then NNPc. Equal to NNPd. Any of a, b, cAnswer is = B

3. The four factor payment are:a. Money, capital, salaries and incomeb. Wages, rent, interest and profitsc. Money, power, preset age, and wealthd. Wages, interest, salaries, and income.Answer is = B

4. We measure national income by this methoda. Expenditure methodb. income methodc. product methodd. all of the aboveAnswer is = D

5. Transfer payment meansa. Bank loansb. The payment without workc. Text paymentsd. Payments made to all factors of productionAnswer is = B

6. Which statement is truea. National expenditure= National incomeb. National Expenditure= National income+ National productionC. National Expenditure= National income+ National Taxesd. National Expenditure= National income- TaxesAnswer is = A

7. If we compare GDP and GNP, thena. GNP= GDP- net income from abroadb. GNP= GDP+ net income from abroadc. GNP= NNP- net income from abroadd. GNP= NNP+ net income from abroadAnswer is = B

8. A TV set purchased from a retail store is an example ofa. Intermediate goodsb. Capital goodsc. Surplus goodsd. Final goodsAnswer is = D

9. GNP is ?a. Total sales in the economyb. Total monetary transactions in an economyc. The market values of all goods and services produced in an economyd. Total spending in an economyAnswer is = C

10. GNP includesa. A loan from bankb.A loan from one’s parentsc. Gifts and donationsd. A broker’s commissionAnswer is = D

11. Net Investment isa. Gross Investment minus household Invesmentb. Gross Investment minus govt.c. Gross investment minus capital consumption allowanced. None of the aboveAnswer is = C

12. Market value of all final goods and services produced in a country during a year is defination ofa. NIb NNPc. GNPd. ConsumptionAnswer is = C

13. Consumption spending does not includea. Household’s purchases of foodb. Household’s purchases of a career

c. Household’s payment of rent for an apartmentd. Household’s purchases of stock in any XYZ corporationAnswer is = D

14. Which of the following would in crease national incomea. Increases in taxationb. Increase in savingsc. Increases in govt spendingd. Decreases in consumption spendingAnswer is = C

15. Which of the following is a withdrawal from the circular flow income stream?a. Investmentb. Subsidiesc. Taxationd. consumptionAnswer is = C

16. Pakistan’s saving rate isa. 5 %b. 14.4 %c. 25 %d. 35 %Answer is = B

17. In the world population-wise Pakistan isa. 3rdb. 4thc. 6thd. 8thAnswer is = C

18. Population growth rate in Pakistan isa. 1 %b. 1.73 %c. 1.9 %d. 4 %Answer is = B

19. According to the Economic Survey of Pakistan 2008-09 Pakistan’s per capita income is U.S. dollarsa. 320b. 1046c. 950d. 1520Answer is = B

20. Which is most likely to cause a more even distribution of income

a. An increases in indirect taxesb. An increases in managers’ salariesc. An increases in progressive taxationd. An increases in an rate of inflationAnswer is = C

21. Working population is ————– percent of total population of Pakistana. 20 %b. 30 %c. 40 %d. 50 %Answer is = B

22. Pakistan started its first five-year plan ina. 1947b. 1950c.1955d. 1960Answer is = C

23. Contribution of agriculture in Pakistan’s national income isa. 20 %b. 24 %c. 28 %d. 26 %Answer is = B

24. Contribution of industrial sector in Pakistan economy isa. 28 %b. 18 %c. 8 %d. –UndeterminedAnswer is = B

25. Size of Pakistan’s 8th plan was in —————rupees:a. 700 billionb. 1700 billionc. 2700 billiond. 3700 billionAnswer is = B

26. Pakistan produces—————of its oil requirementsa. 25 %b 35 %

c. 45 %d. 55 %Answer is = A

27. Economic developmenta. it same is as economic growthb. Means improvement in lifestylec. Exists when there is equal distribution of incomed. All of the aboveAnswer is = B

28. Economic development is measured on the basis ofa. Increases in nominal GNPb. Increases in real GNPc. Increases in personal incomesd. Increases in government revenueAnswer is = B

29. The govt. can control inflation bya. Increasing demand for goodsb. Increasing supply of goodsc. Increasing money supplyd. Decreasing taxesAnswer is = B

30. Government of Pakistan issues currency on the basis of:a. Availability of gold in the countryb. Availability of dollar in the countryc. Demand for money in the countryd. Tax collectionAnswer is = C

31. Which property the paper money dose not possessiona. Acceptabilityb. Divisibilityc. Durabilityd. PortabilityAnswer is = C

32. Velocity of circulation of money means.a. the number of times a unit of money changes hand’s dailyb. the number of times a unit of money changes hands monthlyc. the number of times a unit of money changes hands annuallyd. the number of times a unit of money changes hands valueAnswer is = C33. When the nation’s money supply is Rs. 1200 billion and GDP

is Rs. 4800 billion, velocity of money isa. 0.25b. 4c. 0.4d. 4 billion rupeesAnswer is = B

34. If quantity of money is doubled, than according toQuantity Theory, value of money isa. Remains constantb. Doublec. Halfd. None of the aboveAnswer is = C

35. According to Keynes, demand for money is affected bya. Incomeb. Rate of interestc. Literacy rated. A and B of aboveAnswer is = D

36. Which people of most likely to again during inflation?a. Those living on pensionb. Those living on there savingc. Those who are repaying borrowed moneyAnswer is = C

37. If quantity of money increases 100 % other things remaining constant, value of changes bya. Increases by 100 %b. Decreases by 100 %C.Decreases by 200 %d. Dose not changesAnswer is = B

38. When banks prepare their balance sheets, they show the money lent ina. Liabilityb. Assetsc. Both assets and liabilitiesd. NoneAnswer is = B

39. The power of a bank to create credit is affected bya. The cash reserve requirementsb. The amount of cash availablec. The number of branches of a bank

d. A and B of aboveAnswer is = D

40. A bank has Rs. 5 million in cash. The minimum reserve ratio is 20 %. What is maximum potential increases in total deposits?a. 0b. 5mc. 10md. 25mAnswer is = D

41. When a commercial bank creates credit, its immediate effect is that it raisesA. The exchanges rateB. The insert rateC. The money supplyD. The real national incomeAnswer is = C

42. State Bank of Pakistan was established inA. 1948.B. 1950C. 1952D.1954Answer is = A

43. 10-rupee note is issued byA. National BankB. State BankC. Govt of PakistanD. Governor state BankAnswer is = B

44. Which is the most widely used tool of monetary policy?A. Clearing houseB. open market operationsC. discount rateD. issuing of notesAnswer is = B

45. when the state bank wants to decrease money supply in the country, itA. buys govt securities in stock marketB. sells govt. securitiesC. lowers discount rateD.B and C of above.Answer is = B

46. Central bank’s rate of lending to commercial banks is calledA. Interest rateB. discount rateC. money rateD. control rateAnswer is = B

47. When a central bank wants to increase money supply in circulation it called?A. Purchase govt. securitiesB. Lowers bank rateC. Directs banks to advance more loansD. A and BAnswer is = D

48. Every country establishes central bank toA. Issue notesB. Supervise commercial banksC. Give loans to businessmenD. A and BAnswer is = D

49. Which is a monetary measure to increase employment?A. Incerease in Govt . expenditureB. Reduce Govt. expenditureC. Increase in Interest rateD. Reducing interest rateAnswer is = D

50. Treasury bill is used forA. Getting short term loansB. Getting long term loansC. Treasury bill is not credit instrumentD. Treasury bill is a Govt. tax billAnswer is = A