Economics MCQs

Page No. 244

If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?


a fluctuate more than it would do otherwise


bappreciate


cdepreciate


dnot be affected


View Answer depreciate

If Pakistan’s incomes rise faster than those in most other countries the the exchange value will tend to ?


a fluctuate more than it would do otherwise


bappreciate


cdepreciate


d not be affected


View Answer depreciate

If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?


adepreciate


b not be affected


c fluctuate more than if it were at peace


dappreciate


View Answer depreciate

If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?


awill remain the same


b will decrease


cwill increase


dcould either increase of decrease


View Answer will increase

The situation when a country imports more than it exports is ?


aa recession


b a trade surplus


ca trade deficit


dan expansion.


View Answer a trade deficit

The record of a county’s transfers of shareholding property and bank deposits to and from abroad is called its ?


afinancial account on the balance of payments.


bbalance of payments


cbalance of payments on current account


dcapital account of the balance of payments



The record of country’s imports and exports of goods and services is called its ?


avisible trade balance


b balance of trade


cbalance of payments on current account


dbalance of payments.


View Answer balance of trade

An economy that trades with and has financial dealing with other countries is called a/an ________ economy?


afree-trade


bautarkic


copen


dmixed


View Answer open

If interest rates rise then costs are likely to _______ and demand is likely to _________?


arise, fall


b rise; rise


c fall; fall


dfall; rise


View Answer rise, fall

Government policies that focus on changing taxes and government spending are called ?


afiscal policies


bincomes policies


csupply-side policies


d monetary policies


View Answer fiscal policies

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