Which of these causes inflation?
Correct answer A. Increase in money supply and fall in production
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Economics MCQs
Page 118 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 118 of 131
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
Which of these would make a country’s exchange rate fall?
Correct answer C. Increased demand for its imports
What is a rising stock market described as?
Correct answer C. Bullish
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Economic development is measured by an increase in which of these?
Correct answer D. Increase in real GNP
On what basis does Pakistan issue its currency?
Correct answer C. Demand for money in the country
What does the velocity of circulation of money refer to?
Correct answer A. The number of times a unit of money changes hands annually
What effect does a tariff have on trade?
Correct answer A. Reduces the volume of trade
On which date does Pakistan’s fiscal year begin?
Correct answer D. 1st July
Which factors affect a bank’s ability to create credit?
Correct answer D. Both the cash reserve requirement and the amount of cash available
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At what rate of interest does a liquidity trap arise?
Correct answer C. Very low rate of interest
When a commercial bank creates credit, what does it immediately increase?
Correct answer C. The money supply
What does the State Bank do when it wants to reduce the money supply?
Correct answer C. Sells government securities
What is a treasury bill used for?
Correct answer A. Getting short term loans
In Pakistan, what is the bank set up to lend to very small enterprises called?
Correct answer B. Micro Finance Bank
Which of these is NOT a function of a commercial bank?
Correct answer B. Banker to the government
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What does a country’s balance of payments include?
Correct answer D. Both the balance of trade and capital receipts and payments
Which German city is credited with housing the world’s first car manufacturing plant?
Correct answer C. Stuttgart
What does commercial policy refer to?
Correct answer A. Policy about imports and exports
Oil is measured in barrels. Which abbreviation is used for barrels?
Correct answer C. Bbl
A persistent balance of payments deficit causes the exchange rate of which kind of currency to fall?
Correct answer B. Soft currency